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Tags: xp recycle bin icon, windows icon library, mike he icons, thumbsup icon, cs 3 icon

"We come, thus, to the conclusion that a basis, on which All economic science was based since Adam Smith, - namely Submission that quantity of annually made product is defined Set of natural factors, the capital and work, - it is erroneous and that, On the contrary, a volume of output though can exceed never borders, Established by these factors, can fall and actually falls much more low This maximum owing to the obstacles created by oversaving and Overproduction following from it. Differently, in the modern Industrial companies consumption limits production, instead of Production - consumption "(185).

At last, Gobson shows the attitude of the theory to the argument

"We will notice also that charge in commercial nonsense so it is easy Thrown by orthodox economists to the address of our American relatives And other protectionist companies, it can not be supported any Resulted till now fritreder-skimi arguments, as all these arguments Were based on the precondition that overproduction is impossible "(186).

The argument following that, probably, is partial. But nevertheless this first obvious

The assertion of that fact that the capital is formed not as a result of propensity to

To savings, in summary the demand caused flowing and perspective

Consumption. The train of thought of authors is visible from following several citations:

"It should be clear that the company capital cannot increase with advantage

Without respective growth of consumption of the goods... Any increase Savings and the capital to be valid, requires the corresponding Consumption growth in the near future "(187)... And when we speak about The future consumption we mean not consumption in 10, 20 or 50 years, And in the nearest future... If growing thrift or care Induces people more to save up in the present they should agree More to consume in the future (188)...

At one stage of production cannot be economically

Existence it quantities of the capital is justified, than it is necessary for

Supply by the goods at current volume of consumption (189)... Clearly that mine

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