>Rakesh: >the discussion here is not of social democratic economics but the >root causes of capitalist crises and whether Keynesian demand >management can solve the underlying problems with the capitalist >system. > >^^^^^^^ > >CB: So, who on this list or thread has claimed that "Keynesian >demand management can solve the underlying problems with the >capitalist system " ?
Charles, Marcuse was one who thought so. And whether one thinks so matters less to the underlying reasons one comes to the negative conclusion. > Perhaps it was the Scarecrow in the Wizard of Oz who said it . > >Do you have a reform program, Rakesh , or is it revolution or >nothing for you ? I support a $10 min wage, fighting welfare cut backs and regressive tax reform, for example. I support any fight against capitalists attempting to restore profitability on the backs of the working class. But I don't support such struggles because they will overcome crisis in the short or long term. > >^^^^^^^^ > >CB: Are you advocating that in general and protracted crises, >Marxists support painful organizational changes in the abode of >production, namely, those measures that will cause a devaluation of >constant capital and a rise in the rate of surplus value ? Or are >you saying that the capitalists will just take these steps to >accomplish this anyway ? What is the practical, programmatic , >activist significance of your theory of how to obtain temporary >relief from general and protracted crises ? have already answered that question in another previous reply to you. > > >CB: Maybe I'll bring here later more fully Perlo and Nikitin's, et >al.'s, looks at the capitalist business cycle causes. I can say now >that the general approach is based on the contradictions in the >anarchy of capitalist production, i don't think state guiding of investments through control of flow of surplus value, tax credits and industrial policy in general--measures that reduce the anarchy of capitalism--can overcome the root cause of crisis which is not a maldistribution of value and surplus value but its insufficient production in the abode of production. Better state planning by bureaucrats will not solve the problem. The subordination of production of use values to the production of surplus value by exploited workers is what has to end, and workers themsevles have to end it. >and that Perlo emphatically holds that capitalism cannot be reformed >or it business cycle eradicated by Keynesian policies. again the reasoning behind his conclusions matter. > >What is your reasoning that an underconsumptionist theory of >business cycle makes it difficult to see how Keynesian demand >management cannot succeed in the long run ? the crisis is not caused by weakness in consumer demand; it's caused by insufficient profitability in production which leads to a drop off in investment demand. Raising consumer demand may not only not solve that problem it could compound it. But that's no reason for workers not to fight for increased consumption. For critique of Keynesian demand management read chapter on mixed economy in Mattick's Marx and Keynes. I am sorry that if you have not get anything out of what I have tried to say here. > What specifically in underconsumptionist theory implies capitalism >can be permenantly reformed, and business cycle crises ended >forever ? The theory whatever conclusions it draws does suggest the possibility of stabilization through better income distribution. > > Did even Keynes claim that ? He thought he had a short run solution. Again even Mattick agreed that there can be a temporal displacement of crisis but at some point the attempt to keep on forever displacing crises would itself compound them. Rakesh
