December 25, 2018

The failure of Post Keynesianism

Comment on V. Ramanan on ‘Michal Kalecki On The Effect Of Wages On Employment’

Blog-Reference and Blog-Reference

Kalecki is cited as follows: “… a wage rise … leads ― contrary to the precepts of classical economics ― to an increase in employment. Conversely, a fall in wages … leads to a decline in employment.”

This statement is correct, however, the underlying macroeconomics is defective. More precisely, Kalecki’s profit theory is provably false. Because of this, the rest of his analytical superstructure is false. Kalecki provides an example of the phenomenon that true statements apparently follow from false theories. In order to sort things out, though, one needs the true theory.

For details see:
► NAIRU: an exhaustive dancing-angels-on-a-pinpoint blather
► Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
► The key relationship between employment and growing/shrinking debt
► Why Post Keynesianism Is Not Yet a Science
► Truth by definition? The Profit Theory is axiomatically false for 200+ years
► Cross-references Kalecki

Egmont Kakarot-Handtke

Related 'Kalecki and Keynes: The double macroeconomic false start' and 'The magic circuit and how economists got it wrong' and 'Forget Keynes' and 'Keynes and Keynesianism are scientifically worthless'. For details of the big picture see cross-references Keynesianism and cross-references Refutation of I=S.

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