,*APT] #ac 
,! 0,TRANS=MATION0 ( ,CAPITALISM 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,EVALUAT+ ! WORK ( ,KEYNES1 ECONOMI/S CAME TO 0DI/+UI% ! 
PROBLEMS HE OP5$ UP FROM ! P>TICUL> SOLUTIONS HE SUGGE/$4 ,!SE 
SOLUTIONS MI<T ALL BE ALT]$1 OR DISC>D$ & REPLAC$10 IT WAS SAID1 
0& HIS WORK W\LD /ILL BE REVOLUTION>Y 9 ! OP5+ UP ( PROBLEMS 
& ! ADMISSION ( ! POSSIBILITY ( SOME SOLUTION DIFF]5T FROM 
! ONE ?AT HAD PREVI\SLY BE5 ACCEPT$ & HAD =ECLOS$ FRE% 
9QUIRY40.<#a.> ,9 
?IS1 ,KEYNES 0SUCCE$$ :]E PREVI\S H]ETICS HAD FAIL$1 P>TLY 
BECAUSE HE CAME AT A TIME ?AT WAS RIPE TO RECEIVE HIS IDEAS40.<#b.> ,AL?\< ,KEYNES' 
0!ORY ( /AGNATION GAVE MOD]N EXPRESSION TO SOME 9DIG5\S ELEM5TS 
/RESS$ 9 ,M>X'S 'BREAK-D[N' !ORY1 SU* AS *RONIC 
UND]CONSUMPTION1 G5]AL OV]PRODUCTION & ! SECUL>LY DECL9+ RATE ( 
PR(IT1 ! IMPORTANT PRACTICAL DIFF]5CE BETWE5 !M1 ?\<1 IS ?AT ,KEYNES 
S\<T ! REM$Y 9 ! MODIFICATION ( LAISSEZ-FAIRE CAPITALISM 
?R\< 'DELIB]ATE ,/ATE ACTION'2 :]EAS ,M>X DOGMATICALLY 
DISMISS$ ANY & ALL SU* ,/ATE ACTIONS AS 9EVITABLY & 9V>IABLY 
B5EFIT+ ONLY '! CAPITALI/ CLASS' 9/EAD ( ! ECONOMY AS A 
:OLE40.<#c.> 
,POSSIBLY IT WAS = ?IS REASON 0?AT ,KEYNES WAS ADOPT$ BY SOME 
ECONOMI/S 9 RECOIL FROM :AT MAY HAVE SEEM$ LIKE POSSIBLE ,M>XIAN 
IMPLICATIONS 9 ! GREAT DEPRESSION02 ,M>XI/S !Y C\LD NOT BECOME1 
EV5 ?\< 0,M>X ANTICIPAT$ ,KEYNES10 BECAUSE ( ,M>XISM'S 
0MISAN?ROPIC B5T ) REG>D TO ,WE/]N CULTURE :I* DOES NOT 
REPRES5T A V]Y GOOD C>E] L9E = ECONOMI/S ( ! ,WE/40.<#d.> 

,IT IS ! /ATE-ORGANIZ$ OR 0,KEYNESIAN0 ASPECT ( PRES5T-DAY 
CAPITALISM :I*1 BY S]V+ AS A BELAT$ BUT UNAVOIDABLE CRITIQUE ( ! 
CAPITALISM ( OLD1 SIMULTANE\SLY S]VES AS A REFUTATION ( ,M>XISM4 ,EV5 IF IT 
IS ADMITT$ ?AT 0! LAWS ( MOTION :I* ,M>X'S MODEL ( 
CAPITALISM REVEAL$ MAY /ILL BE VISIBLE 9 ,AM]ICAN CAPITALISM10 IT IS 
MA9TA9$ ?AT !SE LAWS >E N[ 0FAC$ ) A SET ( REM$IES :I* 
SPR+ FROM SOCIAL ATTITUDES QUITE BEYOND HIS IMAG9ATION40.<#e.> ,NOT ONLY ,AM]ICANS BUT 
,EUROPEANS TOO REF] TO A *ANG$ CAPITALISM2 AL?\< 0WE /ILL COMMONLY 
SPEAK ( ,5GL& & ,FRANCE AS CAPITALI/ C\NTRIES10 IT IS SAID1 
0!Y >E NO LONG] CAPITALI/ 9 ! S5SE UND]/OOD BY ,M>X & HIS 
CONTEMPOR>IES40.<#f.> ,9 ?IS VIEW1 IT WAS ,KEYNES :O ASSI/$ ! 
CAPITALI/ METAMORPHOSIS & :O MADE 0! GREATE/ S+LE CONTRIBUTION 
TO ! TE*NIQUES ( DEMOCRATIC TRANSITION4 ,9 SO DO+ HE HELP$ TO %[ ! 
PEOPLES ( ! ,WE/ A WAY =W>D :I* DID NOT LEAD ACROSS ! BORNE ( TOTAL 
CLASS W> - A B\RNS FROM :I* ! WAGE E>N]S ( ! ,WE/ RECOIL1 N[ 
?AT !Y HAVE SE5 ITS RAG+ WAT]S40.<#g.> ,KEYNESIANISM IS ?US CELEBRAT$ NOT ONLY AS ! 
SAVIOR ( CAPITAL BUT AS ! SAVIOR ( LABOR AS WELL4 

,IT IS ( C\RSE TRUE ?AT CONTEMPOR>Y CAPITALISM DIFF]S FROM ! 
CAPITALISM ANALYZ$ BY ,M>X4 ,HE DID NOT =ESEE ALL ! ACTUAL *ANGES4 
,CAPITALISM'S TRANS=MATION WAS NOT ONLY ! ECONOMIC BUT ALSO ! SOCIAL 
& POLITICAL RESULT ( 9T]NATIONAL COMPETITIVE CAPITAL ACCUMULATION :I*1 
BY ISSU+ 9TO TWO WORLD W>S & REVOLUTIONS1 L$ TO A RAPIDLY 9CREAS+1 OR 
EV5 TOTAL1 /ATE CONTROL ( NATIONAL ECONOMIES4 ,?IS C\RSE ( EV5TS1 
H[EV]1 EV5 IF ,M>X HAD EXPECT$ IT1 W\LD NOT HAVE AFFECT$ HIS ECONOMIC 
!ORY2 = !SE EV5TS RELATE TO POLITICAL REACTIONS TO ECONOMIC CRISIS 
SITUATIONS4 ,AW>E ( ! BASIC CONTRADICTIONS ( CAPITAL PRODUCTION & 
CONV9C$ ?AT ITS EXPANSION & EXT5SION C\LD ONLY 5L>GE & %>P5 !M1 
,M>X WAS 9T]E/$ NOT SO MU* 9 SPECULAT+ AB\T ! POSSIBLE 
/AY+-P[]S ( CAPITALISM AS 9 DEVELOP+ A REVOLUTION>Y =CE TO PUT AN 
5D TO IT4 

,! CELEBRAT$ 0FAILURE0 ( ,M>XISM IS A FAILURE NOT ( ECONOMIC 
!ORY1 BUT RA!R ( ! SOCIAL & POLITICAL EXPECTATIONS BAS$ ON IT4 ,( 
C\RSE1 IT IS ALSO A 0FAILURE0 ( ECONOMIC !ORY 9S(> AS ITS 
APPLICATION TO REALITY L$ TO AN UND]E/IMATION ( CAPITALISM'S 
SUSCEPTIBILITY TO *ANGE4 ,H[EV]1 NO REASONABLE P]SON W\LD DEM& ?AT ,M>X 
%\LD =ESEE ACTUAL SOCIAL & ECONOMIC DEVELOPM5T 9 ALL ITS CONCRETE 
MANIFE/ATIONS4 ,& TO ! EXT5T ?AT SOCIO-ECONOMIC DEVELOPM5T IS 
PR$ICTABLE ) SOME DEGREE ( C]TA9TY1 ,M>X DID RA!R WELL1 AS IS 
DEMON/RAT$ BY ! RISE ( ,KEYNESIANISM4 ,9 ! ,KEYNESIAN =MULATION1 
,M>X'S F9D+S >E SIL5TLY ACCEPT$ & SIMULTANE\SLY 
0REM$I$0 BY CONSCI\S 9T]V5TIONS 9 ! M>KET ME*ANISM4 

,M>X WAS NOT A SOCIAL RE=M] 9T]E/$ 9 ! AMELIORATION & 
P]PETUATION ( EXI/+ PRODUCTION RELATIONS4 ,= HIM CAPITALISM HAD NO FUTURE 
BECAUSE ITS TRANS=MATION WAS ALREADY AN OBS]VABLE PH5OM5ON4 ,ITS EXPANSION 
WAS AT ! SAME ITS DECAY :5 REG>D$ FROM A REVOLUTION>Y 9/EAD ( FROM A 
CONS]VATIVE PO9T ( VIEW4 ,) REG>D TO !ORY1 HE SAW HIS FUNCTION NOT SO 
MU* AS PROVID+ ! RATIONALE = ! EV]-*ANG+ POLITICAL ACTIONS ( HIS 
TIME AS 9 DISC]N+ ! G5]AL TR5D ( CAPITAL DEVELOPM5T AT ! V]Y 
/>T ( ITS 9T]NATIONAL ASC5DANCY4 

,FUTURE EV5TS MAY BE ANTICIPAT$ ONLY ON ! BASIS ( PRES5T KN[L$GE1 & 
PR$ICTIONS >E POSSIBLE ONLY ON ! ASSUMPTION ?AT A KN[N PATT]N ( PA/ 
DEVELOPM5T WILL ALSO HOLD = ! FUTURE4 ,IT MAY NOT2 YET EXI/+ KN[L$GE 
W>RANTS SOME EXPECTATIONS & ?US ALL[S = ACTIONS :OSE RESULTS WILL 
CONFIRM OR REFUTE !SE EXPECTATIONS4 ,9 VIEW ( ! PA/ PATT]N ( HI/ORICAL 
DEVELOPM5T & ON ! BASIS ( HIS [N EXP]I5CE1 ,M>X WAS C]TA9LY 
CONV9C$ ?AT ! DEVELOPM5T ( CAPITALISM1 BY GIV+ RISE TO A REVOLUTION>Y 
PROLET>IAT1 W\LD LEAD TO ITS ABOLITION4 ,HE DID NOT CONTEMPLATE ! 
POSSIBILITY ( A 0SECOND LIFE0 = CAPITALISM BY WAY ( 
GOV]NM5TAL ACTIVITIES4 ,NOR C\LD HE IMAG9E ?AT 0,M>XISM0 ITSELF 
C\LD BE TRANS=M$ 9TO AN IDEOLOGY S]V+ /ATE-CAPITALISM1 :I* 
ACCEL]ATES ! CONC5TRATION & C5TRALIZATION T5D5CIES 9H]5T 9 
COMPETITIVE CAPITAL ACCUMULATION BY POLITICAL MEANS4 ,M>X'S POLITICAL 
EXPECTATIONS HAVE NOT AS YET BE5 REALIZ$4 ,! V]Y EXI/5CE ( A MODIFI$ 
CAPITALISM & ! ABS5CE ( A REVOLUTION>Y WORK+ CLASS SEEM TO DISPROVE 
HIS POLITICAL !ORIES4 

