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Haas School of Business

The Walter A. Haas School of Business (branded as Berkeley Haas) is the business school of the University of California, Berkeley, a public research university in Berkeley, California. It was the first business school at a public university in the United States.

Named after Walter A. Haas, the school is housed in four buildings surrounding a central courtyard on the southeastern corner of the Berkeley campus, where both undergraduate and graduate students attend classes. Its resident startup incubator, Berkeley SkyDeck, is located west of campus in Downtown Berkeley. Notable faculty include former Chairs of the Federal Reserve and the Council of Economic Advisors, Nobel laureates in economics, the Secretary of the Treasury, the chief economist of Google, and more.

History
The Haas School of Business was first established as the College of Commerce of the University of California in 1898. As enacted on March 23, 1868, the university's Organic Act listed among its goals the provision of "special courses of instruction" for many kinds of "professions," including "commerce." University Regents Arthur Rodgers, A.S. Hallidie and George T. Marye Jr. later proposed the establishment of a College of Commerce. The new college was founded on September 13, 1898, when Cora Jane Flood, daughter of industrialist and University of California Regent James C. Flood, donated land (worth one million dollars at the time) to the university specifically to support the study of commerce. The school was one of the first business schools in the United States and the first at a public university.

The college's first faculty members included some American pioneers in the field of business. Simon Litman taught the first course in marketing between 1902 and 1908. Adolph Miller, who was the Flood Professor of the Political Economy and Commerce from 1903 to 1915, later served on the first Board of Governors of the Federal Reserve System. Wesley Clair Mitchell, who taught at Berkeley from 1905 to 1913, is known as the father of the business cycle analysis. Charles Staehling taught accounting at the college from 1921 to 1951 and was known for adding a theoretical framework to the praxis-oriented teaching of accounting principles. Henry Mowbray, who taught from 1910 to 1948, wrote the first college textbook on insurance.

The College of Commerce was founded in the liberal arts tradition, drawing on faculty from other disciplines on campus. Carl C. Plehn was appointed the first dean of the new college in 1898. Plehn, a finance professor educated in Germany, drafted the college's first curriculum for a Bachelor of Science degree. The initial course offerings covered legal studies, political studies, political economy, and historical studies, including The History of the Institution of Private Property, History and Principles of Commercial Ethics, and the History of Commerce in All Countries and at Every Age. Plehn proposed changes to the curriculum in 1915 to give it a more professional focus. The proposal, adopted after World War I, established a program that included two years of liberal arts education followed by junior and senior year commerce study, a pattern still used for the undergraduate program today.

Henry Rand Hatfield, a pioneer in accounting and an early entrant in the Accounting Hall of Fame, became the second dean of the college in 1916. Hatfield had been hired by the University of California in 1904 as the first full-time accounting professor in the country. Hatfield played a leading role in the founding of the Association to Advance Collegiate Schools of Business and the national honor society Beta Gamma Sigma. He also published the first paper in the United States on accounting theory. As dean, Hatfield sought to increase the reputation of the College of Commerce by bringing scholars from the East Coast to teach during summer sessions.

After World War I, enrollment experienced an increase from the influx of veterans and continued to grow even through the Great Depression, increasing from its initial class size of three in 1898 to 1,540 students in 1938. In 1925, the college's third dean, Stuart Daggett, instituted a two-year Master of Science degree. The school's fourth dean, Henry Francis Grady, was appointed in 1928. Grady went on leave from 1934 to 1936 to become an advisor to President Franklin D. Roosevelt, for whom he worked on reciprocal trade agreements (see Reciprocal Tariff Act). The fifth dean, Robert Calkins, succeeded Grady, but left within a few years to become the dean of the Columbia Business School.

E.T. Grether was appointed the sixth dean of the College of Commerce in 1941. Grether's twenty-year tenure as dean was a time of great change. The college was renamed the Department of Business Administration in 1942 and began offering a new two-year upper division curriculum leading to the Bachelor of Science in Business Administration. In 1943, the department was renamed the School of Business Administration when it began offering a one-year graduate program.

Grether opened several research centers in the school, including The Institute for Business and Economics Research (1941), The Institute for Industrial Relations (IIR) (1945, now called the Institute for Research on Labor and Employment), and the Center for Real Estate and Urban Economics (1950). Grether tapped Clark Kerr to be the first director of the IIR. Kerr's success in this position led to his becoming the first Chancellor of the University of California, Berkeley.

The Graduate School of Business Administration was opened in 1955 and the school began offering a course of study leading to the Master of Business Administration. A year later the Doctor of Philosophy in Business Administration and executive education programs were founded.

Under the school's eighth dean, Richard H. Holton, an evening MBA program was initiated in 1972. Unlike other evening or part-time programs in the country, students were required to meet the same admission requirements as established for the day-time MBA program. Classes for the evening MBA were held in downtown San Francisco until the school's present building complex was completed in 1995, the final design of architect Charles Moore.

Earl F. Cheit became the ninth dean of the school in 1976. Facing diminishing funding and budget pressures, Cheit lobbied and won increased salary scales for business faculty. He also secured donations from Walter A. Haas to endow seven new chairs and to open a career planning and placement center. In 1980, the school began to offer a Management of Technology program jointly with the College of Engineering. 1980 also saw the inauguration of the annual Haas Competition in Business and Social Policy, funded by a donation from the Evelyn and Walter A. Haas, Jr. Foundation.

In 1987, the tenth dean of the school, Raymond Miles, began the school's first major capital campaign to raise money for a new building. Major contributions were made by Wells Fargo and Eugene Trefethen, an executive with Kaiser Industries. In 1989, the Walter and Elise Haas Fund donated $15 million to the building campaign. The donation was the largest in the history of the university to that date. The school was renamed the Haas School of Business in honor of that gift.

The new building was designed by Charles W. Moore, former chair of Berkeley's Department of Architecture. Construction began in 1993 and the school moved into its new building complex in January 1995.

Laura Tyson, a professor at Berkeley since 1977 and the chairman of the President's Council of Economic Advisers from 1993 to 1995 during the Clinton Administration, was the dean of the school from 1998 to 2001. Tyson negotiated an agreement with the Columbia Business School to create a joint program, the Berkeley-Columbia Executive MBA, which offered experienced executives the opportunity to earn an MBA from both Haas and Columbia. The program lasted for ten years.

Tom Campbell served as dean of Berkeley Haas from 2002 to 2008, with the exception of a one-year sabbatical in 2004-2005 during which he served as Director of the California Department of Finance. During this time, Richard Lyons served as interim dean.

In July 2008, Richard Lyons became the dean of Berkeley Haas. Along with a curriculum overhaul, Lyons launched the public phase of a $300 million capital campaign. The campaign's stated goals are "transforming the... campus, building a curriculum based on the Berkeley Haas approach to leadership, and aggressively expanding the school’s faculty and its support for research." Dean Lyons also oversaw the opening of Berkeley Haas' fourth building, Connie & Kevin Chou Hall. A six-story, 80,000 sq.ft. building on the north side of the Berkeley Haas campus, Chou Hall cost $60 million and was funded exclusively by alumni and community members. It is the first academic building in the country to be designed for LEED Platinum and WELL certifications, and intended to achieve zero waste certification by summer 2018. Chou Hall opened under temporary occupancy in summer 2017 and was officially completed in 2018.

Ann Harrison began her term as Berkeley Haas dean in January 2019.

The Haas School of Business has been home to two winners of the Nobel Memorial Prize in Economics. John C. Harsanyi (1920–2000) was a co-recipient with John Nash and Reinhard Selten in 1994 for his contributions to the study of game theory and its application to economics. Oliver Williamson (1932-2020) was a co-recipient with Elinor Ostrom in 2009 for his "analysis of economic governance, especially the boundaries of the firm." Both have served as Professor Emeritus at Berkeley Haas and in Berkeley's Department of Economics.

Full-time MBA
The Berkeley MBA Program is a two-year curriculum designed to prepare students for business leadership. In addition to its core curriculum and elective courses, Berkeley Haas requires all MBA students to take an Applied Innovation course, such as Haas@Work or International Business Development.

Prospective full-time MBA students may apply to one of three concurrent degree programs; Haas offers a four-semester MBA/MEng program with one of seven programs in the College of Engineering, a five-semester MBA/MPH program with the School of Public Health, and a four-year JD/MBA program with Berkeley Law or the UC College of the Law in San Francisco. Current students may apply to a semester-long exchange program with Columbia Business School, Hong Kong University of Science and Technology, IESE Business School, HEC Paris, or London Business School.

Evening & Weekend MBA
The three-year, part-time Berkeley Evening & Weekend MBA Program allows participants to continue working full-time while pursuing the MBA. The curriculum is aligned with that of the full-time MBA, and students can choose to attend classes either two evenings per week or on Saturdays.

MBA for Executives
The Berkeley MBA for Executives program lasts 19 months and consists of courses taught by the full-time faculty of Berkeley Haas. The core curriculum is taught during the first three terms, and the last two terms offer elective courses. Upon completion of the program, students earn the same degree awarded in the school's other MBA programs.

Prior to 2013, Berkeley Haas offered the Berkeley-Columbia Executive MBA, which gave experienced executives the opportunity to jointly earn MBAs from both Haas and Columbia Business School.

Master of Financial Engineering Program
The Berkeley Master of Financial Engineering (MFE) Program provides graduates with knowledge and skills necessary for a career in the finance industry. Students in the MFE program take an integrated set of courses for a period of one year, and must also complete a ten-week internship or on-site project plus an applied finance project that builds on skills learned in the internship.

PhD Program
The Haas School of Business PhD Program offers six fields of academic study: Accounting, Business and Public Policy, Finance, Marketing, Management of Organizations, and Real Estate. The program admits 14-16 candidates per year, and students can expect to graduate in four to five years.

