Saturday, April 28, 2012
What level of macro output is most profitable ?
Why is the following question not asked ?
Given the system we have ie a profit driven production system
What level of demand produces the maximum profits ?
No we have no realistic models particularly closed form models
That spit out determinate answers
But the ball needs to get in play here
why would a community of for profit firms not want a profit Max macro policy?
Imagine now what it means that try obviously right now
DON' T want as fast an output recovery as possible here ?
Too much time is wasted repeating the existing pro and con arguments
Vis a vis inflation and employment
When profits are all that interests the most powerful political force in this country
Corporations