Re: City of Beijing announces Job Gaurantee

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

At 23:20 04/04/02 -0800, John O'Donnell wrote:
>Can you provide some specifics of the pitfalls you see? The
>fallacy of composition you seem to be asserting is one of
>improperly imputing the whole will have the same composition
>as a partial sample of the parts. I make no such assertion.

No, the fallacy of assuming that the whole will act as
nothing other than a composition of the parts.  THAT is
the critical fallacy of composition that undermines the
conventional economic modelling that you are pursuing.

The response in the conventional "microeconomic model
masquarading as macroeconomic model" reasoning that you
are pursing is to go from partial equilibrium to general
equilibrium modelling.  The response of Keynes, Kalecki,
and others was to shift modelling strategy from the
representative firm to directly modelling the system as
a whole.


Virtually,

Bruce McFarling, New Lambton, NSW
ecbm@xxxxxxxxxxxxxxxxxxx