I should point out that many conservative economists would agree with the portion of Paddy's piece down below. Right-wing critics of Keynes (both in his day and our own) argued that attempts to deal with economic downturns through the loosening of fiscal and monetary policy would most likely result in inflation rather than in renewed economic growth. Such were the arguments of critics like Friedrich Hayek, Ludwig von Mises. They, of course, did not use that to argue for the abolition of capitalism.
Jim Farmelant ---------- Original Message ---------- From: "Paddy Hackett" <rashe...@eircom.net> To: <marxism-thaxis@lists.econ.utah.edu> Subject: [Marxism-Thaxis] The SWP and underconsumptionism Date: Wed, 18 Nov 2009 09:50:38 -0000 In an economic crash when profitability has falling artificially increasing demand cannot solve the problem. Printing more paper money as a means of increasing consumer demand abjectly under downturn economics. The result is merely inflation. The more paper that is injected into the economy the more inflation rises. Rising inflation means that real demand has not increased. On the other hand if the government can freely borrow money as a means of making up for the budget deficit then the upshot is that crashes are superfluous. If this argument is correct then the conclusion is that not excessive credit, but the lack of it, is the cause of the current crash in Ireland. Borrowing, credit, is now the panacea for all economic ills. This being so capital need no longer be concerned over both rising wages and costs. Class struggle is thereby rendered unnecessary and the objective conditions necessary for communism cease to exist. ____________________________________________________________ Instant Health Insurance Get fast, free health insurance quotes online now in 2 minutes. http://thirdpartyoffers.juno.com/TGL2141/c?cp=tEDlXYC68EpV7ZvH4kxnywAAJ1AP8ttsZd_TbiVxkZxsC3mBAAQAAAAFAAAAAAjMHj4AAANSAAAAAAAAAAAAAAAAABI4JwAAAAA= _______________________________________________ Marxism-Thaxis mailing list Marxism-Thaxis@lists.econ.utah.edu To change your options or unsubscribe go to: http://lists.econ.utah.edu/mailman/listinfo/marxism-thaxis
