Re: zero average profit

From: Allin Cottrell (
Date: Thu Jun 12 2003 - 19:22:32 EDT

On Thu, 12 Jun 2003, Rakesh Bhandari wrote:

> >I'm not making a general argument for the effectiveness of
> >Keynesianism.  I'm making the more specific point that a high level of
> >government deficit spending can be expected to lower unemployment.
> >Whether the reduced unemployment is sustainable is a broader
> >social-political issue.
> >
> >The average unemployment rate in the U.S. from 1960:01 to 1969:12 was
> >4.78 percent, not so different from that at the end of the Reagan
> >deficit-spending episode.
> >
> >Allin.
> Yet the lowest unemployment fell to was 5%--and what was the average
> during these huge deficit years...6%, right?--despite massive props
> to effective demand: enormous unsustainable deficits which were
> higher even on an inflation-adjusted, full employment basis than the
> two previous decades; exports as stimulated by a steep competitive
> devaluation (that is, unemployment was exported)....

What's a "steep competitive devaluation"?  How is the U.S. supposed
to have engineered such a thing?  The dollar fell substantially
against the pound, mark and franc over the first half (roughly) of the
1980s, but then rose over the second half, as U.S. unemployment fell.


This archive was generated by hypermail 2.1.5 : Sat Jun 14 2003 - 00:00:00 EDT