Macroeconomics, Microeconomics, Liberals, Liberal Spending

Welcome to the New Weimar Republic: The Involatile Laws Of Economics

- J.J. Jackson
Saturday, August 13, 2011

Liberals like to think the laws of economics are like the laws of physics. In physics, particles behave differently on the subatomic level than they do in the macroscopic realm. This is because as one gets smaller and smaller, different forces become dominant and take control of how particles interact with one another thus leading to sometimes counterintuitive solutions. This is why there is an entire field of physics, called quantum mechanics, to deal with this special situation.

Economics however, does not act differently on the macro or micro level. Yes, there are actually two fields of economics; microeconomics and macroeconomics. And economists, for God only knows what reason, actually try to forcibly separate the two. I think this is why liberals get confused.

Microeconomics is officially defined as the study of how people (including businesses which are just conglomerations of people) allocate resources and how prices of goods and services are set. Macroeconomics is officially defined as a study of the entire economy (GDP, exports, imports, etc.) of a group such as a state or nation.

Of course anyone that has ever taken both macro and micro economics, and who passed the courses, quickly understands why trying to separate these two fields is folly. Macroeconomics is really nothing more than an effect of many microeconomic spheres all acting at once. One does not have exports or imports, for example, without decisions on how to allocate resources and determining that those resources must either come into or go outside of their own sphere.

As such, the laws that govern the basic interactions of microeconomics are the same as those that ultimately govern macroeconomics. Liberals disagree. They think that on the macro level things work differently.

This belief is why they think government can print $1.7 trillion to simply pay for programs, handouts and waste that exceeds revenues. You cannot do that in your own household or business however. If you doubt me, try it. Try just ripping out a couple thousand in $20 bills from your home printer and see how quickly no one will accept the “moneyâ€