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| From mitochondrial function to the functions of Big Food & Big Pharma |
A reader's journal sharing the insights of various authors and my take on a variety of topics, most often philosophy, religion & spirituality, politics, history, economics, and works of literature. Come to think of it, diet and health, too!
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| From mitochondrial function to the functions of Big Food & Big Pharma |
“The nature of illusion is that it’s designed to make you feel good. About yourself, about your country, about where you’re going – in that sense it functions like a drug. Those who question that illusion are challenged not so much for the veracity of what they say, but for puncturing those feelings.”
— Journalist/activist Chris Hedges
“It is impossible for a man to learn what he thinks he already knows.” — Epictetus
The upshot [of Say's Law]: Depressions are impossible. The very act of producing forecloses the possibility that a society will be unable to afford the fruits of production. The overall standard of living might be high or low, but it depends on how efficiently the society makes use of its resources. Unemployment cannot be a significant factor.
But depressions are real, and Say’s Law is wrong. People don’t spend all of their incomes, and what they save is not automatically converted into other spending by anyone, now or later. In the classical worldview, banking was supposed to ensure that savings aligned with investment through the establishment of interest rates ensuring that the money people wanted to save would be profitably invested in new projects. [Keynes's] A Treatise on Money had tasked central banks with handling this duty. By cutting interest rates, central banks could make it more attractive for firms to borrow the money needed to expand production and discourage people from putting money in the bank, where it would earn a lousy return. Keynes argued that although this might work—he remained to the end of his days an advocate of low interest rates and cheap money—it very well might not.
Carter, Zachary D..The Price of Peace (pp. 261-262). Random House Publishing Group. Kindle Edition.
Implicit here is the idea--or at least my idea--that depressions make no sense. They are creations of the system and not of Nature. In the Great Depression, the U.S. had not lost factories or suffered great crop failures, etc. It was a failure of the human-created system, not of some "law." My thought anyway, but I think Keynes was there way ahead of me.