,! TURN ( ! C5TURY WITNESS$ TWO P>ALLEL TR5DS - ! 
PROGRESSIVE OBJECTIVE 0SOCIALIZATION0 ( B\RGEOIS SOCIETY & ! 
PROGRESSIVE SUBJECTIVE 0B\RGEOISIFICATION0 ( ! LABOR MOVEM5T4 
,:5 IT PROV$ POSSIBLE TO BETT] WORK]S' CONDITIONS )9 ! CONF9ES 
( CAPITALISM1 ! ONCE RADICAL LABOR MOVEM5T TURN$ 9TO AN 9/ITUTION 
PROVID+ ADDITIONAL SUPPORT = ! SOCIAL /ATUS QUO4 ,\T ( ! 
EXP]I5CES ( ! LABOR MOVEM5T ITSELF >OSE1 ! IDEA ?AT IT WAS POSSIBLE 
TO TRANS=M CAPITALISM 9TO SOME K9D ( 0SOCIALISM0 GRADUALLY1 BY 
WAY ( RE=MS4 ,AL?\< LESS SOPHI/ICAT$1 ,FABIANISM & ,M>XIAN ,REVISIONISM 
ANTICIPAT$ ! ,KEYNESIAN !ORY2 N[ IT IS ?IS !ORY :I* S]VES AS ! 
IDEOLOGY ( ! RE=MI/ LABOR MOVEM5T4 ,9 MORE S5SES ?AN ONE1 IT WAS SAID1 
! POLITICAL IMPORTANCE ( ,KEYNES' BOOK 0IS ?AT AT EV]Y PO9T1 
)\T A S+LE EXCEPTION1 IT IS 9 FULL AGREEM5T ) ,LABOR POLICY 9 ?IS 
C\NTRY .<,5GL&.>1 & :AT IS EV5 MORE SIGNIFICANT1 EXPRESSES 9 PROP] 
ECONOMIC =M :AT HAS BE5 IMPLICIT 9 ! ,LABOR ,MOVEM5T'S ATTITUDE 
ALL ALONG40.<#h.> 
,AL?\< RUNN+ C\NT] TO ,M>X'S REVOLUTION>Y EXPECTATIONS1 ALL ?IS 
IS 9 CON=MITY ) HIS IDEA ?AT EXI/+ SOCIO-ECONOMIC CONDITIONS 
DET]M9E ! RUL+ IDEOLOGY4 

,AL?\< ,M>X DID NOT CONC]N HIMSELF ) POSSIBLE MODIFICATIONS ( ! 
CAPITALI/ SY/EM BY WAY ( GOV]NM5T CONTROLS1 HIS ECONOMIC !ORY DOES NOT 
D5Y ! FEASIBILITY ( SU* 5DEAVORS4 ,IT IS ( C\RSE POSSIBLE TO 9T]V5E 
9 ECONOMIC PROCESSES BY POLITICAL MEANS4 ,W> ITSELF ILLU/RATES ?IS AS WELL 
AS ,M>X'S !ORY ( SOCIAL REVOLUTION4 ,:AT WAS IMPORTANT TO ,M>X WAS ! 
ANALYSIS ( CAPITAL DEVELOPM5T ON ! ASSUMPTION ?AT !RE W]E NO 
9T]V5TIONS 9 ! FETI%I/IC ACCUMULATION PROCESS4 ,ONLY ?US WAS IT 
POSSIBLE TO DETECT CAPITALISM'S 9H]5T CONTRADICTIONS & LIMITATIONS4 
,M>X'S !ORY DOES NOT D5Y ! FACT ?AT FULL EMPLOYM5T CAN & MAY BE 
CREAT$ EI!R BY GOV]NM5T-9DUC$ 9VE/M5TS OR BY AN 9CREASE 9 ! 
PROP5SITY TO CONSUME4 ,IT SIMPLY DOES NOT DISCUSS SU* MANE\V]S4 ,!Y >E1 ( 
C\RSE1 POSSIBILITIES1 PROVID$ ?AT NEI!R POLICY S]I\SLY 9FR+ES UPON 
! PREVAIL+ SOCIAL CLASS RELATIONS4 

,( ?IS ,KEYNES WAS ALSO FULLY AW>E4 0,AP>T FROM ! NECESSITY ( 
C5TRAL CONTROLS TO BR+ AB\T AN ADJU/M5T BETWE5 ! PROP5SITY TO CONSUME 
& ! 9DUCEM5T TO 9VE/10 HE WROTE1 0!RE IS NO MORE REASON 
TO SOCIALIZE LIFE ?AN !RE WAS BE=E4.<#i.>0 ,FAVOR+ ! PREVAIL+ SOCIAL RELATIONS1 HE 
SAW NO 0REASON TO SUPPOSE ?AT ! EXI/+ SY/EM S]I\SLY MISEMPLOYS 
! FACTORS ( PRODUCTION02 ! SY/EM HAD FAIL$ ONLY 9 
0DET]M9+ ! VOLUME1 NOT ! DIRECTION1 ( ACTUAL 
EMPLOYM5T40.<#a.> ,BY AFFECT+ ONLY ! VOLUME ( PRODUCTION1 
,KEYNESIAN 9T]V5TIONS 9 ! ECONOMY NECESS>ILY 0ADJU/0 
PRODUCTION & CONSUMPTION 9 FAVOR ( 09VE/M5TS40 ,SU* 
0ADJU/M5TS0 CANNOT 5D ! 0P>ADOX ( POV]TY 9 ! MID/ 
( PL5TY10 & >E NOT DESIGN$ TO DO SO4 ,IT IS PRECISELY = ?IS 
REASON ?AT !Y >E OP]ATIONAL AS !Y >E /ILL 9 L9E ) ! G5]AL 
T5D5CY ( CAPITALI/ PRODUCTION TO 0ACCUMULATE CAPITAL = ! SAKE ( 
ACCUMULATION40 

,9 CONTRA/ ) ,KEYNES1 ,M>X SAW 9 CAPITALISM AN IRRATIONAL SOCIAL MODE ( 
PRODUCTION4 ,BUT AS !RE >E NO ECONOMIC PROCESSES 9DEP5D5T ( HUMAN 
ACTIVITIES HE CALL$ ! CAPITALI/ IRRATIONALITY FETI%I/IC BEHAVIOR4 ,IT IS 
! FETI%I/IC SELF-EXPANSION ( CAPITAL :I* DET]M9ES BO? ! VOLUME & 
! DIRECTION ( PRODUCTION4 ,SOCIAL CONTROL ( ! ECONOMY W\LD IMPLY ! 
CONSCI\S DET]M9ATION ( BO? ! VOLUME & ! DIRECTION ( PRODUCTION4 
,?IS W\LD1 H[EV]1 CON/ITUTE A RADICAL *ANGE 9 EXI/+ SOCIAL RELATIONS1 
BAS$ AS !Y >E ON ! SUBJUGATION ( ! WORK+ POPULATION BY WAY ( VALUE 
PRODUCTION4 ,BY 9SI/+ ?AT ONLY ! VOLUME1 NOT ! DIRECTION1 ( PRODUCTION 
%\LD BE SUBJECT TO GOV]NM5T PLANN+1 ,KEYNES 9DICAT$ ?AT HE WAS NOT 
CONC]N$ ) ALT]+ ! EXI/+ CLASS RELATIONS BUT ONLY ) REMOV+ ITS 
DANG]\S PROCLIVITIES 9 TIMES ( CRISIS4 

,9T]V5TIONS 9 ! ECONOMY HAVE BE5 =C$ ON CAPITALI/ GOV]NM5TS BY 
CIRCUM/ANCES BEYOND !IR CONTROL4 ,!SE 9T]V5TIONS DO NOT PO9T TO A 
RE=MATIVE T5D5CY 9 CAPITALISM4 ,:AT !Y DO REVEAL IS ?AT ! SY/EM 
F9DS IT MORE & MORE DIFFICULT TO SOLVE CAPITALI/ PROBLEMS BY /RICTLY 
CAPITALI/IC MEANS4 ,9 A CONSI/5T CAPITALI/ IDEOLOGY ! 0NEW 
ECONOMICS0 SPELL NOT SUCCESS1 BUT FAILURE4 ,TO BE SURE1 GOV]NM5T 
9T]V5TIONS MAY PO/PONE OR MITIGATE A CRISIS2 BUT ! NE$ = SU* 
9T]V5TION ONLY BE>S WITNESS TO ! DEP? ( ! CRISIS SITUATION4 

,) ! P[] TO SIDE-TRACK DEPRESSION GOES ! P[] TO CONTROL ! BOOM1 
& ! 0BUS9ESS-CYCLE0 MAY N[ APPE> AS ! EXPANSION & 
CONTRACTION ( GOV]NM5T-9DUC$ PRODUCTION4 ,S9CE A SLACK5+ RATE ( 
PRIVATE CAPITAL EXPANSION MAY BE COMP5SAT$ = BY GOV]NM5T-9DUC$ 
PRODUCTION1 ! LATT] MAY BE P>$ D[N :5 PRIVATE 9VE/M5T 9CREASES4 
,GOV]NM5T-9DUC$ PRODUCTION MAY EV5 BOL/] ! RATE ( ECONOMIC GR[?4 
,CONDITIONS ( 0PROSP]ITY0 MORE IMPRESSIVE ?AN ?OSE BR\<T =? 
UND] LAISSEZ-FAIRE CONDITIONS MAY >ISE1 & NEI!R CAPITAL NOR 
GOV]NM5T %[ ANY 9T]E/ 9 *ANG+ ?IS /ATE ( AFFAIRS SO LONG AS IT 
LA/S4 ,AT ANY RATE1 REC5T ECONOMIC HI/ORY HAS DEMON/RAT$ ! POSSIBILITY ( 
A 0PROSP]\S0 DEVELOPM5T ( ! MIX$ ECONOMIES4 

,AN UNBRIDL$ PRIVATE CAPITAL ACCUMULATION BY WAY ( COMPETITION PRESUPPOSES 
:AT HAS BE5 CALL$ A FREE WORLD M>KET & ! FREE MOVEM5T ( LABOR & 
CAPITAL BETWE5 ALL NATIONS AS WELL AS )9 EA* ( !M4 ,AL?\< !RE 
NEV] W]E SU* CONDITIONS1 SOME SEMBLANCE ( !M EXI/$ 9 
CAPITALISM'S LAISSEZ-FAIRE /AGE4 ,?IS /AGE WAS !N CELEBRAT$ 
AS ! CAPITALI/ CONDITION P] SE4 ,9 REALITY1 H[EV]1 IT WAS ! 
CASE M]ELY ( A TEMPOR>Y MONOPOLIZATION ( 9DU/RIAL PRODUCTION & ( ! 
WORLD M>KET BY A FEW NATIONS1 ALL[+ !M A VA/ & RAPID ACCUMULATION ( 
CAPITAL4 ,!IR MONOPOLI/IC POSITIONS W]E (T5 BROK5 BY EXTRA-M>KET MEANS1 
SU* AS /ATE-SUBSIDIES1 NATIONAL PROTECTION1 & W>F>E4 ,BECAUSE IT IS NOT 
CAPITAL 9 ! AB/RACT :I* COMPETES = ! M>KETS ( ! WORLD1 BUT 
DEF9ITE NATIONAL CAPITALS1 !IR ECONOMIC RIVALRIES TAKE ON ! =M ( 
/RUGGLES = POLITICAL P[]4 0,/RICTLY0 ECONOMIC COMPETITION WAS 
ONLY NATIONALLY POSSIBLE1 & EV5 H]E IT WAS NEV] 0PURE40 

,CAPITAL ACCUMULATION EXP&S ! WORLD M>KET & DET]M9ES ITS *>ACT]4 
,BUT ! ACCUMULATION PROCESS IS 9T]RUPT$ OR SL[$ D[N BY 9SUFFICI5T 
PR(ITABILITY4 ,?IS LACK ( PR(ITABILITY HAS CONCRETE REASONS1 & 
) CAPITALISM A WORLD-M>KET SY/EM1 ! CONCRETE REASONS WILL BE DET]M9$ 
BY ! /RUCTURE ( ! WORLD ECONOMY AS WELL AS BY ?AT ( EA* CAPITALI/ 
NATION4 ,! AN>*Y & NATIONAL *>ACT] ( CAPITAL PRODUCTION PREV5TS ! 
DETECTION1 ( ANY DEF9ITE SET ( CONCRETE REASONS = ! CONDITIONS ( 
CAPITAL /AGNATION4 ,:AT APPE>S AS ! 0REASON0 = ! DEPRESSION 
IS ONLY ! RESULT ( EMPIRICALLY UNDETECTABLE CAUSES4 ,! 9DIVIDUAL 
CAPITALI/ EXP]I5CES ! DEPRESSION AS A DECL9E 9 ! DEM& = HIS 
COMMODITIES4 ,! 9DIVIDUAL NATION FEELS IT AS A DECL9E ( PRODUCTION CAUS$ 
BY A LACK ( M>KETS1 & DEF5DS ITSELF AGA9/ =EIGN COMPETITION BY TRY+ 
TO SECURE & 5L>GE ITS [N M>KET AT ! EXP5SE ( O!R NATIONS4 

