Re: zero average profit

From: Allin Cottrell (cottrell@wfu.edu)
Date: Fri Jun 06 2003 - 00:24:00 EDT


On Thu, 5 Jun 2003, Rakesh Bhandari wrote:

> Kalecki was able to reach the false conclusion that the govt through
> debt financed expenditures is in fact capable of moving the economy
> to full employment as long as the state keeps real wage growth under
> control.

On what basis do you say that conclusion is false?  It seems to me
obviously true.

> Kalecki has nothing to say about the effects of the accumulation
> process itself on the constitution of class struggle in the abode of
> production.

I'm not sure what you mean by the "abode of production", but Kalecki
was quite far-sighted on the effects of accumulation on class
struggle, particularly in his essay "Political aspects of Full
employment".  He predicted (in the late '40s, mind you) that Keynesian
policies would run into trouble because sustained low unemployment
would tip the balance of forces towards the working class, hence
provoking a reaction from the ruling class that would force the
abandonment of those policies. That is, he saw Thatcher coming.

Allin.


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