Comment by mcny

I saw this YouTube video recently that said there are four main categories to spending money:

A. Your own money A1. On yourself A2. On others (not necessarily the same others)

B. Other people's money B1. On you B2. On others (not necessarily the same others)

It is kind of a wordy way to describe the principal agent problem.

Problem is that we can't really wrap our heads around large numbers. I get overwhelmed just thinking about how the relatively small town I live in manages its finances. I don't think I have the mental model to fit how the US economy functions much less how it should function.