Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Debt, Spending, & Keynesian Foolishness
#67
mr_yak Wrote:
jt Wrote:C = cY : consumption is proportional to income

and

Output (Y) = Consumption © + Investment (I) + Government (G)

seem a bit of a stretch.

What part and why? On a normal planet (not planet Obama), C=cY should be a given. The output equation is usually expressed ...

GDP = consumption + investment + exports - imports

He stated in the article that he was removing the import/export consumption to simplify. Then he splits out 'consumption' in terms of personal consumption and 'government'. Are you arguing that 'government' doesn't equal 'consumption'?? Shock Now THAT sure as hell seems a bit of a stretch!

... or are you arguing that debt should be broken out from 'consumption'? I'd argue that it still counts as 'consumption' ... except of course on Planet Obama ...
To clarify:

Y=(economic) output should not include government spending. The government creates nothing tangible. It only spends. If the point is to track all expenditures, this is ok, but the name should be changed.

C=cY: This assumes the government saves, it does not. It also assumes consumption © money is saved, an oxymoron. And, you are right, debt is not included. If it were, C=cY would be even more ludicrous. In any event, c would have to be quite a complicated variable in order to make the statement valid.

Is there any wonder that economists never agree and that the "consensus" opinion of economists is usually quite wrong?
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
Reply


