chapter  VIII
The Political Economy of Opulence
Pages 16

This assumption permeates the theoretical apparatus of the subject: it also directs what economists have to say about economic policy. In the debate which has been going on over the general problem of inflation, for example, economists have been divided between those who stress the loss of production and potential growth of output that results from anything less than full employment of labour, and those who stress the loss of production and potential growth of output that results from the misallocation of resources brought about by inflation. Again, in making comparisons between the Russian and Western economic systems, economists have generally tended to accept as their standard of performance the rate of growth of output per head, a standard which gives away most of

• Canadian Journal of Economics and Political Science, 26, no. 4, November 1960, 552-64.