Bachelor of Science
The Haas School of Business, in conjunction with the main Berkeley campus, offers an undergraduate Bachelor of Science degree in Business Administration (BSBA). Students take a variety of elective courses in addition to required core courses, which include economics, communication, managerial and financial accounting, finance, marketing, and ethics. Students apply to the program after fulfilling undergraduate prerequisite courses, and are admitted to Haas for their final two years.

Additional offerings
The Haas School of Business offers the BSBA degree with a concentration in global management through its Global Management program. Global management students begin the program in the summer prior to their freshman year and spend their first semester in London through Berkeley Global Edge.

The Management, Entrepreneurship, & Technology program, offered by the Haas School of Business and the College of Engineering, is an integrated program that leads to two Bachelor of Science degrees, one in Business Administration from Berkeley Haas and the other in Electrical Engineering & Computer Sciences (EECS), Industrial Engineering & Operations Research (IEOR), or Mechanical Engineering (ME) from the College of Engineering. Students enter the M.E.T. program as freshmen.

The Haas School of Business also partners with the College of Engineering, College of Environmental Design, and College of Letters and Science (Arts and Humanities Division) to sponsor the undergraduate Berkeley Certificate in Design Innovation.

Executive education
UC Berkeley Executive Education offers a variety of programs for individuals and organizations, to help corporate executives understand new and/or challenging aspects of the business world. Executives can enroll in a prepared set of short courses targeted at specific issues or develop a custom curriculum.

Institutes and centers
The Haas School of Business is home to many research institutions and centers, and Haas faculty members take an active part in Berkeley's multidisciplinary programs.

Institutes
Institute for Business Innovation (IBI)

 * Fisher Center for Business Analytics
 * Garwood Center for Corporate Innovation
 * Berkeley Haas Entrepreneurship Program
 * Tusher Center for Management of Intellectual Capital
 * AMENA Center for Entrepreneurship and Development
 * Haas@Work Program

Institute for Business & Social Impact (IBSI)

 * Center for Social Sector Leadership (CSSL)
 * Center for Responsible Business (CRB)
 * Center for Equity, Gender, and Leadership (EGAL)
 * Berkeley Business Academy for Youth (B-BAY)
 * Boost@Berkeley Haas

Energy Institute at Haas (EI)

 * Cleantech to Market (C2M)

Centers

 * Asia Business Center
 * Berkeley Center for Economics and Politics
 * Center for Financial Reporting and Management
 * Fisher Center for Real Estate and Urban Economics

Global MBA
Berkeley Haas was ranked 19th in the Financial Times Global MBA Ranking (2024).

Berkeley Haas was ranked 13th in QS Global MBA Ranking (2024).

US MBA
Berkeley was ranked 7th (tied) in the U.S. News & World Report Best Business Schools Ranking (2024).

Berkeley was ranked 7th in the QS MBA Rankings for the US (2024).

Berkeley was ranked 10th in the Bloomberg MBA and Business School Ranking (2024).

Part Time MBA
The Berkeley Haas Evening & Weekend MBA Program was ranked 1st in U.S. News & World Report's for Best Part-time MBA Programs (2023).

Undergraduate
The Haas School of Business Undergraduate Program was tied for 2nd in U.S. News & World Report's Best Undergraduate Business Programs (2024).

Notable faculty

 * David Aaker – Professor Emeritus of Marketing Strategy; current Vice Chairman of the Prophet, creator of the Aaker Model, and 2015 Marketing Hall of Fame Inductee
 * Vinod Aggarwal – Professor of Political Science; current Director of the Berkeley APEC Study Center, and founding member of the U.S. Asia Pacific Council
 * Steve Blank – Lecturer; creator of Customer development, part of the Lean Startup methodology
 * Henry Chesbrough – Adjunct Professor and Faculty Director of the Garwood Center for Corporate Innovation; known for coining the term Open Innovation
 * Solomon Darwin – Director of the Garwood Center for Corporate Innovation and Executive Director of the Center for Growth Markets; known for his development of "smart village" frameworks for Indian villages
 * Henry F. Grady – Dean of the Berkeley's College of Commerce, now the Haas School of Business (1928-1937); former President of the American President Lines, and former U.S. Ambassador to India, Nepal, Greece, and Iran
 * Paul Gertler — Professor of Economics; former Chief Economist of the World Bank Human Development Network
 * John Harsanyi – Professor Emeritus; 1994 Economics Nobel Laureate
 * Ross Levine – Professor; economist and advisor to the World Bank, Federal Reserve, and the International Monetary Fund (IMF)
 * Daniel Levitin – Distinguished Faculty Fellow; neuroscientist, best-selling author, and management consultant
 * Richard Lyons – Professor of Economics and Finance; former Dean of the Haas School of Business (2008-2018)
 * Sherman J. Maisel – Professor Emeritus; instrumental to found the Haas-Berkeley Center for Real Estate and Urban Economics, and former Member of the Federal Reserve Board of Governors
 * David C. Mowery – Professor Emeritus of New Enterprise Development; advisor to U.S. Congress, and the Organization for Economic Cooperation and Development (OECD)
 * Omar Romero-Hernandez – Continuing Lecturer; 2010 Franz Edelman Award recipient
 * Mark Rubinstein – Finance Professor Emeritus; instrumental to found the Haas-Berkeley Master of Financial Engineering (MFE) Program, and 1995 International Association of Financial Engineers Man of The Year
 * Carl Shapiro – Professor of the Graduate School and Professor of Business Strategy Emeritus; former member of the President’s Council of Economic Advisers, and former Deputy Assistant Attorney General for Economics in the U.S. Department of Justice Antitrust Division
 * David Teece – Professor in Global Business and Faculty Director of the Tusher Center for The Management of Intellectual Capital
 * Philip E. Tetlock – Professor; MacArthur Fellow, Russell Sage Foundation Scholar, winner of Woodrow Wilson Award, Robert E. Lane Award, and Grawemeyer Award
 * Paul Tiffany – Senior Lecturer; author of business plans for Dummies
 * Laura Tyson – Distinguished Professor of the Graduate School; former Dean of the Haas School of Business (1998–2001), former Dean of the London Business School, former Director of the National Economic Council, and former Chair of the President's Council of Economic Advisers
 * Hal Varian – Professor Emeritus; current Chief Economist at Google, former Co-Editor of the American Economic Review
 * David Vogel – Professor Emeritus of Business Ethics and Professor Emeritus of Political Science; current Editor-in-Chief of the California Management Review
 * Oliver Williamson – Professor Emeritus of Business and Professor Emeritus of Economics and Law; 2009 Economics Nobel Laureate, a seminal researcher on transaction cost economics
 * Janet Yellen – Professor Emeritus of Business Administration; current U.S. Secretary of the Treasury, former Chair of the Federal Reserve, former Vice Chair of the Federal Reserve, and former Chair of the President's Council of Economic Advisers

