Day Quote by Murray Rothbard
“The underconsumptionist of 1819 believed that consumption would be stimulated by tariffs, while the underconsumptionist of a later day urged monetary expansion as the remedy. On the other hand, the remedy proposed for the shortage of money capital was monetary inflation in 1819, encouragement of savings and thrift in the 1930s.”
About This Quote
Source Book: Economics in One Lesson, 1960
Early 19th‑century underconsumptionists favored tariffs to boost demand; later ones preferred monetary expansion, while solutions shifted from inflation to thrift over time.
In simple terms: Economic theories on demand and policy evolved.
Key Takeaway
Match policy tools to current economic conditions.
Themes
economics
policy
history
Mood
analytical
critical
Type
explanatory
historical
When to use this quote
- government budgeting
- central bank decisions
- business strategy
- public debates
Key Concepts
underconsumption
tariffs
monetary expansion
inflation
thrift
Questions to Reflect On
- How do you decide which stimulus works best now?
- What risks arise from focusing on a single remedy?
A Different Perspective
One policy may not fit all eras.
