Saving Quotes - page 4
The man who in times of popular excitement boldly and unflinchingly resists hot-tempered clamor for an unnecessary war, and thus exposes himself to the opprobrious imputation of a lack of patriotism or of courage, to the end of saving his country from a great calamity, is, as to "loving and faithfully serving his country," at least as good a patriot as the hero of the most daring feat of arms, and a far better one than those who, with an ostentatious pretense of superior patriotism, cry for war before it is needed, especially if then they let others do the fighting.
Carl Schurz
Figure 12-6 pulls together in a simplified way the main elements of income determination. Without saving and investment, there would be a circular flow of income between business and the public: above, business pays out wages, interest, rents, and profits to the public in return for the services of labor and property; and below, the public pays consumption dollars to business in return for goods and services.
Realistically, we must recognize that the public will wish to save some of its income, as shown at the spigot Z. Hence, businesses cannot expect their consumption sales to be as large as the total of wages, interest, rents, and profits.
Paul Samuelson
I would guess that most MIT Ph. D.'s since 1980 might deem themselves not to be "Keynesians.” But they, and modern economists everywhere, do use models like those of Samuelson, Modigliani, Solow, and Tobin. Professor Martin Feldstein, my Harvard neighbor, complained at the 350th Anniversary of Harvard that Keynesians had tried to poison his sophomore mind against saving. Tobin and I on the same panel took this amiss, since both of us since 1955 had been favoring a "neoclassical synthesis,” in which full employment with an austere fiscal budget would add to capital formation in preparation for a coming demographic turnaround.
Paul Samuelson
