Re: General Theory Seminar --Savings and Investment

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

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>From: "William B.Ryan" <william_b_ryan@xxxxxxx>
>To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
>Subject: General Theory Seminar --Savings and Investment
>Date: Sat, Mar 11, 2000, 8:07 pm
>

>>From Markku Stenborg markku.stenborg@xxxxxxxxx
>
>The (alleged Keynesian) definition "S=Y-C" is quite clear on this
>issue and I don't see what is so wrong about it...Saving is deferred
>consumption, income not used.
>------------
>
>1.  Markku, can't you see the contradiction?  If saving is "income not
>used" it is income not consumed.  If it is deferred consumption it is
>consumed.

There is some confusion here between the consumption of income
and the consumption of purchased goods. When Keynes speaks of
consumption he means the spending of income on (other) consumables,
not the consumption of income itself. It is possible to treat income
as a consumable, but Keynes did not because that would be
very difficult to reconcile with his concept of liquidity.
The concept of "disposable income" is suggestive of income
that is consumed.

Harry Veeder