The Chimera of Macroeconomics

For a starter, we quote from two geo-famed macroeconomists.              Paul Samuelson : “ … one single confusion or fallacy, called by logicians the ‘ fallacy of composition . What is true for each is not necessarily true for all; and conversely, what is true for all might be quite false for each individual” ( Economics , 1948 p.9)              Ben Bernanke : “Although deflation and the zero bound on nominal interest rates create a significant problem for those seeking to borrow, they impose an even greater burden on households and firms that had accumulated substantial debt before the onset of the deflation.” (“Deflation: Making Sure ‘It’ Doesn't Happen Here,” a speech in 2002)              Alas, none other than Bernanke, a student of Samuelson, commits the fallacy of composition. He forgets that t...