• Introduction ▾
    • Foreward
    • Preface
    • Overview
  • Political Economy ▾
    • The Economy
    • Commodities
    • The Enterprise
    • Accounting
    • Capital
    • Profit
    • Employment
    • Distribution
    • Wages
    • Interest
    • Prices
    • Money
  • Economic Policies ▾
    • Five main principles
    • Cleaning up the capital market
    • Cleaning up the labor market
    • Liberating civil society
  • About▾
    • Who are we?
    • Original Documents
    • Appendixes
Home› Part II – Political economy propositions›Chapter 7 - Employment

Chapter 7 – Employment

In all phases of fluctuation in economic activity, the full exercise of IBDA feedback, Employment > Profit > Capital > Employment, is possible. Moreover, it is necessary, because the rapid return to full employment whenever it is compromised depends primarily on it.

One of the main obstacles to this full exercise lies in the reduced remuneration of the capital savings placement — cut or outright evaded to complete the euthanasia of the rentiers by the glorification of the harvesters of surplus value. Another main obstacle comes from public finances when their management does not comply with two rules.

The last section of this chapter explains these two rules. The closer we get to it, the more the deterioration of public finances leads to more job destruction than creation. This occurs through a mechanism that is elucidated by consideration of IBDA feedback.

The "market finance" that took off in the 1980s reinforces the two main obstacles to the exercise of IBD feedbackEPCE. Let this exercise finally come to the forefront of the common goods in the public mind! Under the effects of the most devastating crashes, legislators will tighten the regulation of modern finance to the point of making it unrecognizable from what it was at its worst. The abandonment of designs full of perverse effects is largely at stake in what the refreshed political economy will manage to make commonly understood.

Propositions

  • 7.1 Capital increases are the healthiest means of job creation by enterprises.
  • 7.2 The possibility of a close relationship between the national stock of capital and the state of employment is certain.
  • 7.3 The level of the national capital stock may be the main determinant of the size of the stock of employment.
  • 7.4 The change in the average rate of profit on capital may contribute to the change in the capital stock.
  • 7.5 Nation by nation, a relationship between the state of employment and the average rate of profit on capital tends to be established.
  • 7.6 The activation of EPCE feedback is a major act of economic policy.
  • 7.7 IBDA feedback provides a permanent stimulus to the market economy.
  • 7.8 The activation of the EPCE feedback reinforces the tendency towards equalization and sufficiency of the rates of profit on capital.
  • 7.9 In public finance, non-compliance with two management rules is detrimental to employment.

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