August 12, 2017

GET THE END RIGHT AND THE REST FOLLOWS:

Consumption Is indeed the End; Production Is Indeed Only a Means (DON BOUDREAUX, AUGUST 12, 2017, Cafe Hayek)

[O]ne must ask: What is the purpose of having an economy with a high productive capacity?  And, even more fundamentally: How to assess productive capacity to begin with?  The key to both answers lies in understanding that the purpose of all economic activity is ultimately to satisfy each person's desire to enjoy a high standard of living (including, let us not forget, opportunities to enjoy leisure).  [...]

Production is an essential means toward the end of consumption.  The more production there is, the more consumption there can be.  But we use the means to create the end.  We produce in order to consume; we do not consume in order to produce. 

The fact that the purpose of an economy is to create wealth is the great truth that has to be avoided in all discussions of the end of labor.



Posted by at August 12, 2017 6:23 PM

  

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