Sunday, 26 March 2006

Understanding production and consumption - the bases of all economics

Following on from posting his seminal 1964 essay 'Production and Consumption' -- if you haven't read it before then a rainy Sunday like this is just the time; amongst many other things it's a superb exploder of the Keynesian veneration of the consumer over the producer, and of the zero-sum myth in economics, and with it all a marvellous vindication of Say's Law -- George Reisman has made a major upgrade to his Pepperdine University website to support study of the issues he raised in the essay. Explains Reisman:
I’ve begun with material directly related to my recent Daily Article/Blog “Production Versus Consumption.” So, if anyone is interested in a look at the Productionist and Consumptionist aggregate demand curves, please go to the site, come down in the left hand frame until you get to the link “477_Supplement_2.” When you click on it the pdf file that comes up will have hyperlinks of its own, indicated either by a thin blue box or a blue underline, depending on the version of the Adobe Reader that you have. Clicking on the first link will take you to the Productionist aggregate demand curve and the surrounding discussion in [my book] 'Capitalism,' clicking on the second one will take you to the Consumptionist aggregate demand curve and surrounding discussion. There are five additional links in the supplement, which go to figures and tables in 'Capitalism' illustrating Say’s Law.
For a historical background to Reisman's thinking on this most basic of topics in economics Reisman has also posted on line the valuable if sadly little-known paper by James Mill (John Stuart's father) 'On the overproduction and underconsumption fallacies.'

And note too that Reisman's Perpperdine website makes available ALL his macro and micro syllabi, which includes much of the material incorporated into his Program of Self-Education in the Economic Theory and Political Philosophy of Capitalism. This really is as good as gold.

LINKS: 'Production versus consumption' - George Reisman, Mises Institute
George Reisman's Pepperdine University website
'On the overproduction and underconsumption fallacies' - James Mill [PDF download]
George Reisman's blog
'I want to be a consumer, sir' - Not PC
Jean-Baptiste Say: Negelected champion of Laissez-Faire - Larry Sechrest, Mises Institute

TAGS: Economics, Education

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