Money is an incidental in understanding how an economy works

If you want to understand how economies work never NEVER think of economic activity in terms of money. Economic activity depends on resources – land, labour and capital. If you think in terms of money you will never get it. Money is sometimes scarce but productive resources always are.

Activity isn’t intended to create “jobs”, it’s to create useful products that can be produced at a profit.

2 thoughts on “Money is an incidental in understanding how an economy works

    • Best lesson I’ve learnt from Steve and others who critique Keynes is how Classical Economics was a focus on improving living standards rather than getting more dead end jobs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.