Odd Lots Jan Toporowski Explains Why Capitalists Dislike Full Employment
15 snips
Feb 10, 2023 Jan Toporowski, a Professor of Economics and Finance at SOAS University of London, dives into the complexities of full employment and its discontents. He explains how the capitalist mindset views low unemployment as problematic, revealing the tension between labor markets and economic policies. Toporowski discusses Michał Kalecki's insights on investment instability and challenges conventional economic models, shedding light on concepts like 'greedflation.' His analysis helps decode the current economic landscape, making it a must-listen for anyone interested in today's labor dynamics.
AI Snips
Chapters
Books
Transcript
Episode notes
Toporowski's Discovery of Kalecki
- Jan Toporowski's first economics job was in fund management for the Church of England in 1974.
- Witnessing market collapses and bank failures during the oil crisis, he realized the inadequacy of equilibrium models and discovered Kalecki's work.
Kalecki's Dynamic Approach
- Kalecki's focus on business cycles provides a more dynamic and realistic view of the economy than static equilibrium models.
- Real-world economies are in constant flux, not in a state of equilibrium.
Investment and Economic Activity
- Both Keynes and Kalecki agreed that investment levels determine overall output and employment in capitalism.
- However, Kalecki found Keynes's "animal spirits" explanation for investment instability unsatisfactory.