,S]FDOM 9 A ,FREE ,SOCIETY 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,S\RCE3 ,WE/]N ,SOCIALI/1 ,BO/ON1 ,U,S,A1 ,SEPTEMB] #a#i#d#f2 
,TRANSCRIB$3 BY ,ADAM ,BUICK2 
,PRO($3 & CORRECT$ BY ,GE(F ,TRAU<1 ,AUGU/ #b#e4 

,! ,ROAD TO ,S]FDOM4 ,BY ,FRI$RI* ,A4 ,HAYEK1 ,UNIV]SITY ( ,*ICAGO ,PRESS1 #aidd 7#b#e PP42 @s#b4#g#e74 

,FULL ,EMPLOYM5T 9 A ,FREE ,SOCIETY4 ,BY ,WILLIAM ,H4 ,BEV]IDGE4 ,W4 ,W4 ,NORTON @& ,CO41 ,NEW ,YORK1 #a#i#d#e4 7#d#b#iPP2 @s#c1#g#e74 

,BO? !SE BOOKS >E D$ICAT$ TO ! 0SOCIALI/S ( ALL 
P>TIES40 ,HAYEK WANTS TO DISC\RAGE !M1 ,BEV]IDGE TRIES TO (F] 
5C\RAGEM5T4 ,BO? WRIT]S SPEAK 9 ! NAME ( SCI5CE & DEAL ) ! 
REALITY (1 & ! NE$ =1 CAPITALI/IC PLANN+4 ,BUT :AT APPE>S TO ,HAYEK 
AS ! ROAD TO S]FDOM SEEMS TO ,BEV]IDGE ! HI<WAY TO A FREE SOCIETY4 

,RUSSIA & ,G]MANY PROVE TO ,HAYEK ?AT SOCIALISM DOES NOT LEAD TO FRE$OM4 
,! MO/ IMPORTANT GU>ANTEE ( FRE$OM1 HE MA9TA9S1 IS A SY/EM ( PRIVATE 
PROP]TY4 ,PLANN+ & FRE$OM CANNOT GO TOGE!R4 ,)\T A LABOR M>KET & 
AN 9DU/RIAL RES]VE >MY1 = EXAMPLE1 DISCIPL9E CAN BE MA9TA9$ ONLY BY 
CORPORAL PUNI%M5T1 = :I* REASON SOCIALISM IMPLIES SLAVE-LABOR4 ,! 
0COLLECTIVE FRE$OM0 ( :I* ! PLANN]S SPEAK IS1 9 
,HAYEK'S OP9ION1 0BUT ! UNLIMIT$ FRE$OM ( ! PLANN] TO DO 
) SOCIETY :AT HE PLEASES40 

,IF PLANN+ !RE MU/ BE1 IT %\LD BE PLANN+ =1 NOT AGA9/1 
COMPETITION4 ,& ?IS1 ,HAYEK HOLDS1 %\LD NOT BE TOO DIFFICULT = 0! 
T5D5CY T[>D MONOPOLY & PLANN+ IS NOT ! RESULT ( ANY OBJECTIVE FACTS 
BUT ! PRODUCT ( OP9ION40 ,! MOVEM5T T[>DS TOTALIT>IANISM /EMS 
MA9LY FROM ! TWO GREAT VE/$ 9T]E/S3 ORGANIZ$ CAPITAL & ORGANIZ$ 
LABOR4 ,!SE 9T]E/S >E DETRIM5TAL TO SOCIAL WELL-BE+4 

,AL?\< ,HAYEK'S HE>T BLE$S = BO? ! POOR CAPITALI/S & ! 
POOR WORK]S1 HE PUTS ! BLAME = !IR PR$ICAM5T ON !IR [N DOOR/EPS4 
0,! SUCCESS ( LIB]ALISM10 HE SAYS1 0BECAME ! CAUSE ( 
ITS DECL9E40 ,IT WAS 0IMPATI5CE ) ! SL[ ADVANCE ( LIB]AL 
POLICY1 :I* 9/IGAT$ ,M>XISM & IT WAS ,M>XISM ?AT L$ TO FASCISM40 
,HAV+ BE5 (F]$ ! F+] ( FRE$OM1 ! L[] CLASSES W]E /UPID 5\< 
TO GRASP = ! :OLE H&1 ONLY TO BE PUNI%$ ) ! NEW S]FDOM ( 
/ATE-CAPITALISM :I*1 = ,HAYEK1 /&S = 0SOCIALISM40 

