Kalecki's political business cycle

Max Sawicky sawicky at epinet.org
Sat Mar 18 08:35:15 PST 2000

>They do believe that, and I think they're wrong. I think their class
>interest in keeping slack in the labor market outweighs their
>interest in maximizing sales. Individual capitalists may waver in
>this conviction, which is why they pay central bankers to maintain
>the class discipline. >Doug

Yet despite little official slack in the labor market, wages remain basically stagnant in this business cycle upturn. >>>>>>>

[mbs] ?????? Which planet are you referring to? Or does "basically stagnant" mean "increasing"?

This has to be explained. Gains have tended not to be from the bottom up but rather from the top of financial analysts down.

[mbs] Actually the novel feature of the past 2-3 years is the gains at the bottom.


With deunionization, globalization of production and immigration, slack now seems a permanent condition of the labor market

[mbs] Except for right now.

. . . Greenspan's role seems now not one of disciplining labor through restrictive monetary policy but choking borrowing against in assets to kill inflation that could incite a run on dollar denominated assets, which could then undermine the global position of the dollar and the world economic system which is presently based on its reserve role.

[mbs] G-span is "choking borrowing"?

Numbers. Look into 'em.


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