Parasitic relations with the state are an essential part, obviously, of all known forms of capitalist (un)development, from (de)industrialization patterns in parts of Africa to heavy manufacturing export patterns in parts of Asia to military Keynesianism
in the United States.
Autonomous national economic policy, on which the Keynesianism
of the four social democratic countries had been predicated, was thwarted by the globalization of capital markets, the continued dominance of the dollar and the rise of international monetarism--the rigid linkage of interest rates to price stabilization--as guide to policy.
the Wagner Act, Keynesianism
, and economic regulation) were institutionalized while social justice issues were left largely to the side.
There were particularly marked disputes between those who believed in very active Keynesianism
to boost growth even if it did cause inflation; those who wanted import controls to allow demand to grow without sucking in imports; and those who were starting to argue that macro tools should mainly be used to secure stability in the macroeconomic conditions because it encourages private sector investment and other activity.
The point, then, is that we'd be in much better shape if we were following Reagan-style Keynesianism
The only positive thing we can say about it is that it a version of Keynesianism
Alan is right that a return to Keynesianism
could oppose our present obsession with a failing devotion to monetarism which is slowly destroying our society.
While there is some truth to this narrative, it fails to mention the very important role played by the success of Keynesianism
in promoting economic development.
definitively ended in 1979, following the second oil-price shock of the decade.
Indeed, the revival of old-fashioned Keynesianism
to fight the recession seems to stem more from political expediency than modern economic theory or historical experience, maintain Ira Brannon, former senior advisor to the Treasury, and Chris Edwards, director of Tax Policy Studies at the Cato Institute, Washington, D.
James, for whom Keynesianism
institutionalized a system of capitalist/trade union co-management.
became the economic orthodoxy of the United States and Britain in the 1950s and 1960s.