,BLAMES ,M>XISM 

,HAYEK BLAMES ,M>XISM = ! TOTALIT>IAN TR5D BUT HIS KN[L$GE ( ?IS 
DANG]\S DOCTR9E IS APP>5TLY LESS ?AN SCANTY4 ,HE UND]/&S ,M>X'S 
CONCEPT ( ! ACCUMULATION ( CAPITAL1 = 9/ANCE1 ONLY 9 ! RE/RICT$ 
TE*NOLOGICAL S5SE ( ! 0CONC5TRATION ( 9DU/RY40 ,?IS 
CONC5TRATION1 H[EV]1 IS = ,M>X JU/ ONE ASPECT ( ! ACCUMULATION 
PROCESS4 ,MOREOV]1 ,HAYEK ASSUMES ?AT ,M>XISM FO/]S 9DU/RIAL CONC5TRATION 
9 ! 9T]E/ ( ! EM]G+ TOTALIT>IAN /ATE4 ,HE1 HIMSELF1 ?9KS IT 
PREF]ABLE ?AT ! MEANS ( PRODUCTION %\LD BE 9 0MANY H&S40 
,BUT = ! ,M>XI/1 ! PROBLEM IS NOT ONE ( TRANSF]R+ CONTROL OV] ! 
MEANS ( PRODUCTION FROM MANY 9TO FEW] & EV5TUALLY 9TO ONE H&1 BUT 
DO+ AWAY ) CONTROL OV] ! MEANS ( PRODUCTION BY 0H&S0 AS 
SU*1 :E!R S+LE OR PLURAL4 

,HAYEK ?9KS IT BETT] TO HAVE ! MEANS ( PRODUCTION 9 MANY H&S1 BUT HE 
DOES NOT SAY 9 H[ MANY4 ,AT :AT PO9T %\LD ! CONC5TRATION PROCESS ( 
9DU/RY BE BR\<T TO AN 5D8 ,9 REALITY1 ( C\RSE1 IT CANNOT BE BR\<T TO 
AN 5D UNLESS CAPITAL ACCUMULATION IS /OPP$1 ?AT IS1 UNLESS CAPITALISM 
ITSELF IS ABOLI%$2 & ,HAYEK IS \T TO SAVE IT4 ,BUT HE CANNOT ADMIT ?AT 9 
& ( ITSELF CAPITALISM LEADS TO /ATE-CAPITALI/IC SY/EMS4 ,IT IS = ?IS 
REASON ?AT HE DESCRIBES ! GR[+ FASCISM )9 ! CAPITALI/ /RUCTURE AS 
AN ABUNDANCE ( LIB]ALISM4 ,BUT S9CE ! 0SUCCESS ( LIB]ALISM0 
9VOLV$ ! PROGRESSIVE DE/RUCTION ( CAPITALI/IC LIB]TIES1 IT MAY AS WELL 
BE DESCRIB$ AS ! EM]G+ TOTALIT>IANISM4 

,HAYEK'S BANKRUPTCY 

,CONTR>Y TO :AT ,HAYEK WANTS HIS READ]S TO BELIEVE1 ! 0SUCCESS ( 
LIB]ALISM0 HAS FO/]$1 NOT DI/URB$ COMPETITION4 ,HAYEK'S 
COMPETITIVE SOCIETY HAS ALWAYS BE5 MONOPOLI/IC1 VIZ41 ! CAPITALI/ MONOPOLY 
OV] ! MEANS ( PRODUCTION & ! MONOPOLI/IC POSITION ( ! /ATE4 ,& IF 
! COMPETITIVE SOCIETY HAS HAD ITS MONOPOLIES1 ! MONOPOLI/IC SOCIETY HAS 
NOT CEAS$ BE+ COMPETITIVE4 ,!RE IS NO NE$ TO RE/ORE COMPETITION2 IT HAS 
NEV] LEFT US4 ,ALL ?AT HAS HAPP5$ IS ?AT CAPITALISM & CAPITAL 
ACCUMULATION HAVE SPREAD4 ,BECAUSE ( ! PROCESS ( ACCUMULATION1 ,HAYEK'S 
COMPETITION HAS BECOME MONOPOLI/IC COMPETITION1 & MONOPOLI/IC COMPETITION 
HAS L$ TO COMPETITION BETWE5 TOTALIT>IAN /ATES4 ,9 ! TOTALIT>IAN /ATE 
ALL LAY]S >E 5GAG$ 9 IT TO ! PO9T ( DEA?4 ,?US CAPITAL HAS 
F9ALLY TRIUMPH$ OV] ALL ( HUMANITY4 ,! 0IDEAL0 CAPITALISM IS 
ALWAYS ! PRES5T ONE1 & :E!R ,HAYEK LIKES IT OR NOT1 ! PR9CIPLE ( 
CAPITALI/ COMPETITION IS FULLY REALIZ$ ONLY 9 TOTAL W>4 

