> One is blind extrapolation of good personal and business financial advice onto macroeconomics.
This is the main misconception that people have.
Microeconomics deals with open systems, macroeconomics deals with closed (or mostly closed system).
In personal economics, penny saved can be penny earned. In macroeconomics penny saved is penny that someone else does not earn. Fiscal multipliers affect how government spending or saving actually affects the government debt. Sometimes spending may actually increase tax returns. https://en.wikipedia.org/wiki/Fiscal_multiplier
Another issue is that while creative destruction is good thing in business, people are not very elastic. They, their families will be permanently damaged if they are long without jobs.
This is the main misconception that people have.
Microeconomics deals with open systems, macroeconomics deals with closed (or mostly closed system).
In personal economics, penny saved can be penny earned. In macroeconomics penny saved is penny that someone else does not earn. Fiscal multipliers affect how government spending or saving actually affects the government debt. Sometimes spending may actually increase tax returns. https://en.wikipedia.org/wiki/Fiscal_multiplier
Another issue is that while creative destruction is good thing in business, people are not very elastic. They, their families will be permanently damaged if they are long without jobs.