Friday, January 29, 2016

I'm with Irv

From, The Problem Isn't Overproduction — It's Malinvestment:
Austrians do not contend that there cannot be a surplus of some goods. Of course, there can! But we know that a surplus of some goods means that there is a scarcity of others.

From Irving Fisher, #13 in The Debt-Deflation Theory of Great Depressions:
The classical notion that over-production can only be relative as between different products is erroneous. Aside from the abundance or scarcity of particular products relative to each other, production as a whole is relative to human desires and aversions, and can as a whole overshoot or undershoot the equilibrium mark.

1 comment:

Oilfield Trash said...

Non-equilibrium thinking economic models and heads are exploding.