The fallacy is a fallacy because the money spent fixing a broken window can't be spent again by the same person. He's spending money he would have spent anyway, so there is no net gain.

In a technological progression caused by, say, a public works project such as the mission to the moon, technology developed for the sake of that project can indeed be used on other things, and definitely was in the case of the moon landings, so it's not a fallacy when talking technical advancement.