,M>X & ,KEYNES ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,S\RCE3 ,WE/]N ,SOCIALI/1 ,BO/ON1 ,U,S,A1 ,NOVEMB]-,DECEMB] #a#i#e#e2 ,TRANSCRIB$3 BY ,ADAM ,BUICK4 ,CLASSICAL ECONOMY1 :OSE BEG9N+ IS USUALLY TRAC$ TO ,ADAM ,SMI?1 F\ND ITS BE/ EXPRESSION & ALSO ITS 5D 9 ,DAVID ,RIC>DO4 ,RIC>DO1 AS ,M>X WROTE1 0MADE ! ANTAGONISM ( CLASS-9T]E/1 ( WAGES & PR(ITS1 ( PR(ITS & R5T1 ! />T+-PO9T ( HIS 9VE/IGATION1 NAIVELY TAK+ ?IS ANTAGONISM = A SOCIAL LAW ( NATURE4 ,BUT BY ?IS />T ! SCI5CE ( B\RGEOIS ECONOMY HAD REA*$ ! LIMITS BEYOND :I* IT C\LD NOT PASS10 = A FUR!R CRITICAL DEVELOPM5T C\LD LEAD ONLY TO ! RECOGNITION ( ! CONTRADICTIONS & LIMITATIONS ( ! CAPITALI/ SY/EM ( PRODUCTION4 ,BY DO+ :AT C\LD NO LONG] BE DONE BY B\RGEOIS ECONOMI/S1 ,M>X FELT HIMSELF TO BE ! TRUE HEIR1 & ! DE/ROY] AS WELL1 ( B\RGEOIS ECONOMY4 ,! FUR!R DEVELOPM5T ( ECONOMIC !ORY SUPPORT$ ,M>X'S OP9ION4 ,?\< B\RGEOIS ECONOMY WAS 9DE$ UNABLE TO ADVANCE1 IT WAS ABLE TO *ANGE ITS APPE>ANCE4 ,CLASSICAL ECONOMICS HAD EMPHASIZ$ PRODUCTION & ! SY/EM AS A :OLE4 ,!IR FOLL[]S EMPHASIZ$ EX*ANGE & 9DIVIDUAL 5T]PRISE4 ,AL?\< !RE >OSE NO S]I\S D\BT ?AT ! CAPITALI/ SY/EM IS NATURAL1 REASONABLE1 & 9ALT]ABLE1 YET ! E>LY CONFID5CE ( B\RGEOIS ECONOMY WAS SL[LY DE/ROY$ BY A GR[+ DISCREPANCY BETWE5 LIB]AL !ORY & SOCIAL REALITY4 ,! 9CREAS+ ECONOMIC DIFFICULTIES :I* ACCOMPANI$ ! ACCUMULATION ( CAPITAL DEVELOP$ AN 9T]E/ 9 ! BUS9ESS CYCLE1 9 ! FACTORS ?AT MAKE = PROSP]ITY1 CRISIS & DEPRESSION4 ,! NEO-CLASSICAL S*OOL1 :OSE BE/-KN[N PROPON5T WAS ,ALFR$ ,M>%ALL1 ATTEMPT$ TO TRANS=M ECONOMY 9TO A PRACTICAL SCI5CE1 ?AT IS1 TO F9D WAYS & MEANS TO 9FLU5CE M>KET MOVEM5TS & TO 9CREASE BO? ! PR(ITABILITY ( CAPITAL & ! G5]AL SOCIAL WELF>E4 ,BUT ! 9CREAS+ L5G? & VIOL5CE ( DEPRESSIONS SOON *ANG$ A NEW OPTIMISM 9TO EV5 DEEP] DESPAIR1 & ! /]ILITY ( B\RGEOIS ECONOMICS L$ ECONOMI/S ONCE MORE TO EMBRACE ! LESS-EMB>RASS+ SECURITY ( 0PURE !ORY0 & ! SIL5CE ( ! ACADEMIES4 ,9 ! MID/ ( ! ,GREAT ,DEPRESSION1 B\RGEOIS ECONOMIC !ORY WAS SUDD5LY RAIS$ FROM ! DEAD BY ! 0D>+0 !ORIES ( ,JOHN ,MAYN>D ,KEYNES4 ,HIS MA9 WORK1 ,! ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & ,MONEY1 WAS HAIL$ AS A 0REVOLUTION0 9 ECONOMIC ?