pre-Keynesian

Lawrence lawrence at krubner.com
Thu Aug 30 16:45:45 PDT 2001



> >states and by the accumulation of deficits, one would be left with
> >no more than a caricature. In particular, growth of capitalist
> >income was faster than the growth of real wages, although these
> >increased too thanks to the marked expansion of commodity production.

I could agree with everything else in that essay except this part. Capitalist income increasing faster than wage growth? Do you agree with that Doug? Everything I've ever read suggested to me the opposite. In 1920 producer goods constituted 2/3rds of the economy, in 1980 it was consumer goods that constituted 2/3rds of the economy. The middle of the 20th century saw the rise of the consumer economy. It was a historic shift. And doesn't this mean, automatically, that wealth was shifting from capital to labor? I've read that during the 60s for every 1% increase in productivity, workers got a 1.5% increase in wages. This extra .5% must have come from the pockets of the capitalists, yes? If not, what have I misunderstood?



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