,! RISE ( 0BIG BUS9ESS0 9 ANY P>TICUL> NATION IS AN 
EXPRESSION ( A SUCCESSFUL REPRODUCTION ( ITS CAPITAL /RUCTURE4 ,TO A*IEVE AN 
9T]NATIONAL REORGANIZATION AL?\< ?IS IS ALSO NECESS>Y = CONT9U\S 
CAPITAL =MATION1 IS F> MORE DIFFICULT4 ,BIG BUS9ESS1 \TGR[+ ! FRAME ( 
! NATIONAL ECONOMY1 EXP&$ 9 ALL CAPITALI/ C\NTRIES & L$ TO ! 
EXPORT ( CAPITAL & TO ALL MANN] ( 9T]NATIONAL TRU/IFICATION & 
C>TELLIZATION4 ,BUT ! 09T]NATIONALIZATION0 ?US A*IEV$ WAS 
LESS A TRUE 9T]NATIONALIZATION ( ! M>KET-DET]M9$ CAPITALI/ 
CONC5TRATION & C5TRALIZATION PROCESS ?AN AN ATTEMPT TO COPE ) ! 
9T]NATIONALIZATION ( ! CAPITALI/ PRODUCTION & EX*ANGE PROCESS )\T 
GIV+ UP ITS E>LI]-DEVELOP$ NATIONAL =M4 ,IT ALSO EXPRESS$ ! DIFFICULTY 
( BR++ 0ACCUMULATION = ! SAKE ( ACCUMULATION0 9TO 
CON=MITY ) ! CONSI/5TLY MORE /ABLE SOCIAL 9/ITUTIONS ?AT DEVELOP$ 
)9 ! SEP>ATE NATIONAL /ATES4 ,NO REALLY EFFECTIVE WAY HAS BE5 F\ND TO 
REPEAT ON AN 9T]NATIONAL SCALE ! COMPETITIVE ACCUMULATION & CONC5TRATION 
PROCESS ?AT TOOK PLACE 9 EA* C\NTRY 9DIVIDUALLY4 

,BECAUSE ! 0SELF-EXPANSION0 ( CAPITAL DISREG>DS ! 
P>TICUL> NE$S ( NATIONAL /ATES1 GOV]NM5TS HAVE SELDOM BE5 9 FAVOR ( A 
/RICT LAISSEZ-FAIRE POLICY 9 !IR 9T]NATIONAL ECONOMIC RELATIONS4 ,! 
0AUTOMATIC SELF-EXPANSION0 WAS /RONGLY OPPOS$ BY ALL SOCIAL 
LAY]S :OSE 9T]E/S W]E VE/$ 9 ! NATIONAL /ATE AS AN 5TITY 
RELATIVELY 9DEP5D5T ( ! G5]AL DEVELOPM5T ( CAPITAL4 ,NOT SATISFI$ 
) ! MONOPOLI/IC 09T]NATIONALIZATION0 ( BIG BUS9ESS1 :I* 
T5D$ TO >RE/ RA!R ?AN PROMOTE G5]AL CAPITAL EXPANSION1 
GOV]NM5TS1 REPRES5T+ NATIONAL CAPITALS1 EXPRESS$ !IR [N 
09T]NATIONALISM0 9 A POLICY ( NATIONAL EXPANSION4 ,! 
09T]NATIONALISM0 ( CAPITALISM ?US COMES TO ! =E AS AN 
IMP]IALI/IC NATIONALISM4 ,?IS PRESUPPOS$ A C]TA9 UNITY BETWE5 GOV]NM5T 
& CAPITAL1 BR\<T AB\T BY WAY ( COLLABORATION1 COMPROMISE1 OR =CE1 :I* 
DELIMIT$ & F9ALLY T]M9AT$ ! E>LI] =MS ( 9DIVIDUALI/IC 
COMPETITION4 ,TO FULFILL !IR NEW - OR RA!R ADD$ - FUNCTIONS1 
GOV]NM5TS 5T]$ ! >5A ( 9T]NATIONAL COMPETITION ) MO/ OR ALL ( 
! NATIONAL P[] AT !IR DISPOSAL4 ,! E>LI] SY/EM1 A /ATE-SUPPORT$ 
ECONOMIC COMPETITION ?AT MI<T C>RY ?R\< 9TO W>1 WAS REPLAC$ BY A 
W>-LIKE COMPETITION1 OR ACTUAL W>F>E1 SUPPORT$ BY ! NATIONAL ECONOMY4 

,AS LONG AS CRISES & DEPRESSIONS W]E EFFECTIVE 5\< TO ALT] ! 
CONDITIONS ( PRODUCTION & ! /RUCTURE ( CAPITAL & ?US BR+ AB\T A 
RESUMPTION ( CAPITAL EXPANSION1 A /ATE ( OV]-ACCUMULATION AT ONE LEVEL ( 
CAPITAL PRODUCTION L$ TO A /ATE ( OV]-ACCUMULATION ON A HI<] LEVEL ( 
CAPITAL PRODUCTION4 ,UND] N9ETE5?-C5TURY CONDITIONS IT WAS RELATIVELY EASY 
TO OV]COME OV]-ACCUMULATION BY MEANS ( CRISIS ?AT MORE OR LESS AFFECT$ ALL 
CAPITAL 5TITIES ON AN 9T]NATIONAL SCALE4 ,BUT AT ! TURN ( ! C5TURY A 
PO9T HAD BE5 REA*$ :]E ! DE/RUCTION ( CAPITAL ?R\< CRISIS & 
COMPETITION WAS NO LONG] SUFFICI5T TO *ANGE ! TOTAL CAPITAL /RUCTURE 
T[>DS A GREAT] PR(ITABILITY4 ,! BUS9ESS-CYCLE AS AN 9/RUM5T ( 
ACCUMULATION HAD APP>5TLY COME TO AN 5D2 OR RA!R1 ! BUS9ESS-CYCLE 
BECAME A 0CYCLE0 ( WORLD W>S4 ,AL?\< ?IS SITUATION MAY BE 
EXPLA9$ POLITICALLY1 IT WAS ALSO A CONSEQU5CE ( ! CAPITALI/ ACCUMULATION 
PROCESS4 

,CAPITAL WAS N[ 0ACCUMULAT$0 9 GR[+ MEASURE 9 ! =M ( 
>MAM5TS4 ,! >MAM5TS-RACE L$ TO AN EXPANSION ( 9DU/RY NOT BECAUSE IT 
WAS 0PR(ITABLE0 9 ! REGUL> S5SE ( ! T]M1 BUT BECAUSE AN 
9CREAS+ P>T ( PR(ITS C\LD N[ BE 0REALIZ$0 ?R\< 
GOV]NM5T PUR*ASES4 ,TO BE SURE1 ! 0EXTRA-ECONOMIC0 REC\RSE TO 
W>-PRODUCTION WAS NOT ADOPT$ SOLELY TO AVOID A BUS9ESS DECL9E2 IT F\ND ITS 
RATIONALIZATION 9 POLITICAL & IDEOLOGICAL OBJECTIVES AS WELL4 ,W>S >E NOT 
UNIQUE TO CAPITALISM2 BUT ! OBJECTIVES = :I* CAPITALI/ W>S >E F\<T 
>E4 ,ASIDE FROM ALL IMAG9>Y REASONS1 ! MA9 OBJECTIVE1 MADE PAT5T BY ! 
POLICIES ( ! VICTORI\S P[]S1 IS ! DE/RUCTION ( ! COMPETITOR NATION 
OR BLOC ( NATIONS4 ,9 ITS RESULTS1 !N1 W> IS A =M ( 9T]NATIONAL 
COMPETITION4 ,IT IS NOT SO MU* A QUE/ION ( COMPETITION BY 
0EXTRA-ECONOMIC0 MEANS AS AN UNMASK+ ( ECONOMIC COMPETITION = 
A BLOODY & PRIMITIVE /RUGGLE BETWE5 M5 & M54 

,! RESUMPTION ( ! ACCUMULATION PROCESS 9 ! WAKE ( A 
0/RICTLY0 ECONOMIC CRISIS 9CREASES ! G5]AL SCALE ( 
PRODUCTION4 ,W>1 TOO1 RESULTS 9 ! REVIVAL & 9CREASE ( ECONOMIC ACTIVITY4 
,9 EI!R CASE CAPITAL EM]GES MORE CONC5TRAT$ & MORE C5TRALIZ$4 ,& ?IS 
BO? 9 SPITE & BECAUSE ( ! DE/RUCTION ( CAPITAL4 ,9 A WORLD ( 
9T]NATIONALLY-COMPET+ CAPITAL 5TITIES1 ?IS IMPLIES *ANGES 9 ECONOMIC 
& !RE) POLITICAL P[] POSITIONS4 ,:ILE ?IS IS TRUE ?R\<\T ! 
CAPITAL ACCUMULATION PROCESS1 IT IS ACCEL]AT$ 9 TIMES ( W> & ?US 
BECOMES QUITE OBVI\S4 ,DESPITE ! LOSSES ( SOME NATIONS1 ! GA9S ( O!RS 
>E L>GE 5\< TO 9ITIATE A NEW P]IOD ( CAPITAL EXPANSION SOON TO EXCEL1 
9 T]MS ( WORLD PRODUCTION1 ! PRE-W> LEVEL ( ECONOMIC ACTIVITY4 

,! G5]AL PROCESS ( CAPITAL ACCUMULATION1 :I* OCCURR$ )9 A WORLD 
ECONOMY DOM9AT$ BY ,GREAT ,BRITA91 SL[LY %IFT$ ! LOCUS ( ECONOMIC P[]4 
,LONG BE=E ! \TBREAK ( ,WORLD ,W> ,I1 ,G]MANY & ! ,UNIT$ ,/ATES HAD 
TAK5 OV] ,BRITA9'S P[] POSITION4 ,:ILE ?IS WAS ONE ( ! REASONS 
= W>1 ! W> ITSELF %IFT$ ! CONTROLL+ ECONOMIC P[] FROM ,EUROPE TO 
,AM]ICA4 ,! RELATIVE /AGNATION ( ,EUROPEAN CAPITAL PRIOR TO ! ,FIR/ ,WORLD 
,W> WAS MITIGAT$ BY A GOV]NM5T-FO/]$ >MAM5TS RACE2 :ILE 
,AM]ICA'S SL[+ RATE ( CAPITAL EXPANSION WAS REV]S$ ) ! 
\TBREAK ( W>4 ,H] RECOV]Y ( #aiae 0WAS G5]AT$ BY ! DEM& = 
W> SUPPLIES EMANAT+ FROM ,EUROPEAN ,GOV]NM5TS40 ,EXPANSION ( 
PRODUCTION 0WAS D]IV$ 9 P>T FROM TAXATION & 9 P>T FROM ! SALE 
( SECURITIES TO 9DIVIDUALS & BANK+ 9T]E/S10 SO ?AT ! PROCESS 
( ,AM]ICAN RECOV]Y 0WAS G5]AT$ BY AN \TP\R+ ( PUR*AS+ P[] 
BY WAY ( GOV]NM5T TREASURIES4 ,IT DID NOT BEG9 ) AN EXPANSION ( ORD9>Y 
CONSUMPTION DEM& OR AN 9CREASE 9 ! PRODUCTION ( PRIVATE CAPITAL 
GOODS40.<#a#a.> 