\Y10 SO-CALL$ SOCIALI/S ATTEMPT$ TO BL5D ,M>X ) ,KEYNES1 OR RA!R1 TO ACCEPT ,KEYNES' !ORIES AS ! 0,M>XISM0 ( \R TIME4 ,M>X'S SKEPTICISM ) REG>D TO ! FUTURE ( B\RGEOIS ECONOMY WAS N[ SAID TO 9DICATE ONLY HIS 9ABILITY OR UNWILL+NESS TO CRITICIZE ! CLASSICI/S CON/RUCTIVELY4 ,( ,KEYNES IT WAS SAID ?AT HE MADE REAL ,ALFR$ ,M>%ALL'S ASPIRATIONS = A RE=M$ & IMPROV$ CAPITALISM4 ,!SE 5DEAVORS1 AS WELL AS ! GREAT POPUL>ITY ( ! 0,KEYNESIANS10 BO? G5]ALLY & 9 ACADEMIC CIRCLES1 & ALSO !IR 9SI/5CE UPON ! PRACTICAL APPLICABILITY ( !IR ECONOMIC REASON+ & !IR APP>5T POLITICAL 9FLU5CE1 MAKE IT BO? ADVISABLE & 9T]E/+ TO 9VE/IGATE !IR CLAIMS & TO REVIEW ! WORK ( !IR DECEAS$ MA/] 9 ! LIISON ( ! ,KEYNESIAN ) ! ,M>XIAN PO9T ( VIEW4 ,I,I ,UNTIL ! PUBLICATION ( ! ,G5]AL ,!ORY1 ,KEYNES WAS REG>D$ AS AN ECONOMI/ ( ! NEO-CLASSICAL S*OOL :OSE M>G9AL LANGUAGE WAS ALSO HIS [N4 ,ECONOMIC CATEGORIES W]E DECK$ \T 9 PSY*OLOGICAL T]MS1 PRESUMABLY D]IV$ FROM 0HUMAN NATURE40 ,9DIVIDUAL ANTICIPATIONS & DISAPPO9TM5TS DET]M9E ECONOMIC LIFE & ,KEYNES EV5 SPOKE ( ! MONEY-MAK+ & MONEY-LOV+ 9/9CTS ( 9DIVIDUALS AS ! MA9 MOTIVE =CE ( ! ECONOMIC MA*9E4 ,HE BELIEV$ ?AT IT IS A 0PSY*OLOGICAL LAW0 ?AT 9DIVIDUALS T5D TO CONSUME PROGRESSIVELY SMALL] PORTIONS ( !IR 9COME AS !IR 9COMES 9CREASE4 ,:5 AGGREGATE REAL 9COME 9CREASES1 CONSUMPTION 9CREASES1 TOO1 ( C\RSE1 BUT NOT BY SO MU* AS 9COME4 ,ASSUM+ ?AT ALL 9VE/M5T ULTIMATELY S]VES CONSUMPTION NE$S & ?AT AN 9CREASE ( 9COME 9CREASES CONSUMPTION BY LESS ?AN 9COME1 SAV+S WILL 9CREASE FA/] ?AN 9VE/M5TS4 ,) ?IS1 AGGREGATE DEM& DECL9ES & ! LEVEL ( EMPLOYM5T FALLS %ORT ( ! AVAILABLE LABOR SUPPLY4 ,?IS HAPP5S 9 A 0MATURE0 SOCIETY BECAUSE ( ! ALREADY EXI/+ L>GE /OCK ( CAPITAL1 :I* DEPRESSES ! M>G9AL EFFICI5CY OR PR(ITABILITY ( CAPITAL & !RE) EXPECTATIONS ) RESPECT TO FUTURE CAPITAL YIELDS4 ,& ?IS1 9 TURN1 CREATES A PSY*OLOGICAL ATTITUDE ON ! P>T ( ! WEAL?