Date of Award
Tracy Mott, Ph.D.
Robert Urquhart, Ph.D.
Capitalism, Distribution problem, Keynesian, Neoclassical, Theory of Consumption, Theory of Employment
The neoclassical theory of employment fails to apply to modern capitalism since it claims that unemployment is necessary all voluntary. Its problems are pointed out by Keynes. But, if we look at Keynes’s system, we find that an essential explanation about why modern capitalism suffers from weak demand is not provided. To answer this question an alternative consumption theory is needed. Levine’s consumption theory well explains the condition of under-consumption. Furthermore, a deep problem of capitalism reveals itself: the production format and the distribution pattern of capitalism result in a huge income discrepancy between the working-class and the capitalist-class and its consequence, according to Levine’s consumption theory, is an overall weak demand. The demand problem might be an inherent weakness of capitalism which cannot be cured within its structure. However, we still see the bright side of capitalism that is its influential stimulation mechanism, which provides more transformational growth – the driving force behind the progress of human civilization - than any other social structure. Unexpectedly, we become trapped in a dilemma.
Liu, Yang, "A Critique of the Neoclassical and a Revision of the Keynesian Theories of Employment" (2012). Electronic Theses and Dissertations. 373.
Received from ProQuest
Economics, Economic theory