Saturday, March 19, 2011
Reformulating National Income
Prof J is a regular here at Interdisciplinary World. Over at his own blog, he riffs off of my discussions of Keynes, reformulating the national income equation. I'm more than a bit leary of the national income equation, because I don't believe that government typically creates wealth, and the equation requires you believe that it makes a positive contribution to national income. Nevertheless, Prof J does some interesting things with the equation that result in a quite remarkable insight: "the household ultimately makes the investment expenditure, but uses the business to do so on their behalf. Households, then, are the real capitalists." Go to his blog to find out how he gets there.