I hate how everyone buys into the myth of “the government budget should operate how a household budget operates”. It’s not the fact that it’s wrong that bothers me the most, what really bothers me is how it’s nearly impossible to explain why that analogy is bad. I read a whole book about MMT in part so I could explain why that analogy is wrong, and I still basically can’t do it well. When I try people just think I’m full of shit because the analogy is so easy to understand and the real explanation is not intuitive if you don’t have a solid grasp of economics (which is maybe 5% of the population at best, and most of those people, even liberals understand why the government isn’t like a company or a household).
(FWIW I’ve fallen back on the Keynesian “deficit in a recession and surplus in a boom” even though I don’t actually believe it. That seems to be something people can grasp better)
I hate how everyone buys into the myth of “the government budget should operate how a household budget operates”. It’s not the fact that it’s wrong that bothers me the most, what really bothers me is how it’s nearly impossible to explain why that analogy is bad. I read a whole book about MMT in part so I could explain why that analogy is wrong, and I still basically can’t do it well. When I try people just think I’m full of shit because the analogy is so easy to understand and the real explanation is not intuitive if you don’t have a solid grasp of economics (which is maybe 5% of the population at best, and most of those people, even liberals understand why the government isn’t like a company or a household).
(FWIW I’ve fallen back on the Keynesian “deficit in a recession and surplus in a boom” even though I don’t actually believe it. That seems to be something people can grasp better)