By JLP | November 22, 2010
The title was not meant to rhyme.
Check out this interesting quote I came across today by Jean Babtiste Say in 1832:
“…the encouragement of mere consumption is no benefit to commerce; for the difficulty lies in supplying the means, not in stimulating the desire of consumption; and we have seen that production alone furnishes those means. Thus, it is the aim of good government to stimulate production, of bad government to encourage consumption.”
In other words, emphasizing consumption over production is like putting the cart before the ox.
This quote is interesting to me because of what we are seeing today. From President Bush begging people to go spend money after 911 to the Obama admistration increasing jobless benefits to the unemployed, when the focus is on consumption rather than production (job creation), we hurt the economy.