Notable alumni

 * Scott Adams, (MBA 86), creator of Dilbert and author
 * Patrick Awuah, (MBA 99), founder of Ashesi University and 2015 Macarthur Fellow
 * Marc Badain, (MBA 01), president of the Las Vegas Raiders
 * Ralph Bahna, (MBA 65), CEO of Cunard Line (1980-1989), chairman of Priceline.com (2004-2013), and founder of Club Quarters
 * Bengt Baron, (BS 85, MBA 88), CEO of Cloetta
 * Richard C. Blum, (BS 59, MBA 59), founder of Blum Capital and the American Himalayan Foundation
 * Amir Blumenfeld, (BS 05), comedian, writer and actor at CollegeHumor
 * Tom Byers, (MBA 80, PhD 82), founder and co-director of the Stanford Technology Ventures Program; executive vice president of Symantec
 * Rob Chandra, (BA 88), Venture capitalist
 * Henry Chesbrough, (PhD 97), chairman of the Open Innovation Center - Brazil
 * Brett Cooper, (BS 21), American conservative political commentator, media personality, and actress
 * Rick Cronk, (BS 65), co-owner, president of Dreyer's Grand Ice Cream
 * Barbara Desoer, (MBA 77), CEO (2014-2019) and COO (2013-2014) of Citibank
 * Tom Fanoe, (MBA 69), president and COO of Joe Boxer
 * Donald Fisher, (BS 50), co-founder of Gap Inc.
 * Laura E. Flores, (MBA 95), diplomat, Permanent Representative to the United Nations from Panama (2014-2017)
 * Robert B. Ford, president and CEO of Abbott Laboratories
 * Michael R. Gallagher, (BS 67, MBA 68), CEO, executive director of Playtex Products (1995-2004)
 * Scott Galloway, (MBA 92), founder of Prophet
 * John Garamendi, (BS 66), Congressman from California, Lieutenant Governor of California (2007-2009), and U.S. Deputy Secretary of the Interior (1995-1998)
 * Walter A. Haas, (BS 10), president (1928-1955) and chairman (until 1970) of Levi Strauss & Co
 * Walter A. Haas Jr., (BS 37), president, CEO, and chairman of Levi Strauss & Co
 * John Hanke, (MBA 96), CEO of Niantic Inc.
 * Warren Hellman, (BA 55), co-founder of private equity firms Hellman & Friedman and Hellman Ferri (now Matrix Partners)
 * Michael Homer, (BS 81), vice president at Netscape, founder of Kontiki
 * N. W. Jasper, (MBA 71), current president and CEO of Dolby Laboratories
 * Joseph Jimenez, (MBA 84), CEO of Novartis
 * Daniel E. Koshland Sr., (BA) CEO of Levi Strauss & Co
 * Cathie Lesjak, (MBA 86), CFO of Hewlett-Packard
 * Robert Lutz, (BS 61, MBA 62), vice chairman of General Motors
 * Richard Lindsey, (PhD), Head of Prime Brokerage and Clearing Services, member of the Management Committee of Bear Stearns, and chief economist at the U.S. Securities and Exchange Commission
 * Richard Lyons, (BS 82), former Dean of the Haas School of Business (2008-2018)
 * Michelle Maykin, (BS), advocate for minority participation in the National Marrow Donor Program
 * Alex Mandl, (MBA 69), executive chairman of Gemalto
 * Paul Merage, (BS 66, MBA 68), co-founder of Chef America, co-inventor of Hot Pockets, and benefactor of Paul Merage School of Business at the University of California, Irvine
 * Michael Milken, (BS 68), highly influential in developing the market for junk bonds (a.k.a. "high-yield debt")
 * Norman Mineta, (BS 53), former U.S. Secretary of Transportation, former U.S. Secretary of Commerce, and former co-chair of the Joint Ocean Commission Initiative
 * Ryan Murphy, (BS 17), four-time Olympic gold medalist
 * Takehiko Nakao, (MBA 82), ninth president of the Asian Development Bank
 * Shantanu Narayen, (MBA 93), CEO of Adobe Systems
 * Ikujiro Nonaka, (MBA 68, PhD 72), professor at Hitotsubashi University
 * Terrance Odean, (MS 92, PhD 97), Rudd Family Foundation Professor of Finance at Haas School of Business
 * Maura O'Neill, (MBA 04), chief innovation officer at USAID
 * Doug Ose, (BS 77), Congressman from California
 * Paul Otellini, (MBA 74), president and CEO of Intel
 * Rudolph A. Peterson, (BS 25), president and CEO of Bank of America and former Administrator of the United Nations Development Programme
 * John Riccitiello, (BS 81), CEO at Unity Technologies
 * Paul Rice, (MBA 96), founder and CEO of Fair Trade USA
 * Andrew Rudd, (MBA 76), chairman and CEO of Advisor Software
 * Arun Sarin, (MBA 78), CEO (2003-2008) of Vodafone
 * Peter Schiff, president and chief global strategist of Euro Pacific Capital, financial analyst, and author
 * Komal Shah (art collector) (MBA), art collector, businessperson in Silicon Valley
 * Weijian Shan, (PhD), Co-founder, Chairman and CEO of global investment firm PAG (2022 AUM of $50 billion)
 * Pete Stark, (MBA 60), Congressman from California
 * Lidia S. Stiglich, (BS 92), Associate Justice of the Supreme Court of Nevada
 * Eleni Kounalakis, (MBA 92), Lieutenant Governor of California and U.S. Ambassador to Hungary (2010-2013)
 * April Underwood, (MBA 07), CPO at Slack
 * Rha Woong-Bae, (PhD 68), Deputy Prime Minister of South Korea and Minister of Economy and Finance
 * Soyeon Yi, (MBA 14), South Korea's first astronaut

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title: Haas School of Business


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Degrees of the University of Oxford

The system of academic degrees at the University of Oxford originates in the Middle Ages and has evolved since the University's founding in 1096.

Almost all undergraduate bachelors degrees at Oxford are titled Bachelor of Arts (BA), apart from the Bachelor of Theology (BTh) and Bachelor of Fine Arts (BFA). At the same time, the University offers two bachelors degrees as postgraduate courses – the Bachelor of Civil Law (equivalent to a Master of Laws) and the Bachelor of Philosophy (equivalent to a masters degree in philosophy). Previously, other postgraduate courses awarded bachelors degrees, such as the Bachelor of Divinity, but the majority of such courses have since renamed their awards to masters degrees.

Seven years after matriculation, BA and BFA graduates may apply to the title of Master of Arts, which is an academic rank at the University and not a postgraduate degree. Integrated masters programs, comprising three years of undergraduate study and one year of postgraduate study, confer a single award (for example, the Master of Mathematics (MMath)). The University offers a number of postgraduate masters degrees – chiefly the Master of Philosophy, Master of Science, and Master of Studies. Professional programs such as the Master of Business Administration, Master of Fine Arts, Master of Public Policy, and Master of Theology are also awarded at Oxford.

Doctor of Philosophy programs at the University are typically abbreviated "DPhil" rather than PhD. Oxford also awards a Doctor of Clinical Psychology (DClinPsych) and Doctor of Medicine (DM), in addition to Dohigher doctorates such as the Doctor of Civil Law. In postnominals, "University of Oxford" is normally abbreviated "Oxon.", which is short for (Academia) Oxoniensis, or Oxf.

Undergraduate Awards

 * Bachelor of Arts (BA)
 * Bachelor of Fine Art (BFA)

The bachelor's degree is awarded soon after the end of the degree course (three or four years after matriculation). Contrary to common UK practice, Oxford does not award bachelor's degrees with honours. However, a student whose degree is classified third class or higher is considered "to have achieved honours status".

Until recently, all undergraduates studied for the degree of Bachelor of Arts. The BFA was introduced in 1978. Holders of the degrees of BA and BFA both proceed in time to the degree of Master of Arts (MA). The BA is awarded even for science courses, such as the three-year Physics degree. The degree of Bachelor of Science (BSc) has never been awarded as an undergraduate degree at Oxford. It used to be awarded as a graduate qualification, however.

 * Bachelor of Theology (BTh)

The BTh is awarded primarily to students of the various theological colleges and halls, such as Wycliffe Hall, Regent's Park College, Blackfriars, St Stephen's House, Ripon College Cuddesdon, Harris Manchester College and the former Westminster College, Oxford. Usually, these students are candidates for the ordained ministry of one of the mainstream Christian denominations, but may be drawn from any faith background (Unitarian ordinands study at HMC) or none at the discretion of the College or Hall. It should not be confused with the degree of bachelor of divinity (BD), which is a postgraduate degree.

 * Bachelor of Education (BEd)

The BEd was formerly awarded to students residing at Westminster College, Culham College of Education, the Lady Spencer Churchill College of Education, and Milton Keynes College of Education (formerly the North Buckinghamshire College of Education) who read concurrently at the university.

The UGAdvDip is a FHEQ Level 6 award which is equivalent to the third year of undergraduate study and it is generally accepted as equivalent to a second bachelor's degree or a Graduate Diploma. Undergraduate Advanced Diplomas are only offered at the University of Cambridge and the University of Oxford.
 * Undergraduate Advanced Diploma (UGAdvDip)

Undergraduate Master's degrees
Beginning in the 1990s, the following degrees were introduced to increase public recognition of the four-year undergraduate science programmes in these subjects:

 * Master of Biochemistry (MBiochem)
 * Master of Biology (MBiol)
 * Master of Biomedical Sciences (MBiomedSci)
 * Master of Chemistry (MChem)
 * Master of Computer Science (MCompSci)
 * Master of Computer Science and Philosophy (MCompSciPhil), first entry 2012
 * Master of Earth Sciences (MEarthSci)
 * Master of Engineering (MEng), awarded for degrees in both Engineering Science and Materials Science
 * Master of Mathematics (MMath)
 * Master of Mathematics and Computer Science (MMathCompSci)
 * Master of Mathematics and Philosophy (MMathPhil)
 * Master of Mathematics and Physics (MMathPhys)
 * Master of Physics (MPhys)
 * Master of Physics and Philosophy (MPhysPhil)

The holders of these degrees have the academic precedence and standing of BAs until the twenty-first term from matriculation, when they rank as MAs. From 2014 graduates with these degrees wear the same academic gown as a Master of Studies, with a black silk hood lined with sand fabric. Previously the academic dress was simply the BA gown and hood.

In contrast, science undergraduates at Cambridge may be granted the degree of Master of Natural Sciences (MSci) in addition to the BA (and the subsequent MA).

Degree of Master of Arts
The degree of Master of Arts is awarded to BAs and BFAs seven years after matriculation, without further examination, upon the payment of a nominal fee. Recipients of undergraduate master's degrees are not eligible to incept as MA, but are afforded the same privileges after the statutory twenty-one terms. This system dates from the Middle Ages, when the study of the liberal arts took seven years.

Bachelors' degrees
At Oxford, the BM BCh degree is only awarded after the completion of another bachelor's degree. Undergraduate medicine students will receive a Bachelor of Arts in Medical Sciences degree at the end of the third year of the six-year programme. Graduates with an existing bachelors degree may apply to a four-year version of the medicine course, which confers only the BM BCh.
 * Bachelor of Medicine & Bachelor of Surgery (BM, BCh)

 * Bachelor of Divinity (BD)
 * Bachelor of Letters (BLitt)
 * Bachelor of Science (BSc)
 * Bachelor of Music (BMus)

In medieval times a student could not study some subjects until study in the liberal arts was completed. These subjects were known as the higher faculties. The Bachelors of Science and Letters were added in the 19th century, and the Bachelors of Philosophy was added in 1914. The higher bachelor's degree programme is generally a taught programme of one or two years for graduates.

 * Bachelor of Civil Law (BCL)
 * Bachelor of Philosophy (BPhil) (now only awarded in Philosophy)

The only two remaining postgraduate-level courses awarded by the University are the Bachelor of Civil Law and the Bachelor of Philosophy, which are equivalent to masters degrees in law and philosophy respectively.

Masters' degrees

 * Master of Philosophy (MPhil)
 * Master of Letters (MLitt)
 * Master of Science (MSc) (awarded by examination or by research)

The BLitt, BSc, and BPhil (in degrees other than philosophy) were re-titled master's degrees.

