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</span></p><p><span><span>by <a href="http://www.amazon.com/exec/obidos/search-handle-url/ref=ntt_athr_dp_sr_1?%5Fencoding=UTF8&amp;search-type=ss&amp;index=books&amp;field-author=Robin%20Hahnel"><font color="#003399">Robin Hahnel</font></a></span></span></p><span><span><li><b>Paperback:</b> 304 pages </li><li><b>Publisher:</b> Pluto Press (January 24, 2003) </li><li><b>Language:</b> English </li><li><b>ISBN-10:</b> 0745318576 </li><li><b>ISBN-13:</b> 978-0745318578 </li><p><strong>Product Description<br/></strong>"The ABCs of Political Economy" is an accessible introduction to modern political economy. While informed by the work of Marx, Keynes, Veblen, Kalecki and other great political economists, "ABCs" teaches readers the essential tools necessary to understand economic issues today from a modern perspective. </p><p>"The ABCs of Political Economy" empowers people who are dissatisfied with today's economies but are often intimidated by conventional economic analysis. No previous economics background is assumed, and everything is explained in clear language in eight core chapters. Examining the nature of today's economic market, issues of economic justice, macroeconomics and globalization, Robin Hahnel provides an ideal introduction to key economic ideas, offering a critical perspective on our present system and outlining clear alternatives for the future. <br/><br/>Contents<br/>List of Illustrations x<br/>Preface xi<br/>Acknowledgements xv<br/>1 Economics and Liberating Theory 1<br/>People and Society 1<br/>The Human Center 2<br/>The Laws of Evolution Reconsidered 2<br/>Natural, Species, and Derived Needs and Potentials 4<br/>Human Consciousness 5<br/>Human Sociability 6<br/>Human Character Structures 7<br/>The Relation of Consciousness to Activity 8<br/>The Possibility of Detrimental Character Structures 9<br/>The Institutional Boundary 10<br/>Why Must There Be Social Institutions? 11<br/>Complementary Holism 13<br/>Four Spheres of Social Life 13<br/>Relations Between Center, Boundary and Spheres 15<br/>Social Stability and Social Change 16<br/>Agents of History 17<br/>2 What Should We Demand from Our Economy? 20<br/>Economic Justice 20<br/>Increasing Inequality of Wealth and Income 20<br/>Different Conceptions of Economic Justice 24<br/>Conservative Maxim 1 24<br/>Liberal Maxim 2 28<br/>Radical Maxim 3 30<br/>Efficiency 31<br/>The Pareto Principle 32<br/>The Efficiency Criterion 33<br/>Seven Deadly Sins of Inefficiency 37<br/>Endogenous Preferences 38<br/>Self-Management 40<br/>Solidarity 41</p><p>Variety 42<br/>Environmental Sustainability 43<br/>Conclusion 44<br/>3 A Simple Corn Model 45<br/>A Simple Corn Economy 45<br/>Situation 1: Inegalitarian Distribution of Scarce Seed Corn 49<br/>Autarky 50<br/>Labor Market 50<br/>Credit Market 54<br/>Situation 2: Egalitarian Distribution of Scarce Seed Corn 57<br/>Autarky 57<br/>Labor Market 58<br/>Credit Market 59<br/>Conclusions from the Simple Corn Model 60<br/>Generalizing Conclusions 63<br/>Economic Justice in the Simple Corn Model 67<br/>4 Markets: Guided by an Invisible Hand or Foot? 71<br/>How Do Markets Work? 71<br/>What is a Market? 71<br/>The “Law” of Supply 72<br/>The “Law” The “Law” of Uniform Price 75<br/>The Micro “Law” of Supply and Demand 75<br/>Elasticity of Supply and Demand 79<br/>The Dream of a The Nightmare of a Malevolent Invisible Foot 84<br/>Externalities: The Auto Industry 85<br/>Public Goods: Pollution Reduction 88<br/>The Prevalence of External Effects 91<br/>Snowballing Inefficiency 96<br/>Market Disequilibria 97<br/>Conclusion: Market Failure is Significant 99<br/>Markets Undermine the Ties that Bind Us 99<br/>5 Micro Economic Models 103<br/>The Public Good Game 103<br/>The Price of Power Game 106<br/>The Price of Patriarchy 109<br/>Conflict Theory of the Firm 111</p><p>Income Distribution, Prices and Technical Change 112<br/>The Sraffa Model 114<br/>Technical Change in the Sraffa Model 