The Chimera of Macroeconomics

  Believers in of “ ineffective demand ” have imagined such otherworldly ideas as “paradox of thrift” to “ secular stagnation .”   Paradox of thrift. According to Thomas Malthus , we are presupposed to throw whatever unconsumed into the sea  sometimes also called “ Saltwater .”              Cómo es eso ? With the savings from consumption, the rest of us in the rational mind have so many things to invest in. You know what, savings equal investment when exogenous to macroeconomics or outside of Cambridge. There out there in this world is no such thing as a "paradox of thrift." On the contrary, as Daron Acemoglu and James Robinson world-famously verify what fails nations is a lack of motivation to thriftiness or indolence in saving.              As we are more than well aware, the cost of the present ( C ) is the future ( I ). We as nobody would n...

  In a sense, macroeconomics is founded on the sham notion of “ ineffective aggregate demand .” There in Here on earth, “There ain't no such thing as IAD ” ( TANSTAIAD ).   By definition , 1)      “Effectiveness” means the right means to the defined end. In other words, all demand is effective as the end of each or all: I demand this because I demand this, no questions to be asked. Put differently effectiveness addresses the kind as opposed to efficiency or sufficiency the degree. Each and  every demand is justified and entitled in the Republic.  2)      In economics, “demand” never means wish, hope, dream, admiration, preference, trust or firm belief. The invisible and accordingly invincible hand does not let free-riders in the market. “The empty -handed, thou shalt not enter! I’m the only invisible in my territory.” 3)      In each market, the demand curve is always separated from the supply cu...

  Exogenous to “Failed Nations,” we in aggregate save only for the purpose of enhancing creative efficiencies in the coming years. Again, with population growth on hold, the problem of individual life cycle is irrelevant to the aggregate economic cycle. Necessity of GDP Growth. On the demand side, there are largely two drives for the national income per annum per capita to grow over the years expected to arrive. First, we have a dream of better future owing to ever-effective individual demand for utilities. If history is any guide, human desires do not recognize the limit.              Second, we wish to outlive the individual wealth, which might be called “precautionary motive.” This leads to positive bequests of wealth in aggregate or in terms of average per capita on the way of crossing the River. The collective “bequests” in everyday language are an inevitable consequence of “uncertainties” when the eventual ...