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KEYNES WAS WRONG. (And Hayek was right.) Christian thrift is just alright for a thriving economy. Economist Dierdre McCloskey answers the question, "What Would Jesus Spend?". Quotable:

Noneconomists imagine that God has so poorly designed the world that a lack of thrift, even tending to avarice, is, alas, necessary to keep the wheels of commerce turning, to "create jobs" or "keep the money circulating." .. It's the alleged paradox of thrift .. Dorothy Sayers, who was more than a writer of mysteries, though not an economist, complained in 1942 as a Christian about "the appalling squirrel cage . . . in which we have been madly turning for the last three centuries . . . a society in which consumption has to be artificially stimulated in order to keep production going." To tell the truth, many economists in the era of the Great Depression had reverted to this noneconomist's way of thinking. The theory was called "stagnationism." It was a balloon theory of capitalism, that people must keep puff-puffing or the balloon will collapse ..

Posted by Greg Ransom | TrackBack