Keynesianism, Social Conflict, and Political Economy

This book studies the relationship between social conflict and the rise, establishment and collapse of Keynesianism. It shows not only that Keynesian policies were informed by the need to co-opt working-class struggles, but also that Keynesian concepts reveal the strategic character of the economic discourse vis-a-vis social movements. The author explains the interconnection between the history of the working-class movement, economic theory, the development of economic thought and socio-economicinstitutions of the post-war period (with particular reference to the USA). The conclusion is a critical evaluation of the viability and desirability of a new Keynesianism at the dawn of the new millennium in the context of the global economy and the rise of new social movements. The analysis is developed through an interdisciplinary approach rooted in a non-dogmatic Marxist framework. Cover......Page 1 Contents......Page 6 List of Figures and Tables......Page 9 Preface and Acknowledgments......Page 10 Abbreviations......Page 11 1.1 Conventional wisdom......Page 12 1.2 The social meaning of Keynesianism......Page 14 1.3 The structure of the book......Page 19 2.1 Introduction: economic liberalism before the Keynesian revolution......Page 22 2.2 Social conflict and Keynes' early political intuition......Page 25 3.1 Aggregates and time: the co-ordinates of a new capitalist strategy......Page 34 3.2 Time, crisis, and expectations......Page 40 4.1 Introduction......Page 48 4.2 The attack on working-class power through the elimination of the craft worker......Page 51 4.3 Patterns of insubordination of the mass worker......Page 52 4.4 Ford's five-dollar day and the strategy for the subsumption of the mass worker......Page 55 4.5 Workers' resistance and the decay of the five-dollar day......Page 59 5.2 Social turmoil during the Great Depression......Page 61 5.3 The "crisis of productivity" during the war years......Page 64 5.4 Union bureaucratization and war planning......Page 67 6.1 Introduction......Page 72 6.2 The "danger" lying ahead: the strategic role of economics in class war planning......Page 78 7.1 The theoretical consensus and strategic role of economics in post-war economic planning......Page 86 7.2 A struggle-pushed consensus......Page 93 7.3 The social basis of Keynesianism and its limits: the social "microfoundation" of macroeconomic policies......Page 94 7.4 A general illustration of the social "microfoundation" of macroeconomics......Page 95 7.5 Recognition and co-optation of working-class autonomy: the Taft–Hartley Act......Page 97 7.6 The union contract......Page 99 7.7 The link between work and revenue among unwaged workers......Page 103 7.8 Conclusion......Page 107 8.1 Introduction......Page 108 8.2 The analytical framework of the Neo-classical Synthesis: the IS–LM model......Page 109 8.3 Aggregation, wage rigidity, and working-class power......Page 113 8.4 Wage rigidity, productivity deals, and state planning......Page 115 8.5 Time and expectations: endogenizing "animal spirits"......Page 117 8.6 Adaptive expectations, productivity deals, and state planning......Page 118 9.1 Some methodological remarks......Page 123 9.2 The dissection of the simple income determination model......Page 128 9.3 The Keynesian multiplier and Marxian categories: rate of surplus value and rate of profit......Page 133 9.4 Implicit assumptions and implications of the dissected income determination model: wages and productivity......Page 134 9.5 Implicit assumptions and implications of the dissected income determination model: extention of working time......Page 136 9.6 The social meaning of the Keynesian strategy of employment creation......Page 137 9.7 The social multiplier with public expenditures in a closed economy......Page 138 9.8 The social multiplier in the open economy......Page 140 10.1 Introduction......Page 146 10.2 The Phillips curve and capital's strategies......Page 148 10.3 From cracks to wreckage: class struggle, the crisis of Keynesianism, and the collapse of the Phillips curve......Page 153 11.1 The general features of this book......Page 159 11.2 The new crisis and the process of globalization: general characteristics......Page 161 11.3 Globalization and new social movements......Page 163 11.4 The current crisis and neoliberal opportunism......Page 166 11.5 The current crisis and the Keynesian alternative to neoliberal strategies......Page 168 11.6 What then?......Page 184 Notes......Page 190 References......Page 214 B......Page 229 D......Page 230 G......Page 231 I......Page 232 L......Page 233 N......Page 234 P......Page 235 S......Page 236 U......Page 237 W......Page 238 Z......Page 239 This book studies the relationship between social conflict and the rise, establishment and collapse of Keynesianism. It shows not only that Keynesian policies were informed by the need to co-opt working-class struggles, but also that Keynesian concepts reveal the strategic character of the economic discourse vis-̉-vis social movements. The author explains the interconnection between the history of the working-class movement, economic theory, the development of economic thought and socio-economic institutions of the post-war period (with particular reference to the USA). The conclusion is a critical evaluation of the viability and desirability of a new Keynesianism at the dawn of the new millennium in the context of the global economy and the rise of new social movements. The analysis is developed through an interdisciplinary approach rooted in a non-dogmatic Marxist framework 1. Introduction: The Social Meaning Of Economics -- 2. The Making Of The Keynesianism Of Keynes -- 3. Keynes' Scientific System -- 4. The Mass Worker And Ford's Strategy -- 5. War, Class War, And The Making Of The Social Microfoundations Of Keynesianism -- 6. War Planning And The Rise Of The Keynesian Orthodoxy -- 7. The Institutional Features Of Post-war Keynesianism -- 8. The Theoretical Features Of Post-war Keynesianism -- 9. Economic Modeling And Social Conflict: 1 -- The Fiscal Multiplier -- 10. Economic Modeling And Social Conflict: 2 -- Inflation And The Phillips Curve -- 11. Conclusion: Looking Ahead. Massimo De Angelis. Includes Bibliographical References And Index. This controversial book shows that there is more to economics than dry models and esoteric equations. By investigating the rise and fall of postwar Keynesianism and focusing on the experience of the United States, the author adopts an interdisciplinary approach to show that economics is rooted in the flesh and blood history of social conflict. This timely study concludes with a discussion of the viability of Keynesianism today, in the context of recurrent crisis in the global economy and the rise of new social movements. This controversial new book show that there is more to economics than dry models and esoteric equations. By investigating the rise and fall of post-war Keynesianism and focusing on the experience of the United States, the author adopts an interdisciplinary approach to show that economics is rooted in the flesh and blood history of social conflict. This timely study concludes with a discussion of the viability of Keynesianism today. Shows that there is more to economics than dry models and esoteric equations. The author adopts an interdisciplinary approach to show that economics is rooted in the flesh and blood history of social conflict. Discusses the viability of Keynesianism today in the context of recurrent crisis in the global economy