[Marxism] Ivory Tower Unswayed by Crashing Economy
jbustelo at gmail.com
Thu Mar 5 12:26:18 MST 2009
A NY Times article referred to us by Louis says: "During the 1960s, he
recalled, nearly all economists believed in what was known as the Phillips
curve, which posited that unemployment and inflation were like the two ends
of a seesaw: as one went up, the other went down. Then in the 1970s
stagflation - high unemployment and high inflation - hit. But it took 10
years before academia let go of the Phillips curve."
This reminds me of one of my favorite Peter Camejo shticks from his 1976
presidential campaign. He would talk about going to college and learning
economics and the Phillips curve, and draw a downward sloping line on a
chalkboard (remember those?) or a sheet of paper, representing the
(supposed) inverse relationship between inflation and unemployment. Then he
would put dots in the upper right hand corner of his graph, way away from
the line representing the inflation-unemployment relationship, and say:
"Now they're getting points all over here.
"You know, they says socialism works on paper, but not in real life.
But capitalism doesn't even work on paper."
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