-----Original Message----- From: Robert MacDiarmid [mailto:[EMAIL PROTECTED]] Sent: Tuesday, June 22, 1999 1:13 PM To: [EMAIL PROTECTED] Subject: [PEN-L:8179] Request for clarification - Ruling class economic theory I would greatly appreciate it if someone could spend a few paragraphs to get me on the way to understanding what the current ruling class economic ideology is these days. I would hazard that Monetarism & supply side variants are relatively discredited, while on the other hand, one sees 'The Return of Keynes' in the press every now & then (but is this anything more than Japan's desperation and the idle hope of a few collaborationist labour leaders). Is there a governing theory or just micro-economics and finance regulation? Response: First, when you say "discredited", you have to indicate by whom and among whom. For example, the current ruling class ideology of neo-liberal globalism is basically supply-side/trickle down a bit warmed over and jazzed up--only a bit. The basic thesis is the same: wealth job, income creators (the rich) must be free to do their thing and the less constraints on them, the greater the use of nominally "free" markets, the greater the spread/trickle-down and ultimate equalization effects--nationally and globally. It would be a mistake to assume a totally homogeneous set of core "principles" beyond capitalism is the most efficient freedom-promoting system whose existence and expanded reproduction is to be assumed as given along with its concomitant power structures, class relations, core institutions (also dynamic), myths, traditions etc. There are variants of Homo Economicus central and necessary to the ideological and social capital structures of capitalism (greed, competition, egoism, individualism, materialism, acquisitiveness, "rationality" are good, natural, eternal, liberating, progressive etc). Racism, Sexism, Ageism etc are seen as anecdotal issues not flowing from or affecting the core logic, imperatives and dynamics of capitalism. The answer to any presumed "market failures" of capitalism is more and "freer" markets and more capitalism and any market failures are short-term bottlenecks and forms of friction that will be eliminated by the inner self-correcting equalizing balancing and equilibrating forces of markets. The US is the most efficient, decent, moral, progressive, wealthy, freedom-loving, dynamic, nation/system on earth and the answer to any problems of other countries is to become like the US on terms dictated by the US through systems/structures like/favorable to and for the US. Government intervention (except to socialize costs/risks for increasingly concentrated/centralized profits and capital accumulation) is the cause not the answer to any market failures. Naked despotism, the iron fist underneath the velvet glove, can and must be used but used sparingly and under cover of manipulated transcendent causes and "manufactured consent" and "necessary illusions." Just for openers. Jim C