Messages In This Thread
[No subject] - by Palladin - 03-07-2010, 09:34 AM
[No subject] - by Gunnen4u - 03-11-2010, 07:27 PM
[No subject] - by John L - 03-11-2010, 08:09 PM
[No subject] - by Gunnen4u - 03-11-2010, 08:15 PM
[No subject] - by jt - 03-12-2010, 04:20 PM
[No subject] - by Fredledingue - 03-13-2010, 03:18 PM
[No subject] - by John L - 06-03-2010, 04:27 PM
[No subject] - by jt - 06-03-2010, 06:07 PM
[No subject] - by John L - 06-03-2010, 06:58 PM
[No subject] - by jt - 06-03-2010, 07:06 PM
[No subject] - by Palladin - 06-03-2010, 07:18 PM
[No subject] - by Fredledingue - 06-06-2010, 05:15 PM
[No subject] - by TheMan - 06-07-2010, 03:40 AM
[No subject] - by WmLambert - 06-08-2010, 08:16 PM
[No subject] - by jt - 06-09-2010, 05:15 PM
[No subject] - by mr_yak - 06-27-2010, 02:34 PM
[No subject] - by John L - 06-27-2010, 03:15 PM
[No subject] - by WmLambert - 06-27-2010, 03:58 PM
[No subject] - by jt - 06-27-2010, 05:01 PM
[No subject] - by mr_yak - 06-27-2010, 06:05 PM
[No subject] - by John L - 06-27-2010, 06:10 PM
[No subject] - by mr_yak - 06-27-2010, 06:32 PM
[No subject] - by John L - 06-27-2010, 06:47 PM
[No subject] - by Gunnen4u - 06-27-2010, 06:52 PM
[No subject] - by John L - 06-28-2010, 12:04 PM
[No subject] - by John L - 06-28-2010, 12:08 PM
[No subject] - by John L - 06-28-2010, 03:31 PM
[No subject] - by Palladin - 06-28-2010, 03:46 PM
[No subject] - by John L - 06-28-2010, 04:14 PM
[No subject] - by WmLambert - 06-28-2010, 04:52 PM
[No subject] - by John L - 06-28-2010, 05:09 PM
[No subject] - by WmLambert - 06-28-2010, 06:01 PM
[No subject] - by John L - 06-28-2010, 07:03 PM
[No subject] - by Palladin - 06-28-2010, 08:01 PM
[No subject] - by WmLambert - 06-28-2010, 09:27 PM
[No subject] - by jt - 06-29-2010, 03:49 PM
[No subject] - by WmLambert - 06-29-2010, 04:24 PM
[No subject] - by jt - 06-29-2010, 04:51 PM
[No subject] - by John L - 06-29-2010, 05:01 PM
[No subject] - by mr_yak - 06-29-2010, 10:05 PM
[No subject] - by John L - 06-29-2010, 10:25 PM
[No subject] - by mr_yak - 06-29-2010, 11:21 PM
[No subject] - by John L - 06-30-2010, 06:46 PM
[No subject] - by John L - 06-30-2010, 07:54 PM
[No subject] - by mr_yak - 07-01-2010, 12:52 AM
[No subject] - by John L - 07-01-2010, 03:48 PM
[No subject] - by mr_yak - 07-01-2010, 09:35 PM
[No subject] - by John L - 07-01-2010, 10:10 PM
[No subject] - by jt - 07-02-2010, 06:13 PM
[No subject] - by mr_yak - 07-02-2010, 07:02 PM
[No subject] - by jt - 07-02-2010, 07:09 PM
[No subject] - by mr_yak - 07-02-2010, 07:17 PM
[No subject] - by jt - 07-05-2010, 04:13 PM
[No subject] - by Fredledingue - 07-07-2010, 09:03 AM
[No subject] - by jt - 07-07-2010, 04:47 PM
[No subject] - by John L - 07-07-2010, 05:47 PM
[No subject] - by mr_yak - 07-07-2010, 09:14 PM
[No subject] - by jt - 07-08-2010, 07:05 PM
[No subject] - by Huh...What? - 07-08-2010, 07:52 PM
[No subject] - by John L - 07-08-2010, 07:56 PM
[No subject] - by mr_yak - 07-08-2010, 08:13 PM
[No subject] - by John L - 07-08-2010, 08:23 PM
[No subject] - by mr_yak - 07-08-2010, 08:36 PM
[No subject] - by Huh...What? - 07-09-2010, 11:34 AM
[No subject] - by John L - 07-09-2010, 02:11 PM
[No subject] - by jt - 07-09-2010, 04:16 PM
[No subject] - by mr_yak - 07-09-2010, 08:33 PM
[No subject] - by jt - 07-10-2010, 04:25 PM
[No subject] - by John L - 08-05-2010, 12:36 AM
[No subject] - by mv - 08-05-2010, 01:05 AM
[No subject] - by John L - 08-05-2010, 10:49 AM
[No subject] - by WmLambert - 08-05-2010, 01:29 PM
[No subject] - by mv - 08-05-2010, 02:30 PM
[No subject] - by John L - 09-27-2010, 01:38 PM
[No subject] - by John L - 10-13-2010, 03:51 PM
[No subject] - by John L - 10-25-2010, 06:09 PM
[No subject] - by John L - 10-25-2010, 06:09 PM
[No subject] - by mr_yak - 10-26-2010, 12:38 AM
[No subject] - by mr_yak - 10-26-2010, 12:38 AM
[No subject] - by John L - 10-26-2010, 01:36 AM
[No subject] - by John L - 10-26-2010, 01:36 AM
[No subject] - by Brooklyn - 10-26-2010, 01:04 PM
[No subject] - by Brooklyn - 10-26-2010, 01:04 PM
[No subject] - by John L - 10-26-2010, 01:18 PM
[No subject] - by John L - 10-26-2010, 01:18 PM
[No subject] - by mr_yak - 10-26-2010, 11:11 PM
[No subject] - by quadrat - 10-29-2010, 09:26 PM
[No subject] - by John L - 11-24-2010, 04:00 PM
[No subject] - by John L - 12-08-2010, 08:35 PM
[No subject] - by jt - 12-09-2010, 07:04 PM
[No subject] - by John L - 12-09-2010, 08:22 PM
[No subject] - by John L - 01-31-2011, 10:44 AM
[No subject] - by WmLambert - 01-31-2011, 12:39 PM
[No subject] - by John L - 04-15-2011, 04:38 PM
[No subject] - by John L - 04-15-2011, 04:38 PM
[No subject] - by John L - 04-20-2011, 10:15 AM
[No subject] - by John L - 04-20-2011, 10:56 AM
[No subject] - by quadrat - 04-20-2011, 12:47 PM
[No subject] - by jt - 04-22-2011, 05:54 PM
[No subject] - by John L - 04-22-2011, 06:03 PM
[No subject] - by mr_yak - 04-22-2011, 10:07 PM
[No subject] - by Buzz - 04-23-2011, 04:45 PM
[No subject] - by quadrat - 04-23-2011, 09:34 PM
[No subject] - by jt - 04-25-2011, 05:20 PM
[No subject] - by quadrat - 04-25-2011, 09:16 PM
[No subject] - by John L - 04-25-2011, 09:49 PM

Possibly Related Threads…
Thread Author Replies Views Last Post
  Why The Keynesian Superstition Doesn't Work John L 35 15,403 07-02-2013, 09:17 PM
Last Post: WmLambert

Forum Jump:


Users browsing this thread: 1 Guest(s)