By John Mills (auth.)
John generators offers a severe survey of ways economics has built. He argues that the most aim of economics must be to teach how you can in achieving a mixture of monetary progress, complete employment, low inflation, avoidance of maximum poverty and sustainability. That it has did not achieve this is neither inevitable nor unintended. It has failed due to a mixture of highbrow mistakes and the results of social and political strain, which generators claims might and may were avoided.
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Extra info for A Critical History of Economics
The ‘supply side’ concerns matters such as the size and quality of the labour force and the volume of capital investment. Because these are difﬁcult factors to inﬂuence directly by policy changes, they have tended not to come up with any very revealing or policy-orientated remedies as a result. Concentration on these supply side factors, however, has tended to obscure the crucial way in which demand for increased output needs to be used to create the supply conditions best capable of responding to it.
Far from inﬂation being a major threat, history shows that there are strong tendencies for the price level to be remarkably stable, perhaps surprisingly so, and for inﬂation to subside, usually quite rapidly, when it does occur. It is absorbed, especially in modern conditions, by a combination of productivity increases and competitive pressures, much more than by institutional arrangements geared to keeping inﬂation under 30 A Critical History of Economics control. Some downside factors still remain as threats, nevertheless, and it is important to recognise these for what they are.
Business leaders in world-beating export companies become role models. Political power accretes to them and their associates, enabling them to exert pressure on the country’s leaders to maintain the conditions which led to its economic pre-eminence. It is now not difﬁcult to see that in the economy where the cost base is 20% above the world average, all these helpful effects are reversed. If locally determined costs are a ﬁfth higher than the mean, so that they amount to 72% of selling prices instead of 60%, unless prices are raised the company will sell at a loss as all the net proﬁt and more is wiped out.
A Critical History of Economics by John Mills (auth.)