Businesses Do Not Create Jobs

[loosecannon]

Purchasing power is income. Income is a function of productivity. The aggregate demand curve is function of income. Shifts in the aggregate demand curve are a function of several things, but if income were to collapse, the aggregate demand curve would shift downwards and to the left.

e=mc(2) was a clever trick.

Energy, matter and the speed of light were all defined in terms of one another without assigning a finite definition to any of the three, making them all relative to one another but still beyond the bounds of definition. Relativity.

That is the same trick you employed to define income, demand and productivity in terms of one another while avoiding an actual definition for any of the three.

I will stick to the textbook definition: "the ability and desire to purchase goods and services"

 

[Toro]

Purchasing power is income. Income is a function of productivity. The aggregate demand curve is function of income. Shifts in the aggregate demand curve are a function of several things, but if income were to collapse, the aggregate demand curve would shift downwards and to the left.

e=mc(2) was a clever trick.

Energy, matter and the speed of light were all defined in terms of one another without assigning a finite definition to any of the three, making them all relative to one another but still beyond the bounds of definition. Relativity.

That is the same trick you employed to define income, demand and productivity in terms of one another while avoiding an actual definition for any of the three.

I will stick to the textbook definition: "the ability and desire to purchase goods and services"

In economics, economists use "purchasing power parity" to normalize the cost of goods across the borders. For example, GDP is generally measured using purchasing power parity. China is the second largest economy in the world based on PPP, but measured solely in US dollars is about a quarter (if I recall correctly) of GDP measured in PPP. When I compare incomes across borders, I am referring to incomes adjusted for PPP.

Productivity is not income. Income is a function of productivity. There's a difference. I defined productivity earlier as the output per hour worked. Income is all compensation. In macroeconomic accounting, GDP = output = income.

 

[loosecannon]

I know what you said Toro.

Demand is still defined as purchasing power and intent to purchase.

PPP doesn't really have much to do with that. In fact if anything it is a tool to minimize the impacts of disparity between nations.

Poor people still can't impose as much demand as rich people regardless of their productivity.

CEO pay is not rewarded according to productivity. If it was there would be multimillion dollar negative salaries occasionally.

Labor is generally rewarded according to productivity modified by demand/supply of qualified labor.

 

[CrusaderFrank]

Painful to read something THAT fucking stupid. No doubt him and Krugman friended each other on Facebook