Full text: Growth and Stagnation

The new assertiveness of small business has been linked to 
the theoretical belief in self-regulation. This goes hand in 
hand with a loss in prestige of alD^big organisations, 
firms, trade unions, and of some of the government regulation. 
An example of it has been given further above : the stimulation 
of investment by tax rebates . 
Self regulation has its role to play in all the details of 
economic life which are complicated and varied and individual. 
It would be quite misplaced to generalise this concept 
so as to embrace the macro-economic variables investment, 
consumption, distribution, employment. Keynes should not 
have lived in vain. Self-regulation presupposes that certain 
boundary conditions are fulfilled. One is reminded of Walras' 
general equilibrium which can not be conceived wihjbout the 
auctioner. Unfortunately even some unorthodox economists 
have been carried away by the idea of self-regulation: 
Sable-Piore in the last part of their highly interesting book 
"The great divide" have anticipated a future time in 
by a society of small producers 
which self regulation/has developed so far that Keynesian 
control of macro variables would be unnessary. This I think 
is an error because the need for Keynesian regulation is 
independent of whether there are small or big producers. 
We shall always need control of macro economic variables. 
But, anyhow, also the authors of this book have not doubted 
that we need it now.

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