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If the government finances corresponding costs at the expense of taxes or forThe account of loans, it, thereby, destroys as much jobs, how many and Creates. If the governmental costs are financed at the expense of loans at Business banks, it conducts to credit expansion and inflation. If in
Result of this inflation of a staple price and materials will grow more fast, than
The nominal wages, unemployment will be reduced. But reduction Unemployments means only that the real wages decrease. Congenital properties of capitalist evolution define gradual growth Real wages. The reason is consecutive accumulation The capital and "know-how" perfection. There is no different way To lift a subsistence level for all comers, than to increase Vested capital counting on one taken. As soon as ceases
Additional capital accumulation, disappears also the tendency to growth of the real
Wages. If instead of an increment begins it the capital, The real wages start to fall inevitably, and so until Obstacles to the further increment of the capital will be eliminated. The governmental measures which slow down accumulation or conduct to it The capital - as, for example, the confiscatory taxation, are fatal for Vital interests of workers. Credit expansion can cause temporary boom. But such seeming Prosperity inevitably comes to an end the general decline of trade, crisis.
Hardly probable it is possible to assert that economic history of the last decades not
Has justified pessimistic forecasts of economists. Our time is doomed on Great economic shocks. But matter is not in capitalism crisis. It is crisis
Capitalism.
First of all, followers of Prussian historical school, and American
Plans, they always denied that on light there are such things, as laws
Economy. In their opinion, the governments are free to aspire to any purposes, not
Connecting itself knowledge of law of economic events. Similarly
To the German socialist to Ferdinand Lassalju, they believed that the state and
There is God. [Lassal Ferdinand (1825 - 1864) - the German socialist visible
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