 * Magister Juris (MJur)
 * Master of Studies (MSt)
 * Master of Theology (MTh)
 * Master of Business Administration (MBA)
 * Master of Fine Arts (MFA)
 * Master of Public Policy (MPP)

The MJur and MBA are awarded after taught courses, the MJur being the equivalent of the BCL for students from non-common-law backgrounds. The MSt is a one-year hybrid research/taught course which is the equivalent of the taught master's degree in most other UK universities. The MTh is an applied theology course for those intending to enter holy orders.

The degree of Master of Education was formerly awarded to students at Westminster College, when that course was validated by the University.
 * Master of Education (MEd)

Diplomas
Historically at Oxford and Cambridge, a Diploma was a postgraduate qualification for instance, the Cambridge Diploma in Computer Science). The title of Diploma has nonetheless mostly been replaced by the more common master's degree.

To distinguish postgraduate diplomas from graduate or undergraduate diplomas at other institutions, Oxford uses the term "postgraduate diploma". The Centre of Continuing Education offers part time diplomas in a number of specialised areas, and other faculties also offer postgraduate diploma courses such as the "Postgraduate Diploma in Intellectual Property Law and Practice" offered by the law faculty.

Doctorates

 * Doctor of Divinity (DD)
 * Doctor of Civil Law (DCL)
 * Doctor of Medicine (DM)
 * Doctor of Letters (DLitt)
 * Doctor of Science (DSc)
 * Doctor of Music (DMus)

Graduates in subjects other than Medicine can proceed to a doctorate without further examination on presentation of evidence of an important contribution to their subject, such as a series of influential published works.

Higher doctorates s may also be awarded honoris causa, or as honorary degrees. It is traditional for the Chancellor to be made a DCL jure officio (by virtue of his office). Until the 19th century all bishops who had studied at Oxford were made DDs jure officio.

 * Doctor of Philosophy (DPhil)

The DPhil is a research degree, modelled on the German and American PhD, that was introduced in 1914. Oxford was the first university in the UK to accept this innovation.

 * Doctor of Clinical Psychology (DClinPsychol)

The degree of DClinPsychol is the only professional doctorate at Oxford.

Order of academic standing
Members of the University of Oxford are ranked according to their degree. The order is as follows:

 * Doctor of Divinity
 * Doctor of Civil Law
 * Doctor of Medicine if also a Master of Arts
 * Doctor of Letters if also a Master of Arts
 * Doctor of Science if also a Master of Arts
 * Doctor of Music if also a Master of Arts
 * Doctor of Philosophy if also a Master of Arts
 * Doctor of Clinical Psychology if also a Master of Arts
 * Doctor of Engineering if also a Master of Arts
 * Master of Surgery if also a Master of Arts
 * Master of Science if also a Master of Arts
 * Master of Letters if also a Master of Arts
 * Master of Philosophy if also a Master of Arts
 * Master of Studies if also a Master of Arts
 * Master of Theology if also a Master of Arts
 * Master of Education if also a Master of Arts
 * Master of Business Administration if also a Master of Arts
 * Master of Fine Art if also a Master of Arts
 * Master of Public Policy if also a Master of Arts
 * Master of Arts, or Master of Biochemistry or Chemistry or Computer Science or Earth Sciences or Engineering or Mathematics or Mathematics and Computer Science or Mathematics and Philosophy or Physics or Physics and Philosophy with effect from the twenty-first term from matriculation
 * Doctor of Medicine if not also a Master of Arts
 * Doctor of Letters if not also a Master of Arts
 * Doctor of Science if not also a Master of Arts
 * Doctor of Music if not also a Master of Arts
 * Doctor of Philosophy if not also a Master of Arts
 * Doctor of Clinical Psychology if not also a Master of Arts
 * Doctor of Engineering if not also a Master of Arts
 * Master of Surgery if not also a Master of Arts
 * Master of Science if not also a Master of Arts
 * Master of Letters if not also a Master of Arts
 * Master of Philosophy if not also a Master of Arts
 * Master of Studies if not also a Master of Arts
 * Master of Theology if not also a Master of Arts
 * Master of Education if not also a Master of Arts
 * Master of Business Administration if not also a Master of Arts
 * Master of Fine Art if not also a Master of Arts
 * Master of Public Policy if not also a Master of Arts
 * Bachelor of Divinity
 * Bachelor of Civil Law
 * Magister Juris
 * Bachelor of Medicine
 * Bachelor of Surgery
 * Bachelor of Letters
 * Bachelor of Science
 * Bachelor of Music
 * Bachelor of Philosophy
 * Bachelor of Arts, or Master of Biochemistry or Chemistry or Computer Science or Earth Sciences or Engineering or Mathematics or Mathematics and Computer Science or Mathematics and Philosophy or Physics or Physics and Philosophy until the twenty-first term from matriculation
 * Bachelor of Fine Art
 * Bachelor of Theology
 * Bachelor of Education

Within each degree the holders are ranked by the date on which they proceeded to their degree. In the case of people who graduated on the same day they are ranked by alphabetical order.

If the Degree of Master of Biochemistry, or Chemistry, or Computer Science, or Earth Sciences, or Engineering, or Mathematics, or Mathematics and Computer Science, or Mathematics and Philosophy, or Physics, or Physics and Philosophy, is held together with a higher degree, the holder will rank in precedence equally with a person who holds the same higher degree together with the Degree of Master of Arts.

title: Degrees of the University of Oxford


text:
Buckfast bee

The Buckfast bee is a breed of honey bee, a cross of many subspecies and their strains, developed by Brother Adam (born Karl Kehrle in 1898 in Germany), who was in charge of beekeeping from 1919 at Buckfast Abbey in Devon in the United Kingdom. Breeding of the Buckfast bee is now done by breeders throughout Europe belonging to the Federation of European Buckfast Beekeepers (G.D.E.B.). This organization maintains a pedigree for Buckfast bees, originating from the time of Brother Adam.

In 1916, only 16 surviving colonies were left in the abbey. All of them were either Ligurian (A. m. ligustica) from Italy or Ligurian queens mated with the English black bee (a now extinct phenotype of the A. m. mellifera); by 1919 these bees too had died causing Brother Adam to import queens again from Italy and also France, from which he began to develop what would come to be known as the Buckfast bee.

Origin and Heritage
According to Brother Adam's personal notes, 1915 was "The last season colonies of the former native honeybee (the British strain of A. m. mellifera) existed in this neighbourhood before its final extermination by the Isle of Wight epidemic, in 1916 only bees of or descended from the Italian Ligurian strain of the A. m. ligustica had survived. An isolated mating station was established on Dartmoor in June 1925, prior to this date matings were random. In 1919 a queen, later named as B-1, was raised that "embodied all the desirable qualities of the Ligurian and former Native in an ideal combination"; it is from this queen that the Buckfast bees can trace their ancestry back to.

The following is a list of the subspecies (and strains if stated) that were later included in the Buckfast breeding program by Brother Adam, not all were eventually included into the Buckfast breed: Buckfast (B1), A. m. ligustica (Ligurian strain; all other strains proved susceptible to Acarine, especially those imported from the U.S. and of an all-golden color), A. m. mellifera (Gale's French, Brown Provence, Swedish and Finnish strains; the Irish strain proved itself even more susceptible to Acarine than the British strain), A. m. cypria, A. m. carnica, A. m. cecropia, A. m. meda (Iraqi and Iranian strains), A. m. sahariensis, A. m. anatoliaca (Turkish and Armenian strains), A. m. caucasica, A. m. lamarckii, A. m. monticola (Mount Elgon strain), A. m. adami and A. m. macedonica (Mount Athos strain).

In 1971 other bee breeders began to join the Buckfast breeding program and established their own isolated mating stations, as well as using instrumental insemination, today the breeding of pedigree Buckfast bees is regulated by the Federation of European Buckfast Beekeepers (G.D.E.B.) in over twenty six countries with numerous breeders.

History
Its developer Brother Adam was inspired by the survival of the Italian (A. m. ligustica) × dark bee (A. m. mellifera) crosses whenever the Isle of Wight disease, later identified as Acarine, reached Buckfast Abbey. To be able to control the matings, he started to use an isolated valley in Dartmoor. With no other bees within range, Brother Adam could maintain their genetic integrity and develop desirable traits. Brother Adam investigated various honey bee subspecies and made many long journeys in Europe, Africa, and the Middle East, searching for desirable characteristics within local strains, he also had queens imported to include in his breeding program. The book In Search of the Best Strains of Bee tells about his travels in search of genetic building blocks.

Every new bee subspecies or strain was first crossed with the existing Buckfast bees. In many cases, the new desired qualities were passed on to the next generation and the new combination was then made stable with further breeding work. Every crossing with a new type of bee took about 10 years before the desired genes were fixed in the breed. Over 70 years, Brother Adam succeeded in developing a vigorous, healthy and fecund honey bee, which was named the Buckfast bee.

The Buckfast bee is popular among beekeepers and is available from bee breeders in Germany, Ireland, the United Kingdom, France and other places. The Buckfast bees' qualities are very favourable, sometimes referred to as the beekeepers bee. They are non-aggressive and highly productive. Brother Adam, in his book, Beekeeping at Buckfast Abbey, writes that in 1920 they obtained "an average of no less than 192 lbs [87 kg] surplus per colony and individual yields exceeding 3 cwt [= 336 lbs or 152 kg]." In the 1986 BBC-affiliated documentary, The Monk and the Honey Bee, more than 400 pounds (181 kg) of honey are reported to have been produced by a single Buckfast colony.

Buckfast breeding programme
The qualities and characteristics desired in the Buckfast bee breeding can be divided into three groups: primary, secondary and tertiary.

