The latest from the Spectator Australia:
In 1936, in the preface to the German version of his General Theory of Employment, Interest and Money, John Maynard Keynes suggested that his theories were best suited for a closed totalitarian system. It is also this theory that postulated that it is economically productive for the government to fund one group of workers to dig a whole and another group to fill it. Yet it is this theoretical framework that guides much of Australia’s economic policy.
And with a hat tip to Steve Kates, a reference to Say’s law. You’d think that a Bachelors and Masters degree in economics from a G8 university would have introduced TAFKAS to Jean-Baptiste Say. But you’d be wrong.
Supply side economics is best articulated through (Jean-Baptiste) Say’s law that say supply creates its own demand. Or more simply, we work so that we can consume, rather than the Keynesian construct that we consume so that we can have jobs. It is this (Keynesian) nonsense that perpetuated the myth of consumption driven economic growth.
Say actually wrote, “as each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase.”