Fed release

[Peter Kilander]

Doug:
>But then there's the classic analysis of Michal Kalecki, from
>"Political Aspects of Full Employment":
[clip]
>It is true that
>profits would be higher under a regime of full employment than they
>are on the average under laissez-faire, and even the rise in wage
>rates resulting from the stronger bargaining power of the workers is
>less likely to reduce profits than to increase prices, and thus
>adversely affects only the rentier interests. ***But 'discipline in the
>factories' and 'political stability' are more appreciated than
>profits by business leaders.*** Their class instinct tells them that
>lasting full employment is unsound from their point of view, and that
>unemployment is an integral part of the 'normal' capitalist system.
[end clip]

Thanks, Doug. While not underestimating the importance of the economic
"base", one can appreciate the importance, maybe even the dominance of the
political superstructure as shown by this quote. Even if profits were higher
under a regime of full employment, they would dwindle down the road as
workers began appropriating the means of production. What would uncle Miltie
have to say about this and the posited end of the business cycle?  Something
about how government investment decisions would be less "efficient" than
ones made by the market?

Peter K.