Wednesday, February 04, 2015

Chris Dillow on micro and macro efficiencies

In Micro efficient, macro inefficient
"All this poses a question. What sort of economic system does the idea of micro efficiency but macro inefficiency lead to?
We can discount the social democratic option. We know now - as Keynes did not - that macroeconomic policy within market capitalism is not sufficient to create full employment, perhaps for reasons identified by Kalecki or perhaps because capitalists capture the state; still less does it solve the faults alleged by Marxists. Nor am I attracted to the participatory planning of the sort advocated by Robin Hahnel; it seems like using a sledgehammer to crack a nut. This leaves some form (pdf) of market socialism and economic democracy. "
The last links have freely downloadable books.