 Capitalism, Socialism and Effective DemandEdward Nell Chapter 32 in Nicholas Kaldor and Mainstream Economics, 1991, pp 577-611 from Palgrave Macmillan Abstract: Abstract Comparing capitalism and socialism, it is important to remember that no actual economy is purely one type or another: all are mixtures bearing traces of their national histories, international relations and political compromises. Nevertheless, analytical study is best carried out at an abstract level in terms of pure types; prominent features of actual economies will be identifiable as belonging to one system or another and the logic of these features can be traced in the abstract system of which they are a part, where they have free play and full scope. We will treat capitalism and socialism as such abstract systems, and in doing so will draw on a central theme of Kaldor’s later years, the distinction between ‘demand-constrained’ and ‘resource-constrained’ systems, developed implicitly by Kalecki, but first explicitly defined by Kornai. This distinction requires replacing the scarcity-based theory of value with a Classical approach in which manufacturing prices are largely invariant to changes in demand. Keywords: Real Wage; Informal Sector; Socialist Enterprise; Technical Progress; Aggregate Demand (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-10947-0_32 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-10947-0_32 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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