RE: RE: Re: workers' saving & Marxian political eco nomy

["Devine, James" <jdevine@xxxxxxx>]

 Mat writes: >What we are saying when we make that assumption is that
capitalist consumption does not fluctuate when profits go up or down by
relatively small amounts.  Capitalists have various means of maintaining
consumption levels when profits fall.<

yeah, I think that the forward-looking theories of consumption (the
permanent income hypothesis, the life cycle hypothesis) fit most for those
who have a sufficient financial cushion. It is these people who ignore
current income (transitory income) the most in making consumption/saving
decisions. Capitalists are the purest case here.

working-class consumers have to face liquidity constraints much more and
tend to raise consumption a lot with incomes, to make up for delays in
fulfilling needs (paying medical bills, etc.)

Jim Devine