Our current economy was predicted in 1943!!!!

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Politics Chatboard

Our current economy was predicted in 1943!!!!

by T.E.C. - Iowa

Mar 4, 2017

Economist Mark Blyth lead me to the 1943 article by Michael Kalecki titled “Political Aspects of Full Employment.” The article predicts our current economy.

The whole idea is more complex than one post will allow. However, here is the part that tells us about corporations taking over our government.

The author, in 1943, expects us to now return to government spending – as in building infrastructure. However, that is not happening, because the corporate controlled media has convince many that America has a spending problem, and we should continue to cut the budget. The truth is, we have a revenue problem and cutting the budget will sink your economy.

(Quote from 1943)

As has already been argued, lasting full employment is not at all to their liking. The workers would 'get out of hand' and the 'captains of industry' would be anxious to 'teach them a lesson'. Moreover, the price increase in the upswing is to the disadvantage of small and big rent...See MoreEconomist Mark Blyth lead me to the 1943 article by Michael Kalecki titled “Political Aspects of Full Employment.” The article predicts our current economy.

The whole idea is more complex than one post will allow. However, here is the part that tells us about corporations taking over our government.

The author, in 1943, expects us to now return to government spending – as in building infrastructure. However, that is not happening, because the corporate controlled media has convince many that America has a spending problem, and we should continue to cut the budget. The truth is, we have a revenue problem and cutting the budget will sink your economy.

(Quote from 1943)

As has already been argued, lasting full employment is not at all to their liking. The workers would 'get out of hand' and the 'captains of industry' would be anxious to 'teach them a lesson'. Moreover, the price increase in the upswing is to the disadvantage of small and big rentiers, and makes them 'boom-tired'.

In this situation a powerful alliance is likely to be formed between big business and rentier interests, and they would probably find more than one economist to declare that the situation was manifestly unsound. The pressure of all these forces, and in particular of big business—as a rule influential in government departments—would most probably induce the government to return to the orthodox policy of cutting down the budget deficit. A slump would follow in which government spending policy would again come into its own.

This pattern of a political business cycle is not entirely conjectural; something very similar happened in the USA in 1937-8. The breakdown of the boom in the second half of 1937 was actually due to the drastic reduction of the budget deficit. On the other hand, in the acute slump that followed the government promptly reverted to a spending policy.

(End quote)

Again, we are not returning to more government spending, despite that being the right answer. Also, note, the spending does not have to create debt. Aside from borrowing, you can tax idle money, or you can move money from gov. departments that do not create jobs and spend it in areas that create lots of jobs per dollar spent.

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T.E.C. - Iowa Keen complains his or her question was not answered, so from the beginning!

1. How do you suppose profits of an economic system can be democratized?

Historically, the New Deal was a democratization of profits. However, we face a more complex issue. We have to democratize the profits from automation. Simply put, under the current s...See MoreKeen complains his or her question was not answered, so from the beginning!

1. How do you suppose profits of an economic system can be democratized?

Historically, the New Deal was a democratization of profits. However, we face a more complex issue. We have to democratize the profits from automation. Simply put, under the current system, the guy who invents a robot like Star Trek's Data will destroy all jobs and, by way of the robots, will own everything.

2. Does that mean, to you, that we redistribute wealth?

Absolutely, if we do not do this, America's democracy is gone.

3. Can you mention a time in which income redistribution worked?

Sure, FDR's New Deal! FDR, in the middle of a depression worse than now, went to the rich and said, I am going to offer Social Security, unemployment benefits and more and you are going to pay for it. FDR also said, if the private sector will not create jobs, the government sector will. FDR added, you, the rich, will take this deal because it is a better deal than the one you will get if these people come for you!

This whole system worked for a while. The problem, according to the economist, Richard Wolff, was that half of the rich hated the New Deal. So, that portion of the rich started to do what I described in my second post. The reversal of the New Deal basically started with Reagan. It has taken 30 years, but we are once again running an economy that has horrifying inequality which is best described by the fact that half of the population of the richest country in the history of mankind live in poverty.

4. About “Serfdom”, yes we have such a thing. Serfdom, in economics, refers to the exploited group in the economics system known as the “feudal system.” We have always had “markets.” However, the first economic system was slavery, and the slaves were exploited. Then we had the feudal system and the serfs were exploited. Now we have capitalism, and it is the “workers” who are exploited. IMHO, many workers today are no better off than the serfs of the feudal system.

So, although the word “serf” is part of a different economic system, we have people who play the same role.

If you need more clarification, restate your question!

Mar 8, 2017

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