Free Market Institute Blog
The Parable of the Broken Car
Once upon a time, three economists were walking along a dusty road when they came across a broken-down car in the middle of the path. The car had once run smoothly, but now it sat silent, its engine dead, blocking the way forward.
Each economist came from a different school of thought, and each had their own idea of what to do.
The Classical Economist stepped forward and said: This car doesn’t need our help. It knows how to run. Given enough time and sunlight, the engine will warm, the oil will settle, and it will start on its own. Let us simply wait and be patient.
So, he sat under a tree and waited, confident that nature and time would fix what was broken.
The Keynesian Economist shook his head and said: No, no. If we wait, we may be here forever. The car needs help, our help. If we push it now, even just a little, it might start rolling. And once it’s moving, it’ll be easier to keep it going.
He rolled up his sleeves and began to push. He didn’t stop, every time the car slowed, he pushed again, believing that stopping could lead it to stall once more.
The Austrian Economist watched them both and said: Perhaps a quick jump-start is needed, just enough to get it running. But after that, step back. If it can’t run on its own, then it’s better we find out now than later. Constant pushing hides its real problems.
He connected some cables, sparked the engine once, and then stood aside to watch what the car would do on its own.
And so, the three men stood on the road. One waiting for the car to start itself, one sweating from constant pushing, and one watching silently, ready to walk away if the car could not sustain its own motion.
What’s the bottom line here? The Austrian School of Economics says: “Jump-start it if needed—then get out of the way.” Let healthy market systems emerge. This approach embraces the idea of survival of the fittest - the often painful but necessary process of allowing unsustainable businesses or practices to fail, so that more efficient, innovative ones can rise in their place.
And that’s why at Brookfield Academy our economics curriculum is rooted in the Austrian School. Our mission is to help form free and constructive citizens who understand when to lead, when to step back, and how to make decisions that are both constructive and practical.
Let’s face it - the harsh truth is that resources are scarce; our time, our labor, our capital are all limited. But human wants? They’re unlimited. And in a world of scarcity, constantly fueling a broken engine isn’t just wasteful - it’s unsustainable and in simple terms – just doesn’t make sense.
So, ask yourself: Why waste your energy pushing a car that can run by itself? Why burn through fuel keeping the engine alive when it’s already broken inside? Sometimes, the wisest thing to do is step back, and let the system prove itself.
