,>MS & ,CAPITAL 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,S\RCE3 ,KURASJE ,>*IVE2 
,FIR/ ,PUBLI%$3 ,PAUL ,MATTICK1 ,REVIEW ,>TICLE3 ,>MS & ,CAPITAL1 ,9T]NATIONAL ,SOCIALISM 7#a/ S]IES71 ,NO4#c#d1 ,AUTUMN #a#i#f#h2 
,TRANSCRIB$3 BY ,&Y ,BLUND51 = M>XI/S4ORG #b#c4 

,BECAUSE GOV]NM5T 9T]V5TIONS 9 ! ECONOMY 5SUR$1 = ALMO/ TWO DECADES1 ! GR[? ( PRODUCTION & TRADE1 IT FO/]$ ! ILLUSION ?AT A WAY HAD BE5 F\ND TO BREAK CAPITALISM'S SUSCEPTIBILITY TO CRISIS & DEPRESSION4 ,! FISCAL & MONET>Y MEANS EMPLOY$ W]E SE5 AS DEGREES ( 'PLANN+1' ASSUR+ FULL EMPLOYM5T & SOCIAL /ABILITY4 ,H[EV]1 9 VIEW ( ,AM]ICA'S P]SI/5T ECONOMIC /AGNATION & ! LEVEL+-(F ( ! ,WE/ ,EUROPEAN EXPANSION1 A NEW DISILLUSIONM5T HAS SET 94 ,IT CANNOT V]Y WELL BE MA9TA9$ ?AT ! 9CREAS+ DIFFICULTIES ( ! CAPITALI/ SY/EM >E PLANN$' DIFFICULTIES4 ,:]EAS ! LEFT-,KEYNESIANS M]ELY RESPOND TO ?IS SITUATION ) ! DEM& = MORE EXT5SIVE GOV]NM5T 9T]V5TIONS1 ! PROP] ,KEYNESIANS ADVOCATE A 'REV]SAL' ( ,KEYNESIAN POLICIES1 ?AT IS1 DEFLATION>Y MEASURES & A *ANGE ( EMPHASIS FROM ! PUBLIC TO ! PRIVATE SECTOR ( ! ECONOMY4 ,KIDRON'S BOOK.<#a.> 5T]S ?IS DISCUSSION1 AL?\< FROM AN 5TIRELY DIFF]5T ANGLE4 ,HE HOLDS '?AT ,M>X'S ATTEMPT TO GRASP ! WORK+S ( ! SY/EM IS NEI!R LAU<ABLE NOR HOLY4 ,ALL[ANCE MADE = ITS PRIMITIV5ESS1 IT CAN BE US$ TO EFFECT4' 

,IT IS FROM A MORE 'UP-TO-DATE-,M>XISM1' !N1 TAT ,KIDRON APPROA*ES REC5T ,WE/]N CAPITALI/ DEVELOPM5T & SPECULATES AB\T ITS FUR!R PROSPECTS4 ,HE PO9TS FIR/ TO ! OBVI\S1 NAMELY1 ?AT ,WE/]N CAPITALISM 'CANNOT BE UND]/OOD EXCEPT 9 T]MS ( ! WORLD SY/EM1 & P>TICUL>LY 9 T]MS ( ITS COMPETITIVE RELATIONS ) /ATE-CAPITALISM1' & !N PROCE$S TO EXPLA9 ?AT ! REC5T UPSW+ WAS CAUS$ NOT SO MU* BY ! 'PLANN+' ACTIVITIES ( GOV]NM5T & BIG BUS9ESS AS BY ! >MS ECONOMY4 ,:ILE ACKN[L$G+ CAPITALI/ SUCCESSES1 HE IS C]TA9 ?AT !Y >E ( A TEMPOR>Y NATURE4 

