Re: Re: Re: summary of calculation debate

[Jim Devine <jdevine@xxxxxxxxxxxxxxx>]

At 04:20 PM 7/23/00 -1000, you wrote:
> There is a substantial amount of industry in state hands, some of which
> remains in a state of operation that relies little on profit motive, yet
> there is a clearcut campaign by the CCP to turn state industries into
> market competitive industries to resolve crises of over production that
> are endemic not only in China but most of East Asia at the moment.

given the competitive effort to keep wages down relative to productivity
that's prevailing in East Asia and an increasing fraction of the rest of
the world, wouldn't a "clearcut campaign by the CCP to turn state
industries into market competitive industries" make underconsumption and
thus over-production tendencies worse? it might help with sectoral
problems, but the "race to the bottom" encourages macro problems.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine