December 30, 2014

A simple question

Comment on Lars Syll on  'Mainstream macroeconomics distorts our understanding of economic reality'

This is a thread about macroeconomics. The fundamental equations of macroeconomics have been formulated by Keynes in two lines:

Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment. (Keynes, 1973, p. 63)

Question to psychologists, sociologists, philosophers, soothsayers, econophysicists, engineers, political and theoretical economists of all camps: Is Keynes' elementary syllogism true or false?

Egmont Kakarot-Handtke

Keynes, J. M. (1973). The General Theory of Employment Interest and Money. The Collected Writings of John Maynard Keynes Vol. VII. London, Basingstoke: Macmillan.