,! 0NEW ,LOOK0 9 ,ECONOMICS -- ,REVIEWS ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,S\RCE3 ,WE/]N ,SOCIALI/1 ,BO/ON1 ,U,S,A1 ,MAY-,JUNE #a#i#e#f2 ,TRANSCRIB$3 BY ,ADAM ,BUICK4 ,POLICIES TO ,COMBAT ,DEPRESSION4 ,A ,CONF]5CE ( ! ,UNIV]SITIES ,NATIONAL ,BUREAU ,COMMITTEE = ,ECONOMIC ,RESE>*4 ,PR9CETON ,UNIV]SITY ,PRESS1 #a#i#e#f4 7#d#a#g PP2 @s#h4#e74 ,! ,POLITICAL ,ECONOMY ( ,AM]ICAN ,=EIGN ,POLICY4 ,REPORT ( A ,/UDY ,GR\P SPONSOR$ BY ! ,WOODR[ ,WILSON ,F\NDATION & ! ,NATIONAL ,PLANN+ ,ASSOCIATION4 ,H5RY ,HOLT @& ,CO41 ,NEW ,YORK4 7#d#a#d PP2 @s#f74 ,ACCORD+ TO ,KEYNES1 DEPRESSIONS >E NO LONG] NECESS>Y4 ,&1 9 FACT1 9/EAD ( DEPRESSION !RE WAS ! SECOND WORLD W> & ! UPSW+ ( ECONOMY ACTIVITY BAS$ ON ! PROBABILITY ( A NEW W>4 ,GOV]NM5T MANIPULATIONS & EXP5DITURES KEPT UNEMPLOYM5T AT A L[ LEVEL2 A GREATLY 9CREAS$ PRODUCTIVITY MA9TA9$ ! PR(ITABILITY ( CAPITAL1 & ! ,AM]ICAN ECONOMY EXP]I5C$ FUR!R EXPANSION DESPITE CONTRACT+ M>KETS4 ,GOV]NM5T 9T]V5TIONS 9 ! ECONOMY HAVE LO/ !IR TEMPOR>Y *>ACT] & >E N[ REG>D$ AS P]MAN5T 0BUILT-9-/ABILIZ]S40 ,AL?\< ! FULL-EMPLOYM5T ME*ANISM ( ! ,KEYNESIAN SY/EM >E N[ RECOGNIZ$ AS 9ADEQUATE1 BECAUSE !Y HAD BE5 BAS$ ON A RA!R NAIVE SIMPLIFICATION ( ! PROBLEM ( ECONOMIC CONTROL1 9 SPIRIT & T]M9OLOGY ! NEW] 0NEW ECONOMICS0 >E /ILL ,KEYNESIAN1 EV5 ?\< ! MA/] IS N[ R>ELY M5TION$4 ,9 ,POLICIES TO ,COMBAT ,DEPRESSION1 F\RTE5 ECONOMI/S DISCUSS ! QUE/ION :E!R OR NOT DEPRESSIONS MAY /ILL >ISE DESPITE ! EXI/5CE ( 0/ABILIZ]S40 ,! RESULT ( ! DISCUSSION IS NIL1 ( C\RSE1 AS IT IS IMPOSSIBLE TO PR$ICT ! FUR!R C\RSE ( ECONOMIC DEVELOPM5T ON ! ASSUMPTION ?AT !RE IS NO FUR!R ECONOMIC DEVELOPM5T4 ,& BECAUSE ( ?IS ASSUMPTION1 !SE ECONOMI/S DO NOT CONC]N !MSELVES ) ! EQUALLY DI/URB+ QUE/ION ( ! CONSEQU5CES ( A POSSIBLE DEPRESSIONLESS DEVELOPM5T ) RESPECT TO ! FUTURE ( ! PRIVATE 5T]PRISE SY/EM1 ?AT IS1 ) ! SOCIO-ECONOMIC MEAN+ ( ! FUR!R GR[? ( 0BUILT-9 /ABILIZ]S40 ,= ALL !SE ECONOMI/S1 GOV]NM5T 9T]V5TION MU/ S]VE PRIVATE CAPITAL1 EV5 ?