“Message: 8 Date: Mon, 30 Jun 2003 18:48:42 -0400 To: lbo-talk at lbo-talk.org From: Doug Henwood <dhenwood at panix.com> Subject: Re: [lbo-talk] inflation and Ernest Mandel Reply-To: lbo-talk at lbo-talk.org
Lance Murdoch wrote:
>
>Ernest Mandel says inflation occurs because workers are paid to work in
>the defense industry, but the goods are not used by consumers, so
>inflation occurs in the chase for commodities.
So why did inflation fall during the Reagan buildup, and is falling again during W's?
Doug “
Is it possible that this is because military production is hgher-tech now, therefore requires higher-tech production to produce it, and therefore requires fewer workers?
Christopher Rhoades Dÿkema
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