,HAV+ BE5 ASK$ TO COMM5T ON ,KIDRON'S BOOK1 ,I F9D MYSELF 9 ! CURI\S POSITION ( AGREE+ ) MO/ ( HIS F9D+S & ! CONCLUSIONS DRAWN FROM !M1 )\T1 H[EV]1 %>+ ! >GUM5TS :I* SUPPORT HIS POSITION4 ,:ILE AGREE+ ) ,KIDRON TAT NEI!R 'PLANN+' NOR ! >MS ECONOMY (F] SOLUTIONS TO ! 9H]5T CONTRADICTIONS ( CAPITAL PRODUCTION1 & ?AT1 CONSEQU5TLY1 ! CLASS /RUGGLE BETWE5 LABOR & CAPITAL WILL CONT9UE TO DET]M9E SOCIAL DEVELOPM5T1 ,I DISAGREE WIT SOME ( ! !ORETICAL >GUM5TS BR\<T =? TO SU/A9 !SE COMMON CONVICTIONS4 ,! DISAGREEM5TS >E BAS$ ON MY MAK+ LESS ALL[ANCE = ! 'PRIMITIV5ESS' ( ,M>X'S !ORY4 

,IT SEEMS TO ME1 TO BEG9 )1 ?AT ,KIDRON GIVES MORE CR$IT TO ! APOLOGI/S ( CAPITALI/ 'PLANN+' ?AN IS NECESS>Y4 ,AL?\< HE DOES NOT %>E !IR EXCESSIVE & UNW>RANT$ 5?USIASMS1 HE AGREES1 ?AT1 9 COMB9ATION WIT GOV]NM5T PLANN+1 'SY/EMATIC BUS9ESS PLANN+ IS BO? V]Y IMPORTANT & V]Y REC5T4' ,BUS9ESS HAS ALWAYS BE5 'PLANN$1' H[EV]1 & GOV]NM5TS HAVE ALWAYS S]V$ ! 9DIVIDUALLY 'PLANN$' BUS9ESS SOCIETY4 ,IT IS PRECISELY ?IS 'PLANN+' ( 9DIVIDUAL BUS9ESSES :I* EXPLA9S ! G5]AL CAPITALI/ AN>*Y4 ,ALL ?AT CAN BE NOT$ 9 ?IS RESPECT IS ?AT 9DIVIDUAL BUS9ESSES >E N[ L>G] & MORE CONC5TRAT$ & ?AT1 CONSEQU5TLY1 !IR 9TEGRATION ) GOV]NM5T IS MORE DIRECT ?AN IT US$ TO BE4 ,BUT ! CONTRADICTION BETWE5 BUS9ESS RATIONALITY & SOCIAL IRRATIONALITY REMA9S & EXCLUDES :AT C\LD BE DESIGNAT$ AS 'PLANN+4' 

,9 ,KIDRON'S VIEW1 CAPITALI/ 'PLANN+' *ANGES TO SOME EXT5T ! *>ACT] ( ! CAPITALI/ SY/EM4 ',F9AL US]S1' HE WRITES1 '>E SOMETIMES SO L>GE1 & ! PRODUCTS !Y REQUIRE SO COMPLEX & CO/LY1 ?AT MANY ( !SE HAVE CEAS$ TO BE COMMODITIES 9 ANY REAL S5SE & BECOME UTILITIES1 OR 9 ,M>X'S T]M9OLOGY1 :]E ! DI/9CTION IS CLE> BECAUSE IT IS CRUCIAL TO HIS ANALYSIS1 !Y HAVE *ANG$ FROM VALUES TO USE-VALUES4' ,BUT ALL ?AT ,KIDRON SAYS H]E IS ?AT AN 9CREAS+ P>T ( PRODUCTION HAS BECOME WA/E-PRODUCTION & DOES NOT 5T] ! CAPITALI/ CIRCULATION & PR(IT-REALIZATION PROCESS4 ,!RE WAS ALWAYS WA/E-PRODUCTION1 ( C\RSE1 ?AT IS1 COMMODITIES :I* F\ND NO BUY]S ON ! M>KET4 ,AL?\< !SE COMMODITIES HAD POT5TIAL USE-VALUES1 !Y C\LD NOT TURN 9TO SU* BECAUSE !Y FAIL$ TO TAKE ON ! PRESUPPOSITIONAL =M ( EX*ANGE-VALUE4 ,?IS IS A CAPITALI/ DIFFICULTY1 :I* HAS N[ TAK5 ON GIGANTIC PROPORTIONS1 BUT IT CANNOT BE REG>D$ AS AN ASPECT ( 'PLANN+4' 