-[N]S TO HOLD !IR SAV+S 9 MONEY-=M RA!R ?AN TO 9VE/ 9 5T]PRISE PROMIS+ LITTLE OR NO REW>D4 ,ECONOMIC /AGNATION & L>GE-SCALE UNEMPLOYM5T WAS AT ! C5T] ( ,KEYNES' 9T]E/4 ,TRADITIONAL ECONOMIC !ORY WAS B\ND TO ! IMAG9>Y CONDITIONS ( FULL EMPLOYM5T & TO ,SAY'S 0LAW ( ! M>KET0 -- TO ! BELIEF1 ?AT IS1 ?AT 0SUPPLY CREATES ITS [N DEM&40 ,LIKE ,SAY1 ,KEYNES SAW 9 PRES5T & FUTURE CONSUMPTION ! GOAL ( ALL ECONOMIC ACTIVITY1 BUT1 9 DI/9CTION TO ! ,FR5* ECONOMI/1 HE NO LONG] HELD ?AT SUPPLY BR+S =? SUFFICI5T DEM& TO MA9TA9 FULL EMPLOYM5T4 ,! REFUTATION ( 0,SAY'S LAW0 IS HAIL$ AS ! MO/ IMPORTANT ASPECT ( ! ,KEYNESIAN !ORY1 P>TICUL>LY BECAUSE IT DEFEATS ?IS 0LAW0 ON ITS [N GR\ND BY %[+ ?AT JU/ BECAUSE ( ! 0FACT0 ?AT PRODUCTION S]VES CONSUMPTION1 SUPPLY DOES NOT CREATE ITS [N DEM&4 ,ALMO/ SEV5TY-FIVE YE>S E>LI]1 ,M>X HAD ALREADY PO9T$ \T ?AT ONLY AN ACCEL]AT$ CAPITAL EXPANSION ALL[S = AN 9CREASE ( EMPLOYM5T1 ?AT CONSUMPTION & 0CONSUMPTION0 UND] CONDITIONS ( CAPITAL PRODUCTION >E TWO DIFF]5T ?+S1 & ?AT TOTAL PRODUCTION CAN RISE ONLY IF IT PROVIDES A GREAT] %>E ( ! TOTAL = ! [N]S & CONTROLL]S ( CAPITAL4 ,! 0DULL & COMICAL 'PR9CE DE LA SCI5CE'1 ,J4,B4 ,SAY10 ,M>X DID NOT F9D WOR? OV]?R[+1 EV5 ?\< 0HIS CONT95TAL ADMIR]S HAVE TRUMPET$ HIM AS ! MAN :O HAD UNE>!D ! TREASURE ( ! METAPHYSICAL BALANCE ( PUR*ASE & SALES0 .<#a.>4 ,= ,M>X1 ,SAY'S LAW ( ! M>KET WAS %E] NONS5SE 9 VIEW ( ! GR[+ DISEQUILIBRIUM BETWE5 ! PR(IT NE$S ( CAPITAL EXPANSION & ! RATIONALLY CONSID]$ PRODUCTIVE REQUIREM5TS ( M51 BETWE5 ! 0SOCIAL DEM&0 9 CAPITALISM & ! ACTUAL SOCIAL NE$S2 & HE PO9T$ \T ?AT CAPITAL ACCUMULATION IMPLIES AN 9DU/RIAL RES]VE >MY4 ,I,I,I ,:5 ,KEYNES AT SU* LATE H\R1 APPROA*$ ,M>X'S POSITION1 IT WAS NOT 9 ORD] TO PO9T TO AN 9H]5T CONTRADICTION ( CAPITAL PRODUCTION BUT TO HAIL ! DISP>ITY BETWE5 EMPLOYM5T & 9VE/M5T AS A GREAT ACCOMPLI%M5T4 ,9 HIS VIEW ONLY 0A WEAL?Y COMMUNITY WILL HAVE TO DISCOV] MU* AMPL] OPPORTUNITIES = 9VE/M5T IF ! SAV+ PROP5SITIES ( ITS WEAL?I] MEMB]S >E TO BE COMPATIBLE ) ! EMPLOYM5T ( ITS POOR] MEMB]S0 .<#b.>4 ,H[EV]1 %ORT ( CLOS+ ! GAP BETWE5 9COME & CONSUMPTION IT FOLL[S FROM ,KEYNES' !ORY ?AT 0EA* TIME WE ASSURE TODAY'S EQUILIBRIUM BY 9CREAS+ 9VE/M5TS WE >E AGGRAVAT+ ! DIFFICULTIES ( SECUR+ EQUILIBRIUM TOMORR[0 .<#c.>4 ,= ! NEXT FUTURE1 H[EV]1 HE ?\E NOT SUFFICI5T1 ! GOV]NM5T CAN 9CREASE ECONOMIC ACTIVITY BY PUBLIC WORKS & DEFICIT-F9ANC+4 ,) FULL EMPLOYM5T ! CRIT]ION1 ! EFFECTIV5ESS ( V>I\S 9T]V5TIONS 9TO ! M>KET-ECONOMY CAN BE TE/$ EXP]IM5TALLY4 ,ANY?