underconsumption again--and Luxemburg

boddhisatva foucault at eden.rutgers.edu
Thu Feb 2 02:04:38 MST 1995




		Mr. Keen,


	I accept your point about the aim of your analysis.  What, though, is
your view of the relationship between the growth in income that an expansion
to full employment will certainly beget, and the movement of that income back
into teh capital stocks of both consumer good, and producer good, firms.  It
seems to me, and perhaps logically so given the target of the ananlysis, that
your model is too static.  I see the result of the dynamics you so clearly
illustrate, as tending to cause inflation rather than bottlenecks, under
socialism.


	Using your model. can you find any parallel between the Stalinist
overinvestment that caused bottlenechs in goods, and the current result of
supply-side overinvestment that has produced bottlenecks in wage growth ?



	peace


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