Economic Myths #2: Consumption Boosts Growth

[First published on Free Life]

The belief that economic progress is boosted by consumption is based upon the kind of misunderstanding that could be made only by intellectuals – the product of theorising that is completely detached from the common sense that everyone else possesses.

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Optimism for Liberty

Browsing through a single day’s worth of articles on the libertarian website lewrockwell.com is enough to confront one with a smorgasbord of despair:

  • The bankruptcy of Western nations and their collapsing economies;
  • Increasing wars and overseas intervention;
  • Desperation to maintain Western-led hegemony;
  • Increased state censorship and invasion of privacy;
  • The dangers of state-sponsored medicine and disease control;
  • Digital enslavement;
  • The lack of integrity of the political class; official lies and corruption.
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Rich vs Poor – a False Dilemma

Conventional thinking about social, political and economic matters tends to narrow the options available to a set of policies advocated by two, possibly three political parties of scarcely dissimilar ideologies. Any genuinely radical approach concerning these topics is abandoned given that the fundamentals are deemed to be beyond question. Thus, alternatives to these entrenched matters – such as whether the state should have any positive role at all in anything – are seldom given the light of day, let alone the opportunity of being debated.

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