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Tax rebates are no doubt well-intentioned. The concept fits well within the current Keynesian ideology. Nevertheless, the fact remains that the economics of Lord Keynes is inadequate for solving the current and continuing spate of economic crises. Once we understand what is going on, we realize that tax rebates and other means of artificially stimulating demand are ultimately counterproductive. They do nothing to solve the underlying problem, which is lack of full participation in the economic process by as many people as possible, both as suppliers of labor, and owners of the means of production.

The basic economic "facts of life" were stated two centuries ago by a political economist ordinary, thoughtful people know nothing about, and whom the experts dictating today's economic policy would rather forget: Jean-Baptiste Say. Ironically, the "law" that bears his name ("Say's Law of Markets"), and for which both Keynesians and Marxists excoriate his memory, was not invented by him. Say merely stated a fundamental economic reality more clearly and succinctly than Adam Smith and others before him: "production equals income."

Once we think about this simple equation, we realize the intrinsic truth of it. Every time a "production" (i.e., a good or service) is sold, it represents income for the seller. The raw materials or supplies used by the seller to produce a good or service also resulted in income for the producer of the raw materials or seller of the supplies, and so on down the line.

Thus, everything that is sold in the aggregate generates the aggregate demand to purchase it. Say's Law of Markets can therefore be expanded by saying that "supplies generates its own demand, and demand its own supply."

Unfortunately, Marx's and Keynes' fixed dogma that you can only finance new capital out of existing accumulations of savings heaves a couple of sabots into the economic machinery, slowing it down and eventually destroying the economy. One, reliance on existing savings instead of proper use of the commercial banking system to finance capital formation means that you need a class of very rich people who can't consume all that they produce through their ownership, and are forced to save. Savings equals investment, therefore, the fewer rich people you have, the more investment will take place, thereby increasing job creation.

According to Keynes ("The Economic Consequences of the Peace," 1919), ownership of the means of production must be concentrated. The great

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