,IT IS NOT 'PLANN+1' H[EV]1 :I* EXPLA9S HI< EMPLOYM5T & SOCIAL /ABILITY = ,KIDRON4 ,NEI!R DOES HE F9D ! EXPLANATION 9 TE*NICAL 9NOVATIONS & ! EXPANSION ( TRADE BECAUSE1 9 HIS VIEW1 BO? 'CANNOT CLAIM AN EXEG5\S 9DEP5D5T EXI/5CE4' ,MORE IMPORTANT ?AN ALL !SE FACTORS IS ! 9CREASE ( EMPLOYM5T ?R\< ! TRANS=MATION ( ! CAPITALI/ 9TO AN >MS ECONOMY4 ,! LATT]1 TOO1 HE SAYS1 IS ( A CONTRADICTORY NATURE1 BECAUSE '9 SO F> AS CAPITAL IS TAX$ TO SU/A9 EXP5DITURES ON >MS IT IS DEPRIV$ ( RES\RCES ?AT MI<T O!RWISE GO T[>DS FUR!R 9VE/M5T2 9 SO F> AS EXP5DITURE 9 >MS IS EXP5DITURE ON A FA/-WA/+ 5D-PRODUCT IT CON/ITUTES A NET ADDITION TO ! M>KET = 05D0 GOODS4' 

,?IS IS NOT SO1 H[EV]1 & ! CONTRADICTIONS ( ! >MS ECONOMY MU/ BE LOOK$ = ELSE:]E4 ,>MS PRODUCTION 7& ALL ?AT GOES ) IT7 DOES NOT APPE> AS '5D' GOODS ON ! M>KET4 ,GOV]NM5TS EI!R TAX OR BORR[ PRIVATE RES\RCES & 9DUCE PRIVATE 5TREPR5EURS TO PRODUCE >MAM5TS4 ,!IR PRODUCTION CO/S & PR(ITS1 ?\< PAID BY ! GOV]NM5T1 >E PAID \T ( !IR [N CONTRIBUTIONS TO ! GOV]NM5T BY WAY ( TAXES OR LOANS - ! LATT] M]ELY IMPLY+ DEF]R$ TAXATION4 ,LOOK$ UPON FROM ! PO9T ( VIEW ( SOCIETY AS A :OLE1 NOT FROM ?AT ( ! 9DIVIDUAL >MS PRODUC]1 ! >MS ECONOMY REMOVES ?R\< ITS GR[? AN 9CREAS+ P>T ( '5D' GOODS FROM ! M>KET & !REBY DIM9I%ES PRODUCTIVE 7PR(ITABLE7 9VE/M5TS4 ,9/EAD ( ! ACCUMULATION ( CAPITAL !RE IS ! ACCUMULATION ( ! NATIONAL DEBT4 

,! ABS5CE ( NON-PR(ITABLE >MS PRODUCTION W\LD NOT BY ITSELF1 ( C\RSE1 9CREASE ! RATE ( 9VE/M5T ( PR(IT-PRODUC+ CAPITAL ON :I* ! REAL CAPITALI/ PROSP]ITY DEP5DS4 ,! FACT IS1 H[EV]1 ?AT A DECL9+ RATE ( CAPITAL EXPANSION =CES GOV]NM5TS TO SUPPLEM5T PRODUCTION = ! M>KET ) WA/E-PRODUCTION 9 ORD] TO SECURE HI< EMPLOYM5T & SOCIAL /ABILITY4 ,BUT ?IS IS A CAPITALI/ EXP5SE1 9DICAT+ ! PREVAL5CE ( HIDD5 CRISIS CONDITIONS1 :I* CAN ONLY1 APP>5TLY1 & ONLY = A TIME1 BE OV]COME BY AN EXT5SION ( ! CR$IT ME*ANISM BY WAY ( GOV]NM5T BORR[+S1 :I* F9DS ITS [N LIMITATIONS 9 ! RELATIVELY DECL9+ PR(IT-PRODUC+ SECTOR ( ! ECONOMY4 

,KIDRON ASSUMES ?AT >MS PRODUCTION DOES NOT AFFECT ! RATE ( PR(IT BECAUSE IT FALLS 9TO ! CATEGORY ( LUXURY PRODUCTION4 ,QUOT+ ,P4 ,SRAFFA1 HE SUGGE/S ?AT BECAUSE LUXURY GOODS >E NEI!R 9/RUM5TS ( PRODUCTION NOR >TICLES ( SUBSI/5CE 444 & ?US HAVE NO P>T 9 ! DET]M9ATION ( ! SY/EM1 ! PRICE RELATIONS = PRODUCTS ( PRODUCTION & CONSUMPTION REMA9 UNAFFECT$ & ?US ALSO ! RATE ( PR(IT BY :ATEV] OCCURS 9 ! SPH]E ( LUXURY PRODUCTION4 ,>MS PRODUCTION1 ,KIDRON WRITES1 'IS ! KEY1 & SEEM+LY P]MAN5T1 (FSET TO ! 0T5D5CY ( ! RATE ( PR(IT TO FALL40' 

,FROM A ,M>XIAN PO9T ( VIEW1 H[EV]1 IT IS ! T5D5CY ( ! RATE ( PR(IT TO FALL :I* IS ! KEY TO ! EXT5SION & ! LIMITATIONS ( ! >MS ECONOMY4 ,9 A WAY1 IT IS ( C\RSE TRUE ?AT LUXURY GOODS DO NOT AFFECT ! RATE ( PR(IT1 = !Y CON/ITUTE P>T ( ! PR(ITS REALIZ$ ON ! M>KET4 ,! PR(ITS FALL+ TO CAPITAL CAN BE EI!R FULLY CONSUM$ 79CLUD+ LUXURY GOODS71 OR CAN BE P>TLY RE9VE/$ 9TO ADDITIONAL CAPITAL4 ,:5 !RE IS NO RE9VE/M5T - EV]Y?+ ELSE REMA9+ ! SAME - ! ORGANIC COMPOSITION ( CAPITAL WILL NOT RISE & ! RATE ( PR(IT WILL NOT FALL4 ,A NON-ACCUMULAT+ CAPITAL1 H[EV]1 IS A CAPITALISM 9 CRISIS1 = IT IS ONLY ?R\< ! EXPANSION ( CAPITAL ?AT ! M>KET DEM& SUFFICES = ! REALIZATION ( PR(ITS MADE 9 PRODUCTION4 ,SIMPLE REPRODUCTION1 :]E ALL SURPLUS-VALUE IS DIRECTLY CONSUM$ BY ! CAPITALI/S1 IS NOT CAPITALI/ PRODUCTION4 ,AL?\< POSSIBLE AS AN EXCEPTION1 AS A P]MAN5T CONDITION IT W\LD SIGNAL ! 5D ( CAPITAL PRODUCTION1 I4E41 ! 5L>GEM5T ( ! TOTAL CAPITAL OV] ! 9ITIALLY-GIV5 CAPITAL 9 EA* PRODUCTION CYCLE4 ,:5 ALL PR(ITS NOT CONSUM$ BY ! CAPITALI/S W\LD GO 9TO >MS PRODUCTION1 CAPITAL W\LD CEASE TO ACCUMULATE & ! SY/EM ( PRODUCTION W\LD CEASE BE+ CAPITALI/ PRODUCTION4 ,IT IS = ?IS REASON ?AT >MS PRODUCTION F9DS ITS LIMITS 9 ! RATE ( ACCUMULATION1 :ILE ! LATT] F9DS ITS [N LIMITS 9 ! RATE ( PR(IT4 

