What I Learned on Local Radio–Economics Edition
My schedule makes it difficult to consistently listen to local radio. I think that’s a good thing as I’d be more of a ranting lunatic if I did. Here’s an example of economic policy and analysis courtesy of Sam and Mike from WVTL 1570 and a caller.
The caller suggests that the politicians and policy makers have it all wrong on the economic stimulus. The right approach is to give everyone $1 million dollars. Hmmm, this does not merely sound like it’s not feasible but it’s economic suicide.But to the hosts, this is (paraphrasing): so simple, right on the mark, no one in Washington would think of this and on and on.This would fix the housing crisis, the auto makers, health insurance, and more they proclaim!
Let’s crunch the numbers just for fun to see why no one else thinks this is a good idea. The US has 110 million households so if each received $1 million dollars, the US government would need to put $110 trillion dollars into the economy. As the total US GDP is on the order of $14 trillion, we would be pushing 8 times the annual output of the US as a stimulus plan. Really? This is economically impossible. End of story.Now you know why no one outside of the studio thinks this is a good idea.
But then maybe I’m wrong as the caller admitted it was not his idea but something suggested by a guy at Stewart’s. Because if you hear it at Stewarts, you know it’s a good idea and it’s true. And if it’s on local radio, it’s got to be true too because they heard it at Stewart’s after all.