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Asia Times Online :: Keynes is dead; long live Marx
The Keynesian view that the government can fine-tune the economy through fiscal and monetary policies to maintain continuous growth is based on the idea that capitalism can be controlled or manipulated by the state and managed by professional economists from government departments in the interest of all. The effectiveness of the Keynesian model is, therefore, based largely on a hope, or illusion; since in reality the power relation between the state and the market/capitalism is usually the other way around. Contrary to the Keynesian perception, economic policy making is more than simply an administrative or technical matter of choice; more importantly, it is a deeply socio-political matter that is organically intertwined with the class nature of the state and the policy making apparatus.
The Marxian theory of unemployment, based on his theory of the reserve army of labor, provides a much robust explanation of the protracted high levels of unemployment than the Keynesian view that attributes the plague of unemployment to the "misguided" or "bad" policies of neoliberalism. Likewise, the Marxian theory of subsistence or poverty wages provides a more cogent account of how or why such poverty levels of wages, as well as a generalized or nationwide predominance of misery, can go hand-in-hand with high levels of corporate profits and/or stock markets than the Keynesian perceptions, which view a high level of wages as a necessary condition for an expansionary economic cycle.

Perhaps more importantly, the Marxian view that meaningful, lasting economic safety-net programs can be carried out only through overwhelming pressure from the masses - and only on a coordinated global scale - provides a more logical and promising solution to the problem of economic hardship for the overwhelming majority of the world population than the neat, purely academic and essentially apolitical Keynesian stimulus packages on a national level.

by das monde on Fri Sep 5th, 2014 at 03:46:53 AM EST
Keynesian liberal democracy having been captured by market ideology, the parties that previously represented working people are exhibiting learned helplessness. It's not like there's a political vacuum to the left of the Second International parties; but nothing seems to find enough support to establish a strong bargaining position. Is this the end of the road, at least provisionally, for the bourgeois democratic model? What forms of organisation can emerge to represent the disenfranchised?

... erm stay tuned, I'll do a third diary in a week or two.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Fri Sep 5th, 2014 at 12:18:36 PM EST
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