,TO BE SURE1 ,HAYEK'S ATTACK UPON ?OSE :O REF] TO TOTALIT>IAN 
S]FDOM AS A 0NEW FRE$OM0 IS FULLY JU/IFI$4 ,BUT :5 HE SPEAKS 
ON BEHALF ( ! 0OLD FRE$OM0 ( LIB]AL CAPITALISM1 HE ONLY 
MAT*ES 0M]E WORDS0 ) 0M]E WORDS40 ,HE %\LD KN[1 
& PROBABLY DOES KN[1 ?AT HIS PROPOSALS 9 BO? NATIONAL & 9T]NATIONAL 
FIELDS1 = >RE/+ ! CAPITALI/ T5D5CY T[>D TOTALIT>IANISM CANNOT BE 
REALIZ$1 &1 EV5 IF !Y C\LD BE REALIZ$1 W\LD BR+ =? ONLY ONCE MORE 
:AT !Y 9T5D$ TO DE/ROY4 ,?IS HOPELESS SITUATION R$UCES ! ECONOMI/1 
,HAYEK1 TO A M]E PROPAG&I/ = FREE 5T]PRISE4 ,H5CE ! POPUL>ITY ( HIS 
BOOK1 :I* IS NO MORE ?AN A TE/IMONY ( ! BANKRUPTCY ( ITS AU?OR & ( 
! 9T]E/S HE REPRES5TS4 

,I,I 

,BEV]IDGE IS ! PROPAG&I/ ( ,HAYEK'S 0ADV]S>IES40 ,HE 
REPRES5TS AN EXT5D$ =M ( TOTALIT>IANISM 9 DI/9CTION TO ,HAYEK'S 
RE/RICT$ BR&4 ,CONSEQU5TLY1 !RE IS MORE 0PRO-,M>XISM0 9 
,BEV]IDGE ?AN !RE IS 0ANTI-,M>XISM0 9 ,HAYEK4 ,M>X IS M]ELY 
PLUND]$1 H[EV]1 NEV] M5TION$ BY ,BEV]IDGE & EV5 ?IS ONLY 
SECOND-H&$LY BY WAY ( ,KEYNES4 ,BEV]IDGE REG>DS ?IS WORK AS A SEQUEL TO 
HIS PREVI\S ,REPORT ON ,SOCIAL ,9SURANCE4 ,?IS TIME1 H[EV]1 HE 
WRITES NOT AS A 0TEMPOR>Y ,M9I/]10 BUT AS A 0PRIVATE 
CITIZ50 CONC]N$ ) UNEMPLOYM5T1 :I* 9T]E/S HIM NOT SO MU* 
BECAUSE ( ITS 0PHYSICAL0 AS BECAUSE ( ITS 0MORAL0 
EVILS4 0,! GREATE/ EVIL ( UNEMPLOYM5T IS NOT ! WANT :I* IT MAY 
BR+10 HE SAYS1 0BUT ! HATR$ & FE> :I* IT BRE$S10 
JU/ 0AS ! GREATE/ EVIL ( W> IS NOT PHYSICAL BUT SPIRITUAL1 NOT ! 
RU9S ( CITIES & KILL+ ( BODIES1 BUT ! P]V]SION ( ALL ?AT IS BE/ 
9 MAN'S SPIRIT40 ,PLANN+ = ,FULL ,EMPLOYM5T1 !N1 S]VES FIR/ 
( ALL ! SPIRITUAL REG5]ATION ( MAN4 

