Scitech101
New member
...between Micro and Macro economics? A lot of Tea Partiers and conservatives state that the government should manage itself like a family. You spend what you earn. Oh, how CLUELESS they are about economics.
A household's budget functions and should function COMPLETELY differently from that of a nation-state. Households, businesses, and corporations function in "Microeconomics." According to Wikipedia, Microeconomics is "a branch of economics that studies how households and firms make decisions to allocate limited resources." The household does not have to spawn its own businesses, but simply has to manage its flow of income and expenses.
By contrast, a government functions in the realm of Macroeconomics. The definition of that in Wikipedia is "a branch of economics that deals with the performance, structure, and behavior of the economy of the entire community, either a nation, a region, or the entire world." In other words, the managing of encouraging the success of various microeconomic entities contained within the macroeconomic realm.
The two function on completely different rule sets. A government should NOT be run like a household. And for that, even households occasionally have to go into debt. And for that matter, both also rely on heavy regulation. You don't let your teenage son sell drugs on the street. and According to the widely accepted Keynesian school of thought on macroeconomics, the financial institutions like Wall Street must be regulated and controlled in a similar manner.
A household's budget functions and should function COMPLETELY differently from that of a nation-state. Households, businesses, and corporations function in "Microeconomics." According to Wikipedia, Microeconomics is "a branch of economics that studies how households and firms make decisions to allocate limited resources." The household does not have to spawn its own businesses, but simply has to manage its flow of income and expenses.
By contrast, a government functions in the realm of Macroeconomics. The definition of that in Wikipedia is "a branch of economics that deals with the performance, structure, and behavior of the economy of the entire community, either a nation, a region, or the entire world." In other words, the managing of encouraging the success of various microeconomic entities contained within the macroeconomic realm.
The two function on completely different rule sets. A government should NOT be run like a household. And for that, even households occasionally have to go into debt. And for that matter, both also rely on heavy regulation. You don't let your teenage son sell drugs on the street. and According to the widely accepted Keynesian school of thought on macroeconomics, the financial institutions like Wall Street must be regulated and controlled in a similar manner.