Category: Fiscal Policy

DirecTV – Don’t Get Body Slammed by a Lowland Gorilla

In this DIRECTV commercial, a series of misfortunes unfolds, starting with the simple decision to have cable TV. Feeling down, you don’t get out of bed, leading to your job at the zoo being taken over by an unqualified replacement. This replacement leaves the door to the gorilla cage open, allowing the gorilla to escape and eventually find and attack you at home.

The commercial gives you a funny way of watching an “if this, then this” situation. A seemingly simple change in monetary policy can have far-reaching and unexpected consequences. Indirect and sometimes delayed effects of policy decisions can have a much broader impact on the economy than what we might first expect.

Thanks to Brian O’Roark for the clip suggestion!

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The Simpsons – A Trillion Dollar Bill

Earlier in the episode, Homer is arrested for tax evasion, but trikes a deal with the FBI to work undercover in exchange for immunity. His goal? Gain access to a trillion-dollar bill held by Mr. Burns. Instead of turning him in, Homer helps Mr. Burns escape to Cuba, where they attempt to purchase the island from Fidel Castro using the bill. However, Castro tricks them and refuses to return the bill, leaving Homer, Burns, and Smithers stranded on a raft.

The trillion-dollar bill exemplifies a massive fiscal stimulus potential, but its misuse by Mr. Burns and Castro highlights corruption, inefficiency, and redistribution issues. Castro was close to calling off Communism because it was underfunded, but the trillion-dollar bill brought Cuba back from the brink of defeat.

Thanks to Brian O’Roark for the clip recommendation!

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Jospeh and the Amazing Technicolor Dreamcoat – Pharoh’s Dreams Explained

In this scene, Joseph is called upon to interpret the troubling dreams of the Egyptian Pharaoh. The song dramatically narrates Joseph’s interpretation of Pharaoh’s dreams, which he understands as a divine forewarning of seven years of agricultural abundance in Egypt, to be followed by seven years of devastating famine. He explains that the dreams are a cautionary message, urging immediate action to prepare for the forthcoming extremes of plenty and scarcity.

Joseph’s interpretation leads to a strategic fiscal policy, which he himself is charged with implementing. The policy involves the collection and storage of a portion of the grain during the years of abundance. This grain tax, meticulously gathered and managed, is designed to create a reserve that would sustain the Egyptian population during the seven years of famine.

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The G Word with Adam Conover – Fiscal Stimulus During Covid

The Covid-19 pandemic and subsequent lockdowns sent the US (and world) economies into an immediate recession. The US experienced record-high levels of unemployment and a massive reduction in GDP. To counteract this recession, the federal government enacted a series of expansionary fiscal policy recommendations that increased the aggregate demand curve to account for the previous reduction.

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