\< 0GOV]NM5T EXP5DITURES >E CONSID]ABLY GREAT] ?AN GROSS PRIVATE 9VE/M5T0 & WILL NOT 0FALL BEL[ ! LEVEL ( PRIVATE 9VE/M5T 9 ! NE>-T]M FUTURE40 ,GOV]NM5T SP5D+1 9CLUD+ DEFICIT-F9ANC+ IF NECESS>Y1 IS SE5 AS ! ONLY EFFECTIVE MEANS TO COMBAT DEPRESSION4 ,BEYOND ?IS1 H[EV]1 DEPRESS$ 9DU/RIES %\LD BE HELP$ ALONG ) SPECIAL CR$IT FACILITIES1 EASY MONEY POLICIES %\LD 9DUCE BANK]S TO HELP BUS9ESS FIRMS MA9TA9 L>G] 9V5TORIES1 SPECIAL TAX & F9ANCIAL 9DUCEM5TS %\LD BE (F]$ TO PRIVATE BUILD]S ( H\SES = L[ & MIDDLE 9COME GR\PS1 PUBLIC WORKS %\LD BE CON/RUCT$ ) AN EYE TO ! NE$S ( PRIVATE CAPITAL -- ROADS = ! AUTOMOBILE 9DU/RY1 AIRPORTS = ! AIRCRAFT 9DU/RY1 & SO =?4 ,IT IS ! FUNCTION ( ! 0PUBLIC SECTOR0 ( ! ECONOMY TO SECURE ! EXI/5CE ( PRIVATE 5T]PRISE4 ,! 0MIX$0 ECONOMY ?US SUPPORT$ DOES NOT /OP TOTT]+1 H[EV]1 AS IS 9DICAT$ BY REC5T SO-CALL$ 0RECESSIONS10 ! ONE ( #a#i#d#h-#d#i S]V+ AS A 0CASE /UDY0 TO EVALUATE ! EFFECTIV5ESS ( V>I\S ANTI-DEPRESSION POLICIES4 ,! LESSON D]IV$ IS ?AT AS YET !RE IS NO WAY ( F9D+ \T :E!R OR NOT ! NEW ECONOMY IS LESS SUSCEPTIBLE TO SEV]E FLUCTUATIONS ?AN ! OLD1 = IT IS NOT POSSIBLE TO SAY ?AT GOV]NM5T ACTIONS W\LD HAVE BE5 ADEQUATE IF ! #aidh D[NTURN W\LD HAVE BE5 MORE SEV]E ?AN IT WAS4 ,! QUE/ION IS RAIS$ :E!R UND] PRES5T CONDITIONS ! ASSOCIATION BETWE5 W> & FULL-EMPLOYM5T IS AN ACCID5T OR AS NECESSITY1 & IT IS SAID ?AT ?\< NOT A NECESSITY IT IS BY NO MEANS ACCID5TAL4 ,ONE ECONOMI/ PO9TS \T ?AT A L>GE GOV]NM5T BUDGET 0IS LIKELY TO YIELD FULL EMPLOYM5T & 9FLATION1 :E!R IT IS SP5T ON ! MEANS ( DEA? OR ON ! MEANS ( LIFE10 BUT HE ?9KS ! LATT] REM$Y UNACCEPTABLE BECAUSE ( ! SPECIAL NE$S ( PRIVATE CAPITAL4 ,HE SUGGE/S ! EXPANSION ( /ATE & LOCAL GOV]NM5T EXP5DITURES2 MORE PUBLIC WORKS 9/EAD ( MORE >MAM5TS1 SO AS NOT TO EXP& ! P[]S ( ! ,F$]AL GOV]NM5T & NOT TO CONTRACT M>KETS ANY FUR!R4 ,SOME ECONOMI/S DEAL AT GREAT L5G? ) ! /ABILIZ+ EFFECTIV5ESS ( BUDGET FLEXIBILITY1 ?AT IS1 !Y SPECULATE AB\T ALT]ATIONS ( ECONOMIC ACTIVITY UND] V>I\S ASSUM$ CONDITIONS :5 GOV]NM5T EXP5DITURES 9CREASE OR DECREASE4 ,?IS 9NOC5T & NON-COMMITTAL