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Thus, the propensity to consume would not decrease with rising income, which was a concept contrary to the definition given by Keynes (Keynes 1936, 1997). Friedman (1953) further enlarged upon that concept with the notion that the ex post income described above by Hicks, would be the permanent income and that final income would not be related to any transient income, and that the transient income factors would not be related to one another. Friedman stated that Marshall described the component parts to this concept as, since real income was unaffected, one commodity substituted for another and that this idea became known as the "substitution effect." Also, when price declined so that consumer wealth increased (but money income was unaltered), this became known as the "income effect" (p. 64). Hicks (1939, 1991) brought in the notion of "inconsistent expectations" (p. 178) and it was eventually tied, in retrospect, by Samuelson (1948, 1995) to "rational expectations," which did far more than imply that, "because of rational expectations the government cannot fool the people with systematic economic policies" (p. 612). This essentially meant that if the public had a better understanding of economics and economic policies, that the government would not be able to goad the public into agreeing to some of the extant fiscal policies of central demand planning. Samuelson (1948, 1995) held that "Keynesian theories hold that many different forces affect aggregate demand, monetarists argue that changes in the money supply are the primary factor that determines output and price movements." He held the view that monetarist philosophy dictated that the actual supply of money in the economy prompted short term changes in the "nominal GDP" and that the money supply was the cause of price changes over the "long-run" (p. 605). The real, tangible result of monetarism was the belief that the use of monetary policy could be used to reduce the likelihood of a recession. If the management of the money supply could be used to reduce the possibility of a recession, and recessions eventually lead to a depression, then the implications of this concept were enormous with regard to the potential elimination of millions of dollars lost and the psycho-social implications and impacts brought on by depressions in general. This implied that the use of monetarism, through the use of monetary policy, could in theory be used to stave off a depression (p. 559).
Nicholas Jewczyn (pronounced JEFF' - sin) was graduated from Southern Illinois University with a Bachelor of Science in remedial front-line management of health care environments. He earned this degree while working full-time on active duty in the military as a result of the G.I Bill. After working in business for over twenty years, his Master of Business Administration was taken at the New York Institute of Technology where he was graduated at the top of his class with a cumulative 3.95 GPA and a 4.0 GPA in his specializations. Mr. Jewczyn's major specialization was in Finance and his minor was in Economics. While at N.Y.I.T., he was inducted into Omicron Delta Epsilon for outstanding achievement in the Field of Economics as a graduate student (2007). After a stint of several terms as a college professor, teaching 7 courses per term at three college campuses onsite in the disciplines of Accounting, Business, Finance, and Economics, Mr. Jewczyn was inducted into Phi Delta Kappa for excellence in teaching at the collegiate level (2009). Mr. Jewczyn designed his own Ph.D. program in Business with a specialization in International Economics, a field composed of the component specialties of International Finance and International Trade. His cumulative Ph.D. program GPA is a 4.0 and Mr. Jewczyn looks forward to completing his dissertation next year. Mr. Jewczyn looks forward to teaching more college classes (onsite and online) and has performed a variety of Business Consulting roles nationwide.
