An argument that refutes itself. The notion that "changing the world" can
proceed uninformed by theory is itself a theory.

On Tue, May 10, 2011 at 6:54 AM, Carrol Cox <[email protected]> wrote:

> Such pseudo-theories can't be refuted theoretically -- the refutation is
> ignored and no one but those who refute it know they have. It's clear
> enough that establishment intellectuals in any field but particularly in
> economics will believe anything that justifies what is.
>
> They can only be refuted in practice by the action of workers. If
> _that_  refutation is stong enough, economists will (belatedly and with
> lots of juggling) more or less rationalize the new actuality. During
> periods of working-class weakness (or, more accurately, capitalist
> strength) the myth develops that theory can dictate practice. This is
> wholly false. One does not change minds in order to change the world.
> One changes the world in order to change minds. That is what happened
> both in the 1930s and the 1960s. It _may_ be happening again.
>
> Carrol
>
> On 5/9/2011 9:36 PM, Sandwichman wrote:
> > One difficulty of "debunking" is that people are predisposed to certain
> > kinds of "supply and demand" "cost/benefit" arguments that are themselves
> > highly ideological. The scientific pretension of these preconceptions was
> > discredited in the mid-19th century but they've been recuperated through
> > carefully coded "simplifying assumptions."
> >
> > To make a long story short, you're dealing here with the zombie
> wages-fund
> > doctrine. That doctrine held -- as a matter of scientific principle, no
> less
> > -- that it was impossible to raise wages through combinations of workers
> or
> > government legislation. The amount of the wages fund was fixed in the
> short
> > run and there was no way to increase the wages of one group of workers
> > without decreasing the wages of another group or, worse, bankrupting
> > employers and throwing masses of people out of work.
> >
> > The basic assumptions of the doctrine were severely criticized by Marx,
> but
> > also by William Thornton, whose critique led to John Stuart Mill's
> recanting
> > of the doctrine and, eventually, to the development of neo-classical
> > economics.
> >
> > But then a funny thing happened. The exact OPPOSITE arguments were used
> by
> > anti-union propagandists  to argue to the exact SAME conclusions as
> before.
> > Whereas before a legislated or collectively-bargained wage increase would
> be
> > bad for workers because the amount of the wages-fund was fixed, now a
> > legislated or collectively bargained wage increase would be bad for
> workers
> > because the amount of the wages-fund WASN'T fixed.
> >
> > One element is absolutely essential to carrying off this rhetorical bait
> and
> > switch: isolating the question of wages from the question of hours of
> work.
> > As long as employers can keep people believing they "can't make ends
> meet"
> > if they work fewer hours they've got a situation where reducing the wages
> > can increase the labor supply. This is a condition that violates the
> "laws"
> > of supply and demand. Actually, though, it demonstrates how ill-defined
> and
> > misleading those laws are -- as Thornton pointed out in the 1860s.
> >
> >
> > On Mon, May 9, 2011 at 3:54 PM, Louis Proyect<[email protected]>  wrote:
> >
> >
> >> On 5/9/11 6:34 PM, Paul Bartlett wrote:
> >>
> >>>    This study needs a thorough public critique. It would be faster and
> >>>    most credible if we assemble a group of economists to do so. I am
> >>>    overloaded with other projects, but could help and do my part.
> >>>
> >>>
> >>>    Living Wage Would Kill Jobs, Cost Billions, Bloomberg Report Claims
> >>>
> >>>
> >>> By Chris Bragg
> >>>
> >>>
> >> Speaking of debunking, are there any articles that take up the rightwing
> >> claim that the top 3 percent of American taxpayers are responsible for
> >> 46 percent of all the tax revenue? Not exactly sure of the figures but
> >> this about right. Is there a way to put this into context?
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> >>
> >
> >
> >
> >
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-- 
Sandwichman
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