pk
"These aren't paper losses like the wealth lost when the dot-com or housing bubble collapsed, wealth that was never real in the first place. We're talking here about valuable products that could and should have been manufactured but weren't,"
ya ya sure sure ...but here comes the bell ringer bit
" wages and profits that could and should have been earned but never materialized. "
wages and PROFITS !!!!
but aren't corporations all about more profits ?
so why not use macro policy for perpetual "high profits "?
kalecki :
"if attempts are made to apply this method in order to maintain the high level of employment reached in the subsequent boom, strong opposition by business leaders is likely to be encountered. As has already been argued, lasting full employment is not at all to their liking. The workers would 'get out of hand' and the 'captains of industry' would be anxious to 'teach them a lesson. Moreover, the price increase in the upswing is to the disadvantage of small and big rentiers, and makes them 'boom-tired.'"
note the petty rentier auxiliaries here
those with net creditor positions
they are easily ralllied to the ban inflation brigades
and once the modus operandi moves
from
reactively fighting inflation
to
actively pre empting inflation
and in particular pre empting whatever causes wages rate change to accelerate
there we are
no hot job markets please !!
-------------------------
but lets look at this "workers will get out of hand " line
the chinaski sydrome
if there's no consequence even to the sack
since fresh jobs are everywhere with a "sellers market in job hours
ie a pro wagelong beveridge ratio
yes
profits are secondary
to the preservation of the system of exploitation
and if some individual capitalists might lose sight of this in a slump
--especially if they are in a solvency crisis ---
the class statesman above the immediate consequences of a slump
know whats what
and rally the money mobs to stop inflation stop nominal rates soaring
stop fiscal and trade deficits intensfying
styop robbing the grand children's children of tomorrow etc etc
instead "mildly " immiserate****
the wage lings of today
**** the fastest possible stablization of a contraction does not imply
next comes the fastest possible recovery
a snailer recovery is better sometimes
like in the 30's and now
so the system "finds" what misery it can tolerate
for a modern economy that loks like 10 %
spain at 25% ?
my guess one or two real horror shows helps make 10% feel not so bad
to the employed 90%
greece on fire ?
well
to prune safety nets and super charge job market structure and dynamics
to improve pro employer skew ..everywhere
the capitalists may have to go to the mattresses somewhere..small ...hopefully
