Re: US Trade Deficit As 'World Engine Of Growth'?

[Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>]

> From: pdavidso <pdavidso@xxxxxxx>
> Date: Sun, 28 Sep 2003 11:45:37 -0400
> To: Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>
> Cc: pkt@xxxxxxxxxxxxxxxx
> Subject: Re: US Trade Deficit As 'World Engine Of Growth'?

>
> And as I said before to Harry V.that if you define birds as "horses" you can
> prove that horses can fly.



Ok, I give. Saving = Income - Consumption

However does belief in unicorns prove the existence of unicorns?
i.e. Does the unicorn of 'Income = output' really exist?

All we can say is:

1) Output = Consumption + Investment.

and

2) Saving = Income - Consumption
   (Consumption = Income - saving)


The two equations are linked through consumption. So,

Output = Income - saving + Investment.


Harry