On 2013-03-12, at 7:50 AM, Eric Beck <ersatzdog at gmail.com> wrote:
>
> I've only been reading him for a year, and I don't buy all of it, and
> it's more US- and UK-centric, but I'd say Michael Roberts has been
> killing it at his blog: http://thenextrecession.wordpress.com/
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk
>From Roberts blog in the last paragraph we get,
"That is the missing ingredient from both the analysis of Sachs and his Keynesian opponents: profitability. The evidence that profits drive investment is now well documented. "
and,
"Recognise the close connection between past profitability and future expectations of profit on investment . . . . "
and back to
"And in my book,The Great Recession, even I managed to present evidence for profits driving investment. This is ignored by neoclassical and Keynesian economics alike."
So which is it, do "profits" or "future expectations of profit" drive investment? They seem to me to be two entirely different things - the difference between supply-side and demand-side, maybe?