“ A diminished propensity to consume to-day can only be accommodated to the public advantage if an increased propensity to consume is expected to exist some day. ”
John Maynard Keynes, The General Theory of Employment, Interest and Money (1936). copy citation
| Author | John Maynard Keynes |
|---|---|
| Source | The General Theory of Employment, Interest and Money |
| Topic | public advantage |
| Date | 1936 |
| Language | English |
| Reference | |
| Note | |
| Weblink | http://gutenberg.net.au/ebooks03/0300071h/printall.html |
Context
“New capital-investment can only take place in excess of current capital-disinvestment if future expenditure on consumption is expected to increase. Each time we secure to-day's equilibrium by increased investment we are aggravating the difficulty of securing equilibrium to-morrow. A diminished propensity to consume to-day can only be accommodated to the public advantage if an increased propensity to consume is expected to exist some day. We are reminded of 'The Fable of the Bees'3⁄4the gay of tomorrow are absolutely indispensable to provide a raison d'être for the grave of to-day. It is a curious thing, worthy of mention, that the popular mind seems only to be aware of this ultimate perplexity where public investment is concerned, as in the case of road-building and house-building and the like.”
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