,*APT] #aa 
,SAV+ ,CAPITALISM 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,DESPITE ITS HI<LY AB/RACT *>ACT]1 ,M>X'S CAPITAL ANALYSIS HAS 
PROV$ TO HAVE GREAT PR$ICTIVE P[]4 ,! ACTUAL C\RSE ( CAPITAL 
ACCUMULATION FOLL[$ ITS G5]AL \TL9E ( DEVELOPM5T4 ,9DE$1 ! C\RSE ( 
CAPITAL DEVELOPM5T AS PR$ICT$ BY ,M>X HAS NEV] BE5 D5I$2 O!R 
EXPLANATIONS M]ELY /ATE ! REASON = ?IS TR5D DIFF]5TLY4 ,KEYNES (F]S 
ONE ( !SE EXPLANATIONS4 ,HE EXPLA9S ! 0LONG-RUN0 TR5D ( 
CAPITAL PRODUCTION DIFF]5TLY1 BUT HIS DESCRIPTION ( ! TR5D ITSELF & ( 
OBS]VABLE CRISIS CONDITIONS DIFF]S FROM ,M>X'S ONLY 9 ! T]M9OLOGY 
EMPLOY$4 ,IT BOILS D[N TO ! SIMPLE /ATEM5T ?AT 9VE/M5TS DEP5D ON 
PR(ITABILITY1 CURR5T & EXPECT$1 & ?AT 9VE/M5T T5D TO DECL9E ) A 
DECL9+ PR(ITABILITY4 

,9 CONTRADI/9CTION TO LATT]-DAY ,KEYNESIANS1 ,KEYNES HIMSELF DISC]N$ A 
DIRECTION & A GOAL = CAPITALISM4 ,HE DESCRIB$ ! 05D0 T[>DS 
:I* CAPITAL =MATION WAS T5D+ AS ! LOSS ( ITS 
0SC>CITY-VALUE10 & HE ?\<T ?IS GOAL ATTA9ABLE )9 ONE OR 
TWO G5]ATIONS4 0,I FEEL SURE10 HE WROTE1 0?AT ! DEM& 
= CAPITAL IS /RICTLY LIMIT$ 9 ! S5SE ?AT IT W\LD NOT BE DIFFICULT TO 
9CREASE ! /OCK ( CAPITAL UP TO A PO9T :]E ITS M>G9AL EFFICI5CY HAD 
FALL5 TO A V]Y L[ FIGURE4 ,?IS W\LD NOT MEAN ?AT ! USE ( CAPITAL 
9/RUM5TS W\LD CO/ ALMO/ NO?+1 BUT ONLY ?AT ! RETURN FROM !M W\LD 
HAVE TO COV] LITTLE MORE ?AN !IR EXHAU/ION BY WA/AGE & OBSOLESC5CE 
TOGE!R ) SOME M>G9 TO COV] RISK & ! EX]CISE ( SKILL & JUDGM5T1 
9 %ORT1 AS 9 ! CASE ( %ORT-LIV$ GOODS1 JU/ COV] !IR LABOR CO/S ( 
PRODUCTION PLUS AN ALL[ANCE = RISK & ! CO/S ( SKILL & 
SUP]VISION40.<#a.> 

,KEYNES DID NOT LIKE TO ?9K ( CAPITAL AS BE+ 0PRODUCTIVE40 
,HE HELD ?AT ! 0ONLY REASON :Y AN ASSET (F]S A PROSPECT ( YIELD+ 
DUR+ ITS LIFE S]VICES HAV+ AN AGGREGATE VALUE GREAT] ?AN ITS 9ITIAL 
SUPPLY PRICE IS BECAUSE IT IS SC>CE2 & IT IS SC>CE BECAUSE ( ! 
COMPETITION ( ! RATE ( 9T]E/ ON MONEY4 ,IF CAPITAL BECOMES LESS SC>CE1 
! EXCESS YIELD WILL DIM9I%1 )\T IT1 HAV+ BECOME LESS PRODUCTIVE 
- AT LEA/ 9 ! PHYSICAL S5SE40.<#b.> ,KEYNES' RELUCTANCE TO SPEAK ( CAPITAL AS 
0PRODUCTIVE0 & HIS EXPECTATION & ACCEPTANCE ( A DECL9+ 
PR(ITABILITY 9 ! C\RSE ( ! DIM9I%+ SC>CITY ( CAPITAL C\LD H>DLY 
PLEASE UNSOPHI/ICAT$ CAPITALI/S2 IT HAS EV5 DI/URB$ SOME ( HIS 
DISCIPLES4.<#c.> ,! 
NOTION ( PR(IT AS A YIELD FROM SC>CITY IS1 H[EV]1 ONLY ANO!R =M ( ! 
DOCTR9E ( ! 0PRODUCTIVITY0 ( CAPITAL3 NEI!R CONCEPT PROVIDES 
AN EXPLANATION ( ! ORIG9 ( PR(IT1 NOR BO? S]VE AS APOLOGIES = ! 
FACT ( EXPLOITATION4 

