Economist Edwin Dickens has written a series of significant articles analyzing the minutes of the meetings, dating back to the 1950s, of the Open Market Committee of the Federal Reserve Board. (The Committee is the main policy-making body of the Board.) Dickens’s research shows convincingly that the Federal Reserve’s partisan behavior is designed to tilt the economy in the direction of the wealthy by making workers more compliant.… A recent study formalized Dickens’s work by attempting to distinguish whether the policy actions of the Federal Reserve were responses to inflation or to low unemployment. The study concluded that “a baseless fear of full employment,” rather than the prevention of inflation, was the guiding principal of the Federal Reserve. The conclusion of this study should come as little surprise to people familiar with the Federal Reserve’s obsession with the danger of high wages.
Mainstream, or more formally, neoclassical, economics claims to be a science. But as Michael Perelman makes clear in his latest book, nothing could be further from the truth. While a science must be rooted in material reality, mainstream economics ignores or distorts the most fundamental aspect of this reality: that the vast majority of people must, out of necessity, labor on behalf of others, transformed into nothing but a means to the end of maximum profits for their employers. The nature of the work we do and the conditions under which we do it profoundly shape our lives. And yet, both of these factors are peripheral to mainstream economics.
How much more will be required before the U.S. public awakes from its political slumber? Tepid action in the workplace, the voting booth, and the streets have allowed the right wing to steamroll revolutionary changes that have remade the entire sociopolitical structure of the United States. Since the election of Franklin Roosevelt in 1932, every Democratic administration with the exception of Lyndon Johnson’s has been more conservative-often far more conservative-than the previous Democratic administration. Similarly, every elected Republican administration, with the single exception of George Herbert Walker Bush’s, has been more conservative than the previous Republican administration. The deterioration in the distribution of income is a symptom of a far larger problem. Perhaps formulating the situation in the United States might help people understand their class interests as well as reveal who has benefited from the right-wing revolution
Education is an essential part of modern economic progress, yet in recent decades, the right wing has consistently been unfriendly to public education. For example, the Walton family’s donation of $20 billion to help conservative causes was weighted toward the privatization of public education.… The economic effects of privatization will not be felt immediately. Over time, however, as a larger share of the workforce suffers the handicap of inferior education, the negative effect on all aspects of society will be unmistakable.
The dramatic expansion of intellectual property rights represents a new stage in commodification that threatens to make virtually every- thing bad about capitalism even worse. Stronger intellectual property rights will reinforce class differences, undermine science and technology, speed up the corporatization of the university, inundate society in legal disputes, and reduce personal freedoms.
Most economic theory assumes a pure capitalism of perfect competition. This book is a penetrating critique of the rhetoric and practice of conventional economic theory. It explores how even in the United States—the most capitalist of countries—the market has always been subject to numerous constraints.