Xavier Waterstone

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The consequence is that those firms in the lower stages of production, which had been forced to curtail their production somewhat, because factors have been hired away, will in turn be able to draw away productive resources from the higher stages. The new roundabout ways of production, which have been undertaken under the artificial stimulus of a credit expansion, or at least a part of them, become unprofitable. They will be discontinued, and the crisis and depression has its start.
The Austrian Theory of the Trade Cycle and Other Essays (LvMI)
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