Paul Krugman Says Earthquakes Stimulate the Economy

Paul Krugman took to Google+ to tell the world, "People on twitter might be joking, but in all seriousness, we would see a bigger boost in spending and hence economic growth if the earthquake had done more damage." Frederic Bastiat also articulated that fallacy in 1850:

When we arrive at this unexpected conclusion: “Society loses the value of things which are uselessly destroyed;” and we must assent to a maxim which will make the hair of protectionists stand on end – To break, to spoil, to waste, is not to encourage national labour; or, more briefly, “destruction is not profit.”

It should be noted that Paul Krugman made an almost identical argument after the terrorist attacks on September 11, 2001.