Re: [OPE-L] [Jurriaan] Re: A class dimension of aggregate demand

From: glevy@PRATT.EDU
Date: Sat Nov 26 2005 - 09:39:00 EST


> The point is that aggregate demand
> is a concept which conveniently spirits away the differential propensity
> of social classes to save and consume, in accordance with their incomes.

Hi Juriaan:

I guess the same thing could be said for other "aggregates", like
aggregate spending, aggregate income, aggregate saving, etc.  I don't
think this means that aggregates are meaningless, but rather that if
they are used then there should be a clear understanding of what they
do and do not represent.  GDP could also be thought of as an aggregate
but that fact shouldn't prevent us from analysing GDP data *even while we
recognize its limitations*.

An additional comment re the excerpt above:  Kalecki didn't spirit
away the differential propensity of social classes to save and consume.
I'm not sure that its fair to say about Keynes either.  What do
others on the list have to say about that question?  Is there a
significant difference here between Keynes and Kalecki?

In solidarity, Jerry


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