,ACCORD+ TO ,M>X1 ! 0DEM& = CAPITAL0 IS A DEM& = 
PR(ITS4 ,& ?IS DEM& = ! EXPLOITATION ( LABOR 9CREASES CON/ANTLY1 
9CREAS+ ! FA/] ! MORE RAPIDLY CAPITAL ACCUMULATES4 ,FROM ?IS PO9T ( 
VIEW1 ,KEYNES' /ATEM5T ?AT 0! DEM& = CAPITAL REA*ES ITS 
LIMITS ) ! 9CREASE ( ! /OCK ( CAPITAL TO A PO9T :]E ITS M>G9AL 
EFFICI5CY HAS FALL5 TO A V]Y L[ FIGURE10 MAKES NO S5SE4 ,= ! 
9CREAS+ SUPPLY ( CAPITAL IS NOT ID5TICAL ) A FALL+ DEM& = 
CAPITAL1 I4E41 = PR(ITS4 ,TO ASSUME ?AT ! DEM& = CAPITAL IS LIMIT$ BY 
! 9CREAS+ /OCK ( CAPITAL IS TO ASSUME ?AT CAPITALISM IS NOT CAPITALISM 
BUT A SY/EM ( PRODUCTION EMPLOY+ ! PR(IT-MOTIVE SOLELY = ! PURPOSE 
( 9CREAS+ ! MEANS ( PRODUCTION SO AS TO BR+ PR(IT-PRODUCTION TO AN 
5D4 ,9 REALITY1 ( C\RSE1 ! MEANS ( PRODUCTION >E 9CREAS$ 9 ORD] TO 
RAISE OR MA9TA9 A GIV5 PR(ITABILITY4 

,ASSUM+ ) ,KEYNES ?AT CAPITAL ABUNDANCE ABOLI%ES 0EXCESS 
YIELDS0 SU* AS 9T]E/1 IT FOLL[S ?AT ?IS ABUNDANCE ALSO R$UCES 
9VE/M5TS4 ,:AT AT FIR/ WAS ! CAPITALI/ DILEMMA - ! LACK ( 
9VE/M5TS - BECOMES ! GREAT BLESS+ ( CAPITAL ABUNDANCE4 ,9 
,KEYNES' VIEW1 ?IS M]ELY MEANS ?AT 0! DEM& = CAPITAL HAS 
REA*$ ITS LIMITS40 ,A P]IOD ( M]E REPRODUCTION REPLACES ONE ( 
ACCUMULATION2 9 %ORT1 ?AT SY/EM ( PRODUCTION ) :I* ECONOMIC !ORY 
CONC]N$ ITSELF FROM ,M>X TO ,KEYNES HAS 5D$4 

,9 ORD]1 !N1 TO LEAD HIS !ORY TO ITS 0LOGICAL CONCLUSIONS10 
,KEYNES BOLDLY ACCEPTS ! IMPLICATIONS ( ! M>G9AL !ORY = ! 
0LONG-RUN0 TR5D ( CAPITAL PRODUCTION1 & =CES HIS !ORY 
BEYOND ! B\ND>IES ( CAPITALISM4 ,?AT ?IS VISION ( A PRODUCTIVE APP>ATUS 
L>GE 5\< TO SATISFY SOCIAL NE$S TO ! EXT5T ?AT NO FUR!R SIGNIFICANT 
CAPITAL EXPANSION SEEMS DESIRABLE LIES BEYOND ! HORIZON ( CAPITALISM IS 
BORNE \T BY ,KEYNES' [N /ATEM5T ?AT 0IF CAPITAL BECOMES LESS 
SC>CE1 ! EXCESS YIELDS WILL DIM9I% )\T IT HAV+ BECOME LESS 
PRODUCTIVE - AT LEA/ 9 ! PHYSICAL S5SE40 ,! PHYSICAL SIDE ( 
CAPITALISM1 H[EV]1 IS JU/ ?AT ASPECT ( ?IS MODE ( PRODUCTION :I* 
CONTRADICTS ITS MOTIVATION1 ! DRIVE = EX*ANGE-VALUE1 PR(IT1 & 
ACCUMULATION4 

,:E!R CAPITAL IS SC>CE OR ABUNDANT1 9 ,M>X'S VIEW1 CAPITAL 
PRODUCTION MU/ BE PR(ITABLE 9 ORD] TO BE C>RI$ ON4 ,A P]SI/5T DECL9E 
( PR(ITABILITY IMPLIES A SL[+ RATE ( ACCUMULATION1 A CRISIS CONDITION 
:I* CAN BE OV]COME ONLY ?R\< ! RESUMPTION ( AN ACCEL]AT$ RATE ( 
CAPITAL EXPANSION4 ,! DISAPPE>ANCE ( 0EXCESS-YIELDS0 - 
:ATEV] ?AT MAY MEAN - SPELLS NOT ! 5D ( CAPITAL SC>CITY BUT ! 
5D ( CAPITALISM4 ,! RELATIVELY /ATION>Y /ATE ( CAPITAL ABUNDANCE 
PROJECT$ BY ,KEYNES1 :]E ! 0DEM&0 = CAPITAL DOES NOT EXCE$ 
! PRODUCTION REQUIREM5TS ( WA/E & OBSOLESC5CE & :]E ! PR(ITS 
SQU>E ) ! CONSUMPTION NE$S ( 5TREPR5EURIAL SKILL & SUP]VISION1 
CANNOT BE REA*$ )9 ! FRAME ( PRIVATE CAPITAL =MATION4 ,! CAPITALI/ 
REPRODUCTION PROCESS IS ALWAYS AN ACCUMULATION PROCESS4 ,?IS DOES NOT EXCLUDE 
P]IODS ( 0SIMPLE REPRODUCTION10 OR EV5 ( TEMPOR>Y DECL9E2 BUT 
A /ATION>Y & SIMULTANE\SLY PROSP]+ CAPITALISM DID NOT 5T] 
,M>X'S VISION4 

,AL?\< ,KEYNES CONSID]$ IT HIS 0PRACTICAL JUDGM5T & NOT A 
!ORETICAL IMP]ATIVE0 ?AT EV5 9 0MATURE0 CAPITALISM ! 
EMPHASIS %\LD BE ON CAPITAL =MATION 9/EAD ( ON CONSUMPTION1 HE SAW ! 
REV]S$ EMPHASIS AS A POSSIBILITY = ! NOT TOO DI/ANT FUTURE4 ,& BECAUSE 
( ?IS POSSIBILITY1 HE ?\<T IT A 0%E] LACK ( 9TELLIG5CE0 
TO PRESUME ?AT IT REQUIR$ RADICAL SOLUTIONS TO 5D ! DISP>ITY BETWE5 ! 
ACTUAL & ! POT5TIAL P]=MANCE ( ! ECONOMY4 ,SOCIALISM1 :I* 9 HIS 
DEF9ITION1 MEANT /ATE-[N]%IP ( ! MEANS ( PRODUCTION1 HE ?\<T QUITE 
SUP]FLU\S2 = [N]%IP ITSELF IS ( NO IMPORTANCE ONCE IT IS POSSIBLE TO 
CONTROL ! RATE ( 9VE/M5T4 ,HE WAS CONV9C$ ?AT 0A SOME:AT 
COMPREH5SIVE SOCIALIZATION ( 9VE/M5TS WILL PROVE ! ONLY MEANS ( 
SECUR+ AN APPROXIMATION ( FULL EMPLOYM5T10 BUT 0?IS NE$ NOT 
EXCLUDE ALL MANN]S ( COMPROMISE & ( DEVICES BY :I* PUBLIC AU?ORITY WILL 
CO-OP]ATE ) PRIVATE 9ITIATIVE40.<#d.> ,ONLY EXP]I5CE W\LD %[1 HE ?\<T1 0H[ 
F> ! COMMON WILL1 EMBODI$ 9 ! /ATE1 \<T TO BE DIRECT$ TO 9CREAS+ 
& SUPPLEM5T+ ! 9DUCEM5T TO 9VE/2 & H[ F> IT IS SAFE TO /IMULATE 
! AV]AGE PROP5SITY TO CONSUME40.<#e.> 

,DOGMATIC PROPON5TS ( ! PRIVATE 5T]PRISE SY/EM NOT ONLY VIEW 
,KEYNESIANISM AS ! !ORY ( ! TRANS=MATION ( A 0FREE0 9TO A 
P>TLY CONTROLL$ CAPITALISM1 BUT LOOK UPON ?IS TRANS=MATION AS ! 
BEG9N+ ( ! 5D ( CAPITALISM ITSELF4 ,!Y SEE A RADICAL RETURN TO A 
M>K]-DET]M9$ ECONOMY1 AT :ATEV] SOCIAL CO/1 AS ! ONLY WAY ( ESCAP+ 
! EM]G+ 0NEW S]FDOM0 ( ! TOTALIT>IAN SOCIETY4 ,!Y MAY BE 
RI<T1 BUT TOTALIT>IANISM WAS ! LA/ ?+ ?AT ,KEYNES WAS WILL+ TO 
SUPPORT4 ,?\< HE ADMIR$ ! ,NAZI ,/ATE = HAV+ DEVIS$ A MEANS ( 
PRODUC+ & MA9TA9+ FULL EMPLOYM5T1 HE ?\<T ?AT ! SAME ?+ C\LD 
BE A*IEV$ UND] EXI/+ ,BRITI% 9/ITUTIONS1 S9CE HE SAW NO NECESS>Y 
CONNECTION BETWE5 A SOCIETY'S ECONOMIC POLICY & ITS POLITICAL 
/RUCTURE4 ,AS REG>DS ! ,RUSSIAN SY/EM1 HE 0DID NOT ?9K ?AT IT 
CONTA9S1 OR IS LIKELY TO CONTA91 ANY PIECE ( USEFUL ECONOMIC TE*NIQUE :I* 
WE C\LD NOT APPLY1 IF WE *OSE1 ) EQUAL OR GREAT] SUCCESS 9 A SOCIETY 
:I* RETA9$ ALL ! M>KS 444 ( ,BRITI% B\RGEOIS IDEALS40.<#f.> ,ALL ?AT ,RUSSIA 
CONTRIBUT$ TO ECONOMICS IS A DEMON/RATION ?AT C5TRALI/IC CONTROL CAN BR+ 
AB\T A BALANC$ GR[? ( ! ECONOMY4 ,?IS DID NOT DEP5D ON BOL%EVISM1 BUT 
ON C5TRALI/IC CONTROLS1 :I* C\LD BE MADE EV5 MORE EFFECTIVE UND] ! 
AUSPICES ( ! MORE ADVANC$ ECONOMIC TE*NIQUES ( ! ,WE/]N WORLD4 

