tag:blogger.com,1999:blog-3711403820684618858.post2670816979028720205..comments2021-11-03T07:51:41.080-07:00Comments on Juridical Coherence: 18.0 Capitalism and socialism express conflicting reciprocity norms: A reinterpretation of Marx’s theory of capitalist declineStephen R. Diamondhttp://www.blogger.com/profile/07165258952900481659noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3711403820684618858.post-4103075577712572802013-06-25T13:04:57.518-07:002013-06-25T13:04:57.518-07:00In the run-up to a recession, there is often an ov...In the run-up to a recession, there is often an oversupply of capital seeking outlets. This may take the form of investment capital rather than actually produced capital goods. "Overproduction" is relative to what the capitalist market can absorb.Stephen R. Diamondhttps://www.blogger.com/profile/07165258952900481659noreply@blogger.comtag:blogger.com,1999:blog-3711403820684618858.post-20001697466955461982013-03-04T08:22:34.274-08:002013-03-04T08:22:34.274-08:00"Since the market tends to overproduce capita..."Since the market tends to overproduce capital, adroit government spending might redirect it to produce more consumer goods. This is the essence of Keynes’s policies"<br />I tend to read Keynes-sympathizers like Daniel Kuehn complain that Austrians misrepresent Keynes as being about consumption, when Keynes actually placed a lot of emphasis on the volatility of investment and wanted the government to ensure that it did not crash in panic periods.<br /><br />I've never before heard the claim that capital goods are "overproduced" (by what standard?). I have often heard that the Sovet Union underproduced consumer goods, focused on military production. Of course the guns vs butter tradeoff exists in many other countries though.Wonks Anonymousnoreply@blogger.com