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Cliffs, Ceilings, Bombs, and Explosions…

Cliffs, Ceilings, Bombs, and Explosions…. …When Metaphors Go BAD. Cliffs, Ceilings, Bombs, and Explosions…. Jim Luke LCC Economics January 30, 2013. Cliffs, Ceilings, Bombs, and Explosions: When Metaphors Go BAD. Blog: econproph.com Info: jimluke.com Courses: econproph.net

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Cliffs, Ceilings, Bombs, and Explosions…

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  1. Cliffs, Ceilings, Bombs, and Explosions…

  2. …When Metaphors GoBAD Cliffs, Ceilings, Bombs, and Explosions…

  3. Jim LukeLCC EconomicsJanuary 30, 2013 Cliffs, Ceilings, Bombs, and Explosions: When Metaphors Go BAD. Blog: econproph.comInfo: jimluke.com Courses: econproph.net Download: http://wp.me/pR94N-gj(or search at jimluke.com) Twitter:@econproph Twitter:James Luke

  4. While many phrases have been tortured, no actual words have been destroyed. Yet. IANAWP – don’t quote me on metaphors vs. similes vs. analogies vs. other stuff. DISCLAIMERS & Legal Fine Print

  5. Metaphors and stories help us think about things – like the economy.

  6. Metaphors can limit thinking too.

  7. What Have You Heard? Let’s Look At Some Examples

  8. metaphor trouble

  9. Economy Going Off The Fiscal Cliff

  10. But Why? Debt and Spending? NO. This is double BAD.

  11. BAD: Fiscal Cliff was about debt and deficits hurting the economy.

  12. Spending cuts & tax rises SLOW the economy Reality: Fiscal Cliff was automatic spending cuts & tax increases.

  13. BAD: The “Debt Ceiling” has to do with spending.

  14. Reality: Budget mandates spending, taxes, and borrowing. Debt ceiling is a silly law.

  15. Reality:The debt “ceiling” is a charade and kabuki theater.

  16. Reality: Not raising the debt ceiling would be catastrophic for U.S., the world, and you.

  17. BAD:Govt debt is a “bomb”, just like private debt is a “crushing burden”.

  18. Reality:One of these is not like the other. Credit Cards (private debt) US Federal Reserve Notes US Government Bonds US Government Bonds US Government Bonds

  19. Reality:U.S. Cannot “Go Broke” orGo Bankrupt

  20. Reality:U.S. is not like Greece, or Ireland, or Spain, or Argentina.It is like Japan, UK, Canada, Australia, etc. – sovereign in money.

  21. Non-convertible (floating) rates Debt in own currency. Reality:Default can only happen by choice.

  22. BAD:Govt budget should be balanced just like your household budget.

  23. Reality:Government is NOT like a household.

  24. Surpluses are followed by recessions. Necessary if private sector wishes to save. Supply of safe financial assets. Reality:Deficits are NOT bad, but surpluses are.

  25. BAD:Cutting spending can balance budget.

  26. Taxes are % of GDP Automatic stabilizer effect UK & Ireland proving it (again) Reality:“Austerity” slows an economy and worsens deficits.

  27. Reality:Deficit will shrink as employment returns. Growth heals.

  28. check out the zero’s in *illions. BAD: We can balance the budget by cutting “waste”.

  29. Big Social Security (self-funded) Defense (unfunded) Medicare (part funded) Medium – income transfers Interest Medicaid & Income Security Insignificant Everything else Reality:The U.S. government is an insurance company with an army.

  30. BAD:Spending has exploded under Obama.

  31. Reality:Recovery and Obama budgets have cut spending.

  32. IgnorancePoliticsIdeologyHide the real agenda

  33. Econproph.com Tax.com CalculatedRiskBlog.com NakedCapitalism.com AngryBear.com Presimetrics.com Krugman.blogs.nytimes.com “FRED” at research.stlouisfed.org Good sources for facts.

  34. Others…?

  35. http://www.nakedcapitalism.com/2013/01/philip-pllkington-purging-economics-of-religion-a-rebuttal-to-robert-nelsons-defence-of-the-great-chain-of-being.html/graph3http://www.nakedcapitalism.com/2013/01/philip-pllkington-purging-economics-of-religion-a-rebuttal-to-robert-nelsons-defence-of-the-great-chain-of-being.html/graph3 http://radio.foxnews.com/wp-content/uploads/2013/01/1-6-debt-ceiling.jpg http://www.sleuthsayers.org/2011/11/metaphor-hunting.html https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=72fwfKqKE32n7M&tbnid=0ZoZLXH6UyTraM:&ved=0CAIQjBw&url=http%3A%2F%2Fimages.businessweek.com%2Fcms%2F2012-12-20%2F0803_cliff_630x420.jpg&ei=6u0GUa-9AsX6qwGE6YGoDg&bvm=bv.41524429,d.aWc&psig=AFQjCNEsodTvHsJ674IwCKvPtv3MjmjE0g&ust=1359494550883237 http://netrightdaily.com/2012/12/fiscal-cliff/ http://www.wlwt.com/image/view/-/17343332/medRes/2/-/maxh/460/maxw/620/-/41bw25/-/Fiscal-cliff-notes-jpg.jpg http://upload.wikimedia.org/wikipedia/en/f/f5/US_$50_1993_Federal_Reserve_Note_Obverse.jpg http://img.wpdigital.net/rf/image_606w/2010-2019/WashingtonPost/2012/12/10/Editorial-Opinion/Graphics/toles12112012.jpg https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcTYtn5eycKKLe51EwkeoIyoDby2F7sSfNL08QSEzq_6glpYveeX https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTnLcEfK3HDFlutcFOr2T4Th3VlJBcRSUtr8hkbY67vtFlWgeoY1Q https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRrEvhRfftkWFxwJK2SvKGRAi4ILVBFSeou8paXonv_CZuxLqVN https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSIvgD10FL5tzHs7pnOzt1QKUWIhefomNwMlqmSa8pDulgOYsn8pQ https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcQYKURNQI3vm_hZYXxDRgZ8T3RVKKXzS2tRL3oY5o5YIRc0cv7CtQ Sources & Images

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