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Get Monopoly Capitalism in Crisis PDF

By Bill Lucarelli

ISBN-10: 0230511708

ISBN-13: 9780230511705

ISBN-10: 1403932557

ISBN-13: 9781403932556

The international economic climate is on the point of a profound concern. the specter of worldwide deflation and the emergence of continual extra international means characterizes the modern section of main issue and stagnation. Lucarelli argues that those pathological beneficial properties of globalization gather a remorseless common sense throughout the "mature" phases of monopoly capitalism. He explores the old origins and theoretical developments of this protracted challenge from a Keynes/Kakecki standpoint.

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The new focus becomes the issue of identifying the potential of increasing returns through innovation. The engine of long-term growth is therefore governed by the accumulation of human capital, which generates a cumulative increase in the level of productivity. In this critical sense, human capital should be viewed as a public good that contributes to an increase in social returns over and above those appropriated by private investment. ” There is also overwhelming evidence of the strategic importance of investment in core, nonmilitary infrastructure.

Luxemburg therefore argues that the system is dependent upon a third market to absorb the social surplus. She identifies this third department as the noncapitalist sector. In other words the problem of effective demand occupies the center stage. Marx’s model merely reinstates Say’s law in which supply is assumed to create its own demand. So the surplus product of department 1 and 2 must be bought – by whom? On the above showing, there will have to be an “effective demand” outside 1 and 2, merely in order to realize the surplus value of the two departments, just so that the surplus product can be turned into cash.

4 Consequently, the neoclassical approach does not distinguish between industries in terms of their differential effects on growth. The growth accounting method applied by the Solow/Swan model assumes constant returns to scale, elevates price effects over income effects, stresses substitution over complementarity and regards technical change and factor endowments as exogenous. Worse still, the critical issue of effective demand is completely ignored. By contrast, post-Keynesian growth theories, inspired to a large extent by the work of Nicholas Kaldor (1957, 1972, 1985, 1996), identify manufacturing as the primary impetus in productivity and per capita income growth.

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Monopoly Capitalism in Crisis by Bill Lucarelli


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