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Isn't consumption another name for tuberculosis?
P.

Carrol Cox <[log in to unmask]> wrote:

>The following post contains a letter written by Keynes to Eliot in 1945.
>
> 
>
>Carrol
>
> 
>
>  _____  
>
>From: [log in to unmask]
>[mailto:[log in to unmask]] On Behalf Of Tom Walker
>Sent: Wednesday, June 27, 2012 8:01 PM
>To: PEN-L list
>Subject: Re: [Pen-l] The Krugman-Layard "Manifesto for Economic Sense"
>
> 
>
>Posted at ecological headstand:
>http://ecologicalheadstand.blogspot.ca/2012/06/krugman-layard-manifesto-for-
>economic.html
>
>Mr. Keynes always knew this day would come:
>
>"When the rate of interest has fallen to a very low figure and has remained
>there sufficiently long to show that there is no further capital
>construction worth doing even at that low rate, then I should agree that the
>facts point to the necessity of drastic social changes directed towards
>increasing consumption. For it would be clear that we already had as great a
>stock of capital as we could usefully employ." -- 1934,
><http://ecologicalheadstand.blogspot.com/2011/02/self-adjusting-economic-sys
>tem.html> "Is the Economic System Self-Adjusting?"
>
>And he had a prescription for it:
>
>"when investment demand is so far saturated that it cannot be brought up to
>the indicated level of savings without embarking upon wasteful and
>unnecessary enterprises... [i]t becomes necessary to encourage wise
>consumption and discourage saving,-and to absorb some part of the unwanted
>surplus by increased leisure, more holidays (which are a wonderfully good
>way of getting rid of money) and shorter hours." -- 1943
><http://ecologicalheadstand.blogspot.com/p/long-term-problem-of-full-employm
>ent.html> "The Long-Term Problem of Full Employment."
>
>He explained his rationale in a 1945 letter to T.S. Eliot:
>
>"The full employment policy by means of investment is only one particular
>application of an intellectual theorem. You can produce the result just as
>well by consuming more or working less. Personally I regard the investment
>policy as first aid. In US it almost certainly will not do the trick. Less
>work is the ultimate solution. How you mix up the three ingredients of a
>cure is a matter of taste and experience, i.e. of morals and knowledge."
>
>Ironically, both Professor Krugman
><http://ecologicalheadstand.blogspot.ca/2011/05/open-letter-to-paul-krugman.
>html>  and Professor Layard
><http://www.worklessparty.org/timework/layard.htm>  implicitly rejected
>Keynes's intellectual theorem with their unwitting embrace of the bogus
>"lump-of-labor (or output) fallacy" claim, which descended from a archaic
><http://ecologicalheadstand.blogspot.com/2011/11/moral-philosophers-stone-co
>mpleat.html>  prototype of Jean-Baptiste Say's
><http:[log in to unmask]>  "Law of
>Markets" (aggregate supply creates its own aggregate demand) that Keynes
>directly opposed.
>
>(See also 'Kick-starting
><http://ecologicalheadstand.blogspot.com/2012/06/kick-starting-recovery-open
>-letter-to.html>  the Recovery': An Open Letter to Jonathan Portes.) 
>
>
>-- 
>Cheers,
>
>Tom Walker (Sandwichman)
>