imagination?

["William B. Ryan" <w_b_ryan@xxxxxxxxx>]

[Gunning] When it became evident after several weeks
that most readers objected to my postings, I quit the
list.
----------------------------------------------
I don't recall anyone objecting to your postings.
Several subscribers specifically asked you to
continue.
--


[Gunning] It is not an answer but a claim that the
question is irrelevant.
----------------------------------------------
The question is quite relevant and I thank you for
asking it because it relates to the consensus
position of most economists (with some notable
exceptions like the Post Keynesians).  The answer to
the question has two elements each of them being
capable of book-length treatment:  (1) that the
quantity theory is irrelevant because it presupposes
commodity money whereas the contemporary world is
predominantly on a credit money system--which is
contingent on the validity of observable fact rather
than pure theory; and (2) that the volume of
production is substantially a derivative of consumer
demand made effective - the essence of credit - which
puts us more into the domain of pure theory.  If more
money is placed into the hands of consumers in
respect to the accounted for costs of production,
consumable production will increase at a greater rate
than will prices assuming realizable productive
capacity.  Therefore - within controlled limits - the
technical full utilization of productive capacity is
achievable with price stability.  Production will for
the first time in history become driven by the free
choice of sovereign consumers, rather than as now,
driven by bankers and bureaucrats and insiders and
politicians with singular lack of imagination.  It is
what we call economic democracy.
--



----original message----
[snipped]
Pat Gunning, Feng Chia University, Taiwan;
New book: UNDERSTANDING DEMOCRACY
http://nomadpress.com/public_choice/
http://mail.ebtnet.net/~manta/public_choice/




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