A Quote About Divine Economy Theory – Capital Consumption.

“If consumer credit is extended in the market artificially – which means that it is unmatched by existing savings – capital is consumed. What is happening is that consumption is in excess of the productive capacity. Productive capacity in the economy is supported by the level of savings and the subsequent capital. The only way to now consume more is to use current savings, which was to serve as the loanable funds for ‘new’ capital and economic growth. This is the equivalent of consuming capital which consequently will cause the economy to regress, the typical consequence of intervention.”

Follow me on Twitter @DivineEconomy

For more information go to my newly renovated website.

If you know of anyone interested in ethics and economics,
or liberty and justice, please send them this link:


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s