Economics 101

What do Obama and other Western leaders not understand?
Steven Kates sees clearly what so many of our leaders cannot.

It remains incredible to me to see how shallow economics as a discipline has become. Let me therefore state as emphatically as I can: only value adding economic activity can create economic growth and employment. Wasteful public spending cannot …

So look. I can turn you the reader of this post into a better economist than the majority of the actual certified economists of the world who follow in this Keynesian tradition. Just remember this: if whatever is produced cannot be sold in the open market at prices that cover their cost of production, the economy has, to that extent, gone backwards rather than forward.

The question is, after the train crash, will our politicians and financial managers learn anything.

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