,AFT] ! S]MON1 ! WORK BEG9S4 ,MAN'S REG5]ATION MU/ BE 
JU/IFI$ BY ! USE ( /ATI/ICAL DATA1 CLOSE >GUM5T1 TE*NICAL T]MS & 
V>I\S APP5DICES AS WELL AS AN 9DEX4 ,WE LE>N ?AT WANT IS A LACK ( 9COME 
& ! ABS5CE ( WANT1 ! RESULT ( 5\< 9COME4 ,= MO/ PEOPLE AN 9COME 
IMPLIES EMPLOYM5T4 ,TO ABOLI% WANT1 EMPLOYM5T MU/ BE GU>ANTE$4 ,ONLY ! 
/ATE CAN DO ?IS EFFICI5TLY4 ,IT MU/ BE 5ABL$ TO PLAN = FULL 
EMPLOYM5T4 

,FULL EMPLOYM5T MEANS 0!RE %\LD ALWAYS BE MORE VACANT JOBS ?AN 
UNEMPLOY$ M510 ?AT 0! LABOR M>KET %\LD ALWAYS BE A 
SELL]'S M>KET RA!R ?AN A BUY]'S M>KET40 ,!RE MU/ BE 
AN 5D TO ALL RE/RICTIONI/ PRACTICES1 :E!R EX]CIS$ BY CAPITAL OR 
ORGANIZ$ LABOR4 ,( C\RSE1 !RE CAN BE NO ABSOLUTE ABOLITION ( UNEMPLOYM5T4 
,9 SOME ( ITS =MS IT IS A NECESS>Y ACCOMPANIM5T TO ECONOMIC *ANGE4 ,BUT 
UNAVOIDABLE UNEMPLOYM5T %\LD BE %ORT-T]M$ & %\LD BE SATISFACTORILY 
DEALT ) BY WAY ( SOCIAL 9SURANCE4 

,! LABOR M>KET 9 ! PA/ HAS ALWAYS BE5 A BUY]'S M>KET4 
,BEV]IDGE REALIZES ?AT TO ALT] ?IS W\LD *ANGE MANY EXI/+ 9/ITUTIONS4 
,HAYEK FE>S ?AT !SE *ANGES W\LD EVOLVE 9TO SLAVE-LABOR4 ,BUT ,BEV]IDGE1 
AL?\< ADMITT+ ! DANG]1 BELIEVES 9 ! POSSIBILITY ( AVOID+ IT4 ,HE 
?9KS IT POSSIBLE 0TO MAKE ,BRITA9 AGA90 7:AT IT NEV] 
WAS7 0A L& ( OPPORTUNITY = ALL40 ,HE ADMITS1 ( C\RSE1 ?AT 
0! PROBLEM ( MA9TA9+ FULL EMPLOYM5T IS MORE COMPLICAT$ 9 A FREE 
SOCIETY ?AN IT W\LD BE UND] A TOTALIT>IAN REGIME40 ,BUT FROM HIS 
PRES5T PO9T ( VIEW HE /ILL ?9KS IT ATTA9ABLE4 ,IF IT %\LD BE %[N BY 
EXP]I5CE1 H[EV]1 0?AT ABOLITION ( PRIVATE PROP]TY 9 ! MEANS ( 
PRODUCTION WAS NECESS>Y = FULL EMPLOYM5T1 ?IS ABOLITION W\LD HAVE TO BE 
UND]TAK540 

,BEV]IDGE REFUSES TO TAKE P>T 9 ! PRES5T-DAY QU>RELS BETWE5 PRIVATE 
PROP]TY & /ATE CONTROL BECAUSE1 EI!R SEP>ATELY OR MIX$1 HE IS 9 FAVOR 
( BO?4 ,& BECAUSE HE FAVORS BO?1 HE ?9KS HIMSELF ON NEUTRAL GR\ND & 
IMAG9ES ?AT HIS PROPOSALS >E EQUALLY NECESS>Y & APPLICABLE TO LIB]ALISM1 
TO A MIX$ ECONOMY1 TO ! TOTALIT>IAN /ATE1 OR EV5 TO 
0SOCIALISM0 AS HE UND]/&S IT4 

