Writing assignment: 500 words on this topic, “Describe Bastiat’s concept of the politics of plunder.”
Frédéric Bastiat was a very accomplished statesman, economist, and most well-known as an author. In most of his books he would advocate for free markets, free trade, and individual liberty. But the most interesting topic he wrote about would have to be the politics of plunder.
Bastiat’s basic philosophy is “that which is seen and unseen.” Bastiat’s idea is that you should not judge an expense merely by its initial cost (the “surface expense”). Instead, you must evaluate its full, long-term impact on the economy and consider whether that impact is ultimately harmful or helpful.
The most effective way that I can explain Bastiat’s The Broken Window. Is just to simplify the story. The scenario in his essay is that a baker’s window is broken by a vandal. The baker is upset because he has to spend money he didn’t plan on spending to fix it. The local’s argument on this is that the broken window is actually a good thing for the local economy. They argue this because the baker must pay a glazier (window repairman) to fix the window. Because the glazier now has money to spend on things like clothes or food, the tailor or grocer then has more money to spend or to buy somebody’s item or trade. The locals’ argument is that the destructive act of breaking the window stimulates trade, creates jobs, and benefits various businesses in a positive spending cycle. They argue that destruction can be good for the economy.
Bastiat’s point is the unseen costs of the broken window. The key to Bastiat’s story is not so much the locals’ argument but the big part of that which is not seen or often ignored: the opportunity cost. Bastiat points out that while the glazier benefits, the baker loses the money he would have spent elsewhere. If the window hadn’t been broken, the baker might have bought new shoes, invested in new equipment, or even saved the money. The whole point is that what is seen and not seen. What is seen is that the glazier gets work and spends money. But what is not seen is the shoemaker (or another tradesman) loses a sale, and the baker is left with only a repaired window instead of a window and a new item. Bastiat used this simple story to argue that destruction does not create a net benefit for society; it merely diverts resources that would have been used for more productive purposes, ultimately leaving society poorer than before.
This is Bastiat’s concept of plunder. Bastiat’s point is that just because something looks good for the economy does not mean that it always is. What we should do is try to focus on that which is unseen because that has a much greater effect on the economy. Thank you for taking the time and reading my essay.
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