RE: Debunking Economics

[Clifford Poirot <cpoirot@xxxxxxxxxxx>]

Indeed, Blaug is very specific in his book that marginal productivity does
not even determine the wage rate. If MP does not even determine the wage
rate, trying to base a theory of distributive justice on MP would be an
extremely tenuous project.

Traditional Public Finance (as opposed to Public Choice Theory) assumes the
presence of an aggregate utility function that includes an expression of
"justice" (i.e. interdependence of utility functions so my utility increases
as the well being of others increases). So society can redistribute income
"after the fact". Though this is more attractive in some ways, it is at
least as intellectually laughable as basing a theory of justice on the MP of
labor and capital.

> -----Original Message-----
> From:	Alan G. Isaac [SMTP:aisaac@xxxxxxxxxxxx]
> Sent:	Wednesday, May 17, 2000 11:06 PM
> To:	Robert Vienneau; Post Keynesian Theory
> Subject:	Re: Debunking Economics
>
> Robert Vienneau wrote:
>
> > I think a lot of economists believe that marginal productivity says
> > something about market outcomes being just or rewarding people for what
> > they contribute. I find that belief silly.
>
> I do not think many economists subscribe to
> marginal productivity justice, but you can
> find a good discussion in McClelland.
> Average productivity justice get occasional
> adherents on the left.
>
> Alan Isaac
>
> PS The cite: McClelland, Peter D.,
> The American Search for Economic Justice
> (NY: Basil Blackwell, 1990).