,APP>5TLY ,BEV]IDGE KN[S ?AT IT IS NOT ! M>KET BUT CAPITALI/ CONTROL 
OV] ! MEANS ( PRODUCTION :I* =CES ! WORK]S TO ACCEPT !IR MIS]ABLE 
CONDITIONS4 ,EXPLOITATION GOES ON REG>DLESS ( ! M>KET-WEA!R1 ?\< IT 
GOES ON EV5 BETT] 9 ! PRES5CE ( UNEMPLOYM5T4 ,BUT EV5 ! COMPLETE LOSS 
( ! LABOR M>KET LEAVES ALL ESS5TIAL CONTROL-MEASURES 9TACT4 ,! 
=C$-LABOR CAMPS NE$ NOT BE 9/ALL$ AT ONCE1 ! RI<T IDEOLOGY1 TOGE!R 
) ! RI<T LABOR ORGANIZATIONS1 %\LD /ILL BE WORKABLE 9 C\NTRIES LIKE 
,AM]ICA & ,5GL&4 

,9 DIAGNOS+ UNEMPLOYM5T1 ,BEV]IDGE F\ND ?AT 0! RELATION ( 
TOTAL DEM& TO TOTAL SUPPLY IS ! MO/ IMPORTANT S+LE ELEM5T 9 ! 
PROBLEM40 ,! W> CONFIRM$ 0! POSSIBILITY ( SECUR+ FULL 
EMPLOYM5T BY SOCIALIZATION ( DEM& )\T SOCIALIZATION ( 
PRODUCTION40 ,TO AVOID UNEMPLOYM5T ! /ATE MU/ SET UP 0A 
LONG-T]M PROGRAM ( PLANN$ \TLAY DIRECT$ BY SOCIAL PRIORITIES & DESIGN$ 
TO GIVE /ABILITY & EXPANSION TO ! ECONOMIC SY/EM4 ,ITS MA9 9/RUM5T IS 
A NEW TYPE ( BUDGET1 9/RUM5TAL NOT ONLY = DET]M9+ PUBLIC \TLAY1 BUT 
ALSO = 9FLU5C+ PRIVATE \TLAY40 

,! ,ECONOMICS ( ,J4 ,MAYN>D ,KEYNES 

,!ORETICALLY1 ?IS IDEA IS BAS$ ON :AT ,BEV]IDGE REG>DS AS ! 
REVOLUTION 9 ECONOMIC ?\<T 9ITIAT$ BY ,KEYNES4 ,AMONG O!R ?+S1 ,KEYNES 
DISCOV]$ 9 #aicf :AT HAD BE5 KN[N = ALMO/ A C5TURY1 NAMELY1 ?AT 
EMPLOYM5T DEP5DS ON SP5D+ & ?AT ! 0AUTOMATISM0 ( ! 
M>KET DOES NOT GU>ANTEE SP5D+ SUFFICI5T = FULL EMPLOYM5T4 ,KEYNES 
DISCOV]$ ?AT NOT ALL SAV+S >E SP5T4 ,IF PR(IT EXPECTANCY IS SMALL1 !RE 
WILL BE SMALL 9C5TIVE TO SP5D4 ,?IS RESULTS 9 9SUFFICI5T CAPITAL 
EXPANSION & UNEMPLOYM5T4 

,S9CE UNSP5T SAV+S T5D TO PRODUCE DEPRESSIONS1 IT FOLL[S ?AT 
DEPRESSIONS CAN BE CUR$ BY SP5D+ SAV+S4 ,IF ! CAPITALI/S :O MAKE ! 
SAV+S F9D NO WAY ( 9VE/+ !M PR(ITABLY1 ! /ATE %\LD F9D WAYS 
& MEANS TO 9VE/ !M REG>DLESS ( ! PR(IT \TLOOK4 ,! ECONOMIC 
ACTIVITY ?US 9ITIAT$ WILL HAVE CUMULATIVE EFFECTS1 SO ?AT UNPR(ITABLE 
9VE/M5T H]E WILL BR+ = PR(ITABLE 9VE/M5T !RE1 & F9ALLY 
EV]YBODY WILL HAVE GA9$4 

