PKT message, Say's Law Revisited

The following Gang8 exchange of today's date may be of interest.

Gunnar

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Re. the following:

Therefore, in order to expose the ultimate foundations of economics and -policy, it was my intention to find the image of Man that economic theory (and to a lesser extent policy) was based upon. However, as economists speak even less of this than of their methodology, I settled for the latter.

Comment:

The "image of Man" aspect is central to the whole thing!

For the Creditary View of Money is predicated on an image of Man as Collaborator with his fellow Man in pursuit of a common goal - which, in the specific case of economics, is the pooling and conversion of the individual Factor Endowments of A, B, and C into Final Output in which A, B, and C will share as agreed up front and formalized through Credit arrangements whereby A, B, and C all acquire claims to Final Output.

THIS IS SAY'S LAW - although Jean Baptiste Say never put it this way, that is the image of Man implicit in his approach to economics.

Hence John Stuart Mill's dictum that "Demand for Commodities is not Demand for Labour" - for, given an image of Man as Collaborator with his fellow Man in pursuit of the common goal outlined above, the Keynesian notion that "Demand for Commodities is Demand for Labour" makes no sense.

That fact that it does make sense in real-world economies reflects the dog-eat-dog attributes of contemporary Homo Economicus.

Gunnar