At the present time, however, the aim is not so much to boost demand; after all, production is largely paralysed by the pandemic. Over the course of a career that spanned more than half a century, he wrote twelve academic books, more than twice as many pamphlets intended for general audiences, and hundreds of articles for publications ranging from the Economic Journal to the Daily Worker. Einaudi’s History of Marxism was entirely devoted to the “old” macro-monetary circuitism, from Wicksell to Keynes’s Treatise on Money. Traditional Keynesian steps were an attempt to stimulate demand – and, in turn, business investment – through government spending. If government spending pushes demand above that which can be supplied, then market forces will push up prices across the board – that is, it will generate inflation. State spending ultimately must be paid out of taxation or out of borrowing. (He even taught one comrade how to tie a bowtie.) And this production is ultimately driven by profit. Desperate times call for desperate measures. But what they give to workers in the form of wages subsidies and government spending today, will be taken away through austerity tomorrow. / Image: public domain. These must either fall on the capitalist class, which bites into investment. The anarchy of the market is untouched. Another person might have left the party after receiving such treatment. Or they must fall on the working class, which bites into consumption. When Pollitt objected that he was too young — he had only finished his first year as an undergraduate — Dobb told him, “That’s why you can do it and I can’t.” In the discussion that followed Pollitt’s talk, Dobb did not say a word. Profit, at the same time, however, is appropriated by the capitalists from the unpaid labour of the working class. It is not the state that creates the demand for money, but the needs of capitalist production. The problem is, their arsenals are already empty from their attempts to fight the last recession. The great refutation of Schumpeter to Marx is that, since the latter considered revolution as bringing in the “whole” man as opposed to the modern, alienated one, Schumpeter says that Marx is … The ruling class is throwing everything they have at the situation. Marxism, by contrast, provides a clear, scientific analysis of the capitalist system, its relations and laws, and why these intrinsically lead to crises. Businesses invest, produce, and sell in order to make a profit. Economists had fancied themselves counsellors to the sovereign for centuries, hence the “political” in political economy. Workers can never afford to buy back all the commodities that capitalism produces. He was a masterful debater when he wanted to be. 2017 Political Economy Seminar Series. Easy – just add it to the bill! He joined the University Socialist Society and helped formed a quasi-Communist clique dubbed the Spillikins. Now is not the time for the wiley charms of charlatans and snake-oil salesmen. Yet that was not the only purpose Keynes’ work had been made to serve. He attributed the shift to his recognition of the dangers posed by fascism, which was partially true. For example, all other things being equal, if the government prints two notes where there was one previously, this devalues the currency by half, and therefore prices in the economy will double. Dobb was not the type to keep quiet. He did not reach a settled position on Keynes until after World War II, and even then he was reluctant to make his views known. 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