Re: "Is Macroeconomics Believable?"

["John Gelles" <jjgelles@xxxxxxxx>]

	Charles Anderson joins Ben Bolch in suggesting
	there is  NO  paradox of thrift  IF  what is saved
	by one person is in a form to be lent to another
	(or spent by another if what is saved is invested
	in equities, etc.).

	One has to agree with this idea for a few people
	and a few rounds of saving and lending/investing.

	But, as more people save/invest and less money
	ends up demanding things that people sell for a
	living, the economic output of a system declines
	to depression levels.

	The economy that can no longer rely on marginal
	farming as a stopgap aid in meeting business cycles
	that destroy debt and then restart, goes 	into severe
	shock from unemployment and insolvencies.

	Does Charles agree that the best way to make
	the economy of private frugality bring about full
	employment and full attention to environmental
	needs is for government to spend what others save?

	John Gelles