Monday, December 24, 2018

Ramanan — Michal Kalecki On The Effect Of Wages On Employment


Kalecki quote.

The Case for Concerted Action
Michal Kalecki On The Effect Of Wages On Employment
V. Ramanan

See also
@Brankomilan leads us to this (french) pieceabout Austria. It states that the Austrian government enacted a new law which authorizes working days of 12 hours and working weeks of 60 hours.
A). This is a clear case of retrogression. It’s good to read what, in 1921, the International Labor Office stated in its first annual report….
Real-World Economics Review Blog
Productivity in the Eurozone (and why it matters)
Merijn Knibbe

1 comment:

AXEC / E.K-H said...

The failure of Post-Keynesianism
Comment on V. Ramanan on ‘Michal Kalecki On The Effect Of Wages On Employment’

Kalecki is quoted as follows: “… a wage rise … leads ― contrary to the precepts of classical economics ― to an increase in employment. Conversely, a fall in wages … leads to a decline in employment.”

This statement is correct, however, the underlying macroeconomics is defective. More precisely, Kalecki’s profit theory is provably false. Because of this, the rest of his analytical superstructure is false. Kalecki provides an example for the phenomenon that true statements apparently follow from false theories. In order to sort things out, though, one needs the true theory.

For details see

NAIRU: an exhaustive dancing-angels-on-a-pinpoint blather
https://axecorg.blogspot.com/2017/02/nairu-exhaustive-dancing-angels-on.html

Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2130421

The key relationship between employment and growing/shrinking debt
https://axecorg.blogspot.com/2015/10/the-key-relationship-between-employment.html

Why Post Keynesianism Is Not Yet a Science
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1966438

Truth by definition? The Profit Theory is axiomatically false for 200+ years
https://axecorg.blogspot.com/2018/07/truth-by-definition-profit-theory-is.html

Cross-references Kalecki
https://axecorg.blogspot.com/2015/02/kalecki-cross-references.html

Egmont Kakarot-Handtke