Saving Equals Investment

Abstract

I. Why S = I , 297.— Difficulties of seeing this: the confusion between stocks and flows, 299; the paradox of individual freedom and social necessity, 300; the habit of labeling expenditure as “out of” particular income receipts, 302; the failure to recognize the mathematical or analytical nature of the proposition, 304; a misunderstanding of arguments about equilibrium, 305. — II. Miss Curtis' condition that “all income is spent,” 305; her failure to see the place of “wishes” in economic analysis, 307.— III. An attempt to salvage one of Miss Curtis' results, 308.