GAME LOOKS AS IMPRESSIVE ON PAP] AS IT IS MEAN+LESS 9 REALITY4 ,O!RS CONC5TRATE ON TAX POLICIES DUR+ RECESSIONS & 9 G5]AL1 ?AT IS1 ON WAYS & MEANS TO R$UCE OR 9CREASE P]SONAL 9COME = PURPOSES ( ECONOMIC /ABILIZATION4 ,CORPORATE 9COME TAXES >E CONSID]$1 & RAPID AMORTIZATION S*EMES >E PROPOS$ TO RAISE 9C5TIVES = PRIVATE 9VE/M5TS4 ,) ! 9DUCEM5T TO 9VE/ ?R\< A PREF]5TIAL TREATM5T ( NEW 9VE/M5T !RE GOES -- 9 TRUE ,KEYNESIAN FA%ION -- ! 9CREASE ( ! PROP5SITY TO CONSUME1 OR RA!R 0SOCIAL SECURITY0 AS AN 9/RUM5T ( ECONOMIC /ABILITY4 ,& ) ?IS GOES A B5EFICIAL H\S+ POLICY1 SLUM CLE>ANCE & URBAN R$EVELOPM5T & ! WOND]FUL ANTI-DEPRESSION P[] ( SELF-LIQUIDAT+ PUBLIC WORKS4 ,F>M PRICE SUPPORTS >E ALSO SE5 AS FO/]+ /ABILITY2 9 FACT1 NO?+ SEEMS TO BE GO+ ON 9 ! ECONOMY :I* IS NOT ( A /ABILIZ+ NATURE4 ,NI WOND] ! SY/EM TOTT]S UND] SO MU* /ABILIZATION4 ,IT TOTT]S MA9LY1 AS ! ECONOMI/S PO9T \T1 BECAUSE ( ! PREC>I\SNESS ( 9T]NATIONAL RELATIONS4 ,AT ! V]Y BEG9N+ ( ?IS COLLECTION ( PAP]S IT IS SAID ?AT EV5 IF IT W]E POSSIBLE TO MAKE ! ECONOMY1 QUA ECONOMY1 H>DI] & MORE %OCK-RESI/ANT1 WE LIVE 9 A WORLD :]E 9T]NATIONAL DEVELOPM5TS HAVE & WILL CONT9UE TO HAVE MAJOR REP]CUSSIONS ON ! ECONOMY4 ,AS ! POLICIES ( #a#i#d#h-#a#i#d#i W]E SIGNIFICANTLY 9FLU5C$ BY ! 9T]NATIONAL T5SIONS ( ! COLD W>1 FUTURE POLICY REMA9S UNPR$ICTABLE = ! SAME REASON4 ,! LA/ PAP] DEALS !N ) 9T]NATIONAL TRADE & PAYM5TS POLICIES 9 ! PO/W> WORLD4 ,H]E IT IS SAID ?AT ! HOPEFUL PLANS ( ,BRETTON ,WOODS HAVE ALL BE5 GIV5 UP4 ,9/EAD ( FREE TRADE & G5]AL CURR5CY CONV]TIBILITY1 0RECOV]Y0 ( ! 9T]NATIONAL TRADE & PAYM5TS SITUATION RE/RICT$ ITSELF TO ! =MATION ( ! ,EUROPEAN ,PAYM5TS ,UNION & ! MA9T5ANCE ( ! ,/]L+ >EA4 ,! EXPANSION ( ,AM]ICAN PRODUCTION & ,AM]ICAN AID BR\ AGA9 9 A NEW DEPRESSION4 ,TO COMBAT ?IS POSSIBILITY REQUIRES 9T]NATIONAL ANTI-DEPRESSION POLICIES & !RE) CONT9U$ ,AM]ICAN 9T]E/ 9 ! WELF>E ( ! ,EUROPEAN ECONOMIES4 ,?IS IS ALSO ! OP9ION ( ! N9E ECONOMI/S :O WROTE ,! ,POLITICAL ,ECONOMY ( ,AM]ICAN ,=EIGN ,POLICY1 A REVIEW ( ! CONCEPTS1 /RATEGY1 & LIMITS ( ,AM]ICA'S =EIGN ECONOMIC POLICY4 ,!IR BOOK IS DIVID$ 9TO A DIAGNO/IC & A PRESCRIPTIVE P>T4 ,! DIAGNO/IC HALF IS A HI*ICALLY 9 ! 