It’s worthwhile reading every single word of this very long article, especially if you have any interest in economics (some people do). From Jesús Huerta de Soto at mises.org:
[Opening lecture at the Twelfth Conference on Austrian Economics organized by the Juan de Mariana Institute and the Universidad Rey Juan Carlos, May 14–15, 2019.]
The topic of my lecture today is the Japanization of the European Union. I would like to start with an observation Hayek makes in his Pure Theory of Capital. (Incidentally, through Union Editorial, we have just published an impeccable Spanish edition, and I recommend it to all of you.) According to Hayek, the “best test of a good economist” is understanding the principle that “demand for commodities is not demand for labor.” This means that it is an error to think, as many do, that a mere increase in the demand for consumer goods gives rise to an increase in employment. Whoever holds this belief fails to understand the most basic principles of capital theory, which explain why it is not so: growth in the demand for consumer goods is always at the expense of saving and the demand for investment goods, and since most employment lies in the investment stages furthest from consumption, a simple increase in immediate consumption always occurs at the expense of employment devoted to investment and thus net employment.
I would add to this my own test of a good economist: the Professor Huerta de Soto test. According to my criteria, the best test to determine whether we are dealing with a good economist (and I do not mean to detract from Hayek’s test) is whether or not the person understands why it is a grave error to believe the injection and manipulation of money can bring about economic prosperity. In other words, the best test of a good economist according to Professor Huerta de Soto is understanding why the injection and manipulation of money are never the way toward sustainable economic prosperity.