“You Can Get Anything You Want At Keynes’ Restaurant”

(With apologies to Arlo Guthrie & his hit, “Alice’s Restaurant”…)

Keynesian economists offer a model whereby life is like a restaurant.

First, you decide what you want, followed by your order. After you have eaten it, you pay for your meal. As such, consumption can precede production, which is the effort or input whereby you have the resources to pay for what you wish to consume.

But real life is actually like a cafeteria. First, you decide what you want, followed by your order. Then you can eat only after you PAY for what you choose.

Such as it is, life requires production along with delayed gratification, in the form of saving, before consumption can occur. However, macroeconomic “stimulus” policies that involve credit being created out of “thin air” imply that consumption can precede production.

Following this warped logic, the modern welfare State operates relying on redistributive legerdemain that allows some to consume what is taken from others that produce.


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About christopher

Content of "Natural Order" attempts to reflect the commitment of Universidad Francisco Marroquin to support the development of a society of free & responsible individuals. The principal commentator for this blog is Christopher Lingle.

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