Thursday 17 September 2015

LIMITATIONS OF MAINSTREAM ECONOMICS - REVIEW OF MEGHNAD DESAI'S "HUBRIS"

A few weeks ago, I watched "How the Economic Machine Works" by hedge fund billionaire Ray Dalio on YouTube (see video here). I must confess I found it incomprehensible. Dalio says that consumption drives the economy and for an economy to grow people must consume more and more. I had always thought (as per the Austrian view) that it was savings and investment that drives an economy.