,! ECONOMIC PROBLEM1 !N1 IS F9D+ A TE*NIQUE ( MANIPULATION :I*1 
DIRECTLY & 9DIRECTLY1 WILL FO/] 9VE/M5TS = CAPITAL EXPANSION4 
,BEV]IDGE'S APPLICATION ( ,KEYNES' PR9CIPLE IS SUMM$ UP 9 HIS 
SUGGE/IONS TO ! ,M9I/] ( ,NATIONAL ,F9ANCE4 ,EA* YE> ! ,M9I/] MU/ 
MAKE ONE C>D9AL DECISION3 0AFT] E/IMAT+ H[ MU*1 ASSUM+ FULL 
EMPLOYM5T & UND] ! TAXATION :I* HE PROPOSES1 PRIVATE CITIZ5S MAY BE 
EXPECT$ TO LAY \T A YE> ON CONSUMPTION & PRIVATE 9VE/M5T1 HE MU/ 
PROPOSE ?AT YE> PUBLIC \TLAY SUFFICI5T1 ) ?IS E/IMAT$ PRIVATE \TLAY1 
TO EMPLOY ! :OLE MAN-P[] ( ! C\NTRY 4 4 4 ,! /ATE MU/ SP5D MORE 
?AN IT TAKES AWAY FROM ! CITIZ5S BY TAXATION1 9 ORD] TO USE ! LABOR & 
O!R PRODUCTIVE RES\RCES :I* W\LD O!RWISE BE WA/$ 9 
UNEMPLOYM5T40 

,! /ATE CAN DO ?IS1 ,BEV]IDGE PO9TS \T1 BECAUSE IT POSSESS AN UNLIMIT$ 
COMM& OV] ! NATION'S CR$IT4 ,IT CAN TAX & BORR[ & BORR[ AGA9 
& REPAY ) 9T]E/ :AT IT HAS BORR[$ BY TAX+ ONCE MORE4 ,9 BRIEF1 IT 
CAN CONT9UE DO+ :AT IT IS DO+ N[4 ,NO ONE %\LD BECOME AL>M$ BY ! 
PROBABILITY ( A /EADILY RIS+ NATIONAL DEBT4 ,! REAL NATIONAL 9COME 
REMA9S UNAFFECT$ !REBY2 ALL ?AT MAY RESULT FROM ! DEBT IS A TRANSF] ( 
9COME BETWE5 DIFF]5T LAY]S ( SOCIETY4 ,& EV5 ?IS MAY NOT NECESS>ILY 
HAPP51 = 0IF ! ANNUAL 9T]E/ *>GE IS PAID \T ( ! PROCE$S ( 
AN 9COME TAX :I* IS PROPORTIONATE TO 9COME1 !RE IS NO TRANSF] AT ALL 9 
CONSEQU5CE ( ! DEBT40 

,KALDOR'S ,PROPOSITION 

,= FUR!R DETAILS1 ,BEV]IDGE REF]S HIS READ]S TO ,NI*OLAS 
,KALDOR'S WORK ON ! ,QUANTITATIVE ,ASPECTS ( ! ,FULL ,EMPLOYM5T 
,PROBLEM 9 ,BRITA91 :I* MAKES UP ,APP5DIX ,C4 ,ASSUM+ ?AT ! 
GOV]NM5T WILL PLAN ! RATE ( NATIONAL 9VE/M5T AS A :OLE1 & ) A 
L>GE S]IES ( O!R ASSUMPTIONS1 ,KALDOR COMES TO ! CONCLUSION ?AT !RE IS 
!ORETICALLY NO REASON :Y ! GOV]NM5T1 ) ! HELP ( A ,NATIONAL 
,9VE/M5T ,BO>D1 %\LD NOT BE ABLE TO 9SURE /ABILITY & ADEQUACY 9 ! 
NATIONAL \TLAY AS A :OLE4 ,?IS C\LD BE TRUE1 ( C\RSE1 PROVID$ ?AT ! 
L>GE NUMB] ( ,KALDOR'S HYPO!SES & ASSUMPTIONS W]E APPLICABLE TO 
CAPITALI/ REALITY1 PROVID$ ! CONTROLL]S & ! CONTROLL$ DID ALL ! 
?+S ,KALDOR'S !ORY REQUIRES & NO?+ :I* W\LD DI/URB ITS 
WORK+4 ,BUT NEI!R ,KALDOR NOR ,BEV]IDGE CONFRONT !IR !ORIES ) ! 
REALITIES ( CAPITALISM4 

