Evaluation of Example 6: Morici on Hurricane Economics

Passage:

“Peter Morici [states] his view that Hurricane Irene would lead to positive outcomes … due to the rebuilding, [and] ‘the capital stock that emerges will prove more economically useful and productive.’ This inspires Boudreaux to offer to come over and destroy Morici's house and car, since newer versions will surely be ‘more economically useful and productive.‘”

Gene Epstein, “Assume a Pen: An Economist's Epistles,” Barron's 92 no. 49 (3 Dec. 2012), 39.

Analsyis:

Not an ad hominem but, in practice, a fallacy of division. Morici's personal circumstances of house and car are not used as a personal attack so much as an example in the economic argument. If it were true that public rebuilding after a hurricane boosts the construction sector such that the resultant capital stock is more economically useful and productive, it wouldn't necessarily follow that one instance of Morici's private spending for a new house and car would increase his productivity more than the loss caused by to the destruction of the old house and car.