He Said That? 10/20/15

Consumption, in the long run in which we are all dead, ultimately cannot be greater than production. Who knew? From David Stockman:

In short, the affliction of Keynesian economics brought many ills to the modern world, but repeal of Say’s Law was not among them. You can have a one-time credit party, but when it inevitably ends, consumption spending defaults to that which can be financed from current incomes. Consumption is the consequence of production and income, not its cause.

Red Swan Descending

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