ECONOMICS AND THE TRADITIONS OF SCARCITY AND DESPAIR

E Ray Canterbery

Chapter 4 in Inequality and Global Supra-surplus Capitalism, 2018, pp 47-53 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Besides laissez faire, a second, not necessarily conflicting tradition, deflected off Adam Smith. Smith had noted how wages had to be somewhat above subsistence for the family to survive. Smith was not categorical about this iron law. He conceded that a scarcity of workers might keep wages above the subsistence level for an indefinite time. Also, wages would rise along with economic growth, a very new concept. While England, according to Smith, was a much richer country (had more wealth) than North America, the wages of labor were much higher in North America than any part of England. Smith’s association of high wages with rapid economic growth was largely lost to the conventional wisdom of scarcity.

Keywords: Capitalism; Production Surpluses; Supra-surpluses; Casino Economy; Inequality; Vita Theory; Great Recession; Subsistence; Minimum Wage; Markup; Kaleckian Power; Stagnation; Innovation; Technological Advance; Income Distribution; Wealth Distribution; Fiscal Policy; Monetary Policy; Incomes Policy; Zero-interest Rate Society; Trump; 2016 Campaign; John Kenneth Galbraith; Conventional Wisdom; Expectations; Budget Shares; Veblenian Demand; Engel's Law; Casino Effect; Economic Power (search for similar items in EconPapers)
JEL-codes: N00 (search for similar items in EconPapers)
Date: 2018
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