[lbo-talk] Keynes, Marx Koran

[Rakesh Bhandari]

In estimating the prospects of investment, we must have regard, 
therefore, to the nerves and hysteria and even the digestions and 
reactions to the weather of those upon whose spontaneous activity it 
largely depends.' [Keynes 1936]

But putting aside grave political uncertainty or war Doug there needs 
to be an explanation of what annoys the nerves and creates hysteria 
and why they can't always be turned back again by a wave of the hand, 
a little regressive tax relief here or big government program there. 
Investment is not just a collective action problem or a matter of 
nerves and digestion. As an explanation of the investment deficit in 
the Great Depression it is as absurd explanation as the idea that 
workers all of sudden preferred leisure to work.  But one is led to 
subjectivize and psychologize investment--and it is quite a few 
economists actually do believe deep down, see Partha Dasgupta's new 
intro to economics--once the labor theory of value is abandoned.

Rakesh