I have finally submitted the manuscript for my Summary and Translation of Classical Economic Theory into a format that can be read by a modern economist. This is part of the note that went with the submission.
I think and hope I have now completed everything I need to do to submit my manuscript. I have adjusted the title, but am still looking for something that really says in compact form what I mean, which is that if you want to understand how an economy works, you will have to return to the economic theories of the classical economists. That is what the book is about, plus also being about how to understand a classical text since one must first work through how economic terminology has changed since classical times. If you read the word “saving” as a Keynesian does, you will not only not understand a classical text, you will also not be able to make sense of how an economy works.
The embedded notion that is almost explicit in the text is that only by understanding classical economic theory can one understand how an economy works, which also says, and the text discusses, that you cannot understand the operation of an economy using mainstream theory, any version of socialist economic theory, New Classical economics, Austrian economics or, for that matter, the economic theories of the early classical economists, such as Adam Smith and David Ricardo.
It is only with the publication of John Stuart Mill’s Principles in 1848, and then from within his last edition published during his lifetime in 1871, can one discover the actual operation of an economy. What that theory is no one any longer knows, other than a few specialists who number fewer than 100 across the world. And then, amongst those, there is oddly only a single one who believes that Mill’s text is the lost ideal of economic theory. I perfectly well understand how ridiculous it is to believe any such thing, but I do. The classicals laid it all out before the arrival of the Marginal Revolution which turned economics from the supply side to the demand side. But what has completely collapsed economic theory as a sound means to make sense of an economy was the advent of the Keynesian Revolution in the decade after the publication of The General Theory in 1936, where not only was everything overturned, but a new set of technical terms was introduced whose use makes a classical text all but incomprehensible to a modern economist. You will need my text to understand classical economic theory. You cannot do it on your own since you won’t know either the meaning of the terms or the presuppositions that underpinned the theory.
Our economies have managed, but only just, to maintain the role of the entrepreneur in directing our private sector firms, but the pretence found in modern macro that public spending – G – is as productive or as value-adding as private investment – I – is tearing our economies down, with no understanding of what is happening, least of all among our economists. That capitalists have been transformed into crony capitalists, who are now among the major welfare recipients taken from the massive tax revenues collected by governments, is a large part of the problem. What to do is hard to say, but first the problem needs to be recognised. That is what this book attempts to do.