,KEYNESIANISM1 9 ITS LIB]ALI/IC 9T]PRETATION1 REFLECTS ! DEGREE ( 
LAISSEZ-FAIRE /ILL POSSIBLE 9 0MATURE0 CAPITALISM4 ,IT 
REPRES5TS A 0TYPE ( HYBRID SY/EM10 9 :I* 0! 
ESS5TIALS ( CAPITALISM - CONSUM]S' SOV]EIGNTY1 FRE$OM TO 
9VE/1 & LIB]TY TO *OOSE OCCUPATIONS - CAN BE PRES]V$40.<#g.> ,= ,KEYNES ! *OICE 
BETWE5 A CONTROLL$ & A 0FREE0 ECONOMY NO LONG] EXI/$2 !RE 
WAS ONLY ! *OICE BETWE5 DIFF]5T SETS ( CONTROLL]S4 ,AS ONE ( 
,KEYNES' DISCIPLES EXPRESS$ ?IS1 0FASCISM IS ! =M ?AT \R 
CAPITALI/ SOCIETY WILL ACQUIRE1 UNLESS WE >E SUCCESSFUL 9 BR++ AB\T 
,KEYNESIAN RE=MS OR A SOCIALI/ ECONOMY40.<#h.> ,KEYNES REALIZ$1 ( C\RSE1 ?AT AN 
APPEAL TO REASON WAS NOT 5\< TO MAKE ALL CAPITALI/S FIT !MSELVES 
*E]FULLY 9TO ! NEW SITUATION & HE CONSID]$ IT ! DUTY ( GOV]NM5T 
TO SAVE ! RELUCTANT ONES FROM !IR [N FOLLY4 ,HE ?\<T ?AT ! 
GOV]NM5T'S USURPATION ( ! REGULATORY FUNCTION W\LD NOT AFFECT ! 
5TREPR5EURIAL ROLE4 ,9 HIS VIEW !RE WAS NO?+ WRONG 9 ! SPH]E ( 
PRODUCTION2 BUT COMMUNAL SAV+S W]E BETT] COLLECT$ & 9VE/$ BY ! 
GOV]NM5T ?AN BY PRIVATE CAPITAL4 ,C5TRALIZ+ CONTROL ( ! AM\NT ( 
ECONOMIC ACTIVITY 9 ! H&S ( ! GOV]NM5T WAS ! ONLY WAY TO OV]COME 
CAPITALI/ 9]TIA4 

,B\RGEOIS ECONOMIC !ORY SAW 9 ! ECONOMY'S LACK ( CONSCI\S 
ORGANIZATION A SPECIFIC =M ( 0ORD]0 - ! AUTOMATIC 
BYPRODUCT ( M>KET EX*ANGE1 A 0LAW ( VALUE0 :I* REGULAT$ ! 
ECONOMIC ASPECTS ( LIFE4 ,&1 9DE$1 = P]IODS ( TIME1 RELATIVELY /ABLE 
M>KET SITUATIONS 9DUC$ ECONOMIC BEHAVIOR TO FOLL[ CONV5TIONAL PATT]NS & 
! LAW ( ! M>KET SEEM$ TO PRODUCE A DEF9ITE K9D ( ORD]4 ,DUR+ 
P]IODS ( /EADILY-ADVANC+ CAPITAL =MATION ! M>KET ME*ANISM FUNCTION$ 
)\T S]I\S DIFFICULTIES4 ,P]IODS ( CRISIS W]E OV]COME ) RELATIVE 
EASE1 & AS ! PR(ITS ( ! CAPITALI/S W]E L>GELY RE-9VE/$1 !IR 
NUMB] SMALL COMP>$ TO ! LABOR+ POPULATION - TURN$ !IR POSSIBLY 
LUXURI\S LIFE 9TO AN ECONOMICALLY UN9T]E/+ FACT4 ,FROM A CAPITALI/ PO9T 
( VIEW1 ! SITUATION C\LD WELL APPE> TO BE DIRECT$ BY AN ORD]+1 ?\< 
9VISIBLE1 H&4 

,W> & LONG-T]M DEPRESSION 5D$ ?IS IDYLLIC BELIEF & L$ TO 9CREAS$ 
GOV]NM5T CONTROL ( ! ECONOMY4 ,& :AT AT FIR/ APPE>$ TO BE A SPECIAL 
SITUATION1 AN EM]G5CY1 BECAME ! G5]AL SITUATION1 SO ?AT ! P>TIAL 
SUBORD9ATION ( PRIVATE TO NATIONAL & GOV]NM5TAL 9T]E/S TOOK ON A 
RA!R P]MAN5T *>ACT]4 ,) ?IS ! ECONOMI/S' FUNCTIONS BEGAN TO 
*ANGE4 ,!Y C\LD N[ SUGGE/ PRACTICAL POLICIES & SPECULATE AB\T ! 
EFFECTS ( V>I\S GOV]NM5T 9T]V5TIONS UPON ONE OR ANO!R OR ALL ( ! 
ASPECTS ( ! ECONOMY4 ,H[EV]1 0SOCIAL EXP]IM5TS0 >E RA!R 
HA/Y ANSW]S TO ! PRESS+ POLITICAL PROBLEMS :I* !MSELVES DET]M9E ! 
K9D ( ACTIONS TAK54 ,! =M ( !IR EXECUTION MAY V>Y 9 ! TE/ ( 
EXP]I5CE1 BUT ! PROBLEMS ?AT >ISE 9 CAPITALISM & ! 
0SOLUTIONS0 = !SE PROBLEMS >E G5]ALLY CLE> & OBVI\S4 
,?IS IS :Y NO ECONOMIC POLICY HAS ?US F> BE5 SUGGE/$ :I* DID NOT MAKE 
ITS DEBUT BE=E ! 0!ORY BEH9D IT0 WAS =MULAT$4 ,ALL ! 
MONET>Y & FISCAL POLICIES SUGGE/$ BY ,KEYNES HAD ALREADY BE5 EMPLOY$ AT 
DIFF]5T TIMES BY V>I\S GOV]NM5TS TO SAFEGU>D !MSELVES & ! SOCIETY 
OV] :I* !Y PRESID$4 ,BY BR++ ! *ANG$ CAPITALI/ PRACTICE ( HIS 
DAY 9TO ! FRAME ( ECONOMIC !ORY1 ,KEYNES SUPPORT$ ! EXP&+ 
GOV]NM5TAL CONTROL BO? PRACTICALLY & IDEOLOGICALLY4 

