22 October 2010


With 9.6 % official unemployment (and actual unemployment at approx. 17%), the macroeconomics of depression prevention is a difficult sell. Then, the (false) analogy of household budgeting in relation to the national economy makes perfect sense to the average economics-challenged citizen who is tuned in to media that say the (Keynesian) huge deficit (and the people who promote it) is the problem that is ruining their lives. Explanations using simple analogy that relate to everyday life win the political message battle every time.

Can anyone think of a simple, everyday metaphor for Keynesian spending? Joseph Stiglitz this week tried to persuade Britain against austerity measures and for Keynesian spending: <

Two Nobel economics laureates (including Paul Krugman) have not breached the wall of media obfuscation. Perhaps a metaphor along the lines of the historical "prime the pump" might work, except who today has a well with a pump (that needs priming)?

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