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Socialdem. 21st Century

Bibliography on Marx’s Law of the Falling Rate of Profit

I present below a bibliography on Marx’s Law of the Falling Rate of Profit. The list is not meant to be exhaustive, but includes the most important or interesting discussions.In essence, the text of volume 3 of Capital was taken from the manuscripts of volume 3 from 1864–1865 which were in a draft and fragmentary form (Vollgraf and Jungnickel 2002: 68). Engels began editing volume 3 for publication around 1885 but it took him nearly 10 years before that volume was published in 1894 (Vollgraf...

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Zachariah’s “Labour Value and Equalisation of Profit Rates”: A Critical Review

D. Zachariah’s paper “Labour Value and Equalisation of Profit Rates: A Multi-Country Study” (Indian Development Review 4 [2006]: 1–20) seeks to prove Marx’s Labour Theory of Value (LTV) by examining empirical data on factor input costs and final prices of finished goods from 18 nations in a period from 1968 to 2000. Zachariah concludes that “market prices and labour value of industry outputs are highly correlated for a fairly broad sample of economies” (Zachariah 2006: 18), and that the idea...

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Academic Agent versus “Adam Friended” on Price Inflation and MMT

Academic Agent has got into another row on MMT, but this time with someone called “Adam Friended.”In brief, “Adam Friended” responded to Academic Agent in the following video on the issue of MMT and price inflation:[embedded content]Academic Agent then produced this response on MMT here:[embedded content]Academic Agent is correct that Covid welfare payments and furlough schemes were not the fundamental drivers of inflation in some goods. It is also true that the Western world is far from...

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Reply to Academic Agent on Austrian Economics and Price Rigidity

Academic Agent lost a bet to me on Twitter and was forced to respond to my post here on Austrian economics and the reality of relative price rigidity. He has now produced two videos in this debate.Here is Academic Agent’s first video response to my post:[embedded content]Before he uploaded the video, I predicted that his video would contain the following:(1) he would misrepresent the actual theories of Austrian economics;(2) he would attack straw-man misrepresentations of my post;(3) he...

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Austrians and Full Employment

In this video, the Austrian libertarian “Radical Liberation” claims that “full employment” is not a term used in Austrian economics:[embedded content]While it is true that Austrians rarely speak of “full employment” (which is a very low level of involuntary employment, and does not mean zero unemployment) as a policy goal, the claim that Austrians do not think in terms of the concept of “full employment” is actually rubbish, because Austrians just use expressions such as the “no involuntary...

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Relative Price Rigidity and Austrian Economics

The purpose of this post is to examine and provide a critique of Austrian price theory, and in particular the Austrian denial of relative price rigidity in the real world.In the Austrian economist Ludwig Lachmann’s book Capital, Expectations, and the Market Process (Kansas City, 1977) there is a section where Lachmann reviews John Hicks’s book Capital and Growth (Oxford, 1965).The significance of Hick’s discussion is described by Lachmann:“Two other matters of great significance are dealt...

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Response to Academic Agent on Modern Monetary Theory (MMT) Part 2

Academic Agent had a livestream here criticising my blog post that was a critique of his original video against MMT:[embedded content]This stream is a train wreck. Academic Agent and his Austrian-school libertarians struggle to even accurately grasp Modern Monetary Theory (MMT).I will not correct all the errors and misrepresentations here, or bother to correct every strawman argument.But, first of all, let us just provide a knockout blow to Academic Agent and his minions. Throughout the...

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A Refutation of Academic Agent’s “Debunking Modern Monetary Theory (MMT)”

Academic Agent – a YouTube libertarian and unusually ignorant advocate of Austrian economics – tries to refute Modern Monetary Theory (MMT) in this video:[embedded content]Let us run through this video and refute Academic Agent’s arguments point by point:(1) Academic Agent fails to Refute the Three Core Principles of MMT There are three fundamental principles in Modern Monetary Theory (MMT), as follows:(1) Most sovereign governments today are the monopoly issuers of their own fiat currencies...

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Academic Agent on Excess Capacity

The libertarian “Academic Agent” examines the concept of excess capacity here:[embedded content]First, Academic Agent is utterly wrong to claim that Austrian theory is only looking at the “price of a good across a whole economy,” and that my analysis of how real-world individual firms behave is somehow irrelevant to Austrian theory.Austrian economics has a “Theory of the Firm,” just like Neoclassical economics, and Austrian theory says the average firm should be engaged in flexible pricing...

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Steve Keen on Keynes and Keynesianism

This is an older and short video in which Steve Keen is interviewed, and gives a short summary of Keynes’ economic ideas:[embedded content]An important issue is Steve Keen’s point that Neoclassical synthesis Keynesianism was a misguided and distorted development of the General Theory and Keynes’ later articles, even though Keynes did allow this to happen in Chapter 18 of the General Theory, where he played down the role of uncertainty (as had been stressed in Chapter 12). As King notes, if...

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