Economic Theory: Say's Response to Malthus
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Questions and Answers

According to Louis Kelso, what is money not a part of?

  • A physical factor of production
  • The invisible sector of the economy
  • The visible sector of the economy (correct)
  • A method of measuring economic input

    • What determines who gets access to capital credit?

  • Social status
  • Credit score
  • Collateral (correct)
  • Income level

    • What is the main purpose of money according to Louis Kelso?

  • To create economic inequality
  • To measure economic input and outtake (correct)
  • To facilitate consumer credit
  • To accumulate wealth

    • What is the result of the current money creation and credit extension systems?

    <p>The rich getting richer, the poor getting poorer</p> Signup and view all the answers

    What is the primary requirement for accessing capital credit?

    <p>Collateral</p> Signup and view all the answers

    Who has access to the lowest-cost and least risky kind of credit?

    <p>The rich</p> Signup and view all the answers

    What is the primary purpose of the monetary system?

    <p>To measure economic activity</p> Signup and view all the answers

    What is the result of the poor and middle-class having access to risky and high-cost credit?

    <p>Perpetuation of economic inequality</p> Signup and view all the answers

    What is the primary concern of Jean-Baptiste Say when it comes to the economy?

    <p>The ability of individuals to produce more than they can consume</p> Signup and view all the answers

    What is the consequence of rising levels of consumer credit?

    <p>A reduction in future disposable income</p> Signup and view all the answers

    What is the underlying cause of the imbalance between the productive capacity of technology and the ability of people to purchase goods and services?

    <p>The unequal distribution of productive instruments in society</p> Signup and view all the answers

    What is the result of flawed economic paradigms, according to the text?

    <p>The creation of false dichotomies and conflicting values</p> Signup and view all the answers

    What is the primary consequence of the power to produce overwhelming the power to consume, according to Say's Law of Markets?

    <p>A surplus of goods and services</p> Signup and view all the answers

    What is the relationship between the ability to produce and the ability to purchase, according to Jean-Baptiste Say?

    <p>The ability to produce is directly related to the ability to purchase</p> Signup and view all the answers

    What is the impact of the current economic system on the environment, according to the text?

    <p>An increase in environmental degradation</p> Signup and view all the answers

    What is the role of the State in addressing the imbalance between productive capacity and purchasing power, according to the text?

    <p>To regulate markets and redistribute wealth</p> Signup and view all the answers

    What is the primary issue that contributes to the widening gap between the rich and poor?

    <p>Unequal ownership of the means of production</p> Signup and view all the answers

    According to the Chemical & Engineering News “Special Report” in 1972, what is one of the consequences of environmental degradation?

    <p>Pollution control costs being passed on to consumers</p> Signup and view all the answers

    What is the outcome of a system that forces a man to fight for a job on an environmentally destructive project?

    <p>Conflict between capital and labor</p> Signup and view all the answers

    What is the primary consequence of a consumer who cannot afford to pay for pollution control costs?

    <p>Increased environmental degradation</p> Signup and view all the answers

    What is the primary issue faced by citizens in the richest and most powerful nations?

    <p>Vulnerability to loss of jobs and income</p> Signup and view all the answers

    What is the primary consequence of the global economy treating workers as disposable assets?

    <p>Powerlessness and vulnerability of workers</p> Signup and view all the answers

    What is the primary goal of rethinking our paradigms, assumptions, and systems?

    <p>To bring about peace, prosperity, and a healthy environment for every person</p> Signup and view all the answers

    What is the primary defect of both capitalism and socialism, and their various permutations?

    <p>Most people owning no share in the world's productive capacity</p> Signup and view all the answers

    What is the primary consequence of the widening economic gap between the rich and poor within nations and between rich and poor nations?

    <p>Starvation, homelessness, and loss of hope for many</p> Signup and view all the answers

    What is the primary defect of both capitalism and socialism, and their various permutations?

    <p>Most people do not own a share in the world's productive capacity</p> Signup and view all the answers

    What is a consequence of consumerism and debt in the richest and most powerful nations?

    <p>Feeling trapped by consumer debt and loss of jobs and income</p> Signup and view all the answers

    What is a consequence of the current economic system's impact on the environment?

    <p>Environmental degradation and pollution</p> Signup and view all the answers

    What is a consequence of war and conflict in the global economy?

    <p>Increased poverty and inequality</p> Signup and view all the answers

    What is a consequence of the global economy treating workers as disposable assets?

    <p>Feeling trapped and powerless</p> Signup and view all the answers

    What is a consequence of the imbalance between productive capacity and purchasing power?

    <p>Starvation, homelessness, and loss of hope for many</p> Signup and view all the answers

    What is a consequence of the growing gap between the rich and poor?

    <p>Increased social unrest and conflict</p> Signup and view all the answers

    What is the primary function of money in the economy, according to Louis Kelso?

    <p>A means of measuring economic input, outtake, and relative values</p> Signup and view all the answers

    What is the result of the current money creation and credit extension systems in terms of wealth distribution?

    <p>The rich accumulate wealth and power, while the poor and middle-class are restricted</p> Signup and view all the answers

    What is the consequence of the poor and middle-class having access to risky and high-cost credit?

