Re: Method

["Harry L. Cook" <hlc710@xxxxxxxxxxx>]

Mat,
I appreciate the references, but my main interest at this point is analyzing
our own problem of income distribution in terms of an institutional
framework and within the context of conservative and liberal ideology.
                                    Harry
----- Original Message -----
From: "Forstater, Mathew" <forstaterm@xxxxxxxx>
To: "Harry L. Cook" <hlc710@xxxxxxxxxxx>; "Henry C.K. Liu"
<hliu@xxxxxxxxxxxxxx>; <pkt@xxxxxxxxxxxxxxxx>
Sent: Wednesday, August 28, 2002 8:37 PM
Subject: RE: Method



Harry -

If you are interested in some recent serious work on income and wealth
inequality, you might want to check out Top Heavy by Ed Wolff. Also, for
a grim look at racial wealth disparity, Black Wealth/White Wealth by
Melvin Oliver and Thomas Shapiro is a real eye-opener.  (African
American net wealth is 0.)

For a more 'popular' presentation, Economic Apartheid in America by
Chuck Collins and Felice Yeskel (with United for a Fair Economy), is
very good.

Keynes of course believed that "arbitrary and inequitable distribution
of wealth and incomes" was, along with the "failure to provide for full
employment," one of the two "outstanding faults of the economic society
in which we live" (GT, p. 372).  By showing that savings are the result,
and not the source, of growth, Keynes's theory overthrew one of the
justifications of economic inequality.  Since lower and middle income
earners have a higher propensity to consume, redistribution could even
mean stronger growth.  Keynes also believed that this removed one of the
arguments against lowering interest rates.  If investment responded to
lower interest rates, lower rates could lead to higher savings--contrary
to the received view.

Kalecki is another important economist for Post Keynesians who
contributed to the analysis of income distribution.  The distinction
between wages and profits in terms of both their source and their use is
an important cornerstone of his system.

This list includes some important contributors to analyzing problems of
income distribution.  Your patience will be rewarded.

Mat