Anyway, now we see some economists arguing that the fires may not be such a bad thing after all. While acknowledging the tragic and sometimes lethal effects on some, they argue that the at least the bushfires are good for the economy. Here is a quote from the Australian (Thanks Chris for the tip):
"As an aside, the bushfires may help the nation fend off recession: Goldman Sachs JBWere economist Tim Toohey says rebuilding will generate an economic stimulus equal to 0.25-0.4 per cent of GDP over the next 18 months.
"As tragic as the events of the past two days have been, the rebuilding phase will provide a catalyst for economic growth in coming months, even if the personal and environmental cost takes years to recover," he says.""
Many suspect that arsonists may have had a role in the creation of these fires. Maybe these arsonists were Keynesians determined to help Australia fend off recession by burning down these houses! After all, if you really believe , like Keynes did, that it is a good idea to bury bottles in the ground and then digg them up again, why not also believe that it is a good idea to burn down houses and rebuild them?
If only people could learn to read Bastiat instead of Keynes.....