Primary
These are the basic qualities of economic importance and form the primary aim in breeding:
 * Industry – a boundless capacity for (foraging) work is doubtless the foremost requirement.
 * Fecundity – the queen at a certain point (relative to the nectar flow) must be able to fill at least eight or nine Dadant combs with brood.
 * Resistance to disease – is absolutely indispensable and essential to successful beekeeping.
 * Disinclination to swarm – an indispensable prerequisite in modern beekeeping.

Secondary
These are of great importance as each contributes its respective share to an intensification of the honey gathering ability of the colony:
 * Longevity – prolongation of the lifespan of the bee will denote a corresponding increase in the effective foraging force and capacity of a colony.
 * Wing-power – the ability to forage further can prove a material factor in the performance of a colony.
 * Keen sense of smell – without this a colony would not forage further, so it is closely linked with wing-power.
 * Instinct of defense – this is the most effective remedy against robbing (it is not to be confused with aggression against the beekeeper).
 * Hardiness and wintering ability – the ability to winter on stores of inferior quality for long periods without a cleansing flight.
 * Spring development – must not occur prematurely and without the need for artificial stimulation.
 * Thrift or frugality – a quality closely connected with the seasonal development of colonies.
 * Instinct of self provisioning – seasonally appropriate brood chamber storage for overwintering.
 * Comb building – a keenness to build comb seems to increase the zest for every form of activity of economic value.
 * Gathering of pollen – not to be confused with the collecting of nectar; good quality pollen positively affects longevity.

Tertiary
These qualities help to reduce to a minimum the time and effort involved in the seasonal care and attention demanded to ensure maximum production results per colony:
 * Good temper – non-aggression is a quality desired by all beekeepers. Aggression is a trait common in the M Lineage, such as the A. m. mellifera, but docility is a characteristic of the C Lineage, such as the A. m. ligustica, which the Buckfast bee is most closely related to.
 * Calm behavior - bees that stay calm when they are manipulated (inspected) will greatly facilitate the work of beekeeping.
 * Disinclination to propolize – excess propolis can increase the work of the beekeeper.
 * Freedom from brace comb – the presence of brace comb renders the inspection and manipulation of combs not only a difficult and arduous task, but may also cause the death of the queen.
 * The art of making attractive cappings – good cappings are of special importance where sections are produced, a trait which seems tied up with and dependent on many factors.
 * Keen sense of orientation – helps to ensure that the bees return to their own hive, thereby avoiding the many drawbacks and risks drifting entails, and an undue loss of queens returning from their mating flights.

Performance against other bees
Brother Adam, in comparing the Buckfast bee to the A. m. ligustica, (which the Buckfast bee is directly descended from and most closely related to ) observed that it was more industrious, more thrifty, less disposed to swarm and more resistant to disease especially Acarine (tracheal mites). Compared to most subspecies of bees the Buckfast bee collects less propolis, keeps restful in winter, but builds up rapidly at the appropriate time in spring time (in England / northern Europe) and maintains a maximum effective colony strength throughout the summer, enabling full advantage of the honey flow to be taken whenever it sets in. As for temper, the Buckfast bee is unusually docile and will tolerate handling in unfavourable weather. A pure Buckfast bee will swarm, but it is little disposed to do so and, of course, it has a good reputation of an unusual honey-gathering ability.

In a scientific study in Poland from 2009 to 2010, in which the economic traits of pure Buckfast bees and a hybrid cross of A. m. mellifera and A. m. caucasia were compared, the Buckfast bee was shown to have a larger brood area, greater increase and strength in the build-up to spring, also on the last inspection of the year the Buckfast colonies were observed to be stronger as well. The honey extracted during spring and summer was larger from the Buckfast hives, with the overall honey extracted being 34.45% greater, with less variation between hives when compared to the A. m. mellifera x caucasia (NB: the crossing of two bee subspecies would have resulted in heterosis, meaning the A. m. mellifera x caucasia would have obtained better results than if the study had only used a pure subspecies, such as the A. m. mellifera or the A. m. caucasia).

In a similar scientific study, also in Poland, but in field and laboratory conditions, the foraging and hoarding abilities of three colonies were compared, 1) pure Buckfast, 2) a hybrid A. m. mellifera (from Norway) x A. m. caucasia and 3) a hybrid A. m. caucasia x A. m. carnica. The Buckfast colony collected 2.1% less syrup than the A. m. caucasia x carnica, but stored 24.8% more in stores, showing a greater efficiency in processing and less consumption of the syrup collected. The Buckfasts collected and stored 38.2% more syrup than the A. m. mellifera x caucasia.

Hybrid vigor to maximize yield
Even though the pure Buckfast bee has a claim to an unusual honey-gathering ability, returns can be maximized through hybrid vigor (heterosis) by crossing pure Buckfast, usually on the paternal side, with other subspecies. However, not all crosses will produce desirable qualities according to Brother Adam, often the swarming tendency is increased so much that it affects the honey yield. The following crosses were found to provide excellent results without increasing the swarming instinct: A. m. anatoliaca queen x Buckfast drones; Buckfast queen x A. m. carnica or A. m. cecropia drones; A. m. cecropia queen x Buckfast or A. m. carnica drones. But the following was found to maximize the swarming instinct: A. m. mellifera or A. m. intermissa or A. m. carnica queens x Buckfast drones.

Varroa resistance of different Buckfast strains
In a study conducted by Oddie, Dahle and Neumann a Norwegian originally buckfast strain was discovered to be varroa resistant. In Finland (Lundén Apiaries) and Sweden (Österlund Apiaries) there are buckfast strains confirmed to be varroa resistant by other breeders.

Varroa sensitive hygiene
A breeding project was begun in the Netherlands in 2014 by Stichting Arista Bee Research, with the goal of producing a Varroa-resistant bee, by using Single Drone Insemination to enhance the Varroa Sensitive Hygiene (VSH) behavior. By importing semen in 2013 from VSH colonies in the U.S., they worked with Buckfast beekeepers from Belgium, Luxembourg, Germany, France and the Netherlands and were able to produce colonies that were completely Varroa-resistant without the use of any treatments. Although the genetic base of this Buckfast VSH strain is very narrow, as selection has only been limited to this trait and no resources have been available yet to structurally integrate it into the broader population, it has shown that VSH behavior is present in European high quality Buckfast breeding stock and can be brought to high percentages, the next step in the breeding program will be to further select toward 100% VSH in the entire EU breeding stock. In 2018 it was announced that varroa resistant Buckfast bees (daughters of VSH open mated Queens) would be made available for sale in 2019.

title: Buckfast bee


text:
Jude Wanniski

Jude Thaddeus Wanniski (June 17, 1936 – August 29, 2005) was an American journalist, conservative commentator, and political economist.

Early life and education
Wanniski was born in Pottsville, Pennsylvania, the son of Constance, who worked at an accounting firm, and Michael Wanniski, an itinerant butcher. His father was of Polish descent and his mother was a Scottish immigrant. When he was still very young, his family moved to Brooklyn, where his father became a book binder. His grandfather was a Pennsylvania coal miner and a dedicated Communist who gave his grandson a copy of Das Kapital for his high school graduation.

Career
After college, Wanniski worked as a reporter and columnist in Alaska. From 1961 to 1965 he worked at The Las Vegas Review-Journal as a political columnist, where he taught himself economics.

In 1965, Wanniski moved to Washington, D.C., to work as a columnist for the National Observer, published by Dow Jones.

From 1972 to 1978, Wanniski was the associate editor of The Wall Street Journal. He left after being discovered at a New Jersey train station distributing leaflets supporting a Republican senatorial candidate, an act considered an ethics violation.

In 1978, Wanniski started Polyconomics, an economics forecasting firm, where he and his analysts advised corporations, investment banks and others.

He also began directly advising politicians on economic policy, first candidate Ronald Reagan and later presidential hopefuls Jack Kemp and Steve Forbes. He helped design the tax cuts made during Reagan's first term in office. His formal role as a Reagan adviser ended after an interview he gave to the Village Voice was published under the headline "The Battle for Reagan's Mind."

In the late 1990s, Wanniski developed a friendship with the controversial leader of the Nation of Islam, Louis Farrakhan, stating in 1997: "My wife Patricia and I spent the four-day July 4th weekend in Chicago at the International Islamic Conference, hosted by the Nation of Islam, in conjunction with the World Islamic Peoples Leadership. It may have been the single most important political event I have witnessed in my life. ... What made the event so important was that when the weekend began, Farrakhan was the spiritual leader of 200,000 members of the Nation of Islam and clearly the most influential of 33 million African-Americans. At its conclusion, Farrakhan stands a good chance at uniting 1.2 billion Muslims under his spiritual leadership."

Polyconomics as a corporation ceased operations on June 30, 2006, ten months after Wanniski's death, but the name (a combination of "politics" and "economics") lives on at The Polyconomics Institute, where one can find the Wanniski's collected works for Polyconomics, as well as correspondence with economic policy makers, and lectures.

Economic and political beliefs
Wanniski consistently advocated the reduction of trade barriers, the elimination of capital gains taxes, and a return to the gold standard.

Lower taxes
Wanniski was instrumental in popularizing the ideas of lower tax rates embodied in the "Laffer Curve" and was present in 1974 when Arthur Laffer drew the curve on the famous napkin for Dick Cheney and Donald Rumsfeld.

A simplified view of the theory is that tax revenues would be zero if tax rates were either 0% or 100% and somewhere in between 0% and 100% is a tax rate that maximizes total revenue. Laffer's postulate was that the tax rate that maximizes revenue was at a much lower level than previously believed, so low that current tax rates were above the level for revenue to be maximized.

Many economists were skeptical that it was true in practice. Wanniski suggested that the United States was on the wrong side of the Laffer curve.

