Rakesh keeps reiterating that deficits represent a serious threat. I don't agree, even though I believe that Keynesian policy runs in the problems in the long run.
My own preferred version of the contradiction suggests that a different form of fictitious capital presents a serious barrier. I tried to explain my case in my book on Marx's crisis theory. The deficit spending tends to reduce the competitive pressures, allowing business to maintain excessive fictitious capital, ultimately leading to speculative excesses (such as the buildup of the telecom industry) and frauds. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
