‘There are certain “workers’ friends” who try to persuade the working class to abandon the fight for wages, of course in its own interest. The usual argument used for this purpose is that the increase of wages causes unemployment, and is thus detrimental to the working class as a whole… Our investigation… has shown that a wage increase… tends to reduce the degree of monopoly and thus to raise real wages… If viewed from this standpoint, strikes must have the full sympathy of “workers’ friends”. For a rise in wages tends to reduce the degree of Weiterlesen
The mainstream view of household consumption and saving is based on the idea of a ‘representative’ household endowed with more or less perfect foresight, according to whether the theory is New Classical or New Keynesian. The traditional Keynesian view had household saving and consumption determined by income, with Post-Keynesian innovations in the form of differentiated propensities to consume on the part of workers or capitalists and, following Minsky, increasing indebtedness of firms. More
A spectre is haunting Europe: the spectre of fascism, born of economic Stagnation and the very apparent ability of democratic governments to eliminate mass employment.
There are two main reasons for the alarming prospect: First, Exchange rate stability has come to be regarded as a precondition for European economic and monetarian union. More
During the 1980s, in the final years of communism, Eastern European economists and politicians were easily persuaded by the myth that removal of the petty restrictions on private business would allow private enterprise to flourish. The idea of a permanent state of capitalist dynamism is rooted in the notion that finance spontaneously backs industrial enterprise. Many economists assume, at least in their abstract theories More
At the end of the twentieth century, while financial economists satisfied their intellectual pretensions to useful knowledge by conjuring up visions of a world peopled with materialistic consumer-investors optimizing rationally in accordance with their willingness to hazard their wealth, the propertied classes themselves were succumbing to new delusions fostered by the financial markets. The reasoned response of propertied individuals to their experience of the world of speculative finance More