Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics

All spending is spending, in the naive economics of Keynesians, and so it matters not if that spending comes from individuals feeding their families or governments murdering foreigners: it all counts in aggregate demand and it all reduces unemployment! As an increasing number of people went hungry during the depression, all major governments spent

A country needs enough money to enable its citizens to perform all desired exchanges of goods and services.

an unchanged consumer demand will generate a 200 percent decline in the demand for capital goods.

It’s claimed that “society needs them” and the free market won’t, or can’t, provide them. But who is “society” if not the same people who are already expressing their needs and preferences in the marketplace? If they aren’t willing to pay for the service in the free market (the General Market apart from the government), who can say they’re eager to