Bingo! This basically changes everything (or at least disproves the major argument against the deficit issue, since there is no proof that economic growth will be negatively affected by the debt).
Too bad this can't be used more publicly in the political arena, since if anyone so much as mentions the economic theory people will be like "Reindeer-Stroganoff what?"
Yeah you're right. To wonky. Its to ez for j6p to equate the household budget/debt analogies with that of the Federal government. Especially with the false analogy reinforced every 5s by politicians/pundits on Fox News/CNN.
That one's always bugged me, because it's easy to imagine a Keynesian household budget, too. Imagine a multi-generational household where the patriarch has savings but where the living expenses are covered by his descendants. Then the banking system go crazy for a couple of months - a kid has a business idea that will make money but has lost bank funding. The patriarch has the choice whether to invest savings to get the business off the ground (increasing the probability of the kid contributing to living expenses in the future), or instead just tell the kid to tighten his belt, at the expense of the patriarch's own future living standard.
Too bad this can't be used more publicly in the political arena, since if anyone so much as mentions the economic theory people will be like "Reindeer-Stroganoff what?"