Quote of the Day

FREDERIC BASTIAT:

I am, I confess, one of those who think that choice and impulse ought to come from below and not from above, from the citizen and not from the legislator; and the opposite doctrine appears to me to tend to the destruction of liberty and human dignity. (p. 12)

I confess the same!

Joke of the Day?

The DIAPER INVESTMENT AND AID TO PROMOTE ECONOMIC RECOVERY ACT must be a joke, right?

Oh wait, I forgot. Article 1 Section 8 of the Constitution says that "Congress shall have the power to give diapers to families."

I don’t understand aggregate demand

RUSS ROBERTS doesn't understand aggregate demand:

Does an increase in aggregate demand increase employment?

Yes, if by an increase in aggregate demand you mean people buying and selling more from each other where buying and selling includes consumers and manufacturers.

The above statement has virtually no informational content. It is equivalent to saying that when the economy is healthy, there is lots of exchange going on. When an economy is not healthy, there is less exchange. There is less buying and selling of goods and services and labor. To describe that unhealthiness as less aggregate demand is just to put the problem into different words.

You should read the rest of his post.

I don't understand either.