RE: Money & Trees

["Forstater, Mathew" <ForstaterM@xxxxxxxx>]

Paul wrote:

Note that the utility maximization theory assumes everyone spends their entire
earned income on the products of industry -- if they spend less than their
entire income, then the budget constraint line is not a constraint.

Question:

Within budget line/indifference curve analysis, don't they put consumption today
on one axis and consumption tomorrow (saving) on the other, and then call it
maximizing over time (after Irving Fisher)?  They don't have to spend their
entire income, but the budget line is still a constraint.

(this is not a defense of this--Keynes points out the problems with this view
quite clearly in his "Sundry Observations" chapter. I'm just asking Paul if his
depiction is really accurate.)

 Mat