m s asked in Social ScienceEconomics · 1 decade ago

What does Art Buchwald mean in the "Squaring the Economic Circle"?

I know it has to do with the multiplier effect.

4 Answers

  • 1 decade ago
    Favorite Answer

    The logic is similar:


    but the important points are quite different. The term "multiplier" effect is usually used in a macro-economic perspective arguing the benefits of government spending.

    Buchwald is:

    1. Emphasizing that it works both ways - there is a multiplier effect when people stop spending too. And this can be far nastier because it is based on fear rather than on simple numbers.

    Thus, in a recession, even people who have not lost their jobs and still have the same income tend to spend less, which reduces demand, which causes still more people to be laid off, etc.

    2. Pointing out the feedback loop nature of the connections in the economy. The multiplier is not just an arbitrary number the result of a large number of people each reacting to what is going on around them, including the reactions to their own prior actions.

    3. Making clear we are talking about people, not abstract systems.

    4. Perception is critical in economics:


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  • marilu
    Lv 4
    3 years ago

    Economic Circle

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  • 3 years ago

    It comes from the board interest of snakes and ladders wheren you throw a die and your pass can end on a impartial sq., one with a ladder, or one with a snake. The impartial sq. skill you proceed to exist it until your subsequent turn, the various ladders will advance you plenty added up the board, the snakes recommend which you slither down them to an until now factor. The longest snake grew to become into the single that took you decrease back to the commencing sq..

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  • 1 decade ago

    2 days ago... 2 days until the test... You've gotta be in my class. XD

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