RE: [OPE] class illusions about the crisis and the state[MESSAGE NOT SCANNED]

From: Paul Cockshott <>
Date: Sun Dec 28 2008 - 15:07:38 EST

 Keynes's economic prescriptions were based very much on the idea that you had an autonomous national economy, in which the state could use various legal and financial levers to channel capital into productive, job-creating investment. But that doesn't apply anymore to such a large extent, under conditions of:
- fairly free international mobility of money-capital and investment capital
- increased privatisation and sub-contracting to private enterprise
One has to ask whether this will necessarily survive the financial crisis and recession.
- a reduced role of the productive sector in the economy, and internationalized product-chains
It is clear from general political discourse in the UK that there is a desire to reverse this. Mandelsons long speach to the Royal Instititute for International Affairs on the 7th December
was very elightening on this.
- financial punishment for private initiative with regulations, taxes and the power of big business dominating markets
- the growing power of an ageing rentier class owning very large amounts of non-productive assets
Which are becoming more and more worthless now!
All that really remains of Keynes proper, is the idea that the state has an obligation to create jobs, and bail out business to the extent that not doing so would threaten the whole economic order.
I think you have to factor in the effect of big changes in exchange rates

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Received on Sun Dec 28 15:09:27 2008

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