The Two Santa Claus Theory
The Two Santa Claus Theory is a political theory and strategy published by Wanniski in 1976, which he promoted within the United States Republican Party. The theory states that in democratic elections, if members of the rival Democratic Party appeal to voters by proposing programs to help people, then the Republicans cannot gain broader appeal by proposing less spending. The first "Santa Claus" of the theory title refers to the Democrats who promise programs to help the disadvantaged. The "Two Santa Claus Theory" recommends that the Republicans must assume the role of a second Santa Claus by not arguing to cut spending but offering the option of cutting taxes.

According to Wanniski, the theory is simple. In 1976, he wrote that the Two-Santa Claus Theory suggests that "the Republicans should concentrate on tax-rate reduction. As they succeed in expanding incentives to produce, they will move the economy back to full employment and thereby reduce social pressures for public spending. Just as an increase in Government spending inevitably means taxes must be raised, a cut in tax rates—by expanding the private sector—will diminish the relative size of the public sector." Wanniski suggested this position, as left-liberal observer Thom Hartmann has clarified, so that the Democrats would "have to be anti-Santas by raising taxes, or anti-Santas by cutting spending. Either one would lose them elections."

The Way the World Works
Wanniski's 1978 book, The Way the World Works, documented his theory that the United States Senate's floor votes on the Smoot–Hawley tariff legislation coincided day to day with the Wall Street stock market Crash of 1929, and that the Great Depression was the result of the Smoot–Hawley tariff, rather than any failure of classical economics.

Iraq
Wanniski is also notable for his journalism on the alleged weapons of mass destruction (WMD) in Iraq. As early as 1997, Wanniski posted columns on his website alleging that after November 1991, inspectors of UNSCOM had never found WMD in Iraq but had found and destroyed all of Iraq's WMD programs with the help of Saddam Hussein's regime in the months following the first Gulf War. Wanniski not only recognized the prospective importance of the Iraqi WMD question before other journalists, but also argued correctly that Iraq had no WMD and stated that the US would never allow UNSCOM to end the inspections regime regardless of what Iraq did.

He became a somewhat controversial figure in the conservative movement at the beginning of 2003, when he vocally opposed the impending US war with Iraq. On October 27, 2004, he publicly denounced President George W. Bush, saying, "Mr. Bush has become an imperialist—one whose decisions as commander-in-chief have made the world a more dangerous place." Eventually Wanniski endorsed the 2004 Democratic candidate, Senator John Kerry, although he clearly preferred the Republican platform on issues related to taxation.

Wanniski's last published work was an article for the 2005 IHS Press antiwar anthology, Neo-Conned!

Influence
Wanniski has been credited with coining the term supply-side economics to distinguish it against the more dominant "demand-side" Keynesian and monetarist theories. He, however, thought the actual phrase should be credited to Herbert Stein, for Stein's phrase "supply-side fiscalists."

The rising GOP star Jack Kemp became a supply-side economics advocate due to Wanniski's tutelage, and would work to put his proposals into legislative practice.

The Way the World Works was named one of the 100 most influential books of the 20th century by National Review magazine. Conservative commentator Robert D. Novak said, in the introduction to the 20th anniversary edition (1998) of the book, that it was one of two books that "shaped [Novak's] mature philosophy of politics and government." (Whittaker Chambers' Witness is the other.)

Starting in 1987, Wanniski edited an annual "Media Guide" in which he rated pundits on a four-star scale. Some conservatives, such as George F. Will and Norman Podhoretz, received only a single star.

In 1998, Wanniski attempted to foster dialogue between Louis Farrakhan and those who had labeled him antisemitic. He arranged for Farrakhan to be interviewed by reporter Jeffrey Goldberg, who had written for the Jewish weekly The Forward and The New York Times. The extensive interview was never published in either publication, and Wanniski posted it on his website in the context of a memorandum to Senator Joe Lieberman.

Death
Wanniski died of a heart attack on August 29, 2005, in Morristown, New Jersey, while working at his desk. He was survived by his wife, Patricia, and children Matthew, Andrew, Jennifer Harlan, his brother Terrance Wanniski and sister Ruth Necco.

At the time of his death, Wanniski was at the low point of his political influence, according to longtime friend Robert Novak. He was running his economic consultancy from its Parsippany offices. He spoke of having many Wall Street clients, although he complained that some had left due to his politics. He posted personal commentaries several times a week on his personal website, on topics ranging from international politics and trade policy to reviews of films.

title: Jude Wanniski


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Flame-bladed sword

A flame-bladed sword or wave-bladed sword has a characteristically undulating style of blade. The wave in the blade is often considered to contribute a flame-like quality to the appearance of a sword. The dents on the blade can appear parallel or in a zig-zag manner. The two most common flame-bladed swords are rapiers or Zweihänders. A flame-bladed sword was not exclusive to a certain country or region. The style of blade can be found on swords from modern-day Germany, France, Spain, and Switzerland.

Flambard, Flammard, and Flammenschwert
The two-handed flame-bladed sword is referred to by the German Flammenschwert (literally "flame-sword"). These swords are very similar to the two-handed sword or Zweihänder, the only difference being the blade. The design of the blade is decorative along with being functional by causing unpleasant vibrations when parried. Still, the undulating blade is no more effective at cutting than a straight one. An advantage over swords with a straight blade is that a waved blade could better distribute the force of impact and thus was less likely to break. It could also threaten the opponent in a duel and may have discouraged them from grabbing the blade. Like other Zweihänders, they were used during the 16th century by the Landsknechts (well-trained and experienced swordsmen) for single-fights, protecting castle/town walls, or sometimes to protect the banner on the battlefield.

Flamberge
Flamberge ("flaming"), from the French "flamber", is a term with many connotations, including swords without the flamed-blade. The term is a frequent name or alias for swords in medieval chansons de geste and romances, where it often just means a large sword. Egerton Castle used the term to refer to swords that were a transition from the rapier to the smallsword. These swords did not necessarily have an undulated blade. Castle makes note of this being the case of certain Swiss rapiers, but flamberge quickly became a disdainful term in France to refer to flamboyant swords. This comes from the French expression "Mettre flamberge au vent", meaning "To put [the sword] in the wind". Here, it is suggested that the wielder of the sword likened it to the mythical sword Durendal, which alternatively was called flamberge.

Freemason Flame-bladed swords
Freemason lodges have used flame-bladed swords in their ceremonies, and some still at least possess swords. There is one in the museum at the Grand Lodge Freemason's Hall in London. Freemasonry sources suggest a symbolic connection to the ‘flaming sword’ from the Book of Genesis 3:24.

title: Flame-bladed sword


text:
Say's law

In classical economics, Say's law, or the law of markets, is the claim that the production of a product creates demand for another product by providing something of value which can be exchanged for that other product. So, production is the source of demand. In his principal work, A Treatise on Political Economy (Traité d'économie politique, 1803), Jean-Baptiste Say wrote: "A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value." And also, "As each of us can only purchase the productions of others with his/her own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase."

Some maintain that Say further argued that this law of markets implies that a general glut (a widespread excess of supply over demand) cannot occur. If there is a surplus of one good, there must be unmet demand for another: "If certain goods remain unsold, it is because other goods are not produced." However, according to Petur Jonsson, Say does not claim a general glut cannot occur and in fact acknowledges that they can occur. Say's law has been one of the principal doctrines used to support the laissez-faire belief that a capitalist economy will naturally tend toward full employment and prosperity without government intervention.

Over the years, at least two objections to Say's law have been raised:
 * General gluts do occur, particularly during recessions and depressions.
 * Economic agents may collectively choose to increase the amount of savings they hold, thereby reducing demand but not supply.

Say's law was generally accepted throughout the 19th century, though modified to incorporate the idea of a "boom-and-bust" cycle. During the worldwide Great Depression of the 1930s, the theories of Keynesian economics disputed Say's conclusions.

Scholars disagree on the question of whether it was Say who first stated the principle, but by convention, Say's law has been another name for the law of markets ever since John Maynard Keynes used the term in the 1930s. A historical analysis of Say's law was first published by American economist Thomas Sowell.

Say's formulation
Say argued that economic agents offer goods and services for sale so that they can spend the money they expect to obtain. Therefore, the fact that a quantity of goods and services is offered for sale is evidence of an equal quantity of demand. Essentially Say's argument was that money is just a medium, people pay for goods and services with other goods and services. This claim is often summarized as "supply creates its own demand", although that phrase does not appear in Say's writings.

Explaining his point at length, Say wrote:

"It is worthwhile to remark that a product is no sooner created than it, from that instant, affords a market for other products to the full extent of its own value. When the producer has put the finishing hand to his product, he is most anxious to sell it immediately, lest its value should diminish in his hands. Nor is he less anxious to dispose of the money he may get for it; for the value of money is also perishable. But the only way of getting rid of money is in the purchase of some product or other. Thus the mere circumstance of creation of one product immediately opens a vent for other products."

Say further argued that because production necessarily creates demand, a "general glut" of unsold goods of all kinds is impossible. If there is an excess supply of one good, there must be a shortage of another: "The superabundance of goods of one description arises from the deficiency of goods of another description."

To further clarify, he wrote: "Sales cannot be said to be dull because money is scarce, but because other products are so. ... To use a more hackneyed phrase, people have bought less, because they have made less profit."

Say's law should therefore be formulated as: Supply of X creates demand for Y, subject to people being interested in buying X. The producer of X is able to buy Y, if his products are demanded.

Say rejected the possibility that money obtained from the sale of goods could remain unspent, thereby reducing demand below supply. He viewed money only as a temporary medium of exchange.

"Money performs but a momentary function in this double exchange; and when the transaction is finally closed, it will always be found, that one kind of commodity has been exchanged for another."

