ABSTRACT
The progress of national wealth follows a circular course; every effect becomes a cause in its turn, each step is determined by the preceding one, and determines the one that follows, and the last one brings back the first in the same order. The national income ought to regulate national expenditure which, in turn, ought to absorb, in the consumption fund, total production; the entire consumption causes an equal or larger reproduction, and from reproduction springs income. Aggregate consumption determines an equal or greater reproduction. It is here that the circle can enlarge itself and change into a spiral: last year has produced and consumed as ten; one can fancy that next year, by producing at eleven, will also consume at eleven. An oversupply of goods leads always to greater consumption through a decline in prices; but this result is not that much more advantageous.
