tag:blogger.com,1999:blog-2098432983500045934.post6540146135050503687..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: MPC: Marginal Propensity to ConsumeThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-59126937501941714422012-12-03T16:55:15.990-05:002012-12-03T16:55:15.990-05:00I am currently breaking down GDP by component to g...I am currently breaking down GDP by component to get a better idea. I have focused so far on PCE and Gross Domestic Investment.<br /><br />I have also used the idea that investment is equal to savings minus net exports, so I am focusing also on Net Exports.<br /><br />There are some other GDP components I will get around to and post about as well.Luke The Debtorhttps://www.blogger.com/profile/07527422933669490001noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-66418231042367127362012-12-02T19:09:24.792-05:002012-12-02T19:09:24.792-05:00Ha! When you put it like that, you make the busine...Ha! When you put it like that, you make the business cycle sound like some sort of pump that transfers consumption to the government sector.<br /><br />Luke, how would you measure investment and savings (from the 1970s to the Great Recession, or whenever)... What FRED series, I guess I'm asking, or what data?<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-54873288186594559842012-12-02T17:09:44.954-05:002012-12-02T17:09:44.954-05:00The US has had far more investment than savings in...The US has had far more investment than savings in that time period from the 1970s to the Great Recession. A lot of people sound off on the US deficit as a sign of declining savings. If savings is equal to income minus consumption and taxes then correct, either consumption went down or taxes went down. <br /><br />But taxes and consumption went down during the recession, as did income. I think this is why Keynesians argue for government deficits during and after recessions, is that it should help offset losses in household consumption.Luke The Debtorhttps://www.blogger.com/profile/07527422933669490001noreply@blogger.com