Re: On Keynes

[Herbert Gintis <gintis@xxxxxxxxxxxxxxx>]

>
>Herb,
>
>You said:
>        ". . . 'wage-led growth' is no longer widely applicable, not because
>         of the globalization of economies and increased openness, but because
>         of novel supply-side constraints."
>
>What are these novel supply-side constraints?
>Eric Nilsson

	No one is sure exactly what they are, except that
environmental  are among them. What I mean is that growth rates, which
were taken for granted in the heyday of social democracy, have become
extremely problematic, and must be addressed as central issues in
macro policy. I suspect that the supply side was unimportant in the
1950's and early 1960's just by fluke accident (post-War recovery?),
and this temporary experience warped our understanding of
macroeconomic priorities. The main priorities are sustainable,
egalitarian growth in living standards. Short-term fluctuations are a
secondary issue and policies for short-run stabilization shouldn't
compromise the long-term goals.

Herb gintis@xxxxxxxxxxxxxxx