Monday, May 12, 2014

Lord Keynes gets Mystical.

h/t Sandwichman

Now that the labour theory of value was linked to mysticism, I wonder, was Lord Keynes getting mystical?

"I sympathise, therefore, with the pre-classical doctrine that everything is produced by labour, aided by what used to be called art and is now called technique, by natural resources which are free or cost a rent according to their scarcity or abundance, and by the results of past labour, embodied in assets, which also command a price according to their scarcity or abundance. It is preferable to regard labour, including, of course, the personal services of the entrepreneur and his assistants, as the sole factor of production, operating in a given environment of technique, natural resources, capital equipment and effective demand. This partly explains why we have been able to take the unit of labour as the sole physical unit which we require in our economic system, apart from units of money and of time." (Emphasis added, The General Theory, chapter 16, section II, link)

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