> Chris Burford wrote:
>
> > MOf course even if this keeps circulation going, it does not guarantee that
> > capitalists will be able to maintain their rate of profit. For that,
> > further destruction of capital on a global level is necessary, in fact
> > beyond what is necessary, so that after a period of stagnation, it can
> > start accumulating surplus value again. Of course if all those Japanese
> > bankers with their assets in depreciated land values, could commit hara
> > kiri quickly that would help. But probably not enough...
> >
> > BTW does not holding capital in land produce a sharp degree of gearing in a
> > down turn? Another reform we could suggest? Or even campaign for.
>
It seems to me that the major problem in not addressed by this is the shortage ofaggregate demand in the third world caused by inadequate wages. If wage rates were increased then demand would not be a problem. If the profit rates were too low the corporations could simply be nationalized and run if necessaryily inefficiently by the state. It seems to me that in the midst of world wide depression one needs to maintain the rate of return on capital is highly questionable. In the worst case the governments could simply print money and hand it out to the industrialists insuring a rate of return.
In the midst of a depression simply printing money and handing it out to low wage or unemployed workers and even capitalists may be socially very difficult to do but appears to me quite rational. In the more "advanced countries" this is called unemployment insurance. A strong state supported measure of unemployment insurance would be the best antidote against world wide deflation.
--mike
> Michael Cohen mike at cns.bu.edu
> Associate Professor, Center for Adaptive Systems
> Work: 677 Beacon, Street, Rm313 Boston, Mass 02115
> Home: 25 Stearns Rd, #3 Brookline, Mass 02146
> Tel-Work: 617-353-9484
> Tel-Home:617-734-8828
> Tel-FAX:617-353-7755
-- Michael Cohen mike at cns.bu.edu Associate Professor, Center for Adaptive Systems Work: 677 Beacon, Street, Rm313 Boston, Mass 02115 Home: 25 Stearns Rd, #3 Brookline, Mass 02146 Tel-Work: 617-353-9484 Tel-Home:617-734-8828 Tel-FAX:617-353-7755