    <p>They are trapped in debt and unable to improve their economic situation</p> Signup and view all the answers

    What is a consequence of the current economic system's focus on growth and consumption?

    <p>Environmental degradation and resource depletion</p> Signup and view all the answers

    What is a primary driver of consumer debt and financial insecurity?

    <p>The widespread availability of consumer credit</p> Signup and view all the answers

    What is a consequence of the global economic system treating workers as disposable assets?

    <p>Increased economic inequality and social injustice</p> Signup and view all the answers

    What is a primary challenge in addressing global health crises?

    <p>The lack of access to affordable healthcare and medical resources</p> Signup and view all the answers

    What is a primary consequence of the widening gap between the rich and poor?

    <p>Increased economic inequality and social unrest</p> Signup and view all the answers

    What is the primary reason why most people on the planet are unable to purchase the goods and services produced by technology?

    <p>They do not have legitimate ownership claims to the productive instruments of society</p> Signup and view all the answers

    What is the consequence of rising levels of consumer credit, according to the text?

    <p>It creates a temporary burst of purchasing power, but increases the debt burden in the long run</p> Signup and view all the answers

    What is the underlying cause of the imbalance between the productive capacity of technology and the ability of people to purchase goods and services?

    <p>The unequal distribution of productive instruments of society</p> Signup and view all the answers

    What is the relationship between the ability to produce and the ability to purchase, according to Jean-Baptiste Say?

    <p>The ability to produce is directly proportional to the ability to purchase</p> Signup and view all the answers

    What is the consequence of flawed economic paradigms, according to the text?

    <p>They lead to environmental degradation and social unrest</p> Signup and view all the answers

    What is the primary consequence of the power to produce overwhelming the power to consume, according to Say's Law of Markets?

    <p>It leads to a surplus of goods and services that cannot be consumed</p> Signup and view all the answers

    What is the primary role of the State in addressing the imbalance between productive capacity and purchasing power, according to the text?

    <p>To redistribute wealth and resources through taxation and regulation</p> Signup and view all the answers

    What is the primary consequence of the global economy treating workers as disposable assets?

    <p>It leads to social unrest and environmental degradation</p> Signup and view all the answers

    Study Notes

    Critique of Economic Systems

    • Jean-Baptiste Say's conclusion: people can only buy with what they produce, and if commodities don't sell, it's because others aren't being produced.

    Inequality and Consumer Credit

    • Most people lack ownership and means to purchase what technology can produce.
    • The wealthy few produce more than they can consume, leading to an imbalance.
    • Consumer credit temporarily increases purchasing power but increases debt and reduces disposable income.

    Say's Law of Markets

    • The power to produce overwhelms the power to consume.

    Definition of Money

    • Money is not a physical factor of production, but a yardstick for measuring economic input, output, and relative values.
    • Money provides a method of measuring obligations, rights, powers, and privileges.

    Monetary System

    • The current system keeps the rich wealthy and the poor in their place.
    • Access to capital credit is restricted, and the poor get high-cost credit.
    • Lenders require collateral, making it difficult for the poor to access credit.

    Global Economic Issues

    • A gap in economic power and ownership widens between the rich and poor within and between nations.
    • Billions remain starving, homeless, and without hope, despite the potential for abundance.
    • Environmental degradation, conflict, and unresponsive institutions are symptoms of a flawed system.

    The Need for Change

    • It's time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for everyone.
    • Fundamental principles are needed to guide the restructuring of laws and institutions.

    System Failure

    • Most people lack ownership of the means of production, making it impossible for them to produce enough to purchase others' productions.
    • This common defect exists in both capitalist and socialist systems.

    Critique of Economic Systems

    • Jean-Baptiste Say's conclusion: people can only buy with what they produce, and if commodities don't sell, it's because others aren't being produced.

    Inequality and Consumer Credit

    • Most people lack ownership and means to purchase what technology can produce.
    • The wealthy few produce more than they can consume, leading to an imbalance.
    • Consumer credit temporarily increases purchasing power but increases debt and reduces disposable income.

    Say's Law of Markets

    • The power to produce overwhelms the power to consume.

    Definition of Money

    • Money is not a physical factor of production, but a yardstick for measuring economic input, output, and relative values.
    • Money provides a method of measuring obligations, rights, powers, and privileges.

    Monetary System

    • The current system keeps the rich wealthy and the poor in their place.
    • Access to capital credit is restricted, and the poor get high-cost credit.
    • Lenders require collateral, making it difficult for the poor to access credit.

    Global Economic Issues

    • A gap in economic power and ownership widens between the rich and poor within and between nations.
    • Billions remain starving, homeless, and without hope, despite the potential for abundance.
    • Environmental degradation, conflict, and unresponsive institutions are symptoms of a flawed system.

    The Need for Change

    • It's time to rethink paradigms, assumptions, and systems to bring about peace, prosperity, and a healthy environment for everyone.
    • Fundamental principles are needed to guide the restructuring of laws and institutions.

    System Failure

    • Most people lack ownership of the means of production, making it impossible for them to produce enough to purchase others' productions.
    • This common defect exists in both capitalist and socialist systems.

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    Description

    Explore the ideas of Jean-Baptiste Say and his response to Thomas Malthus on economic principles, production, and purchasing power.

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