9T]NATIONAL ECONOMY1 EA* TRY+ TO A*IEVE ITS [N 5DS ) LITTLE REG>D = ! 9T]E/S ( O!R C\NTRIES & ) SLITIALLY 9TEGRAT$ 9TO ! WORLD ECONOMY1 ) :I* IT IS ALSO P>TLY COMPETITIVE1 & :OSE ACCU/OM$ MODE & PACE ( FUNCTION+ IT T5DS P]IODICALLY TO DI/URB40 ,?IS IS AS IT IS1 H[EV]1 & NO?+ CAN BE DONE AB\T IT4 ,AL?\< ! ,WE/ ,EUROPEAN C\NTRIES & ,JAPAN DEP5D UPON ! EXPANSION ( =EIGN TRADE1 & ?\< !IR ECONOMIES HAVE \TGR[N !IR BASE ( NATURAL RES\RCES1 !Y N[ LIVE 9 AN ECONOMIC 5VIRONM5T :I* HAS BE5 9CREAS+LY UNCONG5IAL TO ! RAPID EXPANSION ( !IR 9DU/RIAL EXPORTS4 ,!Y CANNOT COMPETE SUCCESSFULLY ) ! PRODUCTIVELY SUP]IOR ,AM]ICAN 9DU/RY & C\LD NOT DO SO EV5 IF ALL ,AM]ICAN T>IFFS W\LD BE REMOV$4 ,NEI!R CAN !Y 5JOY AN ADEQUATELY GR[+ EX*ANGE ( MANUFACTUR]S = PRIM>Y PRODUCTS ) ,ASIA1 ,LAT9 ,AM]ICA & ,OCEANIA1 AT FAVORABLE T]MS ( TRADE1 BECAUSE ( LIMITATIONS ON ! GR[? ( AGRICULTURAL \TPUT 9 ?OSE >EAS DUE TO !IR [N 9DU/RIALIZATION PROCESS4 ,! 0DOLL>-PROBLEM0 = ,WE/]N ,EUROPE & ,JAPAN IS !N NOT A M]E BALANCE-(-PAYM5TS PROBLEM BUT A 0/RUCTURAL TRAD+ PROBLEM ) ,NOR? ,AM]ICA40 ,! DOLL> %ORTAGE IS MA9LY ! F9ANCIAL REFLECTION OR SYMPTOM ( ! /RUCTURAL DOLL> PROBLEM4 ,!SE FEW REM>KS CAN ONLY 9DICATE ! TR5D ( ! BOOK'S >GUM5T4 ,IT IS SUB/ANTIAT$ ) A WEAL? ( MAT]IAL USEFUL TO ANY READ] :E!R HE AGREES ) ! AU?OR'S 9T]PRETATION ( ! MAT]IAL OR NOT4 ,EV5 ! PRESCRIPTIVE & !RE=E NECESS>ILY WEAK] P>T ( ! BOOK 9CORPORATES SO MU* FACTUAL KN[L$GE AS TO TURN IT 9TO A QUITE COMPREH5SIVE & VALUABLE H&BOOK ( 9T]NATIONAL AFFAIRS4 ,! PRESCRIPTIVE P>T IS DET]M9$ BY ! AU?ORS' CONVICTIONS ?AT ONLY ! ,WE/-,EUROPEAN NATIONS >E RELIABLE ALLIES & ABLE TO CONTRIBUTE TO ! DEF5SE ( ,AM]ICAN CAPITALISM4 ,AL?\< ! UND]DEVELOP$ REGIONS %\LD F9D SOME CONSID]ATION1 ,WE/]N ,EUROPE & ,JAPAN >E ,AM]ICA'S FIR/ CONC]N4 ,! UND]DEVELOP$ NATIONS /ILL )9 ! FRAME ( ! 