http://econospeak.blogspot.com/2014/08/making-sense-of-brad-delongs-making.html
Mark Thoma at Economist's View links <http://economistsview.typepad.com/economistsview/2014/08/making-sense-of-friedrich-a-von-hayek.html> to Brad DeLong's post Making Sense of Friedrich A. von Hayek <http://equitablegrowth.org/2014/08/07/making-sense-friedrich-von-hayek-focusthe-honest-broker-week-august-9-2014/> in which DeLong once again reiterates his bizarre notion about "making Say's Law true in practice although it is false in theory." "Say's Law" (which is neither Say's nor a law!) is not even false in theory -- it is self-contradictory nonsense -- a "liar's paradox." <http://econospeak.blogspot.com/2014/08/addendum-to-sciod-4-liars-paradox.html> Making Say's Law "true in practice" is not consistent with Keynes's critique of the vulgar classical notion that "supply creates its own demand." As Keynes pointed out in chapter 23 of the *General Theory,* "Notes on Mercantilism...," the rejection of the wages-fund doctrine undermined one of the foundations of Say's Law: "Mill's successors rejected his wages-fund theory but overlooked the fact that Mill's refutation of Malthus depended on it." Dudley Dillard called Say's Law a *corollary* of the wages-fund doctrine. But it gets weirder. As the Sandwichman has explained *ad nauseum, *the so-called lump-of-labor fallacy is a version of the wages-fund doctrine *attributed* to unions by their critics. Moreover, a standard refutation of the fallacy invokes the claim that "supply creates its own demand." The following sentence is true. The preceding sentence is false. Liar's paradox. Brad DeLong knows that the lump-of-labor and the wages-fund doctrine are homologous. He knows that the wages-fund doctrine is a "standard move in the rhetoric of reaction." We discussed it 15 years ago. [on pen-l...] See the post for a transcript of that conversation transcribed from archives of Pen-l http://econospeak.blogspot.com/2014/08/making-sense-of-brad-delongs-making.html -- Cheers, Tom Walker (Sandwichman)
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