"It is Say's Law."
This is what I don't understand: When discussing developmental economics, almost every economist would agree with Say's law and agree that boosting productivity in third world countries is the way to lift them out of poverty, and that requires capital accumulation, saving and investing. But suddenly when you talk about escaping a recession here, Say's law goes out the window, and, no, saving is all wrong, people should be spending, and capital accumulation is no longer what productivity depends on.
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Br: "I mean, laissez-faire has had its day. People on the centre-left and the progressive agenda should be confident enough to say that the old idea that markets were by definition efficient and could work things out themselves is gone.
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McD: It never will go.
It is Say's Law.
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Br: That doesn't mean to say that what government does is always right.
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McD: Government is always immoral.
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Br: What it means is that both government and markets have got to be underpinned by values."
Gordon Brown
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McD: That is a mere matter of fact.
But people will cease to value government when they get to know about it. It is cause of war & of mass unemployment, to cite but two evils it gives rise to.
Laissez-faire has had its day
Date: Friday, March 20, 2009, 1:10 PM
"I mean, laissez-faire has had its day. People on the centre-left and the progressive agenda should be confident enough to say that the old idea that markets were by definition efficient and could work things out themselves is gone. That doesn't mean to say that what government does is always right. What it means is that both government and markets have got to be underpinned by values."
Gordon Brown
http://www.guardian .co.uk/politics/ 2009/mar/ 17/labour- gordon-brown- interview
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