There follows an Appendix that we are told will embarrass Austrians. J. B. Say, Austrian hero, favored public works!
Rothbard points out other areas where Say was not in agreement with modern Austrian economics, in his History of Economic Thought. But so what?
Then comes an Appendix two, where he says that the concept of reservation demand will not save the day for Say. But we have shown that Say's Law stands triumphant with no need to introduce reservation demand.
He then concludes with a huge fail, quoting Hoppe, Hulsmann, and Block, thinking that they are using reservation demand to defend Say's Law, and that they are saying [or that one can deduce from their words?] that Say's Law falls apart if there exists fiduciary media in an economy.
We leave it to the interested reader to see how gross is LK's misunderstanding of H.,H., and B.'s words.
Summing up, LK wrote a long long paper, trying and failing to disprove Say's Law. The Redditt people are passing it off as being of worth.
There is a reason Say's Law is so attacked. One immediate consequence of the Law sends shivers of disgust down many a spine:
The same principle leads to the conclusion, that the encouragement of mere consumption is no benefit to commerce; for the difficulty lies in supplying the means, not in stimulating the desire of consumption; and we have seen that production alone, furnishes those means. Thus, it is the aim of good government to stimulate production, of bad government to encourage consumption.
Use your common sense. Look at the following two pictures and ask yourself which activity will make our country richer.
 |
| This? |
 |
| Or this? |
No comments:
Post a Comment