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Do you feel that government finances should be like family finances?


feargach

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Dec 11, 2006
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Do you stand by the notion that the borrowing and spending of governments is and should be the same as what a prudent typical family does?

Many, in fact most, economists disagree, but I'm willing to hear you out. There's a contradiction involved which I won't reveal yet, but I will edit this OP to post the contradiction, once people have declared their stance, saying "Yes, a government should only borrow like a family does!".

Hint: by "typical family" I'd like you to think of a couple that formed in the early 80s, got a house, worked hard, scrimped, sent 3 kids off to college and paid off the mortgage in full 5 years ago.
 
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zakalwe1

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that depends on what family...

middle class stretched to the point of breaking family,
rothschilds family
or free council house-intergenerational welfare dependant-teen daughters already single mothers on top of housing list type of families
 

meriwether

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I don't think that government finances should be like family finances, primarily because I'm terrified of being trapped by your cunning plan to expose my ignorance via your yet-as-unpublished contradiction.

I think everyone is on the edge of their seats waiting for this contradiction to be revealed.

I, personally, am on tenderhooks, and simultaneously agog.
 

Ren84

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Family finances and the finances of a government bear little resemblance and only someone woefully ignorant of economics would make the connection.
 

Asparagus

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A family that has a five year life cycle.
 

meriwether

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that depends on what family...

middle class stretched to the point of breaking family,
rothschilds family
or free council house-intergenerational welfare dependant-teen daughters already single mothers on top of housing list type of families
The Brady Bunch.
 

diaspora-mick

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Do you stand by the notion that the borrowing and spending of governments is and should be the same as what a prudent typical family does?

Many, in fact most, economists disagree, ...
What exactly is that supposed to mean ?
That "most economists" stand by the notion that governments should borrow and spend imprudently ... ?

Well that would explain a lot about why things are the way they are ....
 

murf13

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The government should budget just like my mother and secondry school teachers should cease and desist from teaching the difference between micro and macro economics immediately .
 

meriwether

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Family finances and the finances of a government bear little resemblance and only someone woefully ignorant of economics would make the connection.
Both can go bust though.

Both are subject to simple mathematics, as well as complex and contradictionary models.

The Irish economy was subject to simple maths: Outgoings > income.

Result: Bankruptcy.
 

zakalwe1

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Ren84

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Both can go bust though.

Both are subject to simple mathematics, as well as complex and contradictionary models.

The Irish economy was subject to simple maths: Outgoings > income.

Result: Bankruptcy.
Unlike in a family the state CAN run a deficit if it is less than the growth rate and inflation. France has ran a deficit for most of the last two decades after all. The key is to ensure economic growth stays consistent.
 
D

Dylan2010

not like an irish family anyway...most of them dont get beyond asking about the weekly payment.. remember the homer simpson sketch about buying the car on credit and the massive baloon payment at the end....come to think of it Homer Simpson must be advising the Irish government.
 

Cassandra Syndrome

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Yes
 

sauntersplash

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Do you stand by the notion that the borrowing and spending of governments is and should be the same as what a prudent typical family does?

Many, in fact most, economists disagree, but I'm willing to hear you out. There's a contradiction involved which I won't reveal yet, but I will edit this OP to post the contradiction, once people have declared their stance, saying "Yes, a government should only borrow like a family does!".
My mammy would like this thread.

A profound problem at the heart of neo-classical economics is the incompatibility of the theory of macro and micro, so, ya know, they would say that wouldn't they.
 

Cassandra Syndrome

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Unlike in a family the state CAN run a deficit if it is less than the growth rate and inflation. France has ran a deficit for most of the last two decades after all. The key is to ensure economic growth stays consistent.
That's a fine exemplary economy you chose there...

What next? Zimbabwe on inflation control policy?
 

Ren84

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That's a fine exemplary economy you chose there...

What next? Zimbabwe on inflation control policy?
Who the hell said anything about inflation?! Seriously, WTF is it with you Paulbots and your constant obsession with bloody inflation??? :confused:
 

feargach

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that depends on what family...

middle class stretched to the point of breaking family,
rothschilds family
or free council house-intergenerational welfare dependant-teen daughters already single mothers on top of housing list type of families
I've provided an example family to address your question. Ireland has lots of such families, so I don't see it as an outlandish example.
 

culmore

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Jun 14, 2010
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3,183
I have no problem with a country borrowing plenty of money, the problem for Ireland is because of bad management by the last few Governments and the Banks having bad regualation , nobady will give us any more at an Interest Rate we can afford.
 
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