,UND] LAISSEZ-FAIRE CONDITIONS1 CAPITALI/S FEEL NO NE$ TO ACCEPT 
RESPONSIBILITY = ! SOCIAL CONSEQU5CES ( !IR ACTIVITIES1 & !Y HAVE 
NO WAY ( DISC]N+ :E!R !Y AFFECT ! :OLE ( SOCIETY NEGATIVELY OR 
POSITIVELY4 ,TO !M 0APPLI$ ECONOMICS0 SIGNIFIES NO MORE ?AN ! 
DESIRE TO BUY *EAP & SELL DE>4 ,! ACTIONS ( WORK]S1 TOO1 >E CONDITION$ 
BY !IR DESIRE TO SELL !IR LABOR-P[] AT ! HI<E/ POSSIBLE PRICE4 ,= 
!M 0APPLI$ ECONOMICS0 EXHAU/S ITSELF 9 ! WAGE-/RUGGLE4 
,NEV]!LESS1 ! /RUGGLE BETWE5 CAPITAL & LABOR P]=MS 
0REGULATORY0 FUNCTIONS BY DET]M9+ ! DEGREE ( EXPLOITATION 
& ?US AFFECT+ ! RATE ( CAPITAL EXPANSION4 ,! FETI%I/IC 
0SELF-ADJU/ABILITY0 ( ! ECONOMY IS H]E P>TLY LO/ TO ! 
SIMPLE1 OP5 /RUGGLE BETWE5 M5 & M54 ,) ! EXT5SION & 
9T5SIFICATION ( ?IS /RUGGLE1 ! ECONOMICALLY-MANIPULAT$ P>T ( ! 
ECONOMY GR[S4 ,BUT AS ! 0MANIPULATION0 S]VES P>TICUL> 
9T]E/S1 ! 9CREAS+ ORGANIZATION IMPLI$ !RE9 ONLY 5L>GES SOCIAL 
DISORGANIZATION4 ,& ?IS GR[+ DISORGANIZATION CAN BE IMMUNIZ$ ONLY BY A 
/ILL FA/] RATE ( ACCUMULATION1 SO ?AT A WEAK5+ ( ! M>KET-FETI%ISM 
ON ! ONE H& /R5G!NS ! FETI%I/IC ATTITUDES ) REG>D TO 
ACCUMULATION ON ! O!R4 

,FROM ! PO9T ( VIEW ( CAPITALI/ SOCIETY AS A :OLE1 M>KET DI/RIBUTION 
IS ALWAYS A CLASS-DI/RIBUTION ( COMMODITIES4 ,LABOR & SURPLUS-LABOR1 
:ATEV] ITS PRODUCTIVITY1 >E F9ALLY R$UCIBLE TO L5G?S ( TIME4 ,SO MU* 
TIME 9 T]MS ( PRODUCTS1 OR PRODUCTS 9 T]MS ( TIME1 FALLS TO ! 
9DIVIDUAL WORK] OR TO ! 9DIVIDUAL CAPITALI/2 SO MU* TO SOCIAL CAPITAL OR 
TO ! WORK+ CLASS AS A :OLE4 ,:AT FALLS TO ! 9DIVIDUAL WORK] NE$ NOT 
BE 5\< TO REPRODUCE HIS LABOR P[]2 :AT FALLS TO ! 9DIVIDUAL CAPITALI/ 
NE$ NOT BE 5\< TO SU/A9 HIM 9 HIS SOCIAL POSITION4 ,:AT FALLS TO ! 
WORK+ POPULATION1 H[EV]1 MU/ BE 5\< TO REPRODUCE IT1 & :AT FALLS TO 
! CAPITALI/ CLASS MU/ BE 5\< TO REPRODUCE ! SOCIAL /RUCTURE4 ,AS 
REG>DS ! SOCIAL REPRODUCTION PROCESS1 A C]TA9 QUANTITY ( SOCIAL LABOR 
?AT 5T]S ! M>KET 9 COMMODITY-=M 5T]S IT1 SO TO SPEAK1 
0UNNECESS>ILY10 S9CE ! M>KET CAN ONLY COMPLICATE ! 
9ESCAPABLE & PROPORTIONALLY DEF9ITE REQUIREM5TS ( ! REPRODUCTION 
PROCESS4 ,BECAUSE ! REPRODUCTION PROCESS CONTROLS ! PRODUCTION PROCESS1 IT 
IS ONLY SURPLUS-LABOR TIME - 9CORPORAT$ 9 COMMODITIES BEYOND ! NE$ 
( SIMPLE REPRODUCTION - :I* IS NOT 0PR$ET]M9$0 BY ! 
MAT]IAL REQUIREM5TS ( A SOCIAL PRODUCTION ?AT SECURES ! MA9T5ANCE ( A 
ONCE-E/ABLI%$ LEVEL ( PRODUCTION UND] GIV51 DEF9ITE SOCIAL 
RELATION%IPS4 

,9 ! C\RSE ( CAPITAL CONC5TRATION1 MORE SURPLUS-VALUE COMES TO BE 
DIVID$ AMONG RELATIVELY FEW] 5T]PRISES1 A PROCESS BY :I* ! M>KET LOSES 
SOME ( ITS FUNCTIONS4 ,:5 ! M>KET ME*ANISM CEASES TO 0SQU>E0 
SUPPLY & DEM& BY WAY ( CAPITAL EXPANSION1 IT COMPLICATES ! =MATION ( 
AN AV]AGE RATE ( PR(IT1 :I* IS NE$$ TO SECURE ! SIMULTANE\S EXI/5CE 
( ALL NECESS>Y 9DU/RIES REG>DLESS ( !IR 9DIVIDUAL PR(IT RATES4 ,! 
AV]AGE RATE ( PR(IT1 AS WILL BE RECALL$1 IMPLIES ! 0POOL+0 
( SURPLUS-VALUE SO AS TO SATISFY ! PHYSICAL NE$S ( SOCIAL PRODUCTION :I* 
ASS]T !MSELVES BY WAY ( SOCIAL DEM&4 ,CAPITAL /AGNATION1 EXPRESS$ AS IT 
IS 9 A DEFECTIVE DEM&1 H9D]S AN 9CREAS+ NUMB] ( CAPITAL 5TITIES FROM 
P>TAK+ ( ! SOCIAL 0POOL0 ( SURPLUS-VALUE 9 SUFFICI5T 
MEASURE4 ,IF !IR CONT9U$ EXI/5CE IS A SOCIAL NECESSITY1 !Y MU/ BE 
MA9TA9$ BY GOV]NM5T SUBSIDIES4 ,& IF ! NUMB] ( UNEMPLOY$ CON/ITUTES 
A DANG] TO SOCIAL /ABILITY1 !Y1 TOO1 MU/ BE F$ \T ( ! DECL9+ 
0POOL0 ( SURPLUS-VALUE4 ,CONTROL ( SURPLUS-VALUE BECOMES ESS5TIAL 
= ! SECURITY ( CAPITALISM1 & ! DI/RIBUTION ( PR(ITS BECOMES A 
GOV]NM5TAL CONC]N4 