,TO SECURE ADEQUATE PR(IT RATES REQUIRES A RAPID 9CREASE ( RELATIVE SURPLUS-VALUE ?R\< TE*NICAL DEVELOPM5TS :I* MU/1 AT ! SAME TIME1 9CREASE ! TOTAL VALUE ( CAPITAL & ITS ORGANIC COMPOSITION4 ,:ILE PRODUCTION GR[S 9 ! >MS ECONOMY1 ! PRODUCTION ( PR(IT RELATIVE TO TOTAL PRODUCTION DECL9ES MORE RAPIDLY ?AN BE=E1 :I* DEM&S A /ILL FA/] 9CREASE ( RELATIVE SURPLUS-VALUE4 ,AS LONG AS ! PRODUCTIVITY ( LABOR CAN BE SUFFICI5TLY 9CREAS$ SO AS TO MA9TA9 ! REQUIR$ RATE ( PR(IT & >MS PRODUCTION1 ! LATT] IS 9DE$ ! CAUSE ( HI< EMPLOYM5T & SOCIAL /ABILITY4 ,BUT ! PROCESS IS SELF-DEFEAT+4 ,TO COPE ) ! EXP5SE ( >MS PRODUCTION1 ! EXPLOITABILITY ( LABOR MU/ /EADILY BE RAIS$4 ,?IS MEANS A HI<] ORGANIC COMPOSITION ( CAPITAL & A DECL9E 9 ! EXPLOITABLE LABOR =CE RELATIVE TO ! GR[+ CAPITAL4 ,TO MA9TA9 A /ATE ( HI< EMPLOYM5T 9DEF9ITELY1 >MS PRODUCTION MU/ 9CREASE FA/] ?AN TOTAL PRODUCTION4 ,BUT ?IS IMPLIES ! SL[ DET]IORATION ( PRIVATE CAPITAL EXPANSION :I* CAN ONLY BE HALT$ BY HALT+ ! EXT5SION ( ! >MS ECONOMY4 

,KIDRON1 TOO1 F9DS ! >MS ECONOMY VULN]ABLE BUT = REASONS O!R ?AN ?OSE ?AT FOLL[ FROM ,M>X'S ANALYSIS ( CAPITAL ACCUMULATION4 ,HE LOOKS = ITS PRES5T /R5G? & POSSIBLE FUTURE WEAKNESS 9 COMPETITION1 P>TICUL>LY1 9 ! COMPETITIVE 9CREASE ( >MS PRODUCTION4 ,:ILE COMPETITION CAN EXPLA9 MANY ?+S1 ACCORD+ TO ,M>X1 IT IS ITSELF 9 NE$ ( EXPLANATION4 ,?IS IS F\ND 9 ! VALUE ANALYSIS ( CAPITAL PRODUCTION4 ,BUT ,KIDRON DOES NOT P5ETRATE TO ?IS BASIC LEVEL ( 9VE/IGATION4 

,>MS PRODUCTION IS SE5 BY ,KIDRON AS A '/ABILIZ]4' ,IT HAS A 'DOM9O EFFECT1' = ONCE />T$ 9 ONE C\NTRY1 HE SAYS1 'IT PROLIF]ATES 9EXORABLY ?R\< ! SY/EM1 COMPELL+ ! O!R MAJOR ECONOMIES TO 5T] A COMPETITIVE >MS RACE1 & SO PUTT+ !M 9TO ! /ABILIZ]'S SPH]E ( OP]ATIONS4' ,UND] !SE CONDITIONS1 & = O!R REASONS :I* WILL BE IGNOR$ H]E1 HI< EMPLOYM5T & /ABILITY BECOME EV]Y:]E DEP5D5T ON >MS PRODUCTION4 ,! G5]AL RESPONSE TO ?IS NECESSITY1 ,KIDRON WRITES1 'CON/ITUTES A SY/EM :OSE ELEM5TS >E BO? 9T]DEP5D5T & 9DEP5D5T ( EA* O!R1 HELD TOGE!R BY MUTUAL COMPULSION - 9 %ORT1 A TRADITIONAL CAPITALI/ SY/EM4' ,AL?\< ,KIDRON /ATES ?AT NO >MS BUDGET 'WAS EV] ADOPT$ ANY:]E AS A MEANS ( SECUR+ AN 9T]NATIONAL 5VIRONM5T CONDUCIVE TO /ABILITY1' 9 HIS OP9ION IT HAS ?IS EFFECT NONE!LESS4 

