Cliffs, Ceilings, Bombs, and Explosions: When Metaphors Go BAD. Jim Luke LCC Economics January 30, 2013 Blog: econproph.com Info: jimluke.comeconproph.comjimluke.com Courses: econproph.neteconproph.net Download: http://wp.me/pR94N-gj (or search at jimluke.com)http://wp.me/pR94N-gjjimluke.com Twitter: @econproph Twitter: James Luke
DISCLAIMERS & Legal Fine Print While many phrases have been tortured, no actual words have been destroyed. Yet. IANAWP – dont quote me on metaphors vs. similes vs. analogies vs. other stuff.
Metaphors and stories help us think about things – like the economy.
Reality: Austerity slows an economy and worsens deficits. Taxes are % of GDP Automatic stabilizer effect UK & Ireland proving it (again)
Reality: Deficit will shrink as employment returns. Growth heals.
BAD: We can balance the budget by cutting waste. check out the zeros in *illions.
Reality: The U.S. government is an insurance company with an army. Big Social Security (self-funded) Defense (unfunded) Medicare (part funded) Medium – income transfers Interest Medicaid & Income Security Insignificant Everything else