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THE FALLACY OF MINING

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try to adapt the essay "The broken window fallacy" written by Frederic Bastiat, a real case of the society (in order to create discussion)

By: Francisco Encalada


In a country abundant wealth, one day a group of people with few opportunities for improvement found in mining (small scale or artisanal) a way to survive. Then they began to dig holes in the ground without much art, in order to obtain Gold This altered the lives of other people who were near the area of \u200b\u200binfluence, which in Most were engaged in agriculture, which is why the rivers used as feedstock for their crop was contaminated.

is when people (many of them just curious) began to philosophize about the fact and said that after all this misfortune may have its good side: people who had no growth opportunities (many of them uneducated) found in mining a way to survive.


produce miners How? "100 sucres (national currency)? Able is not hard to meet the needs of individuals. But what if there were no mining? What about the miners?



100 sucres The miners would have more to spend on your needs and might have more money in the economy so that others spend those 100 sucres and so on.
The "broken window", will be generating money and jobs in a spiral and people conclude, then, that mining far from being a threat to society, has become a benefit for everyone!

So far everything seems fine, but looking at it from another perspective the following happens
While mining means more income for people to meet their needs What about other people, in this case with the farmers?



If there is sufficient water for irrigation, farmers would be 100 sucres less for their expenditures on clothing (or anything else that would want to acquire), because it would have to invest more money getting water.

So far we only have the prospect of 2 parts of society involved, the miner and farmer.

If we see the farmer and member of society, lose the ability to meet their needs, ie in this sense: it has been depleted (no something I needed). In addition, the profit obtained by the miner, is not nothing but the loss is now the tailor (who sells clothing to the farmer). On this side no new "jobs" has been created. This forgetfulness

precisely because the tailor never entered the picture. People will only see the quarries and mines from the surface. What ever see is the farmer's new clothes, simply because it will never be made. See only what is immediately visible to your eyes.

is important in the analysis of the problems facing society regarding their means of subsistence, to take into account all aspects that involve a little action. While we can see that mining creates destruction and losses to farmers, it is important to note that there is also lack of knowledge of the miners when their activities, because they are people with the sole aim to survive without but were not able to do. The ruling in the analysis, it would know which are the total benefits and costs to society.

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