,YET1 ,KIDRON CONT9UES1 >MS PRODUCTION YIELDS NOT ONLY /ABILITY BUT ALSO 9/ABILITY4 ',! >MS BUDGET'S FLEXIBILITY AS A /ABILIZ] )9 EA* NATIONAL ECONOMY1' HE WRITES1 'IS SET AT RISK BY ITS M$IATION BETWE5 ECONOMIES4' ,AL?\< UNTIL N[1 9 HIS VIEW1 '! WEI<T ( ! >MS ECONOMY HAS BE5 ON ! SIDE ( /ABILITY1 *>G+ & RE*>G+ ! MORE IMM$IATE CAUSES ( HI< EMPLOYM5T & WELL-BE+1' ?IS SITUATION IS LIABLE TO *ANGE4 ,BECAUSE A NATION'S >MS 9CREASE 9VITES RETALIATORY MEASURES BY O!R NATIONS1 ! 5SU+ >MS ESCALATION MAY OV]%OOT ! PO9T :]E /ABILITY IS SECUR$4 ,ALSO ! NE$ TO COMPETE '9 DE/RUCTIVE POT5TIAL AS WELL AS 9 MORE TRADITIONAL =MS1' MAY 9DUCE A DE/ABILIZ+ R$UCTION ( >MS PRODUCTION4 ,BECAUSE NATIONAL PRODUCTION RES\RCES >E LIMIT$1 ! >MS RACE LEADS TO UNEV5 GR[? = DIFF]5T NATIONS1 !REBY PRODUC+ A CON/ANTLY *ANG+ 9T]NATIONAL BALANCE ( MILIT>Y & ECONOMIC P[] :I* ACCEL]ATES ! WORLD'S 9CREAS+ 9/ABILITY4 ,MOREOV]1 ! GR[+ SPECIALIZATION ( MILIT>Y TE*NOLOGY DEPRIVES IT ( SOME ( ITS /ABILIZ+ FEATURES4 ,CEIL+S >E SET ON >MS PRODUCTION 9 FAVOR ( RECESSIONAL POLICIES & ! CAPITALI/ ADVANTAGES /EMM+ !REFROM4 ,KIDRON ALREADY NOTICES A 'DECL9+ TR5D 9 WE/]N >MS EXP5DITURES - AS A PROPORTION ( GOV]NM5T SP5D+1' A DROP :I* IMPLIES ! RETURN ( 9/ABILITY4 

,ACCORD+ TO ,KIDRON1 IT IS COMPETITION - G5]AL1 AS WELL AS ) REG>D TO >MS PRODUCTION - :I*1 :ILE AT FIR/ BR++ =? SOME K9D ( NATIONAL & 9T]NATIONAL /ABILITY1 DE/ROYS IT AT A LAT] /AGE ( DEVELOPM5T4 ,! OLD CRISIS ME*ANISM AS 'EQUILIBRIUM ME*ANISM' HAS BE5 SUP]S$$1 BY WAY ( >MS PRODUCTION1 BY A NEW 'EQUILIBRIUM ME*ANISM' :I* IS ALSO A CRISIS ME*ANISM4 ,& ?IS IS1 ( C\RSE1 TRUE BUT CANNOT BE D$UC$ FROM ! M]E FACT ( CAPITAL COMPETITION1 :I* ONLY EXT]NALIZES ! IMMAN5T1 BUT HIDD51 CONTRADICTIONS ( CAPITAL PRODUCTION4 

,HAV+ 9 ?IS MANN] DEALT ) REC5T EXP]I5CES1 ,KIDRON TURNS TO ! PROBLEMS SET BY !M4 ,HE NOTICES1 FIR/1 /EADY RISES 9 PRICES4 ,AL?\< !Y ROSE = DIFF]5T REASONS AT DIFF]5T TIMES1 !IR EXPLANATION1 HE SAYS1 'NE$S TO TAKE 9 MORE ?AN SIMPLE PRESSURE ( DEM&4' ,HE ?9KS ?AT ! ADDITIONAL FACTORS '>E BASICALLY 9/ITUTIONAL1' BECAUSE BIG FIRMS CONTROL !IR [N PRICES4 ,BEYOND ?AT1 WORK]S1 ) OR )\T ! CONNIVANCE ( BIG BUS9ESS1 W]E ABLE TO RAISE !IR WAGES & (T5 'WELL BEYOND PRODUCTIVITY 9CREASES 9 ! ECONOMY AS A :OLE4' ,?IS HAS BE5 POSSIBLE1 9 P>T1 BECAUSE 9 ! DYNAMIC SECTORS ( ! ECONOMY 'EV]-SMALL] BODIES ( WORK]S >E ABLE TO WIELD EV]-L>G] 9FLU5CE AS WAGE PACE-MAK]S4' ,HI< WAGES & HI< PR(ITS ?US GO H&-9-H& & MAKE = HI<] PRICES4 ,IF ?IS W]E SO1 !RE W\LD BE NO PROBLEM4 ,CAPITALI/ICALLY1 H[EV]1 HI<] PRICES MAKE S5SE ONLY :5 !Y ALT] ! DI/RIBUTION ( 9COME BETWE5 LABOR & CAPITAL4 ,PRICES RISE NOT BECAUSE WAGES >E HI<1 BUT 9 ORD] TO L[] !M4 

