In particular he doesn’t get the
distinction between micro entities that are in debt and macro entities that re
in debt. When a micro entity (like a household) has a deficit or debt problem,
it must cut its spending or increase its
income. Macro entities - governments in particular - are entirely different
In fact it could well be that
failure that motivated him to do his flawed empirical research. I.e. the motive
was probably along the lines of: “government is like a household in that it has
to cut its spending when in debt, so I’ll find some empirical evidence to back
that idea.”
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