The Chimera of Macroeconomics

  On One Side of the Equation Fact 1: Paul Samuelson says (1948), “What is true for each is not necessarily true for all; and                           conversely, what is true for all may be quite false for each individual.” Fact 2: “The marginal thinking” Gregory Mankiw talks about (1998) is applicable to each household,           never to all the households in the economy. Fact 3: A divide is not necessarily a “margin” that Mankiw refers to.   Fact 4: In the national income accounting, there are no “margins” but there are divides instead. The value of each and every marginal dollar or marginal pound is everywhere except for in Cambridge $1.00 or ₤ 1.00 per annum and even per saeculum . Not to mention, such secularity holds true only with no outside invasions, or ceteris paribus . All in all, Marginal Propensity the Famed equals Average Propens...

  To anyone in  right  mind, savings are never for the purpose of throwing or giving things good and utile away. More specifically, we are “rational” (Gregory Mankiw) and “self-interested” (Adam Smith). Therefore, savings must be for our own benefit , or utility (M∙U in dimensions) of some kind. Why we save.  We save first and foremost because we are presupposed to decline and eventually fade away. In other words, we in earlier cycles of life shall save for the declining up to the eventuality. There are some other reasons as well (see below).   When we save . We can save only in those cycles of life when the hard-earned incomes outweigh demand for consumption. Where we save.  Some macroeconomists seem to think we save “liquidity” for the future under the mattress or somewhere else. That might be true in “Failed Nations” (to this tomorrow). Generally speaking, however, we in ordinary nations do not save inco...