,FROM A !ORETICAL PO9T ( VIEW IT IS A MATT] ( 9DIFF]5CE :E!R ! 
NECESS>Y DIVISION ( VALUE & SURPLUS-VALUE & ! NECESS>Y DI/RIBUTION ( 
! LATT] OCCUR ON A 0FREE0 M>KET OR ON A M>KET MANIPULAT$ BY 
GOV]NM5T AU?ORITY4 ,9 PRACTICE1 ( C\RSE1 IT MAKES ALL ! DIFF]5CE TO 
?OSE CAPITALI/S :O /& TO LOSE BY ! 0PROP]0 FUNCTION+ ( 
! 0SY/EM AS A :OLE40 ,= GOV]NM5T CONC]N ) PR(IT 
DI/RIBUTION 9T]F]ES ) ! PR(ITABILITY ( SPECIFIC 5T]PRISES1 
EXTRA-PR(ITS MAY BE TAX$ AWAY & SOME BUS9ESSES MAY BE RU9$ :ILE O!RS 
>E AID$ BY GOV]NM5TAL FAVORITISM4 ,SO LONG AS IT IS NOT CLE> :I* CAPITAL 
5TITIES WILL BE FAVORABLY AFFECT$ BY GOV]NM5TAL CONTROL1 ALL T5D TO OBJECT 
TO CONTROLS AS SU*4 ,BUT AS SOON AS IT IS EVID5T ?AT GOV]NM5TAL CONTROLS 
MEAN SECURITY & EXPANSION = SOME CAPITAL 5TITIES AT ! EXP5SE ( O!RS1 
! CAPITALI/ FRONT AGA9/ GOV]NM5TAL CONTROLS IS BROK54 

,AL?\< !RE IS NO NECESS>Y CONNECTION BETWE5 ,KEYNES' !ORETICAL 
REASON+ & ! 0APPLI$ ECONOMICS0 ( TODAY1 ! 0MIX$ 
ECONOMY0 IS A FACT & DEM&S JU/IFICATION 9 ECONOMIC T]MS4 
,GOV]NM5T 9T]V5TIONS 9 ! DEPRESS$ ECONOMY W]E AT FIR/ M]ELY SUPPOS$ 
TO ACT AS 0PUMP-PRIM]S0 = R5EW+ ! FL[ ( PRIVATE ECONOMIC 
ACTIVITY4 ,PUBLIC WORK EXP5DITURES & WELF>E-PAYM5TS W]E SUPPOS$ TO CREATE 
NEW 9COME :I* W\LD1 9 TURN1 G5]ATE ADDITIONAL ECONOMIC ACTIVITY4 ,! 
IDEA WAS =MALIZ$ 9 ! SO-CALL$ 0MULTIPLI] EFFECT0 9TRODUC$ 
BY ,R4 ,F4 ,KAHN4 ,E/IMATES W]E MADE AS TO ! REP]CUSSIONS TO BE EXPECT$ FROM 
AN 9CREASE 9 0EFFECTIVE DEM&0 DUE TO GOV]NM5T-F9ANC+2 !Y 
V>I$ FROM A D\BL+ TO A FIVE-FOLD 9CREASE 9 ! 9ITIAL 9VE/M5T 9 ! 
=M ( NEW 9COME4 ,!SE ASSUMPTIONS1 H[EV]1 ELUDE FACTUAL V]IFICATION4 ,9 
!ORY1 :I* DISC\NTS ! 9DISC]NABLE C\NT]ACT+ 9FLU5CES ( 
CAPITALISM'S PRIVATE SECTOR1 !Y APPE> CONV9C+4 ,ACTUALLY1 !SE 
E/IMATES >E BAS$ ON TOO MANY 0IFS0 TO SAY ANY?+ DEF9ITE 
AB\T ! EFFECTS ( GOV]N M5TAL SP5D+4 ,IT WAS !N FREELY ADMITT$ ?AT 
! NOTION ( ! 0MULTIPLI] IS NO MAGIC =MULA :I* WILL 5ABLE US TO 
PR$ICT ) ANY DEGREE ( ACCURACY JU/ :AT ! 9FLU5CE ( PUBLIC 
9VE/M5T WILL BE4 ,BY ASSIGN+ DIFF]5T WEI<TS TO V>I\S FACTORS1 ONE 
MI<T CONCLUDE EI!R ?AT PUBLIC 9VE/M5T WILL HAVE TREM5D\S 
9COME-CREAT+ EFFECT OR ?AT IT WILL HAVE1 ON BALANCE1 A NEGATIVE EFFECT ON 
EMPLOYM5T & 9COME40.<#i.> 

