Re: [OPE] Studying unproductive labor: CEPR report

Date: Thu Feb 28 2008 - 07:58:50 EST

Sorry Rc3/4 URL does not seem to be working at present. Try

still on old site.

David Yaffe

At 12:43 28/02/2008 +0000, you wrote:
>I agree with Dave Z. Military spending while it can lead to the creation 
>of surplus value in its absolute form cannot create  surplus value in its 
>relative form with the consequences that Dave Z argues. An article in this 
>month's (February 2008) Le Monde Diplomatique by Chalmers Johnson of all 
>people shows concretely the effect of arms production on the US economy 
>and proves the point ( ). The 
>theory of the permanent arms economy is totally misconceived as Paul 
>Bullock and myself argued over 30 years ago in Revolutionary Communist 3/4 
>David Yaffe
>At 15:50 27/02/2008 +0100, you wrote:
>>Hi Jerry,
>>I don't agree with their analysis, but I think it is interesting that 
>>they reach a similar conclusion. In the short run military spending 
>>raises demand. But it drains investment in the productive sectors, 
>>reducing the growth of productive capacity of the economy which 
>>determines the long-run development of output and the material living 
>>standard. Moreover, increased arms spending means that more surplus 
>>labour must be pumped out of the workers in the rest of the economy.
>>//Dave Z
>>GERALD LEVY wrote:
>>> > The Economic Impact of the Iraq War and Higher Military Spending
>>> > May 2007, Dean Baker
>>> >
>>> > Quote:
>>> > "Military spending drains resources from the productive economy. For
>>> > this reason, it will typically lead to slower economic growth, less
>>> > investment, higher trade deficits, and fewer jobs."
>>>Hi Dave Z:
>>>The same argument could be extended to the
>>>consequences of just about any increase in government spending.
>>>What is curious here is the apparent lack of recognition that
>>>increased government spending, including increased spending
>>>on the military, can increase employment, income, and
>>>spending in the macro economy.  It's almost as if he is making
>>>a pre-Keynesian claim and thereby failing to recognize the
>>>role that fiscal policy (not to mention the "multiplier") can
>>>play in short-run macroeconomic activity.
>>>In solidarity, Jerry
>>>ope mailing list
>>ope mailing list
>ope mailing list

ope mailing list

This archive was generated by hypermail 2.1.5 : Fri Feb 29 2008 - 00:00:05 EST