tag:blogger.com,1999:blog-2761684730989137546.post6205711989363559400..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Peter Cooper — Short & Simple 9 – Spending Determines Incomemike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-7442242948373822612017-07-21T02:07:29.726-04:002017-07-21T02:07:29.726-04:00Comment on Sort & Simple 9
Peter Cooper write...Comment on Sort & Simple 9<br /><br />Peter Cooper writes: “We understand that, as a rule, total spending must equal total income.”<br /><br />This is NOT the case as can be gleaned from the most elementary cases of National Accounting.<br /><br />(a) Two sectors, initial period C=Yw, consumption expenditures = wage income<br />https://commons.wikimedia.org/wiki/File:AXEC94.png<br /><br />(b) Saving C < Yw, consumption expenditures less than wage income, loss -Qm = saving Sm<br />https://commons.wikimedia.org/wiki/File:AXEC96.png<br /><br />(c) Dissaving C > Yw, consumption expenditures greater than wage income, profit Qm = dissaving -Sm<br />https://commons.wikimedia.org/wiki/File:AXEC95.png<br /><br />Dissaving/saving = change of household sector’s debt means that wage income (total income) and consumption expenditures (total spending) is NEVER equal for the economy as a whole. Peter Cooper is fired because of the lack of elementary logical faculties.*<br /><br />Egmont Kakarot-Handtke<br /><br />* You are fired!<br />https://axecorg.blogspot.de/2017/07/you-are-fired.htmlAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.com