,H[EV]1 AS GOV]NM5T DEPRESSION POLICY DID 9CREASE EMPLOYM5T TO SOME 
EXT5T1 IT MAY BE SAID ?AT ! ,KEYNESIAN !ORY PROV$ ITSELF 9 A G5]AL WAY 
:]EV] IT WAS EMPLOY$ & TO ! DEGREE 9 :I* IT WAS APPLI$4 ,! 
,AM]ICAN ,NEW ,DEAL IS A CASE 9 PO9T1 EV5 ?\< ,KEYNES HIMSELF EXPRESS$ 
DISSATISFACTION ) ,ROOSEVELT'S VACILLAT+ POLICIES4 ,B\RGEOIS 
SUPPORT]S ( ,KEYNESIAN ECONOMICS HOPE TO SEE !M SO 0DEVELOP$ & 
APPLI$ AS TO 9VOLVE ONLY A SLI<T & SAFE & USEFUL DEP>TURE FROM /RICT 
LAISSEZ-FAIRE1 OR USE ( GOV]NM5TAL P[] TO 9FLU5CE TOTAL 
SP5D+ & DEM& 9 ! ECONOMY & KEEP IT 9 BETT] BALANCE ) ! 
TOTAL1 POT5TIAL \TPUT ( ALL GOODS & S]VICES4 0.<#a.> ,9 ?IS VIEW1 IT IS ! FUNCTION ( 
GOV]NM5T TO SECURE ! EXI/5CE & WELF>E ( PRIVATE 5T]PRISE4 ,ASIDE 
FROM ! OV]ALL EFFECT ( GOV]NM5TAL MONEY & FISCAL POLICIES1 DEPRESS$ 
9DU/RIES >E TO BE HELP$ ALONG ) SPECIAL CR$IT FACILITIES4 ,PUBLIC WORKS 
>E TO BE CON/RUCT$ ) AN EYE TO ! NE$S ( PRIVATE CAPITAL - ROADS 
= ! AUTOMOBILE 9DU/RY1 AIRPORTS = ! AIRCRAFT 9DU/RY1 & SO =?4 
,ALONG ) PREF]5TIAL TREATM5T = NEW 9VE/M5TS !RE %\LD ALSO GO AN 
9CREASE 9 ! PROP5SITY TO CONSUME BY WAY ( SOCIAL SECURITY LEGISLATION AS 
AN 9/RUM5T ( ECONOMIC /ABILITY4 

,A MIX$ ECONOMY PRESUPPOSES ?AT A SUB/ANTIAL PORTION ( ITS TOTAL 
PRODUCTIVE CAPACITY IS [N$ & CONTROLL$ BY PRIVATE CAPITAL4 ,S9CE 
GOV]NM5T FUNDS PROP] CAN COME ONLY FROM TAXATION OR FROM POSSIBLE PR(ITS 
\T ( GOV]NM5T-[N$ 9DU/RIES1 ADDITIONAL FUNDS MU/ BE BORR[$ FROM 
PRIVATE CAPITAL4 ,DEBT-F9ANC+ IS SUPPOS$ TO BR+ =? A G5]AL 9CREASE 
9 0EFFECTIVE DEM&40 ,?IS IS NOT 0EFFECTIVE DEM&0 
9 A CAPITALI/ S5SE1 = ! CAPITALI/ M>KET HAS NO DEM& = PUBLIC 
WORKS1 WELF>E1 & >MAM5TS4 ,IT HAS ( C\RSE A DEM& = ! V>I\S 
9T]M$I>Y COMMODITIES US$ 9 GOV]NM5T-9DUC$ PRODUCTION4 ,BUT ?IS DEM& 
W\LD BE NON-EXI/5T W]E IT NOT = GOV]NM5T PUR*ASES4 ,! CO/S ( 
GOV]NM5T-9DUC$ PRODUCTION1 AS WELL AS ! PR(ITS ACCRU+ TO PRIVATE 
CAPITALI/ SUPPLI]S1 >E PAID \T ( TAXES OR BORR[$ MONEY1 I4E41 \T ( 
FUNDS FROM CAPITALISM'S PRIVATE SECTOR4 ,?IS SIMPLY MEANS ?AT ! 
GOV]NM5T AVAILS ITSELF ( MEANS ( PRODUCTION ?AT BELONG TO PRIVATE CAPITAL 
& SUPPORTS WORK]S FROM PRIVATELY [N$ RES\RCES4 ,! BORR[$ FUNDS >E 
ONLY MONET>Y EXPRESSIONS ( ! GOV]NM5T'S P[] TO SET UNEMPLOY$ 
RES\RCES TO WORK4 ,! RIS+ NATIONAL DEBT 9DICATES ?AT ?IS P[] HAS ONLY 
TEMPOR>ILY BE5 GRANT$ & = A PRICE1 I4E41 9T]E/ PAID TO ! 
BONDHOLD]S4 

