Re: Dynamics

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> Date: Wed, 19 Oct 1994 03:33:48 -0600
> From: Trond Andresen <Trond.Andresen@xxxxxxxxxxx>
> Subject: Re: Dynamics
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> X-Comment:  POST-KEYNESIAN THOUGHT
>
> > >(Trond  said:)
> > >> >..any non-mathematical person with a minimum of
> > >> >common sense can observe that the real macroeconomic world is ridden
> > >> >with instabilities that are not controlled. Even worse,  some of them
> > >> >are not even _recognized_ by large parts of orthodox economic academia.
> > >>
> > >> (Herb:)    This is not true, Trond.
> > >
> > >
> > >(Me:) I uphold what I said, and I will give an example: In every country of the
> > >world (at lest the 99% of them which are capitalist) the ruling circles
> > >(and the academic economic mainstream) propagandize the need of a
> > >larger share of output to firms (=> increased accumulation), and a
> > >corresponding lower share to employees and the public sector. This to
> > >enhance the competitiveness of the nation. The idea is through this to
> > >conquer a larger part of the world market. This medicine is prescribed
> > >everywhere, but the local elite acts as if no one but their own country
> > >use this strategy. Now, you don't have to have a university degree to
> > >see that this leads to long-range world economic dynamics that are
> > >unstable. This sort of arms race between different nations/firms, will
> > >lead to a depletion of the buying power needed to accomodate what is
> > >supplied to the world market.
> > >
> > (Herb:)   You should model this to prove your point, which is not
> > obvious.
>  ...
> > I still don't see what you're saying about capitalism being
> > unstable as opposed to being subject to violent oscillations.
>
> I mean long-term unstable, at the same time oscillating in
> the short term. In other words, short term oscillations (f.inst.
> business cycles) are perturbations around the long-range unstable path.
> The time scale of this path is in the order of 50 years, and we then of
> course are into the "Kondratieff cycle" discussion.
>
> I have in all modesty ;-) tried to build just the model that Herb asks
> for, and I believe that it in fact proves my point (Herb, however, read
> through an early version a year ago and was not convinced. I believe
> the latest version is more convincing). The model is described in my article
> (excuse me you guys for pushing this for the umpteenth time)
> "Economic Black Holes - The Consequences of Accumulation" *.
>
> > The latter I think is the most we can say, since the system doesn't seem
> > to be heading off the charts anywhere.
>
> Well, I believe that increased worldwide (inside nations, and between
> nations) _economic_polarization_ (which may easily be defined
> quantitavely) is a system state that is unstable ("heading off the
> charts"), and this is the central topic in the article mentioned
> above.
>
> Cheers,
>
> Trond
> -----------------------------------------------
> | Trond Andresen (Trond.Andresen@xxxxxxxxxxx) |
> | Department of Engineering Cybernetics       |
> | The Norwegian Institute of Technology       |
> | N-7034 Trondheim, NORWAY            |
> |                             |
> | phone (work)  +47 73 59 43 58               |
> | fax   (work)  +47 73 59 43 99               |
> | private phone +47 73 53 08 23           |
> -----------------------------------------------
>
> ---------------------------------
> * The article is in
> PostScript format and may be uploaded by ftp from csf.colorado.edu.
> Path name and file name is
>
> /econ/authors/Andresen.Trond/black-hole.ps
>
> I can also send it snail mail to anyone interested. That may be better since
> PS format requires a laser printer that supports PS decoding. Ordinary text
> (like in this list) is not sufficient due to diagrams and equations.
>
>
Trond
Could you please send me a copy snail mail? Many thanks  Basil Moore
c/o Economics Dept. Wesleyan University, Middletown,Ct., 06457, USA