After Sandy's Pain, There Will Be Gain?

http://www.businessweek.com/articles/2012-10-31/sandy-after-the-pain-long-term-gain

This article was selected because it shows the prevalent effect of the broken window economic fallacy on the economy of the United States. The broken window fallacy explains why the destruction of property is not a benefit to society even if someone repairs said property. In this article the writer addresses the effects of the Hurricane Sandy stating that it will actually help the economy.

The broken window fallacy basically says that if a boy breaks a window in a town, the town is not better off because this window can be repaired. In fact the town is worst off because the money and materials that would otherwise be used elsewhere are wasted on reaping the broken window. Similarly Hurricane Sandy devastated and destroyed lots of houses. Overall the country is obviously worst off. However people perceive reconstruction as a benefit and ignore the fact that capital has been lost forever. 

This makes one wonder how is the general public is mislead and mistaken on their perception of economic realities. To be perfectly honest, a small part of me dies a little when I read articles like this. This is mass hysteria at its best in my view.