Date: Thu, 2 Feb 95 4:04:38 EST From: boddhisatva <foucault-AT-eden.rutgers.edu> Subject: Re: underconsumption again--and Luxemburg Mr. Keen, I accept your point about the aim of your analysis. What, though, is your view of the relationship between the growth in income that an expansion to full employment will certainly beget, and the movement of that income back into teh capital stocks of both consumer good, and producer good, firms. It seems to me, and perhaps logically so given the target of the ananlysis, that your model is too static. I see the result of the dynamics you so clearly illustrate, as tending to cause inflation rather than bottlenecks, under socialism. Using your model. can you find any parallel between the Stalinist overinvestment that caused bottlenechs in goods, and the current result of supply-side overinvestment that has produced bottlenecks in wage growth ? peace ------------------
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