Re: General Theory Seminar --Savings and Investment

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

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>From: Paul Davidson <pdavidson@xxxxxxx>
>To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
>Subject: RE: General Theory Seminar --Savings and Investment
>Date: Fri, Feb 18, 2000, 5:06 pm
>


>
>No INVESTMENT IN REAL CAPITAL IS THE MEASURE OF ACCUMULATION OF REAL WEALTH.
>The decision to save (planned savinghs) is the decision NOT to use today's
>claims on resources. Real resources that are SAVED are those that are NOT
>employed today to produce anything today!!

What I don't understand is how it can be possible to save "real" resources
yet S=I implies it is impossible to save money (phony?) resources.
S=I just doesn't make any sense as a general principle. There might be
specific
conditions where it holds true but these need to be spelled out.

I hinted some months ago that Keynes uses faulty reasoning
to reach his conclusion that S = I. He symbolically confuses
the logic of identities with the logic of equations.

Harry Veeder