Production Theory

Displaying 11 - 20 of 669

Why Savings Are So Critical to Improving the Standard of Living

CapitalismProduction Theory

Blog07/10/2020

In order to produce capital goods, and hence more consumer goods, we must first forego current consumption. That is, we must save now to have more later.

Read More

Savings Are Critical to a Prosperous Economy

Monetary PolicyProduction Theory

Blog06/12/2020

The heart of economic growth is the expansion of real savings. Monetary pumping only destroys wealth and savings.

Read More

Defining "Inflation" Correctly

InflationPricesProduction Theory

Blog05/30/2020

The real problem with inflation, properly understood is that it is essentially a wealth transfer away from the most productive parts of the economy. This causes bubbles and economic fragility.

Read More

How Government Intervention Triggers Depressions

Business CyclesProduction Theory

Blog05/21/2020

Thanks to past interventions, the economy is now rife with malinvestments and prices that don't reflect real demand. The solution is to allow deflation and other types of painful readjustment. Otherwise true growth will elude us.

Read More

Let's Hope Deflation Is Headed Our Way

InflationMonetary PolicyProduction Theory

Blog05/20/2020

Central banks have decided that one of their main missions is to prevent deflation. But this only ends up causing the malinvestments that lead to economic busts.

Read More

Money Velocity and Prices

Production TheoryValue and Exchange

Blog05/09/2020

Prices and purchasing power are determined by how individual consumers value goods and services. The "velocity of money" won't help us understand prices or the money supply.

Read More

The COVID Stimulus is the Government’s Latest Rejection of Say’s Law

Monetary PolicyProduction Theory

Blog05/08/2020

No matter what levers are pulled by the fiscal and monetary authorities, stones will not be turned into bread.

Read More

Decades of Productivity Gains Have Made Our Debt Bomb Manageable (For Now)

InflationPricesProduction Theory

Blog05/02/2020

Although the money supply has greatly increased, accompanying growth in production has made it possible to keep the current system of immense debt increase going for a long time.

Read More

How Keynesian Ideas Weaken Economic Fundamentals

Other Schools of ThoughtProduction TheoryValue and Exchange

Blog02/03/2020

There is productive consumption and there is non-productive consumption. In the Keynesian mind, it's not necessary to produce anything, so long as people spend and consume endlessly, even to the point of destroying real wealth.

Read More

Paleolithic People Were Not Primitive Communists

SocialismProduction Theory

Blog10/10/2019

Assuming that some groups of foragers indeed practiced "primitive communism," they would have died out because they had lost the fierce competition with the more economically viable "libertarian" tribes. Communism has never appeared spontaneously and "naturally" in the history of mankind.

Read More
Shield icon library