Today, however, the idea that a free economy is essentially stable and not prone to depressions is gaining new respectability. This is a positive development, because the free economy is essentially stable. Depressions and inflation are caused by government manipulation of the money supply, not by the free market. In addition, there is some movement away from the Keynesian emphasis on consumption to the view that saving, investment, and production are the primary determinants of an economy's prosperity. This also is a step in the right direction.
Production is primary.
All the values human beings need to live have to be produced before they can be consumed. Things are much worse in microeconomics. There are so many firms that nothing any one of them does can have any effect on the sales or profits of any other firm. This conception eliminates any trace of competitive rivalry, which is the essence of competition. A guide to the Study of Objectivism .