A Simple 2-person Economy

• Let's put these 3 statements into algebraic form:

• "One person's spending is another person's income."

        My_Spending         ≡   Your_Income

• "One person's financial asset is another person's financial liability."

        My_Financial_Asset  ≡   Your_Financial_Liability

• "One person's credit is another person's debt."

        My_Credit           ≡   Your_Debt

• ≡ means "is by definition equal to"

  • Accounting identity

  • True by definition