me: >> have you heard of multiplier effects? accelerator effects? have you heard >> that (compared to other individual economies) the US economy has a >> disproportionate effect on the world economy? <<
Jurriaan Bendien wrote: > Of course, I know about the concept of multiplier effects and accelerator > effects. But now explain to me how, when the average rate of industrial > profit drops a few percent across some years, the whole economy goes into a > whammy such as the one in 2008/2009. As Makato Itoh long ago pointed out that _if_ the rate of profit is falling, it can cause a sudden crisis (rather than a gradual decline in the rate of accumulation) if capitalists borrow money to finance accumulation. In any event, I have no brief for the so-called "orthodoxy" and its FROP. However, I have my own perspective. As I said, I do not explain 2008/09 with reference to a falling rate of profit. Rather, there was an under-consumption undertow that was could only be counteracted by a bubble economy (unless stagnation was an option). Then the bubble economy popped. > And, explain why the average rate of > industrial profit is falling, when the observed average rate of industrial > profit is actually rising! Why should I explain this, since as I said, I have no brief for the so-called "orthodoxy" and its FROP. The above is sketchy, but I don't think it's worth my time to explain any of it any more. Jurriaan, since you want to talk about the orthodox and its FROP (perhaps being "obsessed" with this topic), you ignored my alternative perspective. Giving my views zero respect tells me that it's not worth wasting time on you. -- Jim Devine / "Reality is that which, when you stop believing in it, doesn't go away." -- Philip K. Dick _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
