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Economic Arguments – Lefty & Righty Part 1/7(?)

June 12, 2012

I briefly mentioned this amazingly concise little article the other day, but I did so in passing… I think I am going to spend the next week or so carefully going through each of the positions 1 by 1. I apologize in advance if this is going to seem tedious to you, but I want to have links to each of these arguments in a coherent form. This is going to save me time and frustration when I argue with people on other blogs or in other forums. I like a good argument, but I can’t stand saying the same things over and over again and getting the same responses over and over again, especially when we seem to garble and mangle the arguments selectively (though in interesting new ways) in accordance with the tides, days of the week, or some as-yet-unknown-to-me astrological influence.

So, bear with me. I will try to get at least one current Crazy Making News Post together each day also, but I believe this will work out in the long run and save me some time – time I can use to read more news and make myself crazier. There may be a meta-flaw in my plan.

For today, I will simply post the nifty little graphics outlining the way Konczal broke down the Demand (or Lefty) arguments and the Supply (or Righty) arguments:

Demand

The first approach is to say that we have a lack of demand in the economy. Those who believe this usually have three sets of policies for dealing with the weak economy: fiscal policy, monetary policy, or (mortgage) debt policy. Here are the three circles with a policy response spectrum for each of the issues. In general, the response on the right side of the arrow is more aggressive.

Supply

Meanwhile, on the supply side, there tends to be another three sets of policy arguments. One is that government policy is the issue, another is that government budgets are the issue, and the third is that the labor force is the issue. Again, the issue on the right side of the spectrum should be considered the more aggressive approach in understanding the topic.

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From → Economics

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