+ ?AT DOES NOT LEAD TO FULL EMPLOYM5T IS NOT 5\<4 ,BECAUSE 9CREAS$ EMPLOYM5T BY WAY ( 0PUMP-PRIM+0 MAY LEAD TO 0SECOND>Y EMPLOYM5T0 9 ADDITIONAL BRAN*ES ( PRODUCTION1 IT WAS ASSUM$ ?AT IT WILL LEAD TO SU* EMPLOYM5T4 ,& IF ALL %\LD FAIL1 !RE IS /ILL ! POSSIBILITY ( A DIRECT CONTROL ( 9VE/M5TS BY GOV]NM5T4 ,IT IS NOT NECESS>Y TO AGREE ) ,KEYNES AS TO ! CAUSE ( UNEMPLOYM5T TO RECOGNIZE ?AT ! POLICIES HE SUGGE/$ TO COMBAT IT HAVE BE5 ! POLICIES ( ALL GOV]NM5TS 9 REC5T HI/ORY :E!R !Y W]E AW>E ( HIS !ORIES OR NOT4 ,!Y HAD MADE !IR HI/ORICAL DEBUT LONG BE=E !IR !ORETICAL EXPRESSION4 ,ALL ! MONET>Y & FISCAL 9NOVATIONS HAD ALREADY BE5 TRI$3 PUBLIC WORKS1 9FLATION & DEFICIT-F9ANC+ >E AS OLD AS GOV]NM5T RULE & HAVE BE5 EMPLOY$ 9 MANY A CRISIS SITUATION4 ,9 MOD]N TIMES1 H[EV]1 !Y HAVE BE5 REG>D$ AS EXCEPTIONS TO ! RULE1 EXCUSABLE 9 TIMES ( SOCIAL /RESS BUT DISA/R\S AS A P]MAN5T POLICY4 ,I,V ,= ,M>X1 ! 9H]5T CONTRADICTIONS ( CAPITAL PRODUCTION >E NOT ( AN 0ECONOMIC0 *>ACT] 9 ! B\RGEOIS S5SE ( ! T]M4 ,HE IS NOT CONC]N$ ) ! SUPPLY & DEM& RELATIONS ( ! M>KET BUT ) ! EFFECT ( ! SOCIAL =CES ( PRODUCTION UPON ! CAPITALI/ SOCIAL RELATIONS ( PRODUCTION1 ?AT IS1 ) ! RESULTS ( ! 9CREAS+ PRODUCTIVITY ( LABOR UPON ! PRODUCTION ( VALUE & SURPLUS-VALUE4 ,CELEBRAT$ AS ! PRODUCT ( CAPITAL ITSELF1 B\RGEOIS !ORY SEP>ATES GR[+ PRODUCTIVITY FROM ITS SOCIAL IMPLICATIONS4 ,= ,M>X1 IT IS ! 9DEP5D5T V>IABLE ?AT DET]M9ES ALL ! O!R V>IABLES 9 ! SY/EM ( ECONOMIC RELATION%IPS4 ,! SPECIAL IMPORTANCE ( LABOR & ITS 9CREAS+ PRODUCTIVITY 9 ,M>X'S S*EME ( REASON+ L$ TO HIS DISCOV]Y ( A DEF9ITE DEVELOPM5TAL TR5D 9 CAPITAL ACCUMULATION1 :I* REVEAL$ QUALITATIVE *ANGES 9 ! WAKE ( QUANTITATIVE ONES4 ,HE C\LD %[ ?AT ! CAPITALI/ 0EQUILIBRIUM ME*ANISM0 MU/ ITSELF *ANGE 9 ! C\RSE ( CAPITAL EXPANSION & ?AT IT IS ! LATT] :I* DET]M9ES & MODIFIES ! M>KET =CES ( SUPPLY & DEM&1 S9CE M>KET LAWS HAVE TO ASS]T !MSELVES )9 A L>G] FRAME ( A DEVELOP+ 0DISEQUILIBRIUM0 BETWE5 ! SOCIAL =CES ( PRODUCTION & ! CAPITALI/ RELATIONS ( PRODUCTION4 ,! 