Individuals and households
DOI link for Individuals and households
Individuals and households book
Social economics explicitly recognises the key role of the community economy in the macroeconomic flow. In Taxation leakage, when additional income is taxed away to reduce government debt, so that it is not spent on consumption or on government expenditures. In the macroeconomic flow, the social embeddedness of households has two major implications for macroeconomic variables. The gross domestic product (GDP) measure of the macroeconomy excludes all unpaid production and services which are provided by society and nature. Any remaining gap in food consumption, for the poorest households who cannot afford to buy domestically grown food at the higher prices, may be closed through imported food from countries that have not suffered bad weather. Remember, consumption is partly autonomous and partly from income. Keynes rejected the old classical assumption that the macro level is the sum of all micro-level behaviour.