Production Theory

In deciding to hire a worker, the employer does not ask himself what the worker gets as take-home wages.

If laws or business customs force the employer to make other expenditures besides the wages he pays to the employee, the take-home wages are reduced accordingly. Such accessory expenditures do not affect the gross rate of wages.

Institutional unemployment is not the outcome of the decisions of the individual job seekers. It is the effect of interference with the market phenomena intent upon enforcing by coercion and compulsion wage rates higher than those the unhampered market would have determined.

What ultimately matters for the well-being of society is the degree to which our wants are satisfied, and therefore the actual usefulness of goods.

The belief of the advocates of credit expansion and inflation that abstention from further credit expansion and inflation would perpetuate the depression is utterly false.

If monopoly companies for specific products or specific areas of trade were good, reasoned François du Noyer, sieur de Saint-Martin, why not go one

"Refusing to accept wage reductions, workers must accept unemployment."

"Because of rate busting, society as a whole will move toward greater and greater satisfaction and prosperity."

People rebel against the insight that the malinvestment and overconsumption of the boom period are the cause of the bust.

From Part I of A History of Money and Banking in the United States: The Colonial Era to World War II: “The History of Money and Bank