,AL?\< ! 9CREASE 9 PRODUCTION WAS SET 9 MOTION BY ! POLICIES ( 
GOV]NM5TS 5GAG$ 9 OR PR(IT+ BY W>1 TOTAL WORLD PRODUCTION ROSE TO 
UNPREC$5T$ HEI<TS4 ,= ! W>R+ NATIONS ( ,EUROPE ! PO/W> P]IOD 
WAS A TIME NOT ( REAL PROSP]ITY1 BUT ( A SL[ RETURN TO1 & AN 9SUFFICI5T 
5L>GEM5T (1 !IR PRE-W> LEVEL ( PRODUCTION4 ,?IS WAS1 MOREOV]1 AT ! 
PRICE ( AN 9CREAS+ 9DEBT$NESS TO ,AM]ICA & AN 9T5SIFI$ EXPLOITATION 
( ! WORK]S1 MANIFE/+ ITSELF 9 L[]$ LIV+ /&>DS4 ,BUT ,AM]ICA 
PROSP]$1 & 9 #aibi H] WEAL? WAS TWO-&-A HALF TIMES AS GREAT AS 9 #a#i#a#d4 
,MEASUR$ BY WORLD PRODUCTION ECONOMIC ACTIVITY HAD 9CREAS$ & CAPITAL HAD 
ACCUMULAT$4 ,ITS SEAT ( /R5G? HAD %IFT$ FROM ,EUROPE TO ,AM]ICA4 ,LIKE 
PREVI\S DEPRESSION P]IODS1 ! W> HAD T\*$ (F A NEW EXPANSION ( CAPITAL 
& HAD CONC5TRAT$ IT 9 ! /RONGE/ CAPITALI/ NATION4 ,?IS IS FUR!R 
ILLU/RAT$ BY ,AM]ICA'S =EIGN F9ANCIAL RELATIONS4 ,:ILE 9 #aiad 
0,AM]ICAN 9VE/ORS HELD =EIGN SECURITIES AM\NT+ TO LESS ?AN #a 
BILLION DOLL>S1 9 #aibd SU* PRIVATE HOLD+S AM\NT$ TO ALMO/ #d4#f BILLIONS 
- OR R\<LY TO #e4#d BILLIONS1 IF %ORT-T]M CR$ITS >E 9CLUD$4 ,9 
ADDITION1 ! GOV]NM5T ( ! ,UNIT$ ,/ATES HELD =EIGN GOV]NM5T 
OBLIGATIONS AGGREGAT+ #a#a4#h BILLION DOLL>S4 ,?US1 )9 ! SPACE ( 4T5 
YE>S1 ! =EIGN SECURITIES ACQUIR$ BY ! GOV]NM5T & ! PEOPLE ( ! 
,UNIT$ ,/ATES W]E MORE ?AN FIFTE5 TIMES AS GREAT AS ! AM\NT ?AT HAD 
ACCUMULAT$ DUR+ ! PREC$+ #ac YE>S ( ! NATION'S 
EXI/5CE40.<#a#b.> 

,?\< ,AM]ICAN PRODUCTION GREW & H] 0NATIONAL WEAL? 9CREAS$1 
?AT PORTION UTILIZ$ DIRECTLY = ! REPRODUCTION PROCESS ( WEAL? CONT9U$ 
TO DECL9E40.<#a#c.> ,9 O!R WORDS1 !RE WAS A SLACK5+ ( ! RATE 
( ACCUMULATION2 ! P]C5TAGE ( PRODUCTIVE CAPITAL 9 RELATION TO 
NONPRODUCTIVE WEAL? BECAME LESS 9/EAD ( MORE4 ,?IS WAS NO LONG] ! TYPE 
( CAPITAL PRODUCTION :I* *>ACT]IZ$ ! N9ETE5? C5TURY4 ,! EXPANSION 
( PRODUCTION 9ITIAT$ BY W> & C>RI$ OV] 9TO PEACE WAS NOT 5\< TO 
LEAD TO A G5]AL EXPANSION ( CAPITAL PRODUCTION UND] ! CONDITIONS ( ! 
M>KET-DET]M9$ ECONOMY4 ,AFT] A DECADE ( LIMIT$ PROSP]ITY1 RE/RICT$ 
L>GELY TO ! ,UNIT$ ,/ATES1 A NEW COLLAPSE ( ! M>KET SY/EM L$ TO NEW 
/ATE 9T]V5TIONS4 ,!SE1 H[EV]1 SUCCE$$ ONLY 9 /ABILIZ+ DEPRESSION 
CONDITIONS2 ! FULL UTILIZATION & FUR!R EXPANSION ( PRODUCTIVE RES\RCES 
HAD TO AWAIT ANO!R W>4.<#a#d.> 

,W>-PRODUCTION WAS !N1 9 ITS EFFECTS1 NOT REALLY 
0WA/E-PRODUCTION0 BUT A M$IUM = ! RESUMPTION ( ! 
ACCUMULATION PROCESS4 ,9 ?IS S5SE1 IT WAS NOT ONLY A SUBSIDY TO >MAM5TS 
PRODUC]S BUT A CONDITION = A BETT] PR(ITABILITY ( PO/W> CAPITALISM4 
,?IS IS AN ADDITIONAL REASON :Y1 G5]ALLY1 CAPITALI/S WILL OBJECT TO USEFUL 
PUBLIC WORKS & WELF>E SP5D+ BUT NOT TO ! EXT5SION ( 
0DEF5SE0 EXP5DITURES4 ,ASIDE FROM IDEOLOGICAL CONSID]ATIONS1 
EXP]I5CE %[S ?AT ! POSSIBILITY ( W> IS 9TR9SIC TO CAPITAL 
ACCUMULATION & ?AT W>S MU/ BE WON TO HA/5 ! EXPANSION PROCESS4 

,! ,FIR/ ,WORLD ,W> & ITS AFT]MA? REQUIR$ AN 5ORM\S EXT5SION ( 
GOV]NM5TAL CONTROLS OV] ! :OLE ( ! ECONOMY - ! SO-CALL$ 
0W>-SOCIALISM40 ,AFT] ! W>1 SOME C\NTRIES RETURN$ QUICKLY TO 
:AT WAS CONSID]$ ! 0NORMAL0 /ATE ( CAPITAL PRODUCTION1 
*>ACT]IZ$ BY A M9IMUM ( GOV]NM5T CONTROL4 ,O!R NATIONS C\LD NOT 
A*IEVE 0NORMALCY10 BUT C>RI$ DECISIVE GOV]NM5TAL CONTROLS FROM 
W> 9TO PEACE 9 ORD] TO COPE ) !IR 9T]NAL DIFFICULTIES & ) ! 
*ANG$ WORLD SITUATION4 ,! ,BOL%EVIK REGIME ADOPT$ ! CONDITIONS ( 
W>-SOCIALISM - 9 A MORE CONSI/5T =M - AS ! MODEL = 
RECON/RUCT+ ! ,RUSSIAN ECONOMY & = TRANS=M+ PRIVATE 9TO 
/ATE-CONTROLL$ CAPITAL PRODUCTION4 

,GOV]NM5T CONTROLS W]E EXT5D$ DUR+ & AFT] ! ,SECOND ,WORLD ,W>1 
FIR/ TO WAGE W> MORE EFFICI5TLY1 & LAT] TO MA9TA9 SOCIAL /ABILITY 9 
! PO/W> WORLD4 ,AL?\< ! ,SECOND ,WORLD ,W>1 LIKE ! FIR/1 L$ TO A 
WORLD PRODUCTION HI<] ?AN ! PRE-W> LEVEL1 ?IS 9CREASE WAS NOT 5\< TO 
SU/A9 MORE ?AN ! ,AM]ICAN PO/W> 0BOOM40 ,9 ! BEG9N+ ( 
#a#i#e1 UNEMPLOYM5T BECAME ONCE MORE A DOM9ANT ISSUE4 ,) ! SOLE EXCEPTION 
( ,GREAT ,BRITA91 9 ALL ,WE/]N NATIONS & P>TICUL>LY 9 ! ,UNIT$ ,/ATES 
! ,KEYNESIAN ANTI-SLUMP SUGGE/IONS W]E REVIV$4 ,! ,UNIT$ ,NATIONS 
,ORGANIZATION SAW ! NE$ = DRAW+ UP A 0MA/]-PLAN0 = 
COMBAT+ UNEMPLOYM5T ?R\< WORLD-WIDE ACTIONS4 ,BUT ALL ! DELIB]ATIONS 9 
?IS RESPECT CAME TO NO?+2 !Y ALWAYS RETURN$ TO ! G5]AL DEM& ?AT 
! 0CR$ITOR NATIONS10 I4E41 ! ,UNIT$ ,/ATES1 EXT5D FUR!R 
CR$ITS TO ! DEBTOR NATIONS4 ,BY #a#i#d#i1 H[EV]1 ,AM]ICA F\ND H]SELF 9 A 
BUS9ESS DEPRESSION :I* HAD IMM$IATE REP]CUSSIONS ALL OV] ! WORLD4 
0,! FALL ( #e P] C5T 9 ! ,AM]ICAN NATIONAL PRODUCT CAUS$ A #h P] 
C5T FALL 9 ,AM]ICAN IMPORTS1 &1 = A TIME1 9 ! SUMM] ( #a#i#d#i1 
?REAT5$ TO CANCEL ALL ! PROGRESS MADE 9 ! FIR/ YE> ( ,M>%ALL ,PLAN 
AID40.<#a#e.> 

,! ,KOREAN ,W> ALT]$ ! SITUATION ONCE MORE4 ,! CONDITIONS CREAT$ BY 
! ,SECOND ,WORLD ,W> & ! RESUMPTION ( >MAM5TS PRODUCTION = ! ,KOREAN 
,W> DO NOT EXPLA9 ALL ASPECTS ( ! ,AM]ICAN PO/W> 0BOOM40 
,H[EV]1 ! DEPRESSION :I* PREC$$ ! ,KOREAN ,W> & ITS 5D BY WAY ( ! 
W> W]E OBVI\SLY CONNECT$ ) ! DECL9E & ! RESUMPTION ( GOV]NM5T 
SP5D+4 ,PRIOR TO ! ,KOREAN ,W>1 & DESPITE #b BILLION DOLL>S' WOR? 
( ,AM]ICAN AID TO ,EUROPE1 GOV]NM5T EXP5DITURES 9 ,AM]ICA DROPP$ 
CONSID]ABLY FROM !IR W>TIME HEI<T4 ,BANK HOLD+S ( GOV]NM5T SECURITIES 
DIM9I%$ BY #be BILLION DOLL>S4 ,) ! REV]SAL ( ! PO/W> 
0DIS>MAM5T0 TR5D CAUS$ BY ! NEW W>1 ECONOMIC ACTIVITY 
9CREAS$ NOT ONLY 9 ,AM]ICA BUT ?R\<\T ! ,WE/]N WORLD4 ,BUT DESPITE AN 
9CREAS+ RATE ( GOV]NM5T DEF5SE SP5D+ UND] ! 5SU+ COLD-W> 
CONDITIONS1 !RE WAS NO FULL EMPLOYM5T4 ,ONLY UND] CONDITIONS ( ACTUAL 
L>GE-SCALE W>F>E1 !N1 9 :I* NE>LY HALF ( ! ,GROSS ,NATIONAL ,PRODUCT 
S]V$ ! NE$S ( W>1 WAS !RE A FULL USE ( PRODUCTIVE RES\RCES4 

