Finance: trick AND treat.

[Shann Turnbull <sturnbull@mba1963.hbs.edu>]

Our moderator suggested that I share the letter I sent today to the Editor
of The Economist commenting on their article published on pages 101/2 in
their edition dated October 23.  The article in The Economist avoided
sharing the knowledge on how to make economic growth self-financing and so
that it can be broadly shared with all citizens.

Regards

Shann

>X-From_: magi.com!kwilde Sun Oct 31 23:35:32 1999
>From: "Keith Wilde" <kwilde@magi.com>
>To: "Shann Turnbull" <sturnbull@mba1963.hbs.edu>
>Subject: Re: Finance trick or treat, October 23.
>Date: Sun, 31 Oct 1999 07:46:59 -0500
>X-Mailer: Microsoft Outlook Express 4.72.3110.1
>X-MIME-Autoconverted: from 8bit to quoted-printable by relay1.mpx.com.au id 
>XAA13488
>
>Good show!  In reading around in old economics literature a few days ago I
>extracted the impression that until post WW I days economists didn't really
>begin to get this idea among themselves.  That leads me to suspect that it
>needs a lot of pounding in a lot of places before the ideas we are promoting
>will begin to have easy acceptance among a broad public. Why don't you share
>your letter  (and this note, if you wish) with the COG groups?
>
>Keith Wilde
>Ottawa, Canada
>kwilde@magi.com
>613 990-8125
>613 747-6847
>-----Original Message-----
>From: Shann Turnbull <sturnbull@mba1963.hbs.edu>
>To: letters@economist.com <letters@economist.com>
>Date: Sunday, October 31, 1999 2:22 AM
>Subject: Finance trick or treat, October 23.
>
>
>Letter for publication set out below
>
>Dear Sir
>
>                       Finance: trick AND treat
>
>Your School Brief of October 23 could trick readers into thinking that
>savings from consumption forgone financed the industrial revolution rather
>than from the savings created by the greater productivity of new
>technology.  The treat of consumption and investment increasing together
>instead of one at the expense of the other depends upon the commercial
>banks creating credit to finance growth.  Evidence of the dependency of
>economic growth on commercial banks was provided in the paragraph headed
>“follow the money” but it did not explain why or how.
>
>Yours faithfully,
>

Shann Turnbull
P.O. Box 266 Woollahra, Sydney, Australia, 1350
Phone: 02 9328 7466 office; 02 9327 8487 home
Fax: 02 9327 1497 home & office.  Mobile 0418 222 378
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Life long E-mail: sturnbull@mba1963.hbs.edu
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