Wednesday, February 12, 2014

Two analogies…

I love analogies; they help clarify misleading language. These occurred to me when I heard Robert Reich talk. One thing he mentioned was that the absolute national debt/deficit was not as important as the debt-to-GDP ratio. So government austerity is not necessarily good for the economy.

- (national) debt : (national) deficit :: news : history

- (national) debt : (national) GDP :: mortgage : capital appreciation