,CONDITIONS AFT] ,WORLD ,W> ,I,I MADE IT CLE> ?AT ! W> HAD FAIL$ TO 
PROVIDE ! IMPETUS = A M>KET-DET]M9$ PRIVATE CAPITAL ACCUMULATION ON A 
SCALE SUFFICI5T TO ALL[ = ! RETRACTION ( GOV]NM5T-9DUC$ DEM&4 ,ANY 
DECREASE 9 GOV]NM5T SP5D+ L$ TO A CONTRACTION ( ECONOMIC ACTIVITY :I* 
C\LD BE ALT]$ ONLY BY ! RESUMPTION ( GOV]NM5T SP5D+4 ,! BE/ ?AT 
C\LD BE HOP$ = WAS A /ABLE RELATION%IP BETWE5 PRIVATE PRODUCTION & 
GOV]NM5T SP5D+4 ,BUT EV5 ?IS PRESUPPOS$ A DEF9ITE RATE ( ECONOMIC 
GR[? TO KEEP ! ECONOMY COMPETITIVE & TO PREV5T ! /EADY GR[? ( 
UNEMPLOYM5T4 ,IT HAS BE5 POSSIBLE 9 SOME MEASURE TO /ABILIZE GOV]NM5T 
EXP5DITURES BUT1 9 ! LONG RUN1 ?IS /ABILIZATION ITSELF DEP5DS ON AN 
9CREAS+ RATE ( CAPITAL =MATION4 ,)\T SU* A RATE1 GOV]NM5T 
EXP5DITURES MU/ 9CREASE TO COMP5SATE = A LACK ( FIX$ CAPITAL =MATION4 
0,BETWE5 #aidg & #a#i#e#c10 = 9/ANCE1 9 ! ,UNIT$ ,/ATES1 
0REAL \TPUT 9CREAS$ #d4#f.0 A YE>1 :]EAS ! RISE AV]AG$ ONLY #b4#i.0 
ANNUALLY FROM #aiec TO #a#i#f#c40.<#a#f.> ,! FOLL[+ GIVES ! P]C5TAGE DI/RIBUTION ( 
COMPON5TS ( ,GROSS ,NATIONAL ,PRODUCT AT BUS9ESS CYCLE PEAKS1 9 CURR5T 
DOLL>S1 FROM #aidh TO #a#i#f#c4.<#a#g.> 

,COMPON5T 
#aidh 
#aiec 
#aieg 
#aif 
#aifc 
,GOV]NM5T PUR*ASES 
#a#c4#c 
#b#b4#g 
#a#i4#e 
#a#i4#h 
#b#a4#d 
,GROSS PRIVATE DOME/IC 9VE/M5T 
#a#f4#f 
#a#c4#h 
#a#d4#i 
#a#d4#c 
#a#d4#a 
,P]SONAL CONSUMPTION 
#f#h4#g 
#f#c4#g 
#f#d4#d 
#f#e4#c 
#f#c4#h 
,NET EXPORTS 
#a4#c 
4#a 
#a4#a 
4#f 
4#g 
,TOTAL 
#a4 
#a4 
#a4 
#a4 
#a4 

,:ILE CAPITALI/ GOV]NM5TS WILL TRY ) ALL ! MEANS AT !IR DISPOSAL 
TO FO/] PRIVATE CAPITAL ACCUMULATION1 LACK ( SUCCESS WILL =CE !SE SAME 
GOV]NM5TS TO 9CREASE !IR [N P>T 9 ! ECONOMY & !RE) TO 9CREASE 
! DIFFICULTIES 9 ! WAY ( PRIVATE CAPITAL EXPANSION4 ,AT TIMES BO? 
POLICIES >E TRI$1 OR >E SUGGE/$2 NAMELY1 TO IMPROVE ! E>N+S ( 
CAPITAL BY WAY ( TAX R$UCTIONS1 & SIMULTANE\SLY 9CREASE GOV]NM5T 
EXP5DITURES ?R\< DEFICIT-F9ANC+4 ,BUT AS ! DEFICIT MU/ BE COV]$ BY 
PRIVATE PRODUCTION1 ?IS AM\NTS TO NO MORE ?AN GIV+ ) ONE H& :AT ! 
O!R H& TAKES1 EV5 ?\< ! PROCESS IS /RET*$ \T OV] A LONG P]IOD 
( TIME4 

,!RE IS N[ G5]AL AGREEM5T ?AT ! CONDITIONS ( N9ETE5? C5TURY 
CAPITALISM - ! RELATIVELY UNHAMP]$ & M>KET-DET]M9$ ACCUMULATION 
( PRIVATE CAPITAL - CANNOT BE RECAPTUR$4 0,IT IS NO LONG] A 
MATT] ( S]I\S CONTROV]SY :E!R GOV]NM5T %\LD PLAY A POSITIVE ROLE 9 
HELP+ TO MA9TA9 A HI< LEVEL ( ECONOMIC ACTIVITY2 :AT WE DEBATE N[ADAYS 
IS NOT ! NE$ = CONTROLL+ BUS9ESS CYCLES2 BUT RA!R ! NATURE ( 
GOV]NM5T ACTION1 ITS TIM+ & ITS EXT5T40.<#a#h.> ,P>TICUL>LY ITS EXT5T2 = IF ! 
GR[? ( GOV]NM5T CONTROL *ANG$ ! LAISSEZ-FAIRE 9TO ! 
0MIX$0 ECONOMY1 ITS FUR!R EXT5SION IS B\ND TO *ANGE ! 
LATT] 9TO SOME?+ ELSE4 ,:ILE ! PROCESS ?AT L$ TO ! MIX$ ECONOMY IS 
N[ RECOGNIZ$ AS IRREV]SIBLE1 IT IS HELD ?AT ! MIX$ ECONOMY ITSELF IS 
P]MAN5T1 9 ORD] TO SECURE ?AT DEGREE ( PRIVATE 9ITIATIVE & PRIVATE 
CAPITAL PRODUCTION /ILL POSSIBLE )9 IT4 

,! TRADITIONAL =M ( CAPITAL PRODUCTION WAS ONCE ALSO HELD TO BE 
UNALT]ABLE1 & *ANG$ NONE!LESS4 ,! *ANGES W]E BR\<T AB\T BY 
POLITICAL 9T]V5TIONS 9 ! APP>5TLY SELF-SUFFICI5T M>KET ME*ANISM4 
,!Y RANG$ FROM RE=M TO REVOLUTION1 FROM PROTECTIONISM TO IMP]IALISM1 & 
!Y CREAT$ NEW SOCIAL 9/ITUTIONS & NEW VE/$ 9T]E/S :I* AFFECT$ 
BO? ! *>ACT] & ! DIRECTION ( CAPITAL DEVELOPM5T4 ,!SE NEW 
9/ITUTIONS & ! 9T]E/S VE/$ 9 !M ASSURE ! IRREV]SIBILITY ( ! 
PROCESS ?AT CREAT$ !M4 ,IT SEEMS UNLIKELY1 = 9/ANCE1 ?AT ! 
9/ITUTIONAL *ANGES BR\<T AB\T BY ! ,RUSSIAN ,REVOLUTION & ! ,RUSSIAN 
VICTORY 9 ,WORLD ,W> ,I,I WILL BE UNDONE4 ,BUT NEI!R IS IT FEASIBLE TO UNDO ! 
USURPTION ( ECONOMIC CONTROLS BY GOV]NM5T BODIES 9 ! NOM9ALLY PRIVATE 
CAPITALISM ( ! ,WE/4 ,QUITE ASIDE FROM :E!R OR NOT IT %\LD PROVE 
ECONOMICALLY POSSIBLE TO R$UCE ! 0PUBLIC SECTOR0 ( ! ECONOMY1 
! 9T]E/S VE/$ 9 ! 0PUBLIC SECTOR0 WILL NOT ABDICATE ON 
!IR [N1 BUT WILL USE !IR 9/ITUTIONAL P[] TO P]PETUATE !MSELVES4 ,ALL 
?AT CAN BE EXPECT$ 9 ?IS RESPECT IS ! ATTEMPT TO >RE/ ! GR[? ( ! 
0PUBLIC SECTOR0 BY SPE$+ UP ! EXPANSION ( PRIVATE 
CAPITAL4 

,A /RICTLY CAPITALI/ PRIVATE-5T]PRISE ECONOMY HAS NEV] EXI/$2 ! 
PRIVATE PROP]TY ECONOMY WAS ALWAYS ACCOMPANI$ BY A PUBLIC SECTOR1 :OSE 
RELATIVE IMPORTANCE V>I$ ACCORD+ TO ! SPECIFIC HI/ORICAL CONDITIONS ( 
DEVELOP+ CAPITALI/ NATIONS4 ,BUT ! PUBLIC SECTOR WAS NOT REG>D$ AS 
AUTONOM\S2 IT WAS CONSID]$ AN UNAVOIDABLE EXP5SE = ASSUR+ ! PROP] 
FUNCTION+ ( ! M>KET ECONOMY4 ,?IS WAS SO EV5 :]E ! PUBLIC SECTOR 
9CLUD$ BESIDES ! 0MILIT>Y CAPITAL0 - ! TRANSPORTATION 
SY/EM1 UTILITIES1 & O!R SPECIAL 9DU/RIES4 ,ALL 9 ALL1 :E!R MORE OR 
LESS EXT5SIVE1 ! PUBLIC SECTOR HAS ALWAYS ACC\NT$ = A P>T ( ! 
NATIONAL ECONOMY4 

,) RESPECT TO PUBLIC 5T]PRISES NO TWO C\NTRIES >E EXACTLY ALIKE1 EV5 
?\< ! G5]AL TR5D T[>DS 9CREAS+ GOV]NM5T CONTROL IS VISIBLE 9 
ALL4 ,! ,UNIT$ ,/ATES WAS 7& IS7 ! C\NTRY LEA/ AFFECT$ BY ! 
NATIONALIZATION ( 9DU/RIES4 ,! DIFF]5CE BETWE5 ,AM]ICA & ,EUROPE 9 
?IS RESPECT OCCASION$ ! NOTION 0?AT FEW ,EUROPEAN ECONOMIES - 
P]HAPS NONE - CAN BE CALL$ CAPITALI/IC 9 ! S5SE GIV5 TO ?AT WORD 
9 ! ,UNIT$ ,/ATES & ,CANADA1 :]E NON-CAPITALI/ ELEM5TS PLAY ONLY A 
SECOND>Y ROLE40.<#a#i.> ,BUT EV5 9 ,AM]ICA ! DIRECT UTILIZATION ( 
HUMAN & MAT]IAL RES\RCES BY GOV]NM5T HAS GR[N P]SI/5TLY4 ,BETWE5 #ai 
& #a#i#d#i1 = 9/ANCE1 :ILE 0PRIVATE EMPLOYM5T 9 ! ,UNIT$ ,/ATES 
D\BL$ ! COMB9$ EMPLOYM5T ( /ATE & LOCAL GOV]NM5T QUADRUPL$1 :ILE 
F$]AL EMPLOYM5T 9CREAS$ TWELVEFOLD4 ,ONE \T ( TW5TY-F\R WORK]S WAS ON 
SOME GOV]NM5T PAYROLL 9 #a#i2 ! PROPORTION ROSE TO ONE \T ( FIFTE5 9 
#a#i#b1 ONE \T ( ELEV5 9 #a#i#d1 ONE \T ( EI<T 9 #a#i#d#i4 ,9 #a#i#b1 ONE \T ( 
EV]Y F\RTE5 DOLL>S ( CAPITAL ASSETS 7EXCLUD+ MILIT>Y EQUIPM5T7 WAS 
GOV]NM5T PROP]TY2 9 #aidf ! PROPORTION BECAME ONE \T ( F\R40.<#b.> ,! TR5D T[>DS 
BIGG] GOV]NM5T CONT9UES /ILL4 0,:]EAS 9 #aibi LESS ?AN ONE DOLL> 
9 T5 ( NATIONAL PRODUCTION [$ ITS ORIG9 TO GOV]NM5T PUR*AS+1 TODAY 
AB\T ONE DOLL> 9 FIVE ( ALL GOODS & S]VICES PRODUC$ IS SOLD TO SOME 
BRAN* ( GOV]NM5T40.<#b#a.> ,! GR[+ ROLE ( GOV]NM5T 9 ! ECONOMY IS 
TOO OBVI\S TO BE 5L>G$ UPON4 ,IT IS VISIBLE NOT ONLY 9 ! DIRECT 
EMPLOYM5T ( LABOR & CAPITAL1 BUT ALSO 9 ! GR[? ( ! >M$ =CES1 9 
=EIGN F9ANCIAL RELATIONS1 9 TRADE & EX*ANGE >RANGEM5TS1 9 ! PUBLIC 
DEBT & 9 ! FACT 0?AT AB\T HALF ( ! ECONOMI/S 9 ! ,UNIT$ 
,/ATES >E ON ! ,F$]AL ,PAYROLL40.<#b#b.> 

