Policy Implications of Surplus Approach

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: Policy Implications of Surplus Approach

Author:: Steindl, Josef

Scope:: Typoskript, 4 Blatt, nummeriert, mit handschriftlichen Ergänzungen

Year of publication:: ohne Datum

Language:: English

Description:: In contrast to neo-classics the surplus approach leaves the field open for considerations of socio-political and institutional factors. From the point of view of economic policy the personal distribution of income is today at least as much relevant as the surplus. Kalecki's gross profit bears close relation to the classical surplus. In Steindl's view the surplus arises from the fact that the possession of capital conveys advantages not open to those who do not own it.

Note:: Unveröffentlichtes Typoskript.

Topic:: Economic history,economic theory,current developments

JEL Classification:: E11 [General Aggregative Models: Marxian, Sraffian, Kaleckian]

Shelfmark:: S/M.59.3

Access:: Free access

Relation of the Surplus to Kalecki's Gross Profit (Mark-Up ) I think that Kalecki's gross profit, though it includes much more ( the whole salariat!) bears a close relation to the classical surplus. The main difference is: The classical case assumes cpmpetition in the market for the product and a kind of monopsony in the labour market. Kalecki assumes all permeating monopolistic elements ( imperfect competition and oligopoly ) Thus exploitation takes place on the market of the products. For MaRX IN the contrary exploitation takes place not in distribution but in production. Teh class struggle is thus located in the workshop: It is about hours, piece rates, discipline, rules and regulations. Marx has a point here which escapes Kalecki, just as the monopolistic elements in the labour market were not explicitly dealt with by him. On the other side the one—sidedness of Marx's view blocks the way to an understanding of present day wage and price formation. The shifting of cost implicit in Kalecki's mark-up is a^par-fe^o^f every day lif e /kw- >v-, ^ ( « l" ol<?Wh" > One special point made by Kalecki is of considerable topical interest to-day. He says that in a sharp recession business firms, on a kind of tacit understanding, may sometimes increase their profit margins in order to counteract the pressure of increased overhedd cost (per unit As the last recession progressed we could hear again and again that major concerns haD Been able to cut their overhead substantially (getting rid of management,for example ) so that with unchanged prices they were able to protect themselves against losses. This is not exactly the way in which Kalecki imagined it but it comes to the same.

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