All Posts Tagged With: "savings"

Keynes’s Ghost

The multiplier argument is founded on two key assumptions that turn out to be false. First is the notion that savings are not spent but rather are withdrawn from the expenditure stream. The multiplier’s second incorrect premise is that government expenditures are “autonomous”; that is, government spending does not depend on current income.

9Jun2009 | James C. W. Ahiakpor | 3 comments | Continued

Why Wages Rise: 7. Contracting For Progress

 

Dr. Harper is a member of the staff of the Foundation for Economic Education.
Money, the lubricant for exchange, was discussed in the previ­ous article in this series. Money makes widespread trade pos­sible. Without it our present high level of wages could hardly have come to be.
Yet, serious inflation and deflation can cause money to lose [...]

21Nov2009 | F. A. Harper | 0 comments | Continued

Why Wages Rise: 3. Dividing The Pie

Dr. Harper is a member of the staff of the Foundation ]or Economic Education.
Real wages in the United States are about five times as high as they were a century ago. The first in this series of articles showed that this rise apparently is not, as commonly believed, due to the growth of labor [...]

21Nov2009 | F. A. Harper | 0 comments | Continued