Microeconomic and Macroeconomic Excess Supply
J. Bradford DeLong
11

The problem is that the set of industries that are shrinking is made up of pretty-much-everybody.

This is making me chuckle so much. Like I called you and said, “Hey, call everybody you know and tell them to pass on the message that on the first of the month we’re going to have an economy wide shrink-in”. Phones ring across the country and on the first of the month… voila! Every industry starts to shrink!

Your solution to recessions is government intervention. Clearly you believe that the government has enough influence/power/control to fix the economy. But you completely fail to grasp that this also means that it has enough influence/power/control to break the economy.

He who can control a thing can destroy a thing.

I have enough influence/power/control to lose my home by gambling it on a really bad business idea. But this will only create a very small depression! A depression of one! Me! I’ll be depressed. Maybe a few other people as well. But that will be the extent of the depression. It will remain extremely localized.

Maybe it would be a different story if I had enough influence/power/control to bankrupt a fortune 500 company? Like Google? I could steer Google into the ditch and the economy would soon follow?

Naw, the government is the only institution that has enough influence/power/control to break the economy. But it’s ok! Because it also has enough influence/power/control to fix the economy!

Well… at least you’re good for a chuckle.