,:]EAS 9 !ORY - NO MATT] :AT ! ACTUAL PRACTICE - 
GOV]NM5T CONTROL 9 AU?ORIT>IAN C\NTRIES S]VES ! :OLE ( SOCIETY & 
NOT A P>TICUL> CLASS1 9 MO/ ,WE/]N NATIONS1 & P>TICUL>LY 9 ! ,UNIT$ 
,/ATES1 GOV]NM5T CONTROL IS SUBORD9AT$ EV5 9 !ORY TO ! SPECIFIC 
PROP]TY RELATIONS ( CAPITALISM & !RE) TO ! 9T]E/S ( BIG 
BUS9ESS4 ,:AT REAL R$I/RIBUTION ( 9COME EXI/S 9 ! ,UNIT$ ,/ATES IS TO 
A L>GE EXT5T A %IFT+ ( TAX-MONEY FROM NON-SUBSIDIZ$ TO SUBSIDIZ$ 
SECTIONS ( ! ECONOMY2 TAXATION & DEFICIT-F9ANC+1 I4E41 DEF]R$ 
TAXATION1 0HAS BE5 TURN$ 9TO A VEHICLE = ASSUR+ ! ECONOMIC 
POT5CY ( PRIVATE 5T]PRISE40.<#b#c.> ,! ECONOMY IS ?US CO-DET]M9$ BY GOV]NM5T 
& BIG BUS9ESS TO SU* A DEGREE ?AT1 = ALL PRACTICAL PURPOSES1 GOV]NM5T 
IS BIG BUS9ESS & BIG BUS9ESS GOV]NM5T4 

,CAPITAL CONC5TRATION HAS BE5 MU* AID$ BY GOV]NM5T SUBSIDIZATION 
FAVOR+ ! BIG PRODUC]S :I* SUPPLY ! GREAT BULK ( GOV]NM5T-CREAT$ 
DEM&4 0,9 #aifb JU/ UND] ?REE-QU>T]S ( ALL PRIME CONTRACTS W]E 
LET TO #a L>GE CORPORATIONS4 ,SMALL BUS9ESSES1 :I* >E DEF9$ AS ?OSE 
HAV+ LESS ?AN #e EMPLOYES1 RECEIV$ SOME:AT LESS ?AN ONE-FIF? ( ALL 
PRIME CONTRACTS AW>D$4 ,EV5 :5 ALL[ANCE IS MADE = ! FACT ?AT SMALL 
BUS9ESS RECEIVES A SUB/ANTIAL NUMB] ( SUBCONTRACTS1 ! EXT5T TO :I* 
DEF5SE WORK IS CONC5TRAT$ 9 L>GE ORGANIZATIONS IS PRON\NC$40.<#b#d.> ,9 NEWLY-OP5+ 
SPH]ES ( PRODUCTION1 5T]PRISES >E (T5 LAUN*$ ) GOV]NM5T MONEY & 
SUPPORT$ BY /EADY GOV]NM5T CONTRACTS & O!R =MS ( AID4 

,AM]ICAN CAPITAL HAS REA*$ A DEGREE ( CONC5TRATION :I* MAKES ! 
EXI/5CE ( ! :OLE ( ! ECONOMY DEP5D5T ON ! PRES]VATION & GR[? 
( ITS BIG CORPORATIONS4 ,AN ECONOMIC FAILURE ( ?IS HI<LY CONC5TRAT$ 
CAPITAL1 :I* EMPLOYS ! GREAT BULK ( ! LABOR+ POPULATION1 W\LD BE 
NO?+ %ORT ( NATIONAL DISA/]4 ,ITS P[] IS 5ORM\S2 BUT IF ITS P[] 
W]E LESS1 OR W]E 5DANG]$1 IT W\LD HAVE TO BE %OR$-UP BY ! GOV]NM5T 
TO AVOID ECONOMIC COLLAPSE4 ,TAX MONEY IS P\R$ 9TO PRIVATE 9DU/RY ?R\< 
GOV]NM5T CONTRACTS & PRIVATE 5T]PRISE BECOMES 09 ITS MO/ 
SIGNIFICANT PHASE - ! PHASE ( CAPITAL =MATION - /ATE-F9ANC$ 
5T]PRISE40.<#b#e.> ,IT HAS BE5 E/IMAT$1 = EXAMPLE1 ?AT 
0TAX MONEY P\R$ ANNUALLY S9CE ! 5D ( ,WORLD ,W> ,I,I 9TO PRIVATE 
9DU/RY1 ?AT IS1 DEF5SE CONTRACTS1 IS AB\T EQUAL TO ! AM\NT ( NET 
CAPITAL =MATION 9 ALL ,UNIT$ ,/ATES 9DU/RY1 AS REPRES5T$ BY ! RATE ( 
,UNIT$ ,/ATES ANNUAL 9DU/RIAL EXPANSION40.<#b#f.> 

,GOV]NM5TS1 ( C\RSE1 CANNOT SUBSIDIZE ANY?+2 !Y CAN ONLY SEE TO IT 
?AT ONE P>T ( ! ECONOMY SUBSIDIZES ANO!R P>T1 ?AT SOCIALLY-AVAILABLE 
PR(ITS >E DI/RIBUT$ 9 SU* A MANN] AS TO 5ABLE ! PREVAIL+ SOCIETY TO 
FUNCTION4 ,9 A WAY ?IS HAS ALWAYS BE5 ! CASE1 ?R\< ! WORK+S ( 
COMPETITION AS WELL AS ?R\< MONOPOLIZATION4 ,BUT :AT PREVI\SLY OCCURR$ 
0AUTOMATICALLY0 ?R\< ! M>KET ME*ANISM IS N[1 UND] 
CONDITIONS ( CAPITAL /AGNATION1 DONE CONSCI\SLY BY WAY ( GOV]NM5T-CREAT$ 
DEM&1 :I* IS ONLY ANO!R NAME = SUBSIDIZATION4 

,IT IS !N NOT SURPRIS+ TO F9D ECONOMI/S LUMP+ TOGE!R 
M>KET-DET]M9$ & GOV]NM5T-9DUC$ PRODUCTION TO D$UCE FROM ?IS TOTAL 
PRODUCTION ! /ATE ( ! ECONOMY1 AS IF ! M]E QUANTITY ( PRODUCTION & 
NOT ITS PR(ITABILITY WAS 9DICATIVE ( ! GOOD OR BAD HEAL? ( ! NATIONAL 
ECONOMY4 ,/ILL1 ! RIS+ NATIONAL PRODUCT MU/ F9D A DEF9ITE LIMITATION 9 
! ASSOCIAT$ RELATIVE DECL9E ( NON-SUBSIDIZ$ CAPITAL & 9 ! FUR!R 
C\RSE ( CAPITAL CONC5TRATION4 

,!RE IS MORE \TRI<T NATIONALIZATION ( 9DU/RIES & S]VICES 9 ,WE/]N 
,EUROPE1 AL?\< ) WIDE V>IATIONS BETWE5 DIFF]5T C\NTRIES & ) 
REG>D TO 9DU/RIES AFFECT$4 ,! MA9 9DU/RIES EI!R COMPLETELY OR 
P>TIALLY UND] GOV]NM5T CONTROL >E RAILWAYS1 COAL1 OIL1 UTILITIES1 & 
METALS4 ,9 ,AU/RIA1 BASIC 9DU/RIES >E A COMPLETE GOV]NM5T MONOPOLY DUE TO 
9/ITUTIONAL *ANGES BR\<T AB\T BY ! ,RUSSIAN OCCUPATION FOLL[+ ! 
,SECOND ,WORLD ,W>4 ,) ! EXCEPTION ( ,SWITZ]L&1 ALL ,C5TRAL ,BANKS >E 
GOV]NM5T CONTROLL$1 & SO >E MO/ ( ! NATIONAL RAILWAYS4 ,9 SOME 
NATIONS1 ,NORWAY = 9/ANCE1 SUB/ANTIAL /ATE P>TICIPATION 9 PRIVATE 
COMPANIES TAKES ! PLACE ( \TRI<T GOV]NM5T [N]%IP4 ,BUT NATIONALIZ$ 
9DU/RIES PLAY A SUB/ANTIAL ROLE 9 ALL ,WE/-,EUROPEAN C\NTRIES4 ,9 #a#i#e#e1 = 
EXAMPLE1 0PUBLIC TREASURIES ( V>I\S SORTS 9 ,WE/]N ,EUROPE SP5T AN 
E/IMAT$ @s#f#b BILLION 7EXCLUD+ OP]AT+ EXP5DITURES & PUBLICLY [N$ 
CORPORATIONS4 ,?IS REPRES5T$ #bh P] C5T ( ,WE/]N ,EUROPE'S TOTAL 
GROSS NATIONAL PRODUCT1 :I* APPROA*$ @s#b#b#a BILLION ?AT YE>40.<#b#g.> 

,A 0MIX$ ECONOMY0 CAN BE A MIXTURE 9 :I* PRIVATE CAPITAL 
DOM9ATES1 AS PRES5TLY 9 ,WE/]N ,EUROPE &1 TO A GREAT] EXT5T1 9 ! 
,UNIT$ ,/ATES4 ,OR IT CAN BE ONE 9 :I* /ATE-[N]%IP IS PR$OM9ANT1 SU* 
AS EXI/$ 9 ! E>LY YE>S ( ! ,BOL%EVIK REGIME 9 ,RUSSIA4 ,/ATE 
[N]%IP & PRIVATE 5T]PRISE MAY CO-EXI/ )\T 5CROA*+ UPON EA* 
O!R1 AS HAS BE5 MORE OR LESS TRUE 9 MANY NATIONS = SOME TIME4 ,9 ?IS 
CASE1 ! OP]ATIONAL SPH]E ( PRIVATE CAPITAL PRODUCTION BY-PASSES ?AT ( 
GOV]NM5T PRODUCTION2 IT M]ELY OP]ATES1 SO TO SPEAK1 9 A SMALL] ECONOMIC 
WORLD4 ,:]E GOV]NM5T PRODUCTION MONOPOLIZES C]TA9 9DU/RIES !RE IS NO 
COMPETITION BETWE5 PRIVATE & GOV]NM5T PRODUCTION4 ,?IS MAY AFFECT PRIVATE 
5T]PRISE FAVORABLY OR UNFAVORABLY1 AS GOV]NM5T PRIC+ POLICIES MAY BE 
DESIGN$ TO PROVIDE A M$IUM ( TAXATION & TO SUPPORT A POLICY ( SELECTIVE 
SUBSIDIZATION4 

,) A SMALL] ECONOMIC WORLD TO OP]ATE 91 PRIVATE CAPITAL WILL REA* ITS 
LIMITS ( EXPANSION SOON] ?AN O!RWISE4 ,IT MU/ ?US TRY TO HOLD ! 
EXT5SION ( GOV]NM5T-CONTROLL$ PRODUCTION & CAPITAL 9 *ECK4 
,GOV]NM5TS1 REPRES5T+ ! 9T]E/S ( PRIVATE CAPITAL1 WILL ON !IR [N 
ACCORD *ECK !IR EXT5SIONS 9TO ! SPH]E ( PRIVATE PRODUCTION4 ,! *OICE 
( MONET>Y & FISCAL POLICIES & ! EMPHASIS ON WA/E-PRODUCTION ILLU/RATE 
! EF=TS ( GOV]NM5TS TO AVOID ! NATIONALIZATION ( 9DU/RIES4 ,:]E 
NATIONALIZATION HAS OCCURR$1 IT HAS BE5 L>GELY ! RESULT ( POLITICAL 
ACTIVITIES ON ! P>T ( MOVEM5TS OPPOS$ TO PRIVATE 5T]PRISE OR TO ITS 
MONOPOLI/IC PRACTICES4 ,9 ,FRANCE1 5T]PRISES W]E NATIONALIZ$ AFT] ! 
,SECOND ,WORLD ,W> BECAUSE !IR [N]S HAD BE5 COLLABORAT+ ) ! 5EMY4 
,! ,BRITI% ,LABOR ,P>TY1 REA*+ ! GOV]NM5T AFT] ! W>1 NATIONALIZ$ 
! COAL & TRANSPORT 9DU/RIES1 NOT SO MU* BECAUSE NATIONALIZATION WAS P>T 
( ! ,P>TY PROGRAM1 BUT BECAUSE !SE 9DU/RIES F\ND !MSELVES 9 A 
MORIBUND /ATE4 ,:ATEV] ! REASONS = A P>TICUL> ACT ( NATIONALIZATION1 
! MIX$ ECONOMY WAS CONCEIV$ NOT AS A P>TIAL TRANS=MATION ( PRIVATE 
5T]PRISE 9TO /ATE-5T]PRISE1 BUT AS A FULL EMPLOYM5T PROGRAM REALIZ$ 
?R\< GOV]NM5T 9ITIATIVE 9 ORD] TO 9CREASE PRODUCTION )9 ! 
PRIVATE-5T]PRISE SY/EM4 ,ASIDE FROM ! DEGREE NECESS>Y TO ANY CAPITALI/IC 
SY/EM1 NATIONALIZATION ( 9DU/RY WAS NOT ! ,KEYNESIAN BUT A SOCIALI/ 
PROGRAM1 :I* CONSID]$ ALL P>TIAL NATIONALIZATIONS AS SO MANY /EPS T[>DS 
TOTAL NATIONALIZATION4 

