Reply To: Blog Post on Student Loans and ABCT


The post looks fine to me.

There are two drawbacks, however, in making an analogy to the ABCT. First, analogies are more persuasive if they move from the simpler, more familiar case to the more difficult, less familiar case. They help the reader apply what he can more easily see to what he can only dimly see. Your analogy moves from the more difficult to the easier. Second, the ABCT and student loan cases are dis-analogous in at least one respect. The business cycle is self reversing while government subsidies are not.