Jim Devine wrote, >---> in simple terms, the theory tells us that the capitalists have the >whip hand in the economy and if the economy and the government don't >deliver the goods to them, they punish us with unemployment and/or >inflation. Note that this is very different from MF's theory is which is >simply a matter of supply and demand. But neither version gives us the whole story. Both leave out the possibility of administering incomes and prices. Monetarists object to price/income controls on the grounds that price signals operating through the market are the only reliable way to allocate resources efficiently (although they will downplay the corrolary, which is that letting recessions run their destructive course is the only way to ensure the efficient allocation of capital). But the real problem with price/incomes policy is that it raises political demands for making the administrative process transparent. It's just sooooo convenient to blame "the market" (which is to say blame the victim for not having marketable attributes) for personal hardship. All I'm trying to say is that the contradictions of Keynesianism are political, not economic. I think it's really convoluted to try to show why Keynesianism can't work "economically". And it makes for some strange bedfellows. Keynesianism could work just fine, thankyouverymuch, if the rentiers would kindly take Maynard's advice and slit their own throats. By the same token, though, the dictatorship of the proletariat could sail into harbour uncontested if the capitalist geese would kindly roast themselves and stick knifes and forks in their backs. And it should go without saying that monetarism can prevail for as long as the other 95% of us can tolerate having our faces rubbed in shit and be told that it was our free choice. Regards, Tom Walker ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ #408 1035 Pacific St. Vancouver, B.C. V6E 4G7 [EMAIL PROTECTED] (604) 669-3286 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The TimeWork Web: http://www.vcn.bc.ca/timework/
