The Truth about Savings and Consumption

We regularly hear how important consumer spending is for the economy. The story goes like this: the more consumers spend, the more money circulates in the economy, which stimulates healthy job growth and profits. If people could be encouraged to go out and spend a little more of their paychecks, we’d all be better off. […]

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The Keynesian Cure for Hunger: Eat More

Only production creates effective demand, and only after what was produced is sold can other goods be purchased and consumed. What changed England was not increased consumption but increased production, production that made increased consumption possible. And, yes, that increased production was due in large part to the entrepreneurial employment of the steam engine and […]

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