349 pages

English

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The ABCs of Political Economy , livre ebook

Pluto Press - Robin Hahnel

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349 pages

English

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Extrait

Description

This revised edition of ABCs is a lively and accessible introduction to modern political economy. Informed by the work of Marx, Veblen, Kalecki, Robinson, Minsky and other great political economists, Robin Hahnel provides the essential tools needed to understand economic issues today.

Dispelling myths about financial liberalisation, fiscal austerity, globalisation and free markets, ABCs offers a critical perspective on our present system and outlines clear alternatives for the future.

This second edition applies the analytical tools developed to help readers understand the origins of the financial crisis of 2007, the ensuing 'Great Recession', and why government policies in Europe and North America over the past six years have failed to improve matters for the majority of their citizens. The second edition also helps explain what is causing climate change and what will be required if it is to be resolved effectively and fairly.
List of Illustrations

Preface to the Revised and Expanded Edition

1. Economics and Liberating Theory

2. What Should We Demand from Our Economy?

3. Efficiency and Economic Justice: A Simple Corn Model

4. Markets: Guided by an Invisible Hand or Foot?

5. Microeconomic Models

6. Macroeconomics: Aggregate Demand as Leading Lady

7. Money, Banks and Finance

8. International Economics: Mutual Benefit or Imperialism?

9. Macroeconomic Models

10. What Is to Be Undone? The Economics of Competition and Greed

11. What Is to Be Done? The Economics of Equitable Cooperation

Index

Sujets

Reino Unido

América del Norte

Political economy

United Kingdom

North America

Economics

Great Britain

Union européenne

Royaume-Uni

Europe

Informations

Publié par	Pluto Press
Date de parution	20 novembre 2014
Nombre de lectures	0
EAN13	9781783712069
Langue	English
Poids de l'ouvrage	4 Mo

Informations légales : prix de location à la page 0,6250€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

The ABCs of Political Economy

The ABCs of Political Economy A Modern Approach

Revised and Expanded Edition

Robin Hahnel

First published 2002; revised and expanded edition 2014 by Pluto Press 345 Archway Road, London N6 5AA

www.plutobooks.com

The right of Robin Hahnel to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.

British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library

ISBN 978 0 7453 3498 1 Hardback ISBN 978 0 7453 3497 4 Paperback ISBN 978 1 7837 1206 9 PDF eBook ISBN 978 1 7837 1208 3 Kindle eBook ISBN 978 1 7837 1207 6 EPUB eBook

Library of Congress Cataloging in Publication Data applied for

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental standards of the country of origin.

10 9 8 7 6 5 4 3 2 1

Typeset in Minion by Swales & Willis, Exeter, Devon

Text design by Melanie Patrick Simultaneously printed digitally by CPI Antony Rowe, Chippenham, UK and Edwards Bros in the United States of America

ont

ent

List of Illustrations Preface to the Revised and Expanded Edition

Economics and Liberating Theory People and Society The Human Center Natural, Species, and Derived Needs and Potentials Human Consciousness Human Sociability Human Character Structures The Relation of Consciousness to Activity The Possibility of Detrimental Character Structures The Institutional Boundary Why Must There Be Social Institutions? Complementary Holism Four Spheres of Social Life Relations between Center, Boundary, and Spheres Social Stability and Social Change Agents of History Applications

What Should We Demand from Our Economy? Economic Justice Increasing Inequality of Wealth and Income Different Conceptions of Economic Justice Efficiency The Pareto Principle The Efficiency Criterion Seven Deadly Sins of Inefficiency Endogenous Preferences Selfmanagement

xi xii

1 1 2 2 3 4 5 6 7 8 9 11 11 13 13 14 15

20 20 20 25 33 34 35 38 39 41

vic o n t e n t s

Solidarity Variety Sustainability Weak versus Strong versus Environmental Sustainability A Workable Definition of Sustainable Development Growth Conclusion

Efficiency and Economic Justice: ASimple Corn Model Model 3.1: A Domestic Corn Economy Situation 1: Inegalitarian Distribution of Scarce Seed Corn Autarky Labor Market Credit Market Situation 2: Egalitarian Distribution of Scarce Seed Corn Autarky Labor Market Credit Market Conclusions from the Domestic Corn Model Generalizing Conclusions Economic Justice in the Corn Model Economic Justice, Exploitation, and Alienation Occupy Wall Street Model 3.2: A Global Corn Economy

Markets: Guided by an Invisible Hand or Foot? How Do Markets Work? What Is a Market? The “Law” of Supply The “Law” of Demand The “Law” of Uniform Price The Micro “Law” of Supply and Demand Elasticity of Supply and Demand The Dream of a Beneficent Invisible Hand The Nightmare of a Malevolent Invisible Foot Externalities: The Auto Industry Public Goods: Pollution Reduction

