UNCTAD economists openly follow the Keynesian ‘explanation’ for the lost
decade (or what I have called the Long Depression) since 2009. And
their solution is a re-adoption of Keynesian policies to manage
capitalism better. For UNCTAD, slumps start with a collapse in demand ie
in investment spending and above all in household consumption. That
leads to a fall in sales, trade and then production and
investment./“Since its founding in the aftermath of the Great
Depression, the key principle of macroeconomics has been that effective
demand – expected sales of final goods and services – determines income
and employment.” /That may be the key principle of macroeconomics, butas
I have argued before in many posts,
<https://thenextrecession.files.wordpress.com/2018/03/the-profit-investment-nexus.docx>this
sequence is not correct and is actually back to front. In a capitalist,
profit-making, economy, it is profits and profitability that drive
investment and when profitability drops, investment in the means of
production and in labour will contract, leading to unemployment and loss
of consumer incomes and demand
https://thenextrecession.wordpress.com/2020/09/28/ending-the-pandemic-slump-a-return-to-keynes/
-=-=-=-=-=-=-=-=-=-=-=-
Groups.io Links: You receive all messages sent to this group.
View/Reply Online (#1984): https://groups.io/g/marxmail/message/1984
Mute This Topic: https://groups.io/mt/77172254/21656
-=-=-
POSTING RULES & NOTES
#1 YOU MUST clip all extraneous text when replying to a message.
#2 This mail-list, like most, is publicly & permanently archived.
#3 Subscribe and post under an alias if #2 is a concern.
-=-=-
Group Owner: [email protected]
Unsubscribe: https://groups.io/g/marxmail/leave/8674936/1316126222/xyzzy
[[email protected]]
-=-=-=-=-=-=-=-=-=-=-=-