9CREASE ( PRODUCTIVITY1 ( SURPLUS-VALUE & ! ACCUMULATION ( CAPITAL >E ALL ONE & ! SAME PROCESS4 ,IT IMPLIES A MORE RAPID GR[? ( CAPITAL 9VE/$ 9 MEANS ( PRODUCTION ?AN ?AT 9VE/$ 9 LABOR P[]4 ,IT 9VOLVES :AT ,M>X CALL$ A 0RIS+ ORGANIC COMPOSITION ( CAPITAL40 ,AS PR(ITS >E CALCULAT$ ON ! TOTAL 9VE/$ CAPITAL1 !Y MU/ %[ A T5D5CY TO DECL9E AS ?AT P>T ( ! TOTAL :I* ALONE YIELDS SURPLUS VALUE BECOMES RELATIVELY SMALL]4 ,( C\RSE1 ! PROCESS ALSO IMPLIES AN 9CREAS+ ABILITY TO EXTRACT MORE SURPLUS-VALUE1 ?US NULLIFY+ ! 0T5D5CY0 ( PR(ITS TO DECL9E1 & CON/ITUT+ ! REASON = ! PROCESS ITSELF4 ,LEAV+ ASIDE ALL ! 9TRICACIES ( ,M>X'S EXPOSITION1 HIS AB/RACT S*EME ( CAPITAL EXPANSION %[S ?AT AP>T FROM COMPETITION AS ! DRIV+ =CE ( CAPITAL EXPANSION 9 ! M>KET REALITY1 ! PRODUCTION & ACCUMULATION ( SURPLUS-VALUE ALREADY F9DS 9 ! TWO-FOLD *>ACT] ( CAPITAL PRODUCTION -- SU* AS EX*ANGE & USE VALUE -- A LIMIT+ ELEM5T1 TO BE OV]COME ONLY BY ! CONT9U\S EXPANSION & EXT5SION ( ! CAPITALI/ MODE ( PRODUCTION4 ,9 ORD] TO =E/ALL A FALL+ RATE ( PR(IT1 ACCUMULATION MU/ NEV] RE/4 ,MORE & MORE SURPLUS-VALUE MU/ BE EXTRACT$ & ?IS 9VOLVES ! /EADY REVOLUTIONIZ+ ( PRODUCTION & ! CONT9U\S EXT5SION ( ITS M>KETS4 ,AS LONG AS ACCUMULATION IS POSSIBLE1 ! CAPITALI/ SY/EM PROSP]S4 ,IF ACCUMULATION COMES TO A HALT CRISIS & DEPRESSION SET 94 ,BO? ,M>X & ,KEYNES1 !N1 ?\< = DIFF]5T REASON1 RECOGNIZE ! CAPITALI/ DILEMMA 9 A DECL9+ RATE ( CAPITAL ACCUMULATION4 ,KEYNES DIAGNOSES ITS CAUSE AS A LACK ( 9C5TIVE TO 9VE/4 ,M>X1 LOOK+ BEH9D ! LACK ( 9C5TIVE1 F9DS ! REASON = IT 9 ! SOCIAL *>ACT] ( PRODUCTION AS A PRODUCTION ( CAPITAL4 ,KEYNES DOES NOT REG>D CRISIS & DEPRESSION AS NECESS>Y ASPECTS ( CAPITAL =MATION2 !Y >E SU* ONLY UND] LAISSEZ-FAIRE CONDITIONS1 & !N ONLY 9 ! S5SE ?AT ! ECONOMIC EQUILIBRIUM DOES NOT 9CLUDE FULL EMPLOYM5T4 ,= ,M>X1 H[EV]1 A CONT9U\S CAPITAL ACCUMULATION PRESUPPOSES P]IODS ( CRISES & DEPRESSION1 = ! CRISIS IS ! ONLY 0EQUILIBRIUM ME*ANISM0 :I* OP]ATES 9 CAPITALISM ) REG>D TO ITS DEVELOPM5T4 ,IT IS 9 ! DEPRESSION P]IOD ?AT ! CAPITAL /RUCTURE UND]GOES ?OSE NECESS>Y *ANGES :I* RE/ORE LO/ PR(ITABILITY & 5ABLE FUR!R CAPITAL EXPANSION4 ,V ,M>X'S !ORY ( ACCUMULATION ANTICIPAT$ ,KEYNES' CRITICISM ( ! NEO-CLASSICAL !ORY ?R\< ITS CRITICISM ( CLASSICAL !ORY4 ,9 ITS ESS5TIALS1 !N1 ,KEYNES' 0REVOLUTION0 CONSI/S 9 A P>TIAL RE-/ATEM5T ( SOME ( ,M>X'S >GUM5TS AGA9/ ! CAPITALI/ ECONOMY & ITS !ORY4 ,KEYNES DID NOT /UDY ,M>X1 & HE DID NOT FEEL ! NE$ = DO+ SO BECAUSE HE ID5TIFI$ ,M>X'S !ORIES ) ?OSE ( ! CLASSICI/S4 ,BY OPPOS+ ! CLASSICAL !ORY ,KEYNES ?