Question Four (worth five points)

A hail storm goes through a town and damages the windows of 200 cars. (Assume that none of the owners of the cars had insurance to cover the damage.) Someone argues that while it is unfortunate that this happened the good news is that when the car owners replace the windows that extra spending will provide a boost to the town's economy. An economist dissents from this view. Why? Explain your reasoning. Note: in your answer just focus on whether that extra spending on replacing car windows provides a boost to the economy.