Early opinions
Early writers on political economy held a variety of opinions on what we now call Say's law. James Mill and David Ricardo both supported the law in full. Thomas Malthus and John Stuart Mill questioned the doctrine that general gluts cannot occur.

James Mill and David Ricardo restated and developed Say's law. Mill wrote, "The production of commodities creates, and is the one and universal cause which creates, a market for the commodities produced." Ricardo wrote, "Demand depends only on supply."

Thomas Malthus, on the other hand, rejected Say's law because he saw evidence of general gluts.

"We hear of glutted markets, falling prices, and cotton goods selling at Kamschatka lower than the costs of production. It may be said, perhaps, that the cotton trade happens to be glutted; and it is a tenet of the new doctrine on profits and demand, that if one trade be overstocked with capital, it is a certain sign that some other trade is understocked. But where, I would ask, is there any considerable trade that is confessedly under-stocked, and where high profits have been long pleading in vain for additional capital?"

John Stuart Mill also recognized general gluts. He argued that during a general glut, there is insufficient demand for all non-monetary commodities and excess demand for money.

"When there is a general anxiety to sell, and a general disinclination to buy, commodities of all kinds remain for a long time unsold, and those which find an immediate market, do so at a very low price... At periods such as we have described... persons in general... liked better to possess money than any other commodity. Money, consequently, was in request, and all other commodities were in comparative disrepute... As there may be a temporary excess of any one article considered separately, so may there of commodities generally, not in consequence of over-production, but of a want of commercial confidence."

Mill rescued the claim that there cannot be a simultaneous glut of all commodities by including money as one of the commodities.

"In order to render the argument for the impossibility of an excess of all commodities applicable... money must itself be considered as a commodity. It must, undoubtedly, be admitted that there cannot be an excess of all other commodities, and an excess of money at the same time."

Contemporary economist Brad DeLong believes that Mill's argument refutes the assertions that a general glut cannot occur, and that a market economy naturally tends towards an equilibrium in which general gluts do not occur. What remains of Say's law, after Mill's modification, are a few less controversial assertions:
 * In the long run, the ability to produce does not outstrip the desire to consume.
 * In a barter economy, a general glut cannot occur.
 * In a monetary economy, a general glut occurs not because sellers produce more commodities of every kind than buyers wish to purchase, but because buyers increase their desire to hold money.

Say himself never used many of the later, short definitions of Say's law, and thus the law actually developed through the work of many of his contemporaries and successors. The work of James Mill, David Ricardo, John Stuart Mill, and others evolved Say's law into what is sometimes called law of markets, which was a key element of the framework of macroeconomics from the mid-19th century until the 1930s.

The Great Depression
The Great Depression posed a challenge to Say's law. In the United States, unemployment rose to 25%. The quarter of the labor force that was unemployed constituted a supply of labor for which the demand predicted by Say's law did not exist.

John Maynard Keynes argued in 1936 that Say's law is simply not true, and that demand, rather than supply, is the key variable that determines the overall level of economic activity. According to Keynes, demand depends on the propensity of individuals to consume and on the propensity of businesses to invest, both of which vary throughout the business cycle. There is no reason to expect enough aggregate demand to produce full employment.

Today
Steven Kates, although a proponent of Say's Law, writes: Before the Keynesian Revolution, [the] denial of the validity of Say's Law placed an economist amongst the crackpots, people with no idea whatsoever about how an economy works. That the vast majority of the economics profession today would have been classified as crackpots in the 1930s and before is just how it is.

Keynesian economists, such as Paul Krugman, stress the role of money in negating Say's law: Money that is hoarded (held as cash or analogous financial instruments) is not spent on products. To increase monetary holdings, someone may sell products or labor without immediately spending the proceeds. This can be a general phenomenon: from time to time, in response to changing economic circumstances, households and businesses in aggregate seek to increase net savings and thus decrease net debt. To increase net savings requires earning more than is spent—contrary to Say's law, which postulates that supply (sales, earning income) equals demand (purchases, requiring spending). Keynesian economists argue that the failure of Say's law, through an increased demand for monetary holdings, can result in a general glut due to falling demand for goods and services.

Many economists today maintain that supply does not create its own demand, but instead, especially during recessions, demand creates its own supply. Krugman writes:

"Not only doesn't supply create its own demand; experience since 2008 suggests, if anything, that the reverse is largely true -- specifically, that inadequate demand destroys supply. Economies with persistently weak demand seem to suffer large declines in potential as well as actual output."

Olivier Blanchard and Larry Summers, observing persistently high and increasing unemployment rates in Europe in the 1970s and 1980s, argued that adverse demand shocks can lead to persistently high unemployment, therefore persistently reducing the supply of goods and services. Antonio Fatás and Larry Summers argued that shortfalls in demand, resulting both from the global economic downturn of 2008 and 2009 and from subsequent attempts by governments to reduce government spending, have had large negative effects on both actual and potential world economic output.

A minority of economists still support Say's Law. Some proponents of real business cycle theory maintain that high unemployment is due to a reduced labor supply rather than reduced demand. In other words, people choose to work less when economic conditions are poor, so that involuntary unemployment does not actually exist.

While economists have abandoned Say's law as a true law that must always hold, most still consider Say's Law to be a useful rule of thumb which the economy will tend towards in the long run, so long as it is allowed to adjust to shocks such as financial crises without being exposed to any further such shocks. The applicability of Say's law in theoretical long-run conditions is one motivation behind the study of general equilibrium theory in economics, which studies economies in the context where Say's law holds true.

Consequences
A number of laissez-faire consequences have been drawn from interpretations of Say's law. However, Say himself advocated public works to remedy unemployment and criticized Ricardo for neglecting the possibility of hoarding if there was a lack of investment opportunities.

Recession and unemployment
Say argued against claims that businesses suffer because people do not have enough money. He argued that the power to purchase can only be increased through more production.

James Mill used Say's law against those who sought to give the economy a boost via unproductive consumption. In his view, consumption destroys wealth, in contrast to production, which is the source of economic growth. The demand for a product determines the price of the product.

According to Keynes (see more below), if Say's law is correct, widespread involuntary unemployment (caused by inadequate demand) cannot occur. Classical economists in the context of Say's law explain unemployment as arising from insufficient demand for specialized labour—that is, the supply of viable labour exceeds demand in some segments of the economy.

When more goods are produced by firms than are demanded in certain sectors, the suppliers in those sectors lose revenue as result. This loss of revenue, which would in turn have been used to purchase other goods from other firms, lowers demand for the products of firms in other sectors, causing an overall general reduction in output and thus lowering the demand for labour. This results in what contemporary macroeconomics call structural unemployment, the presumed mismatch between the overall demand for labour in jobs offered and the individual job skills and location of labour. This differs from the Keynesian concept of cyclical unemployment, which is presumed to arise because of inadequate aggregate demand.

Such economic losses and unemployment were seen by some economists, such as Marx and Keynes himself, as an intrinsic property of the capitalist system. The division of labor leads to a situation where one always has to anticipate what others will be willing to buy, and this leads to miscalculations.

Assumptions and criticisms
Say's law did not posit that (as per the Keynesian formulation) "supply creates its own demand". Nor was it based on the idea that everything that is saved will be exchanged. Rather, Say sought to refute the idea that production and employment were limited by low consumption.

Thus Say's law, in its original concept, was not intrinsically linked nor logically reliant on the neutrality of money (as has been alleged by those who wish to disagree with it ), because the key proposition of the law is that no matter how much people save, production is still a possibility, as it is the prerequisite for the attainment of any additional consumption goods. Say's law states that in a market economy, goods and services are produced for exchange with other goods and services—"employment multipliers" therefore arise from production and not exchange alone—and that in the process a sufficient level of real income is created to purchase the economy's entire output, due to the truism that the means of consumption are limited ex vi termini by the level of production. That is, with regard to the exchange of products within a division of labour, the total supply of goods and services in a market economy will equal the total demand derived from consumption during any given time period. In modern terms, "general gluts cannot exist", although there may be local imbalances, with gluts in some markets balanced out by shortages in others.

Nevertheless, for some neoclassical economists, Say's law implies that economy is always at its full employment level. This is not necessarily what Say proposed.

In the Keynesian interpretation, the assumptions of Say's law are:
 * a barter model of money ("products are paid for with products");
 * flexible prices—that is, all prices can rapidly adjust upwards or downwards; and
 * no government intervention.

Under these assumptions, Say's law implies that there cannot be a general glut, so that a persistent state cannot exist in which demand is generally less than productive capacity and high unemployment results. Keynesians therefore argued that the Great Depression demonstrated that Say's law is incorrect. Keynes, in his General Theory, argued that a country could go into a recession because of "lack of aggregate demand".

Because historically there have been many persistent economic crises, one may reject one or more of the assumptions of Say's law, its reasoning, or its conclusions. Taking the assumptions in turn:

 * Circuitists and some post-Keynesians dispute the barter model of money, arguing that money is fundamentally different from commodities and that credit bubbles can and do cause depressions. Notably, the debt owed does not change because the economy has changed.
 * Keynes argued that prices are not flexible; for example, workers may not take pay cuts if the result is starvation.
 * Laissez-faire economists argue that government intervention is the cause of economic crises, and that left to its devices, the market will adjust efficiently.

As for the implication that dislocations cannot cause persistent unemployment, some theories of economic cycles accept Say's law and seek to explain high unemployment in other ways, considering depressed demand for labour as a form of local dislocation. For example, advocates of Real Business Cycle Theory argue that real shocks cause recessions and that the market responds efficiently to these real economic shocks.

Krugman dismisses Say's law as, "at best, a useless tautology when individuals have the option of accumulating money rather than purchasing real goods and services".