,! MIX$ ECONOMY 9 ! ,KEYNESIAN S5SE IS SE5 AS AN ALT]NATIVE TO 
SOCIALIZATION 7OR NATIONALIZATION71 & AS ! ONLY ALT]NATIVE4 ,PROGRESSIVE 
NATIONALIZATION ( CAPITAL IMPLIES A /EADY DECL9E ( PRIVATE 5T]PRISE & 
?IS DECL9E1 9 TURN1 SPE$S UP ! NATIONALIZATION PROCESS4 ,) 
/ATE-[N]%IP ! DOM9ANT =M ( [N]%IP1 PRIVATE 5T]PRISE W\LD SL[LY 
DISAPPE>1 NOT ONLY BY WAY ( COMPETITION BUT ALSO ?R\< POLITICAL ACTIVITIES 
ISSU+ FROM ! /ATE-CAPITALI/ P>T ( ! ECONOMY & ! NEW 9/ITUTIONS 
CONNECT$ ) IT4 ,TO AVOID ! TRANS=MATION ( PRIVATE CAPITAL PRODUCTION 
9TO /ATE-CAPITALISM1 ! /ATE-CONTROLL$ P>T ( ! NATIONAL ECONOMY MU/ 
BE KEPT AT A M9IMUM4 ,IT IS = ?IS REASON ?AT SOCIAL MOVEM5TS :I* LO/ 
!IR E>LY SOCIALI/ 9CL9ATIONS1 SU* AS ! ,BRITI% ,LABOR ,P>TY1 AVOID ! 
COMPREH5SIVE NATIONALIZATION ( 9DU/RY EV5 :5 IT APPE>S POSSIBLE4 ,! 
NATIONALIZATION GOAL ( ! ,LABOR ,P>TY1 = 9/ANCE1 WAS SET AT BETWE5 #b 
& #c P] C5T ( ALL 9DU/RY4 ,IT WAS NOT C>RI$ \T TO ?AT EXT5T4 
0,! NATIONALIZ$ SECTOR ( ! ,BRITI% ECONOMY10 IT WAS1 SAID1 
0WILL ALWAYS REMA9 A M9ORITY ( ! :OLE4 ,TOTAL NATIONAL [N]%IP ( 
ALL ! MEANS ( PRODUCTION & DI/RIBUTION ONCE ADVOCAT$ 9 MO/ E>LY 
SOCIALI/ DOCTR9ES DOES NOT COME )9 ! MOD]N SOCIALI/ CONCEPT AS IT 
EXI/S 9 ,BRITA940.<#b#h.> 

,BECAUSE SOCIALISM IS NO LONG] ! GOAL ( 0SOCIALI/ 
ORGANIZATIONS10 !SE ORGANIZATIONS HAVE NO *OICE BUT TO ACCEPT ! 
,KEYNESIAN CONCEPT ( ! MIX$ ECONOMY AS !IR [N4 ,! MIX$ ECONOMY APPE>S 
N[ AS AN EXPRESSION ( ! EVOLUTION FROM LAISSEZ-FAIRE CAPITALISM TO 
! MOD]N WELF>E-/ATE1 & ! LATT] AS ! REALIZATION ( ! 
MOD]N CONCEPT ( SOCIALISM1 I4E41 SOCIALISM BAS$ ON PRIVATE 
PROP]TY OR1 9 CRUDE ,AM]ICAN T]MS1 0PEOPLE'S CAPITALISM40 
,9S(> AS GREAT] EQUALITY ( 9COMES IS ?\<T DESIRABLE & NECESS>Y = 
FULL EMPLOYM5T1 MONET>Y & FISCAL MANIPULATIONS >E REG>D$ AS SUFFICI5T 
TO BR+ ?IS AB\T4 ,! PROGRAM DEP5DS UPON ! *>ACT] ( ! GOV]NM5T1 
= :I* REASON IT IS NECESS>Y TO HAVE A 0SOCIALI/ GOV]NM5T0 
TO ASSURE ! EFFECTIVE WORK+ ( 0MOD]N PRIVATE-PROP]TY 
SOCIALISM40 

,LIKE ! ,BRITI% ,LABOR ,P>TY1 ALL ,WE/]N SOCIALI/ P>TIES NO LONG] 
ATTA* IMPORTANCE TO PUBLIC [N]%IP & OP]ATION ( 9DU/RY4 ,SU* P>TIES 
9 ,WE/ ,G]MANY1 ,FRANCE1 & ,ITALY HAVE EV5 PROGRAMMATICALLY DROPP$ !IR 
CALLS = PUBLIC [N]%IP ( ! MEANS ( PRODUCTION4 ,9 ! ,SC&9AVIAN 
C\NTRIES1 !Y >E CONT5T ) ! PREVAIL+ P>TN]%IP BETWE5 GOV]NM5T 
& PRIVATE 5T]PRISE4 ,EXCEPT AS AN EMPTY ,COMMUNI/ ,P>TY SLOGAN1 
NATIONALIZATION PLAYS NO POLITICAL ROLE 9 ! ,NE!RL&S1 ,BELGIUM1 
,SWITZ]L&1 & SO =?4 ,! PROBLEM ( [N]%IP IS SE5 AS IRRELEVANT ) 
REG>D TO SOCIAL & ECONOMIC NE$S1 :I* N[ APPE> SOLVABLE )9 ! 
/ATUS QUO ( ! MIX$ ECONOMY4 ,( C\RSE1 ?IS RUL+ ATTITUDE HAS 
ITS CAUSE NOT ONLY 9 ! *ANG$ *>ACT] ( ! LABOR MOVEM5T1 :OSE V]Y 
EXI/5CE IS B\ND TO ! /ATUS QUO1 BUT ALSO TO ! RELATIVELY 
PROSP]\S CONDITIONS DUE TO ! RECON/RUCTION ( ! W>-DEVA/AT$ ,EUROPEAN 
ECONOMIES4 

0,BY #aiee ,WE/]N ,EUROPE WAS SP5D+ #de BILLION ON 9VE/M5TS - 
MORE ?AN ONE-FIF? ( ITS TOTAL GROSS PRODUCT2 TWO ?IRDS ( IT 9 PLANT1 
MA*9]Y & EQUIPM5T4 ,DUR+ ! P]IOD #a#i#d#i- #aiei FIX$ CAPITAL =MATION 
9CREAS$ MORE ?AN NATIONAL PRODUCT4 ,9 #aiei ,GROSS ,NATIONAL ,PRODUCT WAS #dh P] 
C5T ABOVE ! #a#i#d#i- #aiei AV]AGE1 & FIX$ CAPITAL =MATION #fi P] C5T 
HI<]40.<#b#i.> 
,CONDITIONS ( ECONOMIC EXPANSION WILL NOT CALL =? DEM&S = 
NATIONALIZATION2 NATIONALIZATION IS AN ANSW] TO ! FAILURE1 NOT ! SUCCESS1 
( CAPITALISM1 EV5 IF ?IS SUCCESS IS TEMPOR>Y & P>TLY ILLUSORY4 

,A GREAT P>T ( ?IS 9VE/M5T WAS A RESULT ( POLITICAL DECISIONS RA!R 
?AN 9DIVIDUAL 9ITIATIVE4 ,GOV]NM5TS >RANG$ = COMPULSORY1 OR 
NE>-COMPULSORY1 9/ITUTIONAL SAV+S1 & = ! RET5TION ( A L>GE %>E 
( CORPORATE PR(ITS = RE9VE/M5T PURPOSES4 ,EXPANSION WAS A*IEV$ BY WAY 
( DEFICIT-F9ANC+ & 0UND] ALMO/ UNIV]SAL 9FLATION TO A DEGREE 
NEV] BE=E SO WIDELY EXP]I5C$ 9 PEACE TIME4 ,PRICES 9 ,WE/]N ,EUROPE ROSE 
BY #ff P] C5T BETWE5 #aidg & #a#i#e#g4 ,?IS WAS A COMP\ND RATE ( 9CREASE ( 
MORE ?AN #e P] C5T P] YE>1 A RATE R\<LY EQUAL TO ! YIELD ( GOV]NM5T 
BONDS 7BE=E TAXES740 .<#c.> ,!SE ME?ODS MADE 9VE/M5TS POSSIBLE BY CUTT+ 
D[N CONSUMPTION 9 FAVOR ( 0SAV+S10 I4E41 CAPITAL ACCUMULATION4 
,AID$ BY GOV]NM5T1 CAPITAL C\LD N[ EXP& AS 9 TIMES ( OLD4 

,NOT TO BE MISL$ BY ?IS SUCCESS /ORY1 IT MU/ BE PO9T$ \T ?AT ! 
=C$ CAPITALIZATION ( ,WE/]N ,EUROPE WAS NOT ! RESULT ( ! APPLICATION 
( 0MOD]N ECONOMICS40 ,RA!R1 ! 0APPLICATION0 WORK$ 
9 ?IS P>TICUL> WAY BECAUSE ( ! CONDITIONS 9 :I* ,EUROPE F\ND H]SELF 
AFT] ! W>4 ,! 5ORM\S DE/RUCTION ( CAPITAL1 NOT ONLY 9 VALUE T]MS BUT 
9 MAT]IAL1 PHYSICAL T]MS1 & ! OBSOLESC5CE ( A L>GE P>T ( ! 
SURVIV+ PRODUCTIVE APP>ATUS1 ALL[$ = - & DEM&$ - A 
RAPID CAPITAL =MATION TO AVOID A TOTAL COLLAPSE ( ! PRIVATE PROP]TY 
SY/EM4 ,BO? CAPITAL & LABOR ACCEPT$ ! DEM&S ( GOV]NM5T NOT TO WORK 
= MORE CONSUMPTION BUT = CAPITAL =MATION4 ,&1 AS 9 TIMES PA/1 MORE 
CONSUMPTION BECAME A BYPRODUCT ( ! ACCEL]AT$ CAPITAL EXPANSION4 