0FREE WORLD0 %\LD NOT ONLY BE HELP$ BUT %\LD BE 9DUC$ TO 9TEGRATE !IR DEVELOP+ ECONOMIES ) ?OSE ( ! ,WE/4 ,9 O!R WORDS1 AL?\< ! PA/ CANNOT BE RESURRECT$ AS A :OLE1 IT %\LD BE REVIV$ TO SOME EXT5T4 ,EV5 ?\< ! WORLD M>KET ( ! N9ETE5? C5TURY IS LO/ = GOOD 9T]NATIONAL TRADE MAY BE C>RI$ ON UND] MODIFI$ CONDITIONS ?AT ALL[ = SOME DEGREE ( 9DU/RIALIZATION ( PRIM>Y-PRODUC+ C\NTRIES )\T IMPAIR+ !IR TRADE RELATIONS ) ! 9DU/RIALLY HIT$ ACCEPTANCE ( REGIONAL SOLUTIONS1 SU* AS EXEMPLIFI$ BY ! ,/]L+ >EA & ! ,EUROPEAN ,PAYM5TS ,UNION1 EV5 ?\< !Y DO DISCRIM9ATE AGA9/ ,AM]ICAN 9T]E/S4 ,!Y SEE AN ADEQUATE ALT]NATIVES TO ECONOMIC NATIONALISM NOT 9 ECONOMIC 9T]NATIONALISM BUT 9 ECONOMIC SUPRA-NATIONALISM4 ,! PROGRESSIVE UNIFICATION ( ! ,WE/]N ,COMMUNITY & ITS ECONOMIC 9TEGRATION ) ! EXTRA-,AM]ICAN FREE WORLD DEP5DS1 H[EV]1 NOT ONLY ON !IR [N 9T5TIONS 9 ?IS DIRECTION1 BUT MORE SO ON 0! PROGRESSIVE EXT5SION ( ,AM]ICAN 9FLU5CE1 P[] & RESPONSIBILITY )9 & ON BEHALF ( ! ,ATLANTIC ,COMMUNITY40 ,AM]ICA MU/ NOT ONLY SECURE H] [N PROSP]ITY BUT FOLL[ A POLICY :I* SECURES PROSP]\S CONDITIONS TO ! RE/ ( ! FREE WORLD2 IT MU/ NOT COMPETE BUT COLLABORATE4 ,?IS1 ( C\RSE1 IS QUITE A TALL ORD] & ITS EXECUTION W\LD VIOLATE ! PR9CIPLES BO? ( CAPITAL PRODUCTION & ( NATIONAL EXPANSIONISM4 ,! AU?ORS !MSELVES PO9T \T ?AT !IR PROGRAM LIES 0BEYOND POLITICAL ECONOMY10 & IS SOLELY DET]M9$ BY ! !ORETICAL RECOGNITION ?AT NATIONS MU/ 0TRANSC5D !IR ACCU/OM$ CONCEPTION ( NATIONAL 9T]E/ 9 ORD] TO GO ON HAV+ A NATIONAL 9T]E/ TO PROTECT40 ,!Y FE> ?AT %ORT ( A S]I\S ATTEMPT TO UNIFY ! ,WE/]N WORLD )\T REG>D TO P>TICUL> NATIONAL 9T]E/S1 !RE IS ONLY ! ROAD TO IMP]IALI/IC CONTROL1 OR DEFEAT ?R\< 0WORLD COMMUNISM40 ,! IMPLEM5TATION ( !IR PROGRAM1 MEAG] A IT IS 9 ITSELF1 !Y LEAVE TO ?OSE :O DECIDE PRACTICAL POLICIES1 ?AT IS1 TO PEOPLE DEF5D+ NO?+ BUT P>TICUL>I/IC 9T]E/S4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #b1 #bba 3 ,! 0NEW ,LOOK0 9 ,ECONOMICS -- ,REVIEWS -- ,ADD$4 ,JANU>Y #h1 #bbb 3 ,! 0NEW ,LOOK0 9 ,ECONOMICS -- ,REVIEWS -- ,UPDAT$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/