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The Fallacy of Saving; A Study in Economics

The Fallacy of Saving; A Study in Economics


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Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER III. HOW THE FALLACY AROSE?TURfJOT AND SMITH. The final refutation of any error, most men agree, i.s the showing not merely that it is an error but how it came to be made; and in the case of Smith's doctrine of parsimony this is not difficult. He lived in an industrial society, with democratic tendencies, just at the time when the habit of investment was admitted to have formed a new and important social stratum. His own income, after his retirement to Kirkcaldy, came from investments; and it is natural that the investor should wish to make out that in promoting his own interests he is promoting those of the community. And not only was he the first to grapple comprehensively with the obscure and complicated economics of industry, but he had the current doctrine of parsimony recommended to him by those very Physiocrats who gave him his best scientific inspiration, and whose fundamental positivism bulks so much more largely in his book than his refutation of their formal fallacies. While the Physiocrats brushed aside the bullion delusion, and went straight enough to primary truth in insisting on the pre-eminent importance of the exploitation of the soil, they seem to have tacitly or expressly accepted the immemorial principle of individual money-saving, without mnkingany thorough inquiry as to what it was that, in industrial society, was really saved by the owners of investments. Quesnay, indeed,1 has a curt caveat against des epargnes steriles;z but in this he merely condemns the locking-up of coin; and on the other hand3 he insists that rise in prices is increase of national wealth. And the lucid and sagacious Turgot, ably formulating the conclusions of his school, distinctly identifies individual saving with the national accumulation of a mass of riches. In the ...


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Product Details
  • ISBN-13: 9781458875082
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 44
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 1458875083
  • Publisher Date: 01 Jan 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 95 gr


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