,! SAME 0ECONOMICS0 DID NOT HAVE ! SAME RESULTS 9 ! ,UNIT$ 
,/ATES4 ,AT ! 5D ( ,WORLD ,W> ,I,I ,AM]ICA'S PRODUCTIVE CAPACITY EXCE$$ 
! AVAILABLE M>KET DEM&4 ,:ILE ! ,EUROPEAN ECONOMIES BEGAN AGA9 TO 
ACCUMULATE CAPITAL AT ! EXP5SE ( CONSUMPTION1 A FUR!R RAPID EXPANSION ( 
! ,AM]ICAN ECONOMY W\LD HAVE L$ ONLY TO MORE UNUS$ CAPACITY4 ,NOT EV5 ! 
PEACE-TIME SIMULATION ( W>-TIME CONDITIONS BY WAY ( DEF5SE EXP5DITURES 
5ABL$ ,AM]ICA'S PRODUCTIVE RES\RCES TO BE FULLY US$4 ,:]E ,EUROPEAN 
GOV]NM5TS APPLI$ FISCAL & MONET>Y POLICIES TO FUR!R ! ACCUMULATION ( 
PRODUCTIVE CAPITAL1 ! ,UNIT$ ,/ATES US$ !SE POLICIES TO SUBSIDIZE WA/E 
PRODUCTION4 ,REAL CAPITALI/IC PROSP]ITY DEP5DS ON AN ACCEL]AT$ RATE ( 
CAPITAL =MATION1 = IT IS ONLY SU* A RATE :I* CREATES AN AGGREGATE M>KET 
DEM& L>GE 5\< TO EMPLOY ! PRODUCTIVE RES\RCES4 0,A REVIEW ( ! 
PR9CIPAL COMPON5TS ( AGGREGATE DEM& /RONGLY SUGGE/S ?AT ! 
SLUGGI%NESS ( BUS9ESS FIX$ 9VE/M5TS WAS AT ! HE>T ( ! DEM& LAG 
AFT] #a#i#e#g40.<#c#a.> ,?IS SLUGGI%NESS REFLECTS A L[ RATE ( PR(IT 
RELATIVE TO ! /OCK ( FIX$ CAPITAL & 9V5TORIES4 0,! PR(IT RATE 
9 ! ,UNIT$ ,/ATES FELL /EADILY 9 ! #a#i#eS4 ,!RE WAS NOT EV5 AN UPW>D 
TR5D 9 ! ABSOLUTE LEVEL ( PR(ITS 9 SPITE ( A CUMULATIVE MANUFACTUR+ 
9VE/M5T ( AB\T @s#a#b#e BILLION OV] ! DECADE40.<#c#b.> ,9 CONTRA/1 9 ,G]MANY1 0! 
ABSOLUTE LEVEL ( PR(ITS ROSE BY #aif TO AB\T ?REE & A HALF TIMES ! #aie 
LEVEL02 & ! RETURN ON CAPITAL DUR+ ! SAME P]IOD 0AV]AG$ 
9 ,G]MANY AB\T #bh P] C5T & 9 ! ,UNIT$ ,/ATES AB\T #ah P] 
C5T40.<#c#c.> 

,GOV]NM5T 9T]V5TIONS 9 ! ,AM]ICAN ECONOMY DID NOT BREAK ! RELATIVE 
/AGNATION ( CAPITAL =MATION4 ,9 DESPAIR1 A SYMPOSIUM ( TW5TY PROM95T 
,AM]ICAN ECONOMI/S CALL$ = A 0NEW ,KEYNES40.<#c#d.> ,! /&>D ,KEYNESIAN CATEGORIES W]E 
N[ RECOGNIZ$ AS 09ADEQUATE TO DIAGNOSE ! TR5DS 9 ! ECONOMY S9CE 
! MID-FIFTIES4 ,:AT IS NE$$ IS A META-,KEYNESIAN APPROA*40.<#c#e.> ,) ! DEM& = 
BUS9ESS CAPITAL 9 A LONG-T]M RELATIVE DECL9E1 ! QUE/ION WAS NO LONG]1 
IT WAS SAID1 0:E!R FISCAL POLICY CAN (FSET A TEMPOR>Y GAP 9 DEM&1 
BUT H[ WE CAN RE/RUCTURE \R ECONOMY SO ?AT NEW P]MAN5T S\RCES ( DEM& 
MAY BE F\ND40.<#c#f.> ,AL?\< ! ANSW] TO ! QU]Y %\LD BE 
OBVI\S1 ) TWO-?IRDS ( ! WORLD POPULATION NE> OR AT />VATION1 & 
) ! UND]DEVELOP$ C\NTRIES' URG5T NE$ = ALL K9DS ( MEANS ( 
PRODUCTION TO OV]COME !IR MIS]ABLE CONDITIONS1 ! 0OBVI\S0 IS 
NOT AN ANSW]1 NOT EV5 = ALLEVIAT+ MIS]Y 9 ! DEVELOP$ NATIONS :]E 
T5S ( MILLIONS ( PEOPLE CANNOT SATISFY !IR MO/ IMM$IATE NE$S4 ,:AT 
PROSP]ITY !RE HAS BE5 HAS BE5 L>GELY A BYPRODUCT ( ! ,COLD ,W>1 :I* 
0HAS NOT PROV$ ?AT RECESSIONS CAN BE AVOID$ EXCEPT BY >MAM5TS 
EXP5DITURES1 & S9CE TO JU/IFY >MAM5TS 9T]NATIONAL T5SION HAS TO BE 
KEPT UP1 IT APPE>S ?AT ! CURE IS A GOOD DEAL WORSE ?AN ! 
DISEASE40.<#c#g.> 

#a4 ,J4 ,M4 ,CL>K1 ,ALT]NATIVE TO ,S]FDOM1 ,NEW ,YORK1 #a#i#f1 P4 #ih 

#b4 ,IBID4 

#c4 ,K4 ,K4 ,KURIH>A1 ,! ,KEYNESIAN ,!ORY ( ,ECONOMIC ,DEVELOPM5T1 ,NEW ,YORK1 #a#i#e#i1 P4 #b4 

#d4 ,J4 ,MC,DONALD1 ,=TUNE1 ,NEW ,YORK1 ,DECEMB] #a#i#e1 P4 #a#c#d4 

#e4 ,R4 ,L4 ,HEILBRON]1 ,! ,WORLDLY ,PHILOSOPH]S1 ,NEW ,YORK1 #a#i#e#c1 P4 #a#e#i4 

#f4 ,J4 ,PLATN5ATZ1 ,G]MAN ,M>XISM & ,RUSSIAN ,COMMUNISM1 ,LONDON1 #a#i#e#d1 P4 #c#c4 

#g4 ,J4 ,/RA*EY1 ,CONTEMPOR>Y ,CAPITALISM1 ,NEW ,YORK1 #a#i#e#f1 P4 #c#a#b4 

#h4 ,A4 ,L4 ,R[SE1 ,MR4 ,KEYNES & ! ,LABOR ,MOVEM5T1 ,LONDON1 #a#i#c#f1 P4 #a#b4 

#i4 ,! ,G5]AL ,!ORY1 P4 #c#g#i4 

#a4 ,IBID4 

#a#a4 ,H4 ,G4 ,M\LTON1 ,! ,=MATION ( ,CAPITAL1 ,WA%+TON1 #a#i#c#e1 P4 #f#e4 

#a#b4 ,AM]ICA'S ,/AKE 9 ,9T]NATIONAL ,9VE/M5TS1 ,! ,BROOK+S ,9/ITUTION1 ,WA%+TON1 ,D4,C41 #a#i#c#h1 P4 #c#g#e4 

#a#c4 ,R4 ,R4 ,DOANE1 ,! ,MEASUREM5T ( ,AM]ICAN ,WEAL?1 ,NEW ,YORK1 #a#i#c#c1 P4 #a#f4 

#a#d4 ,ACCORD+ TO ,S4 ,KUZNETS ! RATIO ( NET 9VE/M5TS TO NATIONAL 9COME 9 ! ,UNIT$ ,/ATES ROSE UNTIL ! TURN ( ! C5TURY & DECL9$ FROM !N ON TO NE>LY NO?+ 9 ! #a#i#b#i-#a#i#c#h P]IOD4 

,NET ,CAPITAL ,=MATION 9 ,P]C5TAGES ( ,NATIONAL ,9COME 7#a#i#b#i ,PRICES7 ,DECADE ,NET ,CAPITAL ,=MATION ,DECADE ,NET ,CAPITAL ,=MATION #a#h#f#i-#g#h #a#c4#g #a#i#d-#a#c #a#c4#a #a#h#g#d-#h#c #a#d4#d #a#i#i-#a#h #a#c4 #a#h#g#i-#h#h #a#d4#f #a#i#a#d-#b#c #a#a4#d #a#h#h#d-#i#c #a#f4#a #a#i#a#i-#b#h #a4#b #a#h#h#i-#i#h #a#f4#b #a#i#b#d-#c#c #f4 #a#h#i#d-#c #a#d4#h #a#i#b#i-#c#h #a4#d #a#h#i#i-#h #a#c4#f   
   
  

7,NATIONAL ,9COME - ,A ,SUMM>Y ( ,F9D+S ,NATIONAL ,BUREAU ( ,ECONOMICS ,RESE>*1 ,NEW ,YORK1 #a#i#d#f1 P4 #e#c47 

#a#e4 ,! ,ECONOMI/1 ,LONDON1 ,FEBRU>Y #a#a1 #a#i#e4 

#a#f4 ,B4 ,G4 ,HICKMAN1 ,9VE/M5T ,DEM& & ,U4,S4 ,ECONOMIC ,GR[?1 ,WA%+TON1 #a#i#f#e1 P4 #a#b#c4 

#a#g4 ,IBID41 P4 #a#c#e4 

#a#h4 ,A4 ,F4 ,BURNS1 ,! ,NEW ,YORK ,TIMES1 ,OCTOB] #a#i1 #a#i#e#d4 

#a#i4 ,M4 ,SALVADORI1 ,EUROPE'S ,NE$S & ,RES\RCES1 ,NEW ,YORK1 #a#i#f#a1 P4 #gcg 

#b4 ,A4 ,F4 ,BURNS1 ,! ,FRONTI]S ( ,ECONOMIC ,KN[L$GE1 ,PR9CETON1 #a#i#e#d1 P4 #d4 

#b#a4 ,R4 ,L4 ,HEILBRON]1 ,! ,MAK+ ( ,ECONOMIC ,SOCIETY1 ,5GLEWOOD ,CLIFFS1 #a#i#f#b1 P4 #a#g#e4 

#b#b4 ,! ,NEW ,YORK ,TIMES1 ,FEBRU>Y #b#e1 #a#i#e#c4 

#b#c4 ,P4 ,K4 ,CROSS]1 ,/ATE ,CAPITALISM 9 ! ,ECONOMY ( ! ,UNIT$ ,/ATES1 ,NEW ,YORK1 #a#i#f1 P4 #i#g4 

#b#d4 ,E4 ,G9ZB]G1 ,! ,PLURALI/IC ,ECONOMY1 ,NEW ,YORK1 #a#i#f#e1 P4 #a#e#a4 

#b#e4 ,P4 ,K4 ,CROSS]1 ,/ATE ,CAPITALISM 9 ! ,UNIT$ ,/ATES1 P4 #b#h4 

#b#f4 ,IBID41 P4 #b#g4 

#b#g4 ,J4 ,O4 ,COPPOCK1 ,EUROPE'S ,NE$S & ,RES\RCES1 P4 #d#d4 

#b#h4 ,F4 ,WILLIAMS1 ,SOCIALI/ ,BRITA91 ,NEW ,YORK1 #a#i#d#i1 P4 #i#a4 

#b#i4 ,J4 ,O4 ,COPPOCK1 ,EUROPE'S ,NE$S & ,RES\RCES1 P4 #d#e4 

#c4 ,IBID41 P4 #d#f#a4 

#c#a4 ,B4 ,G4 ,HICKMAN1 ,9VE/M5T ,DEM& & ,U4,S4 ,ECONOMIC ,GR[?1 P4 #i4 

#c#b4 ,A4 ,MADDISON1 ,ECONOMIC ,GR[? 9 ! ,WE/1 ,NEW ,YORK1 #a#i#f#d1 P4 #e#d4 

#c#c4 IBID 

#c#d4 ,! ,NEW ,REPUBLIC1 ,OCTOB] #b1 #a#i#f#b4 

#c#e4 ,B4 ,CAPLAN & ,H4 ,MALMGRE5 0,MORE ?AN ,KEYNES10 ,! ,NEW ,REPUBLIC ,DECEMB] #a1 #a#i#f#b4 

#c#f4 ,IBID4 

#c#g4 ,J4 ,ROB9SON1 ,LATT] ,DAY ,CAPITALISM1 ,NEW ,LEFT ,REVIEW1 ,LONDON1 ,JULY-,AUGU/ #a#i#f#b1 P4 #d#c4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #c1 #bba 3 ,*APT] #ac -- ,ADD$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/