ABSTRACT

Economics is haunted by more fallacies than any other study known to man. The long-run consequences of some economic policies may become evident in a few months. It is often complained that demagogues can be more plausible in putting forward economic nonsense from the platform than the honest men who try to show what is wrong with it. A mere recital of the economic policies of governments all over the world is calculated to cause any serious student of economics to throw up his hands in despair. Amateur writers on economics are always asking for 'just' prices and 'just' wages. These nebulous conceptions of economic justice come down to us from medieval times. Equilibrium wages and prices are the wages and prices that equalize supply and demand. From time immemorial proverbial wisdom has taught the virtues of saving, and warned against the consequences of prodigality and waste.