Editing Underconsumption (section)

=== 16th century through 18th century – mercantilism ===
Underconsumption theory dates to the earlier economic theory of mercantilism, and an early history of underconsumptionism is given in ''Mercantilism'' by [[Eli Heckscher]]<ref>Volume II. Cited and discussed by [[John Maynard Keynes]] in ''[[The General Theory]],'' [http://www.marxists.org/reference/subject/economics/keynes/general-theory/ch23.htm#vii Chapter 23. Notes on Mercantilism, The Usury Laws, Stamped Money and Theories of Under-Consumption, section VII]</ref> Underconsumption was a small part of mercantilist theory, in Heckscher's view, but was discussed by a number of authors.

The earliest reference given was to [[Barthélemy de Laffemas]], who in 1598 in ''The Treasures and riches to put the State in splendor'' "denounced the objectors to the use of French silks on the ground that all purchasers of French luxury goods created a livelihood for the poor, whereas the miser caused them to die in distress,"<ref>Keynes's wording.</ref> an early form of the paradox of thrift. A number of other 17th century authors, English, German, and French, stated similar sentiments, which Heckscher summarizes as:
:"the deep-rooted belief in the utility of luxury and the evil of thrift. Thrift, in fact, was regarded as the cause of unemployment, and for two reasons: in the first place, because real income was believed to diminish by the amount of money which did not enter into exchange, and secondly, because saving was believed to withdraw money from circulation."<ref>Heckscher, vol ii, p. 208, cited by Keynes.</ref>

''[[The Fable of The Bees]]'' by [[Bernard Mandeville]], of 1714, was credited by Keynes as the most popular exposition of underconsumptionism of its time, but it caused such an uproar, being seen as an attack against Christian virtues, specifically attacking [[Temperance (virtue)|temperance]], that underconsumptionism was not mentioned in "respectable circles" for another century, until it was raised in the later Malthus.<ref>Keynes.</ref>