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[–]number676766 [スコア非表示]  (0子コメント)

Yeah, "supply side". Over multiple uni classes it becomes pretty apparent which professors have vested interest in forwarding "supply side" economics. For example, I had an accounting professor who thought taxes were the worst thing in the world. Well duh, it makes sense to him. His clients are making all this money (far above median), he's close with their business and he understands how hard they work. Then he and his clients see the chunk taken for taxes and have a little heart attack because they know what they could do with that money, but for their profit.

My point is that the smaller you get, the more personal responsibility, hard work, and reasonable/logical action plays into microeconomic decisions, the obvious solution is to let all of us rational, fully informed, equal bargaining power people engage in unfettered and untaxed business.

But the world isn't like that, and people who think the world is like that have a very small innate feeling for how gigantic economics is in terms scale, diversity, culture, politics, etc. etc. And one of the first things to correct are the basic assumptions of microeconomics. Individuals are not rational, not well informed, there are barriers to entry and exit and people aren't always operating in their best interest. These corrections scale with firms to an extent, and scale with nations and distinct structures.

With macro however, economic activity ceases to study distinct interactions between sovereign units of exchange. It then becomes more of a study and practice of economic environments and ecological biomes. This is where macroeconomics comes into play, it confronts the randomness of microeconomics (whether interactions align with the assumptions), and instead becomes observational and sometimes experimental. It takes the aggregate of behavior and attempts to seek the root causes of say, a housing market crash, not the irresponsible behavior of individual mortgage lenders. It tries to divine the health of economies, and then provides prescriptions to improve health rather than fix symptoms.