There is a comparison that politicians continually make, which is that at home we have to balance our books: what is wrong with that analogy?
PAUL KRUGMAN: What’s wrong is that we are an economy, not a family, … your spending is my income, and my spending is your income. And if we all try to slash spending at the same time, the result is that all of our income falls. The result is that we go into a depression, and we end up worse off.
Paul Krugman, Nobel Prize-winning economist. Professor of economics at Princeton University and centenary professor at the London School of Economics. http://www.democracynow.org/2012/5/17/paul_krugman_debt_commission_chair_alan
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