42 43 44 46 47 49 52

53 54 57 57 58 62 64 64 65 66 66 70 72 76 78 79

83 83 83 84 84 87 87 90 92 95 96 99

Green Consumerism The Prevalence of External Effects Snowballing Inefficiency Market Disequilibria Conclusion: Market Failure Is Significant Markets Undermine the Ties That Bind Us

c o n t e n t s vii

Microeconomic Models Model 5.1: The Public Good Game Model 5.2: The Price of Power Game The Price of Patriarchy Conflict Theory of the Firm Model 5.3: Climate Control Treaties Model 5.4: The Sraffa Model of Income Distribution and Prices The Sraffa Model Technical Change in the Sraffa Model Technical Change and the Rate of Profit A Note of Caution Producers and Parasites

Macroeconomics: Aggregate Demand as Leading Lady The Macro “Law” of Supply and Demand Aggregate Demand Consumption Demand Investment Demand Government Spending The Pie Principle The Simple Keynesian Closed Economy Macro Model Fiscal Policy The Fallacy of Say’s Law Income Expenditure Multipliers Other Causes of Unemployment and Inflation Myths about Inflation Myths about Deficits and the National Debt The Balanced Budget Ploy WageLed Growth

101 102 106 106 108 109

112 112 114 118 120 121 130 132 135 140 142 142

147 147 150 152 153 154 155 156 159 160 162 166 169 171 174 176

viiic o n t e n t s

Money, Banks, and Finance Money: A Problematic Convenience Banks: Bigamy Not a Proper Marriage Monetary Policy: Another Way to Skin the Cat The Relationship between the Financial and “Real” Economies The Financial Crisis of 2008: A Perfect Storm

International Economics: Mutual Benefit or Imperialism? Why Trade Can Increase Global Efficiency Comparative, Not Absolute, Advantage Drives Trade Why Trade Can Decrease Global Efficiency Inaccurate Prices Can Misidentify Comparative Advantage Unstable International Markets Can Cause Macro Inefficiencies Adjustment Costs Are Not Always Insignificant Dynamic Inefficiency Why Trade Usually Aggravates Global Inequality Unfair Distribution of the Benefits of Trade between Countries Unfair Distribution of the Costs and Benefits of Trade within Countries Why International Investment Could Increase Global Efficiency Why International Investment OftenDecreases Global Efficiency Why International Investment Usually Aggravates Global Inequality Open Economy Macroeconomics International Currency Markets Aggregate Supply and Demand in the Open Economy Model Income Expenditure Multipliers in the Open Economy Model Capital Flows in the Open Economy Model Monetary Unions and the Eurozone

Macroeconomic Models Model 9.1: Finance Bank Runs International Financial Crises Conclusion Model 9.2: Finance in Real Corn Economies Banks in a Domestic Corn Model Autarky

179 179 181 186 189 193

200 201 202 205 205 207 207 208 209 209

211 214 215 216 219 219 221 221 222 225

228 228 228 231 232 233 233 234

c o n t e n t s ix

Imperfect Lending without Banks Lending with Banks When All Goes Well Lending with Banks When All Does Not Go Well International Finance in a Global Corn Economy Revisited Model 9.3: Macroeconomic Policy in a Closed Economy Model 9.4: Macroeconomic Policy in an Open Economy An IMF Conditionality Agreement with Brazil EC Austerity Policy and Greece Model 9.5: A Political Economy Growth Model The General Framework A Keynesian Theory of Investment A Marxian Theory of Wage Determination Solving the Model An Increase in Capitalists’ Propensity to Save An Increase in Capitalists’ Propensity to Invest An Increase in Workers’ Bargaining Power WageLed Growth

What Is to Be Undone? The Economics of Competition and Greed Myth 1: Free Enterprise Equals Economic Freedom Myth 2: Free Enterprise Promotes Political Freedom Myth 3: Free Enterprise Is Efficient Biased Price Signals Conflict Theory of the Firm Myth 4: Free Enterprise Reduces Discrimination Myth 5: Free Enterprise Is Fair Myth 6: Markets Equal Economic Freedom Myth 7: Markets Are Fair Myth 8: Markets Are Efficient What Went Wrong? Neoliberal Capitalism in Crisis

What Is to Be Done? The Economics of Equitable Cooperation Not All Capitalisms Are Created Equal Keynesian Reforms Taming Finance Reducing Economic Injustice

234 235 235 236 237 243 243 249 251 251 254 255 256 257 258 258 258

260 261 265 267 267 268 269 271 272 275 275 277 279

281 282 282 282 290