,:ILE ! 05D-PRODUCT0 ( CAPITAL PRODUCTION IS AN 5L>G$ 
CAPITAL1 ! 05D-PRODUCT0 ( GOV]NM5T-FO/]$ PRODUCTION IS 
ONLY AN 5L>G$ PRODUCTION4 ,! PRODUCTIVE APP>ATUS :I* GOV]NM5T-9DUC$ 
PRODUCTION CALLS 9TO BE+ CAN FUNCTION ONLY ON ! GOV]NM5T'S BEHALF4 
,?\< IT IS NOM9ALLY 9 ! H&S ( PRIVATE CAPITAL1 IT CAN BE FULLY US$ 
ONLY AT GOV]NM5T COMM&4 ,& FROM ! PO9T ( VIEW ( PRIVATE 5T]PRISE1 
ANY PRODUCTION :I* ! GOV]NM5T COMM&S1 :E!R 9 ! =M ( PUBLIC 
WORKS1 WELF>E1 OR >MAM5TS1 FALLS 9 ! SPH]E ( CONSUMPTION4 ,9 EFFECT1 
!N1 GOV]NM5T-FO/]$ PRODUCTION REV]SES ! USUAL PROC$URE ( CAPITAL 
ACCUMULATION4 ,9/EAD ( EXP&+ PRODUCTION AT ! EXP5SE ( CONSUMPTION1 9 
A PROCESS :]E CONSUMPTION 9CREASES MORE SL[LY ?AN CAPITAL ACCUMULATES1 IT 
EXP&S PRODUCTION ) ! HELP ( CONSUMPTION1 ?\< IT IS 
0CONSUMPTION0 9 ! =M ( PUBLIC WORKS & >MAM5TS4 

,UP TO N[ GOV]NM5T-9DUC$ EXPANSION ( PRODUCTION 9 ! MIX$ ECONOMY 
HAS L$ TO FULL EMPLOYM5T ONLY BY 9CREAS+ ! 0EFFECTIVE 
DEM&0 = PRODUCTS NOT DIRECTLY CONSUMABLE1 :OSE VALUE CANNOT BE 
0REALIZ$0 ?R\< ! CAPITALI/ CIRCULATION PROCESS4 ,9S(> AS 
?IS HAS BE5 ACCOMPLI%$ BY WAY ( DEFICIT-F9ANC+1 IT HAS L$ TO A /EADY 
9CREASE 9 ! NATIONAL DEBT4 ,MONET>Y 9FLATION DIM9I%$ & (T5 
REPUDIAT$ ! DEBT AT ! EXP5SE ( PRIVATE CAPITAL4 ,BUT EV5 UND] 
NON-9FLATION>Y CONDITIONS1 ! 9T]E/ PAID ON ! NATIONAL DEBT & ITS 
F9AL R$EMPTION HAS TO COME \T ( PRIVATE PRODUCTION4 ,AS ! FUNDS SP5T BY 
GOV]NM5T YIELD NO PR(ITS !Y ALSO CANNOT YIELD 9T]E/4 ,( C\RSE1 S9CE 
! 0NATION AS A :OLE0 /&S BEH9D ! NATIONAL DEBT1 IT IS 
POSSIBLE ?AT 9T]E/ WILL BE PAID & BONDS R$EEM$ IF ! NATIONAL 9COME 
RISES FA/] ?AN ! NATIONAL DEBT4 ,ALL ?IS MEANS IS ?AT SUFFICI5T NEW 
WEAL? MU/ BE CREAT$ BY NEW & ADDITIONAL PRODUCTION TO TAKE C>E ( OLD 
OBLIGATIONS4 

#a4 ,! ,G5]AL ,!ORY1 P4 #c#g#e4 

#b4 ,IBID41 P4 #bac 

#c4 ,JOAN ,ROB9SON1 = 9/ANCE1 REM>KS ?AT ,KEYNES' IDEA 0?AT LABOR IS ! SOLE FACTOR ( PRODUCTION10 CANNOT BE JU/IFI$ BY ! FACT 0?AT HE F\ND IT POSSIBLE TO RECKON \TPUT 9 T]MS ( WAGE-UNITS40 ,KEYNES C\LD DO SO1 %E SAYS1 0BECAUSE HE WAS *IEFLY 9T]E/$ 9 ANALYZ+ %ORT-RUN SITUATIONS1 9 :I* CAPITAL EQUIPM5T IS GIV51 SO ?AT REAL \TPUT IS CORRELAT$ ) EMPLOYM5T40 ,H[EV]1 0AS SOON AS \TPUT P] MAN1 AT A GIV5 LEVEL ( EMPLOYM5T BEG9S TO ALT]1 ! WAGE-UNIT CEASES TO MEASURE REAL \TPUT40 ,?\< %E AGREES ) ,KEYNES ?AT 0! [N+ ( CAPITAL IS NOT A PRODUCTIVE ACTIVITY10 %E ?9KS IT MORE COG5T TO SAY 0?AT CAPITAL1 & ! APPLICATION ( SCI5CE TO 9DU/RY1 >E IMM5SELY PRODUCTIVE40 ,AN ,ESSAY ON ,M>XIAN ,ECONOMICS1 PP4 #b#a-#b#g4 

#d4 ,! ,G5]AL ,!ORY1 P4 #c#g#h4 

#e4 ,IBID41 P4 #c#g#g4 

#f4 ,J4 ,M4 ,KEYNES1 ,LAISSEZ-,FAIRE & ,COMMUNISM1 P4 #a#c4 

#g4 ,S4 ,E4 ,H>RIS1 ,SAV+ ,AM]ICAN ,CAPITALISM1 ,NEW ,YORK1 #a#i#e1 P4 #c#f#i4 

#h4 ,L4 ,R4 ,KLE91 ,! ,KEYNESIAN ,REVOLUTION1 P4 #a#f#g4 

#i4 ,D4 ,DILL>D1 ,! ,ECONOMICS ( ,JOHN ,MAYN>D ,KEYNES1 P4 #a#b4 

#a4 ,O4 ,H4 ,TAYLOR1 ,! ,CLASSICAL ,LIB]ALISM1 ,M>XISM1 & ! ,TW5TIE? ,C5TURY1 ,CAMBRIDGE1 #a#i#f1 P4 #a#a#h4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #c1 #bba 3 ,*APT] #aa -- ,ADD$4 
,M>* #c1 #bba 3 ,*APT] #aa -- ,UPDAT$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/