,BO?1 NEV]!LESS1 APPROA* ! PROBLEM ( FULL EMPLOYM5T FROM ! PO9T 
( VIEW ( IMM$IATE NE$S & ) REG>D TO ITS LONG-RUN CONSEQU5CES4 ,AS ! 
NATIONAL 9COME RISES ) CAPITAL ACCUMULATION1 GOV]NM5TAL POLICY MU/ 
/EADILY BE ADJU/$ TO MA9TA9 FULL EMPLOYM5T4 ,! RATE ( 9VE/M5T \TLAY 
MU/ BE 9CREAS$ OR RIS+ PRODUCTION MU/ BE FULLY ABSORB$ BY RIS+ 
CONSUMPTION4 0,ULTIMATELY10 ,KALDOR /ATES1 0! GOV]NM5T MAY 
HAVE TO RAISE ! PROP5SITY TO CONSUME BY MORE RADICAL ME?ODS ( 9COME 
RE-DI/RIBUTION -- :5 IT WILL NO LONG] BE POSSIBLE TO AF=D ! DEGREE 
( 9EQUALITY ( 9COME ?AT CAN BE SU/A9$ DUR+ ! P]IOD ( RELATIVELY 
HI< 9VE/M5T40 

,! REALIZATION ( ALL ! EXPECTATIONS BAS$ ON ,KEYNESIAN ECONOMICS DEP5DS 
ON AN ACCEL]AT$ CAPITAL ACCUMULATION4 ,! !ORY WILL WORK PROVID$ ! 
WORK]S CAN BE EXPLOIT$ SUFFICI5TLY TO MAKE IT WORK4 ,AL?\< ,KEYNES HAS 
SAID1 & ,BEV]IDGE AFFIRMS HIM1 ?AT 0!RE IS ROOM = BO?3 TO PROMOTE 
9VE/M5T &1 AT ! SAME TIME1 TO PROMOTE CONSUMPTION10 !Y /ILL 
HOLD ?AT 9VE/M5T COMES FIR/ & CONSUMPTION SECOND4 ,& ?\< IT IS TRUE 
?AT MAN MU/ WORK BE=E HE EATS1 GREAT] PRODUCTION 9 CAPITALISM DOES NOT 
IMPLY GREAT] CONSUMPTION = ! WORK]S4 ,& IT IS ! CONSUMPTION ( ! 
WORK]S1 WE PRESUME1 ?AT ,BEV]IDGE WANTS TO RAISE4 ,UP TO N[1 A PROGRESSIVELY 
9CREAS+ 9VE/M5T HAS BE5 MADE POSSIBLE BY PROGRESSIVELY DECREAS+ ?AT 
P>T ( TOTAL PRODUCTION :I* S]VES ! CONSUMPTION NE$S ( ! WORK]S4 ,TO 
BE SURE1 ! RAPID DEVELOPM5T ( LABOR PRODUCTIVITY ALL[$ = AN 9CREASE 9 
REAL WAGES4 ,BUT ! RIS+ LIV+ /&>D 9 T]MS ( WAGES WAS POSSIBLE ONLY 
BECAUSE ! RATE ( EXPLOITATION ROSE /ILL FA/]4 ,9 ?IS S5SE1 ( C\RSE1 A 
PROGRESSIVE CAPITAL ACCUMULATION MAY /ILL YIELD AN 9CREASE 9 REAL WAGES 
DESPITE ! DECREASE ( WORK]S' CONSUMPTION RELATIVE TO TOTAL 
PRODUCTION4 ,BUT IT MAKES NO S5SE TO REF] TO ?IS PROCESS AS A 
0RE-DI/RIBUTION ( 9COME40 

,!ORY & ,PRACTICE 

,! ONLY RE-DI/RIBUTION POSSIBLE BY AN ACCEL]AT+ CAPITAL ACCUMULATION IS 
! FAMILI> ONE ( PRODUC+ FEW] RI* M5 & MORE POOR M54 ,GREAT] 
9VE/M5T1 BEGETT+ /ILL GREAT] 9VE/M5T1 IMPLIES NOT ONLY ! SP5D+ 
( 0SAV+S0 ON H&1 BUT ALSO ! PRODUCTION ( /ILL GREAT] 
0SAV+S40 ,! SURPLUS-VALUE CREAT$ MU/ CREATE /ILL GREAT] 
SURPLUS-VALUE TO SAFEGU>D A SUFFICI5T RATE ( CAPITAL EXPANSION4 ,A PO9T WILL 
BE REA*$ :]E ! NE$S ( CONT9U\S 9VE/M5T EXCE$ ! PROCE$S ( 
CURR5T EXPLOITATION1 BECAUSE1 AS LONG AS CAPITALISM LA/S1 !RE IS NO LIMIT 
TO ! FIR/1 BUT !RE >E QUITE DEF9ITE LIMITS TO ! SECOND4 ,NO MATT] H[ 
MU* CR$IT ! GOV]NM5T MAY HAVE & NO MATT] H[ LITTLE IT MAY FE> ! 
L>GE/ DEBT1 ! RATE ( 9VE/M5T TO KEEP ! ACCUMULATION PROCESS GO+ 
WILL NE$ MORE SURPLUS-VALUE ?AN IT F9DS ON H&4 ,AT ?IS PO9T1 ( C\RSE1 
,KALDOR & ,BEV]IDGE W\LD PROCLAIM ?AT 0IT IS NO LONG] POSSIBLE TO 
AF=D ! DEGREE ( 9EQUALITY ( 9COME0 ?AT PREVAIL$ DUR+ ! 
P]IOD ( RELATIVELY HI< 9VE/M5T & !Y W\LD EXPECT ! /ATE 0TO 
RAISE ! PROP5SITY TO CONSUME0 BY GOV]NM5TAL DECREE4 

