This paper proves that the income theories by Hicks and Fisher offer insufficient explanation, and that the existing measuring approaches greatly over-estimate income. Instead, it uses Keynes' definition to prove that income is actually profit. Part of the rental, wage and interest receipts is...

Martin Feldstein distinguishes between nominal and real interest rate, and wants to compensate those hurt by inflation, unfortunately he does not have that money. Karl Marx uses profit rate to search for interest rate, but his resulted profit is always zero. To support Marx's Kapital, John...

This paper reestablishes Hayek's assertion that buying a new overcoat will reduce output and unemployment. It is because the spending is like pulling rice plants to help them grow: it simply kills the plants. The proper way to encourage more output, and hence to enjoy more consumption, is by...

This paper proves that Keynes' positive relation between consumption and income is only a statistical observation. No economic theory can support it. Treating superficial observation as theory is cargo-cult practice. This paper then suggests references for drawing correct conclusion about...

Keynes uses income to derive his consumption function and spending multiplier. This paper proves that he also needs interest rate to foster a positive consumption line. However, when the majority of households are included, such positive possibility is ruled out

Keynes (1936) offers two different definitions of income. This paper proves that his expenditure definition of income is negative. When the double-entry method helps change the Keynesian negative amount into positive, it abets the crime!

Keynes' Liquidity theory relies on three underpinnings: uncertainty, hoarding and speculation. This paper examines their validity, and finds that: 1. Uncertainty means precautionary demand; 2. Hoarding is the negation of money supply; 3. Speculation may lose money. It also finds that Keynes'...