...which was a condensed version of my blog post that has received 1415
pageviews so far: "Inequality and Sabotage: Piketty, Veblen and Kalecki"

http://econospeak.blogspot.com/2014/03/inequality-and-sabotage-piketty-veblen.html

I also posted it to Pen-l where it was greeted with a resounding silence.


On Tue, Apr 1, 2014 at 7:11 AM, Tom Walker <[email protected]> wrote:

> My "readers' pick" comment (73 recommend):
>
> [Henwood:]"Raising the incomes of the bottom 90 percent of the population
> through higher wages and public spending initiatives -- stifled since Reagan
> starting putting the squeeze on them -- could change that. But the
> stockholding class has resisted that, and they have a lot of political
> power."
>
> And just where do they get that power? As Marx pointed out, every day the
> working class goes off to work and generates "surplus value" from their
> superfluously-long working day. Yes, "superfluous" was Marx's word for the
> exploitive long hours. But don't just take Marx's word for it. Thorstein
> Veblen pointed out nearly 100 years ago in "The Engineers and the Price
> System" that business enterprises sabotaged production in order to maximize
> their profits. Veblen used the word "sabotage." And Michal Kalecki pointed
> out 70 years ago in "The Political Aspects of Full Employment" that
> financiers and industrialists oppose full-employment government spending
> because it undermines the myth of "investor confidence" as the harbinger of
> prosperity.
>
> And now we have Thomas Piketty tell us that "r>g" -- that is the rate of
> return on capital is greater than the economic growth rate. But, hey, Marx,
> Veblen and Kalecki told us WHY that would happen. Isn't it about time we
> looked into what they wrote?
>
>
> On Tue, Apr 1, 2014 at 5:53 AM, Doug Henwood <[email protected]> wrote:
>
>>
>> On Mar 31, 2014, at 6:31 PM, Charlie <[email protected]> wrote:
>>
>> > It reads like the theory that wages squeezed profits, causing the 1973
>> > recession and subsequent stagflation. Now, after the capitalists have
>> > pushed the pendulum hard to the right, the need is to restore workers'
>> > consumption. The implication is that capitalism has a sweet spot in the
>> > middle, somehow combining adequate exploitation hence healthy profits
>> > with reasonably good times for workers.
>> >
>> > Is this not the implied theory?
>>
>> I was writing for the NYT, not Workers Vanguard.
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>>
>
>
>
> --
> Cheers,
>
> Tom Walker (Sandwichman)
>



-- 
Cheers,

Tom Walker (Sandwichman)
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