ABSTRACT
The standard of living of a community can be expressed as the national income per head. The generation of employment by spending was quickly appreciated by Hitler in the 1930s, with the result that Nazi Germany soon became the most powerful nation in Europe, with a high national income and low unemployment. Half the national income could be removed by taxation, under a ruthless Government unconcerned with such ephemeral matters as democratic elections, and spent on wise or foolish projects such as space rockets, hospitals, schools, the arts, welfare, and maintaining a powerful standing army. As incomes increase, history indicates that savings, as a percentage of incomes, also increase. Investment, exports, and Government expenditure are all inflationary, in that incomes are generated without any corresponding goods being produced for purchase. The national income is determined by total expenditure, and this expenditure in turn determines levels of employment.
