Greenspan, Marxist

[Charles Brown]

Keynes' idea about avoiding recessiion by building effective demand follows directly from Marx's idea that recession is rooted in underconsumption of the mass of buyers , the working class who are paid only a fraction of what they produce.

CB
>>> Doug Henwood <dhenwood at panix.com> 11/19/99 01:16PM >>>
[The explanation of Marx's theory of exploitation is odd, but you 
never know where the Old Man's going to turn up.]

Thu, 18 Nov 1999, 10:21pm EST

Greenspan and Marx, United in Proletariat Views

By Caroline Baum

New York, Nov. 17 (Bloomberg) -- After declaring war on the army of the
employed yesterday, raising interest rates because of the diminishing
pool of available labor, Fed Chairman Alan Greenspan should clarify for
the markets -- not to mention the American public -- exactly what his
strategy is. ``Where does the end-game in interest rates end?'' asks
John Ryding, senior economist at Bear, Stearns & Co. ``The Phillips
Curve end-game strategy is not just to prevent the unemployment rate
from falling. It's to engineer an increase in the unemployment rate. How
much will they have to slow growth to accomplish that?''