\X AS WELL4 ,9 REALITY1 H[EV]1 HE DEALT ) NEI!R ( !SE !ORIES BUT ) ! NEO-CLASSICAL M>KET !ORY :I* HAD NO LONG] ANY SIGNIFICANT CONNECTION ) ! IDEAS ( ,SMI? & ,RIC>DO4 ,M>X'S CRITIQUE ( CLASSICAL ECONOMY1 H[EV]1 RESEMBLES ,KEYNES' CRITICISM ( ! NEOCLASSICI/S1 AL?\< IT CUTS DEEP] ?AN ,KEYNES' BECAUSE ! CLASSICI/S HAD BE5 PR(\ND] ?9K]S ?AN !IR APOLOGETIC EMULATORS1 & BECAUSE ,M>X WAS NOT A B\RGEOIS RE=M]4 ,AL?\< ,KEYNES WI%$ TO 0KNOCK AWAY ! ,RIC>DIAN F\NDATIONS ( ,M>XISM10 9 ORD] TO DO SO1 HE HAD FIR/ ( ALL TO PO/ HIMSELF ON !SE V]Y F\NDATIONS4 ,HE ACCEPT$ ! !ORY ( VALUE 9 ! ,RIC>DIAN S5SE1 9 :I* LABOR AS ! SOLE FACTOR ( PRODUCTION 9CLUDES 0! P]SONAL S]VICES ( ! 5T]PR5EUR & HIS ASSI/ANTS40 ,LIKE ,M>X HE DEALT 9 ECONOMIC AGGREGATES1 BUT :ILE 9 ,M>X'S SY/EM ! ANALYSIS 9 T]MS ( ECONOMIC AGGREGATES WAS TO LEAD TO ! DISCOV]Y ( ! BASIC TR5D ( CAPITAL ACCUMULATION & TO NO MORE1 9 ! ,KEYNESIAN SY/EM IT WAS TO S]VE ! =MULATION ( A POLICY ABLE TO SUPPORT ! TR5D )\T DO+ DAMAGE TO ! CAPITALI/ RELATIONS ( PRODUCTION4 ,EXPRESS$ 9 SIMPLE/ T]MS1 ,KEYNES' MODEL REPRES5TS A CLOS$ SY/EM DIVID$ 9TO TWO DEP>TM5TS ( PRODUCTION2 ONE PRODUC+ CONSUMPTION GOODS & ! O!R PRODUC+ CAPITAL GOODS4 ,! TOTAL MONEY EXP5DITURE 9 T]MS ( WAGE-UNITS 7BAS$ ON ! WORK+ H\R7 = BO? CONSUMPTION & CAPITAL GOODS CON/ITUTES TOTAL 9COME4 ,:5 ! AGGREGATE DEM&1 ?AT IS1 ! DEM& = CONSUMPTION & CAPITAL GOODS1 EQUALS TOTAL 9COME & IMPLIES ?AT TOTAL SAV+S EQUAL 9VE/M5TS1 ! SY/EM IS SUPPOS$ TO BE 9 EQUILIBRIUM4 ,A DECL9E ( AGGREGATE DEM&1 IMPLY+ A DISCREPANCY BETWE5 SAV+S & 9VE/M5TS1 R$UCES TOTAL 9COME & PRODUCES UNEMPLOYM5T4 ,9 ORD] TO ALT] ?IS SITUATION ! AGGREGATE DEM& MU/ BE 9CREAS$ TO A PO9T :]E TOTAL 9COME IMPLIES FULL EMPLOYM5T4 ,9 ,M>X'S SY/EM ( ECONOMIC AGGREGATES CON/ANT CAPITAL IS ! PROP]TY ( ! CAPITALI/ CLASS1 V>IABLE CAPITAL ! SOCIAL EQUIVAL5T ( LABOR-P[]1 & SURPLUS-VALUE ! ACCUMULATION & 9COME S\RCE ( ! RUL+ CLASS4 ,IT IS H]E NOT A QUE/ION ( 0SOCIAL 9COME0 & 0SOCIAL \TPUT0 & !IR RELATION