It is pure nonsense what the former Czech President Václac Harvel has been reported to have said in an interview recently: ‘More growth lead us further into the gulf’
Unfortunately Harvel has mixed up Keynesian growth with realistic or real growth. It is perfectly understandable that Harvel has listened to the Keynesian smalltalk since the 1930s and 1940s.
But it is a pity this smalltalk has become even a part of Havel’s religious dogmas too.
Keynesian growth deals with pumping monetary means out into the system to get some economic founded horses to pull even more.
This kind of so-called growth leads us deeper into the gulf, where we already are.
Real growth deals with removing some of load from the wagon, because the load is too heavy for the horses to pull.
Real growth in a globalized world then deals with the possibility to get the wagon to drive on new roads and at the same time to make the wagon more flexible and adroit.
J. E. Vig, M. Sc. (Economics)