Jim, Meantime one other question bbefore I forget: if, in the Keynesian consumption function, the marginal propensity to consume out of wage income "approximately equals 1", how is it possible that people spend more than their income, and that the savings-ratio can even turn negative?
How in your interpretation does Keynes explain that it becomes more and more economic, instead of less and less economic, to borrow or use assets which you do not own, simply to extract income from them? (It appears to me that US statistics providing "averages" and "aggregates" are warped by the very fact that there is a very unequal distribution of income and assets). J. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