Role of money
It is not easy to say what exactly Say's law says about the role of money apart from the claim that recession is not caused by lack of money. The phrase "products are paid for with products" is taken to mean that Say has a barter model of money; contrast with circuitist and post-Keynesian monetary theory.

One can read Say as stating simply that money is completely neutral, although he did not state this explicitly, and in fact did not concern himself with this subject. Say's central notion concerning money was that if one has money, it is irrational to hoard it.

The assumption that hoarding is irrational was attacked by underconsumptionist economists, such as John M. Robertson, in his 1892 book, The Fallacy of Saving: where he called Say's law:

"[A] tenacious fallacy, consequent on the inveterate evasion of the plain fact that men want for their goods, not merely some other goods to consume, but further, some credit or abstract claim to future wealth, goods, or services. This all want as a surplus or bonus, and this surplus cannot be represented for all in present goods."

Here Robertson identifies his critique as based on Say's theory of money: people wish to accumulate a "claim to future wealth", not simply present goods, and thus the hoarding of wealth may be rational.

For Say, as for other classical economists, it is possible for there to be a glut (excess supply, market surplus) for one product alongside a shortage (excess demand) of others. But there is no "general glut" in Say's view, since the gluts and shortages cancel out for the economy as a whole. But what if the excess demand is for money, because people are hoarding it? This creates an excess supply for all products, a general glut. Say's answer is simple: there is no reason to engage in hoarding money. According to Say, the only reason to have money is to buy products. It would not be a mistake, in his view, to treat the economy as if it were a barter economy. To quote Say:

"Nor is [an individual] less anxious to dispose of the money he may get ... But the only way of getting rid of money is in the purchase of some product or other."

In Keynesian terms, followers of Say's law would argue that on the aggregate level, there is only a transactions demand for money. That is, there is no precautionary, finance, or speculative demand for money. Money is held for spending, and increases in money supplies lead to increased spending.

Some classical economists did see that a loss of confidence in business or a collapse of credit will increase the demand for money, which will decrease the demand for goods. This view was expressed both by Robert Torrens and John Stuart Mill. This would lead demand and supply to move out of phase and lead to an economic downturn in the same way that miscalculation in productions would, as described by William H. Beveridge in 1909.

However, in classical economics, there was no reason for such a collapse to persist. In this view, persistent depressions, such as that of the 1930s, are impossible in a free market organized according to laissez-faire principles. The flexibility of markets under laissez faire allows prices, wages, and interest rates to adjust so as to abolish all excess supplies and demands; however, since all economies are a mixture of regulation and free-market elements, laissez-faire principles (which require a free market environment) cannot adjust effectively to excess supply and demand.

As a theoretical point of departure
The whole of neoclassical equilibrium analysis implies that Say's law in the first place functioned to bring a market into this state: that is, Say's law is the mechanism through which markets equilibrate uniquely. Equilibrium analysis and its derivatives of optimization and efficiency in exchange live or die with Say's law. This is one of the major, fundamental points of contention between the neoclassical tradition, Keynes, and Marxians. Ultimately, from Say's law they deduced vastly different conclusions regarding the functioning of capitalist production.

The former, not to be confused with "new Keynesian" and the many offsprings and syntheses of the General Theory, take the fact that a commodity–commodity economy is substantially altered once it becomes a commodity–money–commodity economy, or once money becomes not only a facilitator of exchange (its only function in marginalist theory) but also a store of value and a means of payment. What this means is that money can be (and must be) hoarded: it may not re-enter the circulatory process for some time, and thus a general glut is not only possible but, to the extent that money is not rapidly turned over, probable.

A response to this in defense of Say's law (echoing the debates between Ricardo and Malthus, in which the former denied the possibility of a general glut on its grounds) is that consumption that is abstained from through hoarding is simply transferred to a different consumer—overwhelmingly to factor (investment) markets, which, through financial institutions, function through the rate of interest.

Keynes' innovation in this regard was twofold: First, he was to turn the mechanism that regulates savings and investment, the rate of interest, into a shell of its former self (relegating it to the price of money) by showing that supply and investment were not independent of one another and thus could not be related uniquely in terms of the balancing of disutility and utility. Second, after Say's law was dealt with and shown to be theoretically inconsistent, there was a gap to be filled. If Say's law was the logic by which we thought financial markets came to a unique position in the long run, and if Say's law were to be discarded, what were the real "rules of the game" of the financial markets? How did they function and remain stable?

To this Keynes responded with his famous notion of "animal spirits": markets are ruled by speculative behavior, influenced not only by one's own personal equation but also by one's perceptions of the speculative behavior of others. In turn, others' behavior is motivated by their perceptions of others' behavior, and so on. Without Say's law keeping them in balance, financial markets are thus inherently unstable. Through this identification, Keynes deduced the consequences for the macroeconomy of long-run equilibrium being attained not at only one unique position that represented a "Pareto Optima" (a special case), but through a possible range of many equilibria that could significantly under-employ human and natural resources (the general case).

For the Marxian critique, which is more fundamental, one must start at Marx's initial distinction between use value and exchange value—use value being the use somebody has for a commodity, and exchange value being what an item is traded for on a market. In Marx's theory, there is a gap between the creation of surplus value in production and the realization of that surplus value via a sale. To realize a sale, a commodity must have a use value for someone, so that they purchase the commodity and complete the cycle  M–C–M' . Capitalism, which is interested in value (money as wealth), must create use value. The capitalist has no control over whether or not the value contained in the product is realized through the market mechanism. This gap between production and realization creates the possibility for capitalist crisis, but only if the value of any item is realised through the difference between its cost and final price. As the realization of capital is only possible through a market, Marx criticized other economists, such as David Ricardo, who argued that capital is realized via production. Thus, in Marx's theory, there can be general overproductive crises within capitalism.

Given these concepts and their implications, Say's law does not hold in the Marxian framework. Moreover, the theoretical core of the Marxian framework contrasts with that of the neoclassical and Austrian traditions.

Conceptually, the distinction between Keynes and Marx is that for Keynes the theory is but a special case of his general theory, whereas for Marx it never existed at all.

Modern interpretations
A modern way of expressing Say's law is that there can never be a general glut. Instead of there being an excess supply (glut or surplus) of goods in general, there may be an excess supply of one or more goods, but only when balanced by an excess demand (shortage) of yet other goods. Thus, there may be a glut of labor ("cyclical" unemployment), but this is balanced by an excess demand for produced goods. Modern advocates of Say's law see market forces as working quickly, via price adjustments, to abolish both gluts and shortages. The exception is when governments or other non-market forces prevent price adjustments.

According to Keynes, the implication of Say's law is that a free-market economy is always at what Keynesian economists call full employment (see also Walras' law). Thus, Say's law is part of the general world view of laissez-faire economics—that is, that free markets can solve the economy's problems automatically. (These problems are recessions, stagnation, depression, and involuntary unemployment.)

Some proponents of Say's law argue that such intervention is always counterproductive. Consider Keynesian-type policies aimed at stimulating the economy. Increased government purchases of goods (or lowered taxes) merely "crowd out" the production and purchase of goods by the private sector. Contradicting this view, Arthur Cecil Pigou, a self-proclaimed follower of Say's law, wrote a letter in 1932 signed by five other economists (among them Keynes) calling for more public spending to alleviate high levels of unemployment.

Keynes versus Say
Keynes summarized Say's law as "supply creates its own demand", or the assumption "that the whole of the costs of production must necessarily be spent in the aggregate, directly or indirectly, on purchasing the product" (from chapter 2 of his General Theory). See the article on The General Theory of Employment, Interest and Money for a summary of Keynes's view.

Although hoarding of money was not a direct cause of unemployment in Keynes's theory, his concept of saving was unclear and some readers have filled the gap by assigning to hoarding the role Keynes gave to saving. An early example was Jacob Viner, who in his 1936 review of the General Theory said of hoarding that Keynes' attaches great importance to it as a barrier to "full" employment' (p152) while denying (pp158f) that it was capable of having that effect.

The theory that hoarding is a cause of unemployment has been the subject of discussion. Some classical economists suggested that hoarding (increases in money-equivalent holdings) would always be balanced by dis-hoarding. This requires equality of saving (abstention from purchase of goods) and investment (the purchase of capital goods). However, Keynes and others argued that hoarding decisions are made by different people and for different reasons than are decisions to dis-hoard, so that hoarding and dis-hoarding are unlikely to be equal at all times, as indeed they are not. Decreasing demand (consumption) does not necessarily stimulate capital spending (investment).

Some have argued that financial markets, and especially interest rates, could adjust to keep hoarding and dis-hoarding equal, so that Say's law could be maintained, or that prices could simply fall, to prevent a decrease in production. But Keynes argued that to play this role, interest rates would have to fall rapidly, and that there are limits on how quickly and how low they can fall (as in the liquidity trap, where interest rates approach zero and cannot fall further). To Keynes, in the short run, interest rates are determined more by the supply and demand for money than by saving and investment. Before interest rates can adjust sufficiently, excessive hoarding causes the vicious circle of falling aggregate production (recession). The recession itself lowers incomes so that hoarding (and saving) and dis-hoarding (and real investment) can reach a state of balance below full employment.

Worse, a recession would hurt private real investment—by hurting profitability and business confidence—through what is called the accelerator effect. This means that the balance between hoarding and dis-hoarding would be pushed even further below the full-employment level of production.

Keynes treats a fall in marginal efficiency of capital and an increase in the degree of liquidity preference (demand for money) as sparks leading to an insufficiency of effective demand. A decrease in MEC causes a reduction in investment, which reduces aggregate expenditure and income. A decline in the interest rate would offset the decline in investment, and stimulate propensity to consume.

title: Say's law