Suppose that a strong earthquake were to destroy a sizable part of a city. The rebuilding process would involve massive investment, procurement of materials and services, and employment. But can anyone believe that the local economy would be stronger than would have been the case had the earthquake never occurred?
Obviously not. But in the timeless mindset of the Beltway, earthquake-like policies that destroy the economic value of significant parts of the physical, human, and technological stock of capital can simply be replaced with centrally planned substitutes without any loss of wealth or economic growth. Seriously?
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