Patrick v. Shanta, Round 2
Patrick Bond’s lengthy comment on my response to his blog post merits a separate blog post.
Patrick:
Thanks for your response. It appears as if there are at least four areas where we end up agreeing, except that I reach these conclusions using economic reasoning, which also serves to highlight some differences.
1. I’m glad you agree that there is a difference between accounting and economic welfare. But you still don’t seem to accept the result of my simple example of two countries (one following a wasteful trajectory and the other the optimal one) that genuine savings is the same in both cases.