,AL?\< ,KIDRON CR$ITS ! >MS ECONOMY ) ECONOMIC /ABILITY1 HE DOES NOT SEE CLE>LY ITS CLOSE CONNECTION ) ! RISE ( PRICES4 ,! FACT1 H[EV]1 ?AT TAXES DO NOT AFFECT PR(ITS %\LD 9DICATE ?AT ! CO/S ( >MS PRODUCTION >E 9 P>T (FSET BY WAY ( PRICE 9CREASES & 9 ?IS MANN] DI/RIBUT$ OV] ! :OLE ( SOCIETY4 ,! RISE ( PRICES MU/ EXCE$ ! RISE ( WAGES1 = IF ?IS W]E NOT ! CASE1 PR(ITS W\LD DIM9I% &1 TO ?AT EXT5T1 >MS PRODUCTION4 ,! 9CREASE ( ! LATT] REQUIRES CON/ANTLY 9CREAS+ PRICES DESPITE ! 9CREAS+ PRODUCTIVITY ( LABOR1 :I* MAY MA9TA9 & EV5 5L>GE PR(ITS & WAGES4 ,YET1 NO MATT] :AT ! WAGES >E1 !Y MU/ BE A DECREAS+ QUANTITY TO TOTAL SOCIAL PRODUCTION4 

,?IS MAY BE DONE BY EI!R 9FLATION>Y OR DEFLATION>Y ME?ODS4 ,BUT IF >MS PRODUCTION IS TO RISE1 IT CAN COME AB\T ONLY BY 9FLATION>Y ME?ODS4 ,! DEFLATION>Y ME?OD & ! R$UCTION ( >MS PRODUCTION1 NOT$ BY ,KIDRON1 FALL TOGE!R4 ,/ILL1 PRICES CONT9UE TO RISE 9 ORD] TO SECURE ! ?REAT5$ PR(ITABILITY ( CAPITAL4 ,?IS IS NOT1 AS ,KIDRON ASSUMES1 BECAUSE NATIONAL & 9T]NATIONAL 9/ITUTIONAL RIGIDITIES PREV5T ! 'EQUILIBRIUM ME*ANISM' ( EXPANSION & CONTRACTION TO RUN ITS C\RSE1 BUT BECAUSE ! PR(ITABILITY ( CAPITAL IS N[ ?REAT5$ BY AN EXPANSION AS WELL AS BY A CONTRACTION ( PRODUCTION4 ,:ILE 9CREAS$ >MS PRODUCTION 5DANG]S CAPITAL ACCUMULATION1 ITS R$UCTION DOES NOT NECESS>ILY YIELD A RATE ( ACCUMULATION SUFFICI5T TO SECURE SOCIAL /ABILITY4 ,9 EI!R CASE1 ! ONLY WAY OP5 TO COPE ) ! DILEMMA IS TO R$UCE WAGES4 ,:]E ?IS CANNOT BE ACCOMPLI%$ BY WAY ( ! M>KET & PRICE RELATIONS BY MONET>Y & FISCAL MEANS1 B\RGEOIS GOV]NM5TS WILL TRY TO ACCOMPLI% IT BY WAY ( WAGE CONTROLS4 

