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