If you want to call it a "theory." Narrative would be a more apt term.
Shades of Ralph Waldo Emerson.


On Mon, Mar 31, 2014 at 3:31 PM, Charlie <[email protected]> wrote:

> Doug advises higher wages and public spending. He also writes in
> historical explanation of how we got here: "go back to the 1970s.
> Corporate profitability ... had fallen sharply off its mid-1960s highs.
> ... After three decades of seemingly endless prosperity, workers had
> developed a terrible attitude problem, slacking off and, quaintly, even
> going out on strike." The capitalists hit back hard.
>
> It reads like the theory that wages squeezed profits, causing the 1973
> recession and subsequent stagflation. Now, after the capitalists have
> pushed the pendulum hard to the right, the need is to restore workers'
> consumption. The implication is that capitalism has a sweet spot in the
> middle, somehow combining adequate exploitation hence healthy profits
> with reasonably good times for workers.
>
> Is this not the implied theory?
>
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-- 
Cheers,

Tom Walker (Sandwichman)
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