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To increase investments, that, obviously, there are no other methods to supply moreEmployment high level, except consumption increase.
Practically I do not agree with these schools of economic thought only in That sense that they could attach smaller significance to increase Consumption when still it is possible to extract the big social
Advantages from increase in investments. From their theoretical point of view
It is possible to reproach, however, that they ignore availability of two methods
Production expansions. Even if we will decide that it is more expedient to slow down
.it the capital and to concentrate efforts to consumption increase, we should
It to make after careful consideration, well having weighed the alternative decision. I personally
I consider that in increase in weight of the capital to level when will cease
To be felt its defect, there are big social advantages. But it Question of the practical decision, instead of theoretical imperative.
Moreover, I willingly would agree that it is the most reasonable to begin Approach at once on both fronts. Aspiring to an establishment socially Controllable size of investments to supply the gradual
Decrease in a marginal efficiency of the capital, I would support at the same time
All actions directed on increase of propensity to consumption, for,
What we did in the field of investments, hardly it will be possible to support
Full employment at existing propensity to consumption. Thus, There are enough bases for simultaneous actions in two directions
- Both increases in investments, and increases in consumption to level, which at
To existing propensity to consumption not only would correspond to the increased
To investments, but also would be still above.
If, for example, - we will take advantage for an illustration in the approximated figures -
Average level of present production on 15 % below that level, what it Was at a continuous full employment, and if 10 % of this production Represent net investments, and 90 % consumption and if, further, for
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