As my macroeconomics classes end, we explore the current political discussion of the federal deficit and how to reduce it. This recent article I encountered online explains the Federal Reserve Chairman's concern about the efforts to reduce the deficit also creating set-backs for an economic recovery.
This is an example of economic trade-offs. Economists tend to sound unsure or even obtuse when they make recommendation or respond to lay questions. This is because there are often no easy answers.
"There is no such thing as a free lunch!" I would credit the originator of this phrase but I cannot ascertain to my satisfaction who that was. I do know we used it extensively in economics classes in the 60's. I believe it was a phrase popular with the late Chicago economist, Milton Friedman. Somehow someone pays for everything!
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