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Debt, Spending, & Keynesian Foolishness
#69
mr_yak Wrote:The glaring omission is debt. Debt (both public and private) really should be rolled into 'consumption' (against forward earnings). Government debt should be counted as a separate line item in the consumption laundry list. It is NOT covered by taxes and fees ... again it's forward consumption.
It appears that you are validating my argument (however vague it was). If "income" includes debt (future consumption moved to now) and non productive expenditures (gummint) how in the world can consumption be proportional to income? The only way it could is to define c=C/Y which makes c an uncontrollable dependent variable, depending perhaps on time and a myriad of other factors. For example, one cannot control the gummit and one cannot control consumer saving/spending. The model is simply too simplistic. Perhaps it is illustrative.

As I recall, economists make simple models like this for free economies, and when they introduce government taxes and expenditures, these appear as a dead weight on the production/consumption system.
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.
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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
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[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
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[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
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[No subject] - by jt - 07-02-2010, 06:13 PM
[No subject] - by mr_yak - 07-02-2010, 07:02 PM
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[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

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