TO EA* O!R1 BUT A QUE/ION ( ! CAPITALI/ EXPLOITATION ( LABOR P[]4 ,V,I ,UNTIL ! SECOND WORLD W>1 ,KEYNES' !ORIES 5JOY$ ONLY SMALL V]IFICATION4 ,HE HAD A P]FECT ALIBI1 H[EV] -- EI!R HIS SUGGE/IONS W]E NOT C>RI$ \T OR !Y W]E TOO MEAG]LY APPLI$4 ,BUT ) ! BEG9N+ ( W> PRODUCTION1 ,KEYNESS WAS CONFID5T ?AT HIS !ORY W\LD BE FULLY CONFIRM$4 ,N[ IT W\LD BE SE5 0:AT LEVEL ( TOTAL \TPUT ACCOMPANI$ BY :AT LEVEL ( CONSUMPTION IS NE$$ TO BR+ A FREE1 MOD]N COMMUNITY 4 4 4 )9 ! SI4 ,W>-TIME POLICIES1 H[EV]1 W]E QUITE 9DEP5D5T ( ,KEYNESIAN IDEOLOGY1 BE+ NEI!R DIFF]5T FROM ?OSE EMPLOY$ 9 ! ,FIR/ ,WORLD ,W>1 NOR DIFF]5T BETWE5 V>I\S GOV]NM5TS1 SOME ( :I* DID NOT ADH]E TO ! ,KEYNESIAN 0REVOLUTION40 ,ALL ! 9NOVATIONS ASSOCIAT$ ) ! COMM&E]$ ECONOMY ( ! SECOND WORLD W>1 SU* AS A MONEY & CR$IT 9FLATION1 PRICE CONTROLS1 LABOR CONTROLS1 PRIORITIES1 =C$ SAV+S1 RATION+ & SO =? HAD BE5 CURR5T 9 ! FIR/ DEBACLE DESPITE ! !N PREVAIL+ 0OR?ODOX0 APPROA* TO ECONOMICS4 ,IF ! W> ECONOMY 0PROV$0 ! VALIDITY ( ,KEYNES' !ORY1 IT DID SO TO SU* A DEGREE ?AT ! !ORY ITSELF HAD TO BE PUT 9 REV]SE4 ,AL?\< UNSUCCESSFUL 9 9CREAS+ ! 0PROP5SITY TO CONSUME0 DUR+ ! DEPRESSION1 IT WAS A 0BRILLIANT SUCCESS0 9 CUTT+ IT D[N DUR+ ! W>4 ,UNABLE TO 9CREASE 9VE/M5TS UP TO ! PO9T ( FULL EMPLOYM5T1 IT L$ TO LABOR %ORTAGES ?R\< ! DE/RUCTION ( CAPITAL4 ,AL?\< SUSP5D$ DUR+ ! W>1 ,KEYNES' !ORIES W\LD HOLD GOOD AGA9 ) ! RETURN TO 0NORMALCY40 ,! W> ITSELF ONLY PROV$ TO HIM ?AT TE*NICALLY ANY ECONOMIC SY/EM C\LD HAVE FULL EMPLOYM5T IF IT SO WI%$2 IT FID NOT OCCUR TO HIM ?AT UND] PRES5T CONDITIONS W> & PREP>ATION = W> MAY BE ! ONLY WAY TO FULL EMPLOYM5T4 ,IT DID OCCUR TO O!RS2 G5]ALLY1 H[EV]1 ! ,KEYNESIAN SPIRIT IS BE/ REPRES5T$ BY SU* ADH]5TS ( ! WELF>E-/ATE AS ,WILLIAM ,BEV]IDGE1 :O1 NE> ! 5D ( ! SECOND WORLD W>1 PROPOS$ A FULL EMPLOYM5T PROGRAM BAS$ ON ! 0SOCIALIZATION ( DEM& )\T ! SOCIALIZATION ( PRODUCTION0 .<#e.>4 ,BUILT ON ,KEYNESIAN PR9CIPLES & *OOS+ BUDGET>Y MEANS = ITS REALIZATION1 IT WAS TO C>RY ! FULL EMPLOYM5T ( W> 9TO ! CONDITIONS ( PEACE4 ,FE>S ?AT L>GE-SCALE UNEMPLOYM5T W\LD RETURN 9 ! WAKE ( ! SECOND WORLD W> PROV$ TO BE EXAGG]AT$4 ,A CLE> DI/9CTION BETWE5 W>-PRODUCTION & PEACE-TIME PRODUCTION NO LONG] EXI/$ & NO NE$ >OSE TO ADOPT ! ,BEV]IDGE OR ANY O!R PLAN = A FULL] UTILIZATION ( PRODUCTIVE RES\RCES4 ,S9CE ! 