,KIDRON DOES NOT ?9K ?AT WAGES CONTROL 9DICATES ! 'IMMAN5T WORK+ \T ( CLASS BIAS 9 T]MS ( ECONOMIC POLICY4' ,! TRANSITION TO WAGE CONTROL1 HE SAYS1 WAS 9 MANY C\NTRIES '=C$ BY A P>TICUL>LY DET]M9$ WAGE (F5SIVE1' :ILE 9 O!RS 'IT CAME AFT] LABOR REFUS$ TO TAKE ! /RA9 ( ! BALANCE ( PAYM5TS4' ,HE NOTICES1 H[EV]1 ?AT SU* WORK+-CLASS ASS]TIONS >E LIMIT$ BECAUSE ( ! 'ASYMMETRY ( CLASS P[]4' ,ONCE EV5TS =CE SOME SORT ( PLANN+ /RUCTURE 9TO BE+1 HE WRITES1 'LABOR RA!R ?AN CAPITAL IS CA/ AS ! /RA9-BE>+ MEMB]4' ,TRADE UNIONS CAN BE PRESSUR$ TO ACCEPT WAGE CONTROLS BY ! '?REAT ( SEV]E UNEMPLOYM5T - NOT AS A PRODUCT ( BL9D CIRCUM/ANCES BUT AS A CONSEQU5CE ( POLICY4' ,9 O!R WORDS1 IF 'PLANN+' CAN PRODUCE HI< EMPLOYM5T1 IT CAN ALSO PRODUCE UNEMPLOYM5T1 EV5 ?\< IT WAS RESORT$ TO1 9 ! FIR/ PLACE1 9 ORD] TO REA* FULL EMPLOYM5T BY WAY ( >MS PRODUCTION1 :I* N[1 9 TURN1 MAKES ROOM = 'PLANN$ DEPRESSION' TO TEA* ! WORK]S TO RESPECT ! PR(ITABILITY ( CAPITAL4 ,ALL ! 'PLANN+1' !N1 & ! >MS ECONOMY AS WELL1 DID NOT ALT] ! CAPITALI/ NECESSITY ( FIR/ REGULAT+ ! RELATION BETWE5 PR(IT & WAGES BE=E 'REGULAT+' ANY?+ AT ALL4 

,BUT H]E1 ACCORD+ TO ,KIDRON1 CAPITALISM IS B\ND TO FAIL4 ,BECAUSE 'PLANN+' HAS 'COME 9CREAS+LY TO DEP5D ON WAGES POLICY1' IT IS 'FLAW$ FROM ! />T4' ,WAGE POLICIES CANNOT WORK BECAUSE !Y PRESUPPOSE 'A CONS5SUS AB\T ! DI/RIBUTION ( 9COME1' & ?AT 'CONS5T REMA9S AS ELUSIVE AS EV]4' ,PRICE POLICIES1 9CORPORAT+ BO? PR(ITS & WAGES1 'PRESUPPOSE A CLASS-LESS SOCIETY4' ,%ORT ( SU*1 9COME POLICY M]ELY IMPLIES WAGE CONTROL4 ,& :ILE UNIONS & POLITICAL P>TIES MAY CONS5T TO WAGE CONTROL & LABOR REGULATION1 ! WORK]S !MSELVES MI<T NOT4 

,:ILE MASS-LABOR ORGANIZATIONS %IFT !IR EMPHASIS 'FROM CONFRONT+ SOCIETY ON BEHALF ( !IR MEMB]S TO CONFRONT+ !IR MEMB]S ON BEHALF ( SOCIETY1' !IR PROBABLE FAILURE MAY BE SURMIS$ FROM ! GR[? ( SEMI-AUTONOM\S WORKPLACE ORGANIZATIONS & !IR 9CREAS+ 5GAGEM5T 9 DIRECT WORK]S' ACTION4 ,!Y MAY DEVELOP 9TO NEW 9DEP5D5T =MS ( ORGANIZATION1 :ILE ! TRADITIONAL ONES >E 9TEGRAT$ 9TO ! CAPITALI/ SY/EM1 & !IR ACTIVITIES )9 ! 9CREAS+ SOCIAL & ECONOMIC 9/ABILITY MAY WELL TAKE ON REVOLUTION>Y CONNOTATIONS4 ,:ILE L>GELY DISAGREE+ ) ,KIDRON'S ANALYSIS ( MOD]N CAPITALISM1 ,I FULLY %>E HIS PROGNO/ICATIONS ) REG>D TO WORK+-CLASS ACTIVITIES4 

,NOTE 

#a4 ,MI*AEL ,KIDRON1 ,WE/]N ,CAPITALISM ,S9CE ! ,W>1 ,WEID5FELD @& ,NICOLSON1 #c#fS4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #b1 #bba 3 ,>MS & ,CAPITAL -- ,ADD$4 
,JANU>Y #h1 #bbb 3 ,>MS & ,CAPITAL -- ,UPDAT$4 

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