,APP>5TLY1 !N1 ,BEV]IDGE W\LD LIKE TO 5D CAPITAL ACCUMULATION BY WAY ( 
! ACCUMULATION ( CAPITAL4 ,HIS IMM$IATE SUGGE/IONS = 9CREAS+ BO? 
9VE/M5T & CONSUMPTION W\LD MEAN1 H[EV]1 DO+ TWICE AS EFFECTIVELY :AT 
ANY CAPITALI/ SY/EM TRIES TO DO ANYWAY1 ?AT IS1 RAISE ! PRODUCTIVITY ( 
LABOR & R$UCE ! CO/ ( NONPRODUCTIVE ACTIVITIES4 0,RADICAL 
RE-DI/RIBUTION ( 9COME0 LOOMS 9 ! FUTURE AS ! RESULT ( ! 
IMM$IATELY 9CREAS$ EXPLOITATION4 ,ONCE MORE 0SOCIALISM0 IS 
CONCEIV$ ( AS ! REW>D ( UNSOCIALI/IC BEHAVIOR 9 ! IMM$IATE PRES5T 
& 9 ! NE> FUTURE4 ,& ONCE AGA9 IT IS CONCEIV$ ( AS A GIFT FROM 
GOV]NM5T4 

,CONFLICTS )9 ,CAPITALISM 

,! DIRECTION ( 9VE/M5T1 H[EV]1 IS NOT A QUE/ION ( GOV]NM5TAL 
*OICE BETWE5 V>I\S ALT]NATIVES4 ,TO A C]TA9 EXT5T IT IS 9FLU5C$1 NO 
D\BT1 NOT BY REASON+ BUT BY ! /RUGGLE BETWE5 DIFF]5T CAPITALI/IC 
9T]E/S & BETWE5 CAPITAL & LABOR4 ,:]E ! LATT] /RUGGLE IS 
TEMPOR>ILY SET ASIDE BY GOV]NM5T ACTION1 ! FI<T BETWE5 CAPITALI/IC 
CONT5D]S /ILL CONT9UES4 ,BOOKS LIKE ,HAYEK'S & ,BEV]IDGE'S 
DESCRIBE ?IS /RUGGLE4 ,BUT !IR OPPOS+ PO9TS ( VIEW >E ONLY REFLECTIONS 
( ! FI<T BETWE5 ! GR\PS !Y REPRES5T -- ! FI<T = GA9+ OR 
MA9TA9+ CONTROLL+ POSITIONS 9 A SY/EM :I* DEFEATS EV]Y CONTROL O!R 
?AN ?AT :I* WILL SECURE ! EXI/5CE ( ?AT SY/EM4 ,! FACT ?AT 9 ?IS 
/RUGGLE ! ,BEV]IDGES & NOT ! ,HAYEKS >E W9N+ %\LD 9DICATE ?AT ! 
DEVELOPM5TAL TR5D IS /ILL DET]M9$ BY ! UNCONTROLLABLE PRESSURES ( 
CAPITAL ACCUMULATION BAS$ ON AN EXPLOITATIVE SOCIAL RELATION%IP4 

,:O IS ! GOV]NM5T :I* SO WISELY /OPS & />TS ACCUMULATION 9 
ACCORDANCE ) ! *ANG+ NE$S ( SOCIETY8 ,ONCE IT WAS ! EXECUTIVE ( 
,HAYEK'S 0COMPETITORS40 ,!N IT BECAME A CAPITALI/ MONOPOLY 
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,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
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