The Long Roots of the Present Crisis: Keynesians, Austerians, and Marx's Law

Carchedi, Guglielmo; Roberts, Michael

doi:10.13169/worlrevipoliecon.4.1.0086

Cited by 21 publications

(7 citation statements)

References 6 publications

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“…This group includes the works of Carchedi & Roberts (2013), Itoh (2012) and Herrera & Andreani (2015). The first two articles engage in a debate against Keynesianism, as a practice of economic policy, while the third article critically dialogues against the well-known book "Capital in the 21st century", by Thomas Piketty.…”

Section: The Theoretical Debatementioning

confidence: 99%

The Debate on the Fiscal Matter in the Contemporary Capitalism Crisis in Light of Critical Political Economy

Toschi,

Mendes,

Carnut

2024

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This article takes stock of how critical political economy authors have discussed the fiscal matter. It deals with the debate on austerity and its consequences in the context of the crisis of contemporary capitalism. A critical systematic review of the literature was conducted using 16 Marxist journals, including some of an interdisciplinary nature. The search strategy was constructed with the free terms: fiscal matter, capitalist crisis and fictitious capital, and crossed with tax reform, fiscal policy, public debt, public bonds, fiscal, taxes and austerity. After the selection processes, 15 articles were chosen and discussed based on three analysis dimensions: 1) the fiscal matter and its theoretical debate and case studies; 2) the fiscal matter and contemporary capitalism, focusing on the themes of financialization, neoliberalism and crisis; 3) fiscal reforms and class struggle, with emphasis on reforms in the most violent global South. Based on the results found in this review, it can be concluded that the transformations of contemporary capitalism reiterate the leading role of fiscal austerity, with reduced spending and debt control. These elements engender a new dynamic for social rights, with intensification of privatization through the capitalist State itself. More than the participation of private capital, mercantilization reflects the dominance of mercantile logic in social logic and the inevitable need for fiscal adjustment, which, on the periphery of capitalism, takes on a permanent character.

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Section: The Theoretical Debatementioning

confidence: 99%

The Debate on the Fiscal Matter in the Contemporary Capitalism Crisis in Light of Critical Political Economy

Toschi,

Mendes,

Carnut

2024

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“…On the other hand, John Maynard Keynes, a renowned economist of the early 20th century, revolutionized macroeconomic theory with his emphasis on government intervention through fiscal policies during times of economic downturn (Skousen, 2015). Keynes argued that during recessions or depressions, market forces alone might not be sufficient to restore economic equilibrium (Carchedi & Roberts, 2013). He advocated for increased government spending and tax cuts to stimulate aggregate demand and counteract the negative effects of a downturn (Makin & Layton, 2021).…”

Section: Zainal Arifin Mustofa Aji Prayitno Eko Sudarmantomentioning

confidence: 99%

Comparative Analysis of Muhammad Umer Chapra and John Maynard Keynes' Perspectives on Fiscal Stimulus in Addressing Economic Crises

Arifin,

Prayitno,

Sudarmanto

2023

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This article presents a comprehensive comparative analysis of the economic perspectives of Muhammad Umer Chapra, an esteemed Islamic economist, and John Maynard Keynes, a renowned Western economist, concerning the concept of fiscal stimulus as an effective measure to address economic crises. By examining their viewpoints, the article explores the divergent approaches and underlying principles in implementing fiscal stimulus policies. Chapra's perspective highlights the importance of ethics, justice, and social welfare in economic decision-making, emphasizing the compatibility of fiscal stimulus with Islamic economic principles. In contrast, Keynesian economics, as advocated by Keynes, emphasizes the role of government intervention and the use of fiscal policies to stimulate aggregate demand and overcome economic downturns. The article critically analyzes the similarities, differences, and potential areas of convergence between these two prominent economists, shedding light on the implications and effectiveness of fiscal stimulus measures in various economic contexts. By understanding and comparing these perspectives, policymakers and economists can gain valuable insights into crafting comprehensive and context-specific approaches to address economic crises and promote sustainable economic growth.

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“…For, as profits rise in the numerator so they rise in the denominator to the same amount but in the opposite direction. By including profits or interest in both the numerator and the denominator of the rate of profit calculation, so an increase in profits is measured as a fall of it, as in Roberts and Carchedi (2018) and Tsoulfidis and Tsaliki (2019).…”

Section: The Fixed Capital Stock and Their Neoclassical Valuationmentioning

confidence: 99%

“…Michael Roberts and Guglielmo Carchedi (2018) observed that their estimates of 'constant capital includes only fixed and not circulating capital because of difficulties of estimating the latter on the basis of the available statistics' (p. 31). Roberts and Carchedi (2018) did not deflate variable capital by turnover and so conflated the rate of S/V and the annual rate of S/V (pp. 13-39).…”

Section: Circulation Time and The Rate Of Profit Discussedmentioning

confidence: 99%

The US rate of profit 1964–2017 and the turnover of fixed and circulating capital

Jefferies

2022

Capital & Class

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This article addresses how Marxist economists have estimated the quantity of fixed and circulating capital advanced in the denominator of the rate of profit calculation. Generally, Marxist economists have used neoclassical fixed capital estimates of opportunity cost, as applied most notably, in the US system of national accounts. These Hulten and Wyckoff measures aggregate the lifetime revenues (both costs and profits) of fixed assets and so grossly over estimate the value of the fixed capital stock. This article applies the Internal Revenue Service Depreciable Assets less Depreciation for a more accurate estimate of the actual quantity of fixed capital advanced. Furthermore, it criticises the absence of a convincing measure of the rate of turnover of Marx’s circuit of capital accumulation M . . . C . . . P . . . C’ . . . M’ in most rate of profit estimates. Developing the work of Bertrand and Fauqueur, this article demonstrates that the cash conversion cycle or net operating cycle mirrors Marx’s circuit. This article applies the cash conversion cycle to Internal Revenue Service Total Corporations data 1964–2017 to estimate the rate of turnover. The article addresses the distinction between unproductive and productive output and develops an estimation of those respective quantities based on Internal Revenue Service data. It combines these elements together to estimate the US rate of profit from 1964 to 2017. It finds that the US rate of profit rose strongly, albeit with dramatic fluctuations, after 2001.

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The Long Roots of the Present Crisis: Keynesians, Austerians, and Marx's Law

Cited by 21 publications

References 6 publications

The Debate on the Fiscal Matter in the Contemporary Capitalism Crisis in Light of Critical Political Economy

The Debate on the Fiscal Matter in the Contemporary Capitalism Crisis in Light of Critical Political Economy

Comparative Analysis of Muhammad Umer Chapra and John Maynard Keynes' Perspectives on Fiscal Stimulus in Addressing Economic Crises

The US rate of profit 1964–2017 and the turnover of fixed and circulating capital

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