Carman’s work (fallible though it is) is appropriate for my theme because it might be claimed for him that he was the staunchest of all among opponents of the inflationary solution for employment or recession. But did he for that reason try to explain “what were essentially monetary phenomena” by attributing the causes to “real phenomena”?

A critic of an earlier version of this essay has asked exactly what policies were implied by the non-Keynesian economics of the inter-war period in respect of the situation which prevailed in Britain in the 1920s and 1930s. I propose to answer in terms of the implications of Say’s law; for tacit acceptance of that law is, as I have already said, what chiefly distinguished Keynesian and non-Keynesian thinking.

It should now be clear that the initiating cause of emerging recession which Say’s law explains is not the mere existence of widespread withheld productive capacity (wasteful idleness in assets and men or their wasteful use through confinement to “sub-optimal” activities). This is in itself the condition of chronic recession or depression. The relatively competitive sectors of the economy can adjust themselves to the wastefulness of defective pricing in other sectors without setting in motion further withholdings.

Allen, W. R., 11n, 29n.

Anderson, B. M., 24, 117.

Angell, J. W., 117.

Benham, F. C., 117, 120n, 138, 144n.

Blaug, M., 2, 3n, 11n.

Bodkin, R. G., 104.

Browne, H. G., 84, 84n, 117.

Cannan, E., 57-59, 60n, 61n, 78, 85, 96, 116-117, 119, 122n, 123n, 127, 127n, Chapter XVI, 140, 140n, 142, 144n.

Cassel, G., 117n.

THE ECONOMICS OF THE COLOUR BAR

The Quinten & Marian Ward
and William W. Massey Libraries of the
Ludwig von Mises Institute

Gift of

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Libertarian Studies

Ludwig von Mises Institute
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NOT TO BE REMOVED

The Economics of
the Colour Bar

A study of the economic origins and
consequences of racial segregation
in South Africa

W. H. HUTT

Published for
THE INSTITUTE OF ECONOMIC AFFAIRS
by
ANDRE DEUTSCH

FIRST PUBLISHED IN GREAT BRITAIN
1964
ANDRE DEUTSCH LIMITED
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© THE INSTITUTE OF ECONOMIC AFFAIRS LIMITED
ALL RIGHTS RESERVED

PRINTED BY
Merritt & Hatcher Ltd., London, S.E.10

Professor W. H. Hutt has written this book as an economist. His central discussion is of economic causes and consequences and he touches only marginally on other aspects, political, sociological, philosophical.