The Chimera of Macroeconomics

  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...

  The first virtue in life is efficiency, or utility per hour (M ∙ U ∙ T -1 ). The second is fertility, or reproduction of the utile-for-limited-time. As a consequence, wasting time in general and concerning about the futile in particular become the first two vices of all. Depending upon the school of economic thoughts, incidentally, “the moment” or “the extraterrestrial” may or may not be a concern.             In economics, we call as good the kind of utility visible while as service the other kind of utility invisible. Alas, some intellectual macroeconomists, honestly or otherwise, miss so many intangible things of utility; on the flipside, others try to build and explain infertile models. How Utile to Whom? Philosophy of life is personal. First, the degree of caring for the present vs. the future is a matter of individual choice. In other words, the “time value of money” varies across people and changes over time of th...