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“Those who think that the destruction of war increases total “demand” forget that demand and supply are merely two sides of the same coin. They are the same thing looked at from different directions. Supply creates demand because at bottom it is demand. The supply of the thing they make is all that people have, in fact, to offer in exchange for the things they want. In this sense the farmers’ supply of wheat constitutes their demand for automobiles and other goods.
All this is inherent in the modern division of labor and in an exchange economy.”

Excerpt From: Hazlitt, Henry. “Economics in One Lesson.” Three Rivers Press, 2010-08-11. iBooks.

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