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View Diary: Why do conservatives hate Keynes (55 comments)

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  •  Not dumb, protecting their interests (0+ / 0-)

    as they see them.
    It's not that they don't understand the economics, it's that they have different aims.

    It is true that profits would be higher under a regime of full employment than they are on the average under laissez-faire, and even the rise in wage rates resulting from the stronger bargaining power of the workers is less likely to reduce profits than to increase prices, and thus adversely affects only the rentier interests.  But 'discipline in the factories' and 'political stability' are more appreciated than profits by business leaders.  Their class instinct tells them that lasting full employment is unsound from their point of view, and that unemployment is an integral part of the 'normal' capitalist  system.
    Quote is from paragraph II.4 of Michal Kalecki, "Political Aspects of Full Employment". This very interesting short pamphlet was being much discussed in Britain while I was visiting there a few months ago. It was written by a Polish economist near the end of WWII and is very relevant to our current situation. It's worth reading all the way through.

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