ABCs of Political Economy. Modern Primer

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ABCs of Political Economy. Modern Primer
Contents
List of Illustrations x
Preface xi
Acknowledgements xv
1 Economics and Liberating Theory 1
People and Society 1
The Human Center 2
The Laws of Evolution Reconsidered 2
Natural, Species, and Derived Needs and Potentials 4
Human Consciousness 5
Human Sociability 6
Human Character Structures 7
The Relation of Consciousness to Activity 8
The Possibility of Detrimental Character Structures 9
The Institutional Boundary 10
Why Must There Be Social Institutions? 11
Complementary Holism 13
Four Spheres of Social Life 13
Relations Between Center, Boundary and Spheres 15
Social Stability and Social Change 16
Agents of History 17
2 What Should We Demand from Our Economy? 20
Economic Justice 20
Increasing Inequality of Wealth and Income 20
Different Conceptions of Economic Justice 24
Conservative Maxim 1 24
Liberal Maxim 2 28
Radical Maxim 3 30
Efficiency 31
The Pareto Principle 32
The Efficiency Criterion 33
Seven Deadly Sins of Inefficiency 37
Endogenous Preferences 38
Self-Management 40
Solidarity 41
Variety 42
Environmental Sustainability 43
Conclusion 44
3 A Simple Corn Model 45
A Simple Corn Economy 45
Situation 1: Inegalitarian Distribution of Scarce Seed Corn 49
Autarky 50
Labor Market 50
Credit Market 54
Situation 2: Egalitarian Distribution of Scarce Seed Corn 57
Autarky 57
Labor Market 58
Credit Market 59
Conclusions from the Simple Corn Model 60
Generalizing Conclusions 63
Economic Justice in the Simple Corn Model 67
4 Markets: Guided by an Invisible Hand or Foot? 71
How Do Markets Work? 71
What is a Market? 71
The ¡°Law¡± of Supply 72
The ¡°Law¡± The ¡°Law¡± of Uniform Price 75
The Micro ¡°Law¡± of Supply and Demand 75
Elasticity of Supply and Demand 79
The Dream of a The Nightmare of a Malevolent Invisible Foot 84
Externalities: The Auto Industry 85
Public Goods: Pollution Reduction 88
The Prevalence of External Effects 91
Snowballing Inefficiency 96
Market Disequilibria 97
Conclusion: Market Failure is Significant 99
Markets Undermine the Ties that Bind Us 99
5 Micro Economic Models 103
The Public Good Game 103
The Price of Power Game 106
The Price of Patriarchy 109
Conflict Theory of the Firm 111
vi The ABCs of Political Economy
Income Distribution, Prices and Technical Change 112
The Sraffa Model 114
Technical Change in the Sraffa Model 118
Technical Change and the Rate of Profit 123
A Note of Caution 125
6 Macro Economics: Aggregate Demand as Leading Lady 128
The Macro ¡°Law¡± of Supply and Demand 128
Aggregate Demand132
Consumption Demand133
Investment Demand133
Government Spending 135
The Pie Principle 136
The Simple Keynesian Closed Economy Macro Model 137
Fiscal Policy 140
The Fallacy of Say¡ˉs Law 141
Income Expenditure Multipliers 143
Other Causes of Unemployment and Inflation 147
Myths About Inflation 150
Myths About Deficits and the National Debt 152
The Balanced Budget Ploy 154
Wage-Led Growth 157
7 Money, Banks, and Finance 160
Money: A Problematic Convenience 160
Banks: Bigamy Not a Proper Marriage 162
Monetary Policy: Another Way to Skin the Cat 168
The Relationship Between the Financial and ¡°Real¡±
Economies 171
8 International Economics: Mutual Benefit
or Imperialism? 175
Why Trade Can Increase Global Efficiency 176
Comparative, Not Absolute Advantage Drives Trade 177
Why Trade Can Decrease Global Efficiency 180
Inaccurate Prices Misidentify Comparative
Advantages 181
Unstable International Markets Create Macro
Inefficiencies 182
Adjustment Costs Are Not Always Insignificant 183
Dynamic Inefficiency 183
Contents vii
Why Trade Usually Aggravates Global Inequality 184
Unfair Distribution of the Benefits of Trade Between
Countries 185
Unfair Distribution of the Costs and Benefits of
Trade Within Countries 187
Why International Investment Can Increase Global
Efficiency 190
Why International Investment Can Decrease Global
Efficiency 191
Why International Investment Usually Aggravates
Global Inequality 193
The Balance of Payments Accounts 198
Open Economy Macro Economics and IMF
Conditionality Agreements 201
9 Macro Economic Models 208
Bank Runs 208
International Financial Crises 211
International Investment in a Simple Corn Model 212
Banks in a Simple Corn Model 216
Imperfect Lending Without Banks 216
Lending With Banks When All Goes Well 217
Lending With Banks When All Does Not Go Well 218
International Finance in an International Corn Model 219
Fiscal and Monetary Policy in a Closed Economy Macro
Model 220
IMF Conditionality Agreements in an Open Economy
Macro Model 225
Wage-Led Growth in a Long Run, Political Economy
Macro Model 231
The General Framework 231
A Keynesian Theory of Investment 235
A Marxian Theory of Wage Determination 235
Solving the Model 236
An Increase in Capitalists¡ˉ Propensity to Save 238
An Increase in Capitalists¡ˉ Propensity to Invest 240
An Increase in Workers¡ˉ Bargaining Power 240
10 What Is To Be Undone? The Economics of
Competition and Greed 242
Free Enterprise Equals Economic Freedom ¨C Not 242
viii The ABCs of Political Economy
Free Enterprise is Efficient ¨C Not 248
Biased Price Signals 249
Conflict Theory of the Firm 249
Free Enterprise Reduces Economic Discrimination ¨C Not 251
Free Enterprise is Fair ¨C Not 253
Markets Equal Economic Freedom ¨C Not 254
Markets Are Fair ¨C Not 257
Markets Are Efficient ¨C Not 258
What Went Wrong? 261
11 What Is To Be Done? The Economics of Equitable
Cooperation 265
Not All Capitalisms Are Created Equal 265
Taming Finance 266
Full Employment Macro Policies 267
Industrial Policy 268
Wage-Led Growth 270
Progressive Not Regressive Taxes 270
Tax Bads Not Goods 272
A Mixed Economy 272
Living Wages 274
A Safe Safety Net 276
Worker and Consumer Empowerment 277
Beyond Capitalism 278
Replace Private Ownership with Workers¡ˉ
Self-Management 279
Replace Markets with Democratic Planning 280
Participatory Economics 282
Reasonable Doubts 284
Conclusion 291
Index 293

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关键词：Political politic Economy econom Primer