Understanding the difference between micro and macroeconomics is key to understanding why countries cannot max out the credit card and austerity cannot work, and yet most politicians and quite a lot of economists don't get it, or austerity would not have happened.
I'm aware that this video simplifies issues and some might say that there are other issues to cover: this is a theme that will recur so if there further dimensions that need exploring tell me what they are.
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Economists fail to realise that the behaviour of the macro is as different from–and as underivable from–the micro, as the wheeling and soaring of a flock of birds is from the flight of a single bird.
Great video. Should be part of mandatory training for all MPs and media types. To allow MPs to make choices through ignorance is a scandal and, because austerity has cost lives, negligent and criminal.
This is a good one to add to the foundation building blocks you have been working on. I see a link here with the accounting thread – it seems like a logical step from what you say in this video to double entry accounting – where one persons income is another’s spending and the surplus/deficit dialectic, the issue of sectoral balances etc.
Have you got to the point yet where you are planning how to link the videos up? (using the You Tube “cards” feature to embed links from one video to another/others). I think that some point you will need to do this – maybe not yet as the collection has not yet reached a critical mass where internal linking will work well – although you could supply links to external material such as a link form your initial GND video to the Guardian piece in November 2019 about “Why the GND Matters” (I mentioned this in a comment a few days ago).
I expect your Spotted in Ely collaborator will be familiar with You Tube “cards” and embedded links and be able to help you deal with how to do it but it will need you to design the internal network connectivity (create the “map”) between the videos on the channel and what to link to externally.
Happy to chat if you want to call me some time.
I am told it will happen….
Right now I am inundated again
But I have booked a week off in August and I am going to take it…
Thanks Richard – good presentation.
I have one quibble – you say in the film that the only way for debt to be cleared in a macro-economy is to increase growth… this to me begs the question “What do you mean ‘debt’?” In the context of a macro-economy, who is indebted to whom and in what measure (enter Prof K’s ‘Deficit Myth’)?
I just wonder if that one statement will set lots of hares running amongst Them Wot Will Not See.
I accept your point
I personally have no concern with debt – as defined conventionally net of QE – and think it a good thing
I use the term to simply make the point that if this is the concern some claim the way they say they might deal with it does not work
And that this get leads to doubt as to whether this is what they are really seeking – but I do not say that here
I admit that sometimes I have to play to the audience where it is
This one is doing that
I could be very pure, but I don’t think that always helps
Excellent. Even economic flat earthers will struggle to argue with any of this.
Macro is where it’s all at.
It is in fact a case that where you(or we as a nation) can actually pull yourself up by your own bootstraps.