118<br/>Technical Change and the Rate of Profit 123<br/>A Note of Caution 125<br/>6 Macro Economics: Aggregate Demand as Leading Lady 128<br/>The Macro “Law” of Supply and Demand 128<br/>Aggregate Demand132<br/>Consumption Demand133<br/>Investment Demand133<br/>Government Spending 135<br/>The Pie Principle 136<br/>The Simple Keynesian Closed Economy Macro Model 137<br/>Fiscal Policy 140<br/>The Fallacy of Say’s Law 141<br/>Income Expenditure Multipliers 143<br/>Other Causes of Unemployment and Inflation 147<br/>Myths About Inflation 150<br/>Myths About Deficits and the National Debt 152<br/>The Balanced Budget Ploy 154<br/>Wage-Led Growth 157<br/>7 Money, Banks, and Finance 160<br/>Money: A Problematic Convenience 160<br/>Banks: Bigamy Not a Proper Marriage 162<br/>Monetary Policy: Another Way to Skin the Cat 168<br/>The Relationship Between the Financial and “Real”<br/>Economies 171<br/>8 International Economics: Mutual Benefit<br/>or Imperialism? 175<br/>Why Trade Can Increase Global Efficiency 176<br/>Comparative, Not Absolute Advantage Drives Trade 177<br/>Why Trade Can Decrease Global Efficiency 180<br/>Inaccurate Prices Misidentify Comparative<br/>Advantages 181<br/>Unstable International Markets Create Macro<br/>Inefficiencies 182<br/>Adjustment Costs Are Not Always Insignificant 183<br/>Dynamic Inefficiency 183<br/>Why Trade Usually Aggravates Global Inequality 184<br/>Unfair Distribution of the Benefits of Trade Between<br/>Countries 185<br/>Unfair Distribution of the Costs and Benefits of<br/>Trade Within Countries 187<br/>Why International Investment Can Increase Global<br/>Efficiency 190<br/>Why International Investment Can Decrease Global<br/>Efficiency 191<br/>Why International Investment Usually Aggravates<br/>Global Inequality 193<br/>The Balance of Payments Accounts 198<br/>Open Economy Macro Economics and IMF<br/>Conditionality Agreements 201<br/>9 Macro Economic Models 208<br/>Bank Runs 208<br/>International Financial Crises 211<br/>International Investment in a Simple Corn Model 212<br/>Banks in a Simple Corn Model 216<br/>Imperfect Lending Without Banks 216<br/>Lending With Banks When All Goes Well 217<br/>Lending With Banks When All Does Not Go Well 218<br/>International Finance in an International Corn Model 219<br/>Fiscal and Monetary Policy in a Closed Economy Macro<br/>Model 220<br/>IMF Conditionality Agreements in an Open Economy<br/>Macro Model 225<br/>Wage-Led Growth in a Long Run, Political Economy<br/>Macro Model 231<br/>The General Framework 231<br/>A Keynesian Theory of Investment 235<br/>A Marxian Theory of Wage Determination 235<br/>Solving the Model 236<br/>An Increase in Capitalists’ Propensity to Save 238<br/>An Increase in Capitalists’ Propensity to Invest 240<br/>An Increase in Workers’ Bargaining Power 240<br/>10 What Is To Be Undone? The Economics of<br/>Competition and Greed 242<br/>Free Enterprise Equals Economic Freedom – Not 242<br/>Free Enterprise is Efficient – Not 248<br/>Biased Price Signals 249<br/>Conflict Theory of the Firm 249<br/>Free Enterprise Reduces Economic Discrimination – Not 251<br/>Free Enterprise is Fair – Not 253<br/>Markets Equal Economic Freedom – Not 254<br/>Markets Are Fair – Not 257<br/>Markets Are Efficient – Not 258<br/>What Went Wrong? 261<br/>11 What Is To Be Done? The Economics of Equitable<br/>Cooperation 265<br/>Not All Capitalisms Are Created Equal 265<br/>Taming Finance 266<br/>Full Employment Macro Policies 267<br/>Industrial Policy 268<br/>Wage-Led Growth 270<br/>Progressive Not Regressive Taxes 270<br/>Tax Bads Not Goods 272<br/>A Mixed Economy 272<br/>Living Wages 274<br/>A Safe Safety Net 276<br/>Worker and Consumer Empowerment 277<br/>Beyond Capitalism 278<br/>Replace Private Ownership with Workers’<br/>Self-Management 279<br/>Replace Markets with Democratic Planning 280<br/>Participatory Economics 282<br/>Reasonable Doubts 284<br/>Conclusion 291<br/>Index 293<br/>Contents ix</p></span></span>
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