[Marxism] Fwd: Investment, investment, investment | Michael Roberts Blog

Louis Proyect lnp3 at panix.com
Sat Feb 20 05:54:29 MST 2016

(I'll have to give this article careful attention but it would seem to 
me that investment is being neglected because there is no demand. Why 
invest in new steel mills when there is not an expanding market in the 
manufactured goods that are based on the output of basic industry like 
steel, rubber, petrochemicals, etc.?)

This blog continually hammers home the view that it is investment not 
consumption that is the key to economic growth.  Fluctuations in 
business investment in a predominantly business, profit-making economy 
decide, in the first analysis, whether output expands or contracts; 
whether there is a boom or slump.  This view is contrary to that of 
Keynesian economics, which although it appears to recognise that 
investment plays an important role, sees investment and consumption 
spending (domestic demand) as driving employment, output and incomes and 
profit – in that order – not vice versa.


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