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marginalia_nuyesterday at 8:09 PM4 repliesview on HN

The question is fundamentally poorly formed, and as a consequence, so is the rebuttal. A state can pay for anything, since it doesn't have to be in a budget surplus.

Household budget analogies emerge any time someone wants to limit spending, or criticize spending, but one of the biggest points of Wealth of Nations (which is the foundation for modern macroeconomics) is that the budget of a state is fundamentally different to that of a household.

If a household fails to maintain its budget, it's game over. People know this, which is why it's a punchy analogy. But it's also a bad analogy.

If a state fails to maintain its budget, it can either print more money or raise taxes. Neither is a great long term fiscal policy, but it's not the end of the world either, and budgetary deficit something most states utilize fairly regularly.

What's missing with the school lunches and present with the Iran War is political will. (I get that is what your point was all along.)


Replies

roughlyyesterday at 11:03 PM

Yeah, I mean, it'd definitely be better if we could just tell the deficit weenies to fuck off, but given that we keep having to have that argument with everyone to the right of Bernie, it's nice to be able to throw it back in their faces in their own language, too.

collinmcnultyyesterday at 9:51 PM

This is not exactly true on the scale of these interventions. The state can't run out of money but it does run out of the time and talent of its people, the resources of its land, and the patience of its partners. State capacity is a real limit, and where we direct the money is a pretty strong proxy for where we spend these, the true resources of the state. We don't pay for bombs with dollars, we pay for them with schools, roads, and hospitals.

s3pyesterday at 9:55 PM

Where do you see a question?

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ikrenjiyesterday at 8:16 PM

he was saying the state should be paying the school free lunches, what are you on about

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