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Kk Dewitt Modern Economic Theory Pdf Download
Dewey did not address the social and political implications of the results of his theory in Social Credit, but in The Politics of Individualism he deplores their result. He notes how the profit motive has been subordinated to the gain for the individual. He notes how the individual can enrich himself at the cost of other people and of the state. He notes how the state has gone bankrupt.
Intellectual freedom is the basis of free-market economics. It leads to the belief that people should be free to make their own choices about their own lives. It leads to the conclusion that a competitive system, which allows for the full development of human resources and behavior, produces the greatest total aggregate social output. In a competitive market, prices do not reflect the whole value of a commodity but rather the value to its current and potential buyers. It leads to the conclusion that a free market has beneficial effects on technology and innovation and that any social and governmental activities which restrict this freedom retard the advance of the competitive system. It leads to the conclusion that the free market is a social good which affords, and is generated by, the maximum total amount of human welfare.
The savings glut theory suggests that there is an investment overhang, in the sense that there is more money than there are investments for it. To resolve this difficulty the government spends the money on the basis of the following premises: that the government acts as a prudent manager of money creation, that the national debt must be reduced and that the government is not required to save all the money.
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