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



>>John Vertegaal:
>>
>> I would say it means that the past result of economic endeavour in no way
>> is indicative of future outcomes from apparently similar activities.  But
>> I cannot see how this would repudiate the validity of 'identities' like
>> Y = C + I, nor ridicule the evaluation of any economic "stock"; both
>> being imperative if the present is indeed indeterminate.  Am I wrong to
>> assume you'll never go that far?
>
> Paul Davidson replied:
> Accounting identities explain the past position -- they have nothing to say
> about the future position

Perhaps they shouldn't have anything to say about the future, but doesn't
the accounting identity  'income=output'  imply that tomorrow's income will
equal tomorrow's output?


Harry Veeder
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