9CEPTION ( ! 0,KEYNESIAN REVOLUTION10 !N1 NO REAL OPPORTUNITY HAS >IS5 TO TE/ ITS PRACTICAL VALIDITY4 ,YET1 GOV]NM5T 9T]V5TION DUR+ ! DEPRESSION 9CREAS$ EMPLOYM5T TO SOME EXT5T4 ,IT MAY !N BE SAID ?AT ! !ORY PROV$ ITSELF 9 A V]Y G5]AL WAY :]EV] IT WAS EMPLOY$1 & TO ! DEGREE 9 :I* IT WAS APPLI$4 ,9 ?IS S5SE1 H[EV]1 ,KEYNESIANISM W\LD BE JU/ ANO!R NAME = GOV]NM5TAL DEPRESSION POLICIES1 & W\LD EXHAU/ ITSELF 9 ! SUGGE/ION ?AT ! GOV]NM5T %\LD TAKE C>E ( ! ANTICIPATORY ASPECTS ( CAPITAL =MATION :]EV] PRIVATE 9ITIATIVE BEG9S TO SLACK54 ,:ILE PRODUCTION IS /ILL PRODUCTION = PRIVATE GA91 ITS EXPANSION IS ! GOV]NM5T'S RESPONSIBILITY -- A LOGICAL EXT5SION ( ! CR$IT-SY/EM BY A %IFT FROM PRIVATE TO GOV]NM5TAL F9ANCIAL CONTROL4 ,NOT ONLY FROM ! ,KEYNESIAN1 BUT FROM ANY REALI/IC PO9T ( VIEW1 GOV]NM5T 9T]V5TION IS N[ REG>D$ AS AN 9ESCAPABLE NECESSITY4 ,AN 9CREAS+ AM\NT ( 0WELF>E-ECONOMICS0 IS ADVOCAT$ BY ! PROPON5TS BO? ( ! 0WELF>E-/ATE0 & ( PRIVATE 5T]PRISE4 ,BUT EV5 ?\< NOBODY SEEMS TO D\BT ?AT GOV]NM5T CONTROL IS H]E TO /AY1 ! QUE/ION ( ITS *>ACT] REMA9S CONTROV]SIAL4 ,! ,KEYNESIANS >E G5]ALLY = MORE GOV]NM5T 9T]V5TION1 BUT AS ! CONSI/5T 9CREASE ( GOV]NM5T REGULATION & DEFICIT-F9ANC+ IS SYNONYM\S ) ! TRANS=MATION ( ! PRIVATE 9TO A /ATE-CAPITALISM SY/EM1 IT IS (T5 OPPOS$ AS A =M ( 0CREEP+ SOCIALISM40 ,BECAUSE ,KEYNESIANISM MAY ALSO BE REG>D$ AS A TRANSITORY /ATE T[>DS A COMPLETELY GOV]NM5T-REGULAT$ CAPITALI/ ECONOMY1 IT HAS BECOME ! !ORY ( SOCIAL RE=M )9 ! CAPITALI/ SY/EM4 ,IT /&S ?US 9 /RICTE/ OPPOSITION TO ,M>XISM :I* CONC]NS ITSELF NOT ) SOCIAL RE=M BUT ) ! ABOLITION ( ! CAPITALI/ SY/EM4 #a4 ,A ,CONTRIBUTION TO ! ,CRITIQUE ( ,POLITICAL ECONOMY1 ,*ICAGO1 #a#i#d1 P4 #a#b#c4 #b4 ,! ,G5]AL ,!ORY1 P4 #c#a4 #c4 ,! ,G5]AL ,!ORY1 P4 #a#e4 #d4 ,J4 ,M4 ,KEYNES 9 ,! ,NEW ,REPUBLIC1 ,JULY #b#i1 #a#i#d4 #e4 ,FULL ,EMPLOYM5T 9 A ,FREE ,SOCIETY1 #a#i#d#e1 P4 #b#i4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #b1 #bba 3 ,M>X & ,KEYNES -- ,ADD$4 ,JANU>Y #h1 #bbb 3 ,M>X & ,KEYNES -- ,UPDAT$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/