Problems With The Analogy of the Household Budget

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Problems With The Analogy of the Household Budget

• Most households do NOT
• a. Have the ability to unilaterally increase
  their income or unilaterally set some of the
  rules of the economic game.
• b. Have the moral obligation to pursue the public
  good and look after those who cannot look after
  themselves.
• Define their situation as having to help outside
  third parties make a profit.
• Experience cyclical fluctuations.
• Politicize their budgeting to placate third
  parties who control their very existence in the
  future.
• Shy away from taking on debt.