What is New Since Keynes?

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: What is New Since Keynes?

Author:: Steindl, Josef

Scope:: Typoskript, 17 Seiten mit handschriftlichen Anmerkungen und Anstreichungen

Year of publication:: ohne Datum

Language:: English

Description:: Steindl analyses the new features of the economy and stresses the need to elaborate Keynesian arguments accordingly. New features are 1. unprecedented openness (internationalisation of banking, multinational companies), 2. destabilisation of price-wage system, 3. increase in public spending and tax revenue, 4. environmental problems, 4. growth of household savings, and 5. structural crisis of basic industries.

Note:: Entstehungszeitraum vermutlich zwischen 1983 und 1990. Erstveröffentlichung des Bezugswerkes von Fausto Vicarelli auf Italienisch: L’Attualità di Keynes. Roma: Laterza, 1983.

Related work:: Steindl, Josef: Keynes' "General Theory" nach 50 Jahren. In: Wirtschaft und Gesellschaft, Band 13, Nr.1 ,1987, S. 11-18 Steindl, Josef: Keynes, J. M. Society and the Economist. In: Vicarelli, Fausto (Hrsg.): Keynes's Relevance Today. London: Macmillan, 1985, S. 99-125 Steindl, Josef: Die gegenwärtige Krise aus der Sicht von J. M. Keynes. In: Wirtschaft und Gesellschaft, Band 9, Nr. 1, 1983

Topic:: Firm and market structure

JEL Classification:: E12 [General Aggregative Models: Keynes, Keynesian, Post-Keynesian]

Shelfmark:: S/M.76.1

Access:: Free access

,1^ \lv * r 3.A further new element in our situation is the vast increase in public spending and tax revenue as a p.c. of G D P which in most industrial countries now ranges between 40 and 50 p.c. This increase has probably been a major reason for the political backlash against the welfare state. Herbert Stein states in his book The fiscal revolution in America that the fear of increased taxation is the main reason for business oppostion against budget deficits and against Keynesian policieis^ The increased taxation reduced the incentive for enterprise and for work. As far as the incentive to invest was concerned it was to be stimulated by tax allowances. Bxx&skxiaxaixHH akxlsaxi; Profit taxes have been reduced in the course of time putting more weight on indirect taxes, and taxes on mass income This tended to give the budgets an inflationary bias. r~The aTTitude of business to taxation is clear. It must be realised,however,that high marginal taxation has two very contradictory aspects from the point of view of business: On the one hand there is the automatic stabilisation which means that any adverse influence coming for example from exports hits profits less to the extent to which it is cushioned off by the budget. This applies also to the effects of a fall in private investment. On the other hand there is the weakening of incentive. One aspect of it is - the mirror image of the above case- that any increase in business investment will be fed back only to a small extent into profits: that means that the automatic self perpetuation of a boom is drastically weakened.

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