ELI5: Explain Like I'm 5

Parable of the broken window

Okay, imagine you have a toy car that you love very much. One day, you accidentally drop it on the floor and it breaks. You feel very sad because now you can't play with it anymore.

Now, let's say someone comes along and tells you that breaking your toy car was actually a good thing because now you have to go buy a new one. They say that buying a new toy car will help the economy because the store that sells toy cars will make more money.

But wait a minute, is breaking your toy car really a good thing? No! It made you sad and you lost something you loved. Plus, you have to spend money to buy a new one, so you're not really helping the economy, you're just spending your own money.

This is how the "parable of the broken window" works. It's a story that teaches us that just because something seems to have a positive effect in one way, it doesn't mean it's actually a good thing overall. In the parable, a shopkeeper's window is broken and he has to pay someone to fix it. Some people say this is actually a good thing because now the person who fixed the window has more money to spend, which helps the economy. But really, the shopkeeper just lost money and the broken window was a bad thing overall.

So remember, just because something seems good on the surface, we need to look deeper and think about how it affects everyone else too.