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Society and State

  • David Reisman
Chapter
Part of the Great Thinkers in Economics book series (GTE)

Abstract

Proportion is essential in political economy. There has to be a good balance between spending and saving if the perils of overheating on the one hand, stagnation on the other are to be avoided. There must also be an appropriate balance in the ownership of landed property. Some redistribution is needed but it must occur gradually, so as not to destabilise the social and political order. The laws of primogeniture and entailing, illiberal as they are, must be preserved. Social conventions should also conform to the rule of balance. Consumption should not be so great as to starve investment of loanable funds but it should not be so niggardly as to drive satiated agents into indolence and unchanging replication. There had in addition to be balance in the role of the State. If total demand is deficient, the State should contribute unproductive consumption through counter-cyclical public works financed even in a recession by higher taxes and a national debt which in itself is favourable to full employment.

Keywords

Circular flow Property rights Free economic market Taxation National Debt 

References

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • David Reisman
    • 1
  1. 1.Nanyang Technological UniversitySingaporeSingapore

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