tag:blogger.com,1999:blog-7464708.post4671222141066421483..comments2024-03-22T06:05:36.544-04:00Comments on Kids Prefer Cheese: accounting identities are not causal (and your opinion is not evidence)Mungowitzhttp://www.blogger.com/profile/02340064320347875601noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7464708.post-35058798076545026962014-02-11T14:16:26.714-05:002014-02-11T14:16:26.714-05:00Accounting identities and causality are indeed not...Accounting identities and causality are indeed not the same. But the interesting thing about accounting identities is things all have to add up, at least ex post. Which some economists - even Nobel Prize winning ones - many policy makers, and many professional investors have a very hard time acknowledging, never mind applying in their own analysis and policy prescriptions.Unknownhttps://www.blogger.com/profile/10603015096447070050noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-82772350140820214802014-02-10T23:02:40.078-05:002014-02-10T23:02:40.078-05:00Be afraid.
I've long thought that there was...Be afraid. <br /><br />I've long thought that there was one solution to our out-of-control government spending, and our government knows it well. How do you resolve $17 trillion in debt? With wild inflation, so the flat or declining economic activity generates increasing nominal tax revenues that can repay the fixed debt. That's what they mean by making it easier for borrowers to pay fixed debts.<br /><br />Presidents have eschewed this simple option because of its one downside; a decline in the standard of living for all citizens. <br /><br />That's historically been something the President DOESN'T want to happen. Until now. We have a President who calls for Americans to drive smaller cars, live in smaller homes, be colder in winter and hotter in summer, reduce vacation travel, etc. If that's not a reduction in the standard of living I don't know what is. <br /><br />Our President would consider runaway inflation a WIN-WIN (sorry for the Ford pun -- couldn't resist.)Pelsminnoreply@blogger.comtag:blogger.com,1999:blog-7464708.post-39401068899319015022014-02-10T00:19:49.433-05:002014-02-10T00:19:49.433-05:00There's a fine case for talking about "mo...There's a fine case for talking about "moderate inflation" in the sense of the total economy wide amount of money being spent-- though it's obviously even better if particular prices for particular goods <i>decrease or stay the same</i>, but the total amount of money increases because brand new things are invented and sold. It's nonsense on stilts to pretend that prices in one sectors growing slower than the economy as a whole proves anything positive. John Thackerhttps://www.blogger.com/profile/15269867695937765049noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-88434525483070121092014-02-09T16:39:42.066-05:002014-02-09T16:39:42.066-05:00yeah, I got pretty fired up.yeah, I got pretty fired up.Angushttps://www.blogger.com/profile/03656436431053306500noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-36185095913742124382014-02-09T12:32:34.520-05:002014-02-09T12:32:34.520-05:00That's a three "People!" article for...That's a three "People!" article for those of you keeping score.Gerardonoreply@blogger.com