Globalization Alone Does Not Produce Losers!

by Gunther Schnabl*

The Brexit and the election of U.S. President Donald Trump were unexpected and were followed by a search for explanations. Subsequently, the common view spread that globalization is at the root of the frustrations of more and more people who are susceptible to strong nationalist statements from populists. This is surprising because for a long time, the reduction of trade barriers was acknowledged to be a basis for global prosperity. Why should the accepted view suddenly be so different?

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Say’s Law Today

by Jerry O’Driscoll  

This post follows on my earlier one, “It’s All About Say’s Law.”  

Say’s Law of Markets answered the fears of under-consumption as the spreading industrial revolution brought forth an ever more bountiful supply of goods. The law’s logic is that production creates the income that is the source of the demand for goods.     

In the General Theory, J. M. Keynes recast Say’s Law as the proposition that “the aggregate demand price of output as a whole is equal to its aggregate supply price for all volumes of output.” That formulation would be foreign, if not incomprehensible, to any economist who had ever subscribed to Say’s Law.  That law negates the concept of “output as a whole”     Continue reading