This isn't really accurate. Bastiat, even Adam Smith, explored these concepts in fair depth well before 1937. On top of that, trade simply isn't that complicated. We've been doing it for thousands and thousands of years. I think it has been pretty clear to any ancient Egyptian or Greek farmer, medieval peasant, or Bedouin trader that if the king guaranteed to give some people gold for as much product as they could produce, no matter what, that those people would begin producing as much product as they could, regardless of whether that product was needed or useful.