The Authority Smashing! Hour


Mr1001Nights interviews Economist Steve Keen

Post-Keynesian economist Steve Keen talking about his new paper “A Marx for Post-Keynesians” which puts forth the axioms to start building a scientific theory of economics to rival the flawed neoclassical school.

For more information on Steve Keen:

Official website: Debunking Economics

For his recent article: A Marx for Post Keynesians

2 comments on “Mr1001Nights interviews Economist Steve Keen

  1. Vilhelmo
    February 24, 2011

    It seems to me that asking whether the Labour Theory of Value (LTV) is correct or not, is the wrong question. The LTV is a tool (you don’t ask if the hammer is right or wrong, only that it be the right tool for the job at hand), used to calculate the cost of producing a good or service, which ultimately can be reduced to the labour embodied within. (How the cost of labour is valued is determined by power relations). The question then arises, why is the price of a good higher than its cost of production? Which then leads to the notion of economic rent (a free lunch) and the Rent Theory of Price.
    A good example is in the case of land (where the landlord provides the land that god provided and reaps a free lunch) which lead to Henry George and the idea of a Land Value Tax.

  2. Vilhelmo
    February 24, 2011

    Here is a quote from the brilliant economist Dr. Michael Hudson (strangely enough, he’s Trosky’s godson)
    Classical value and price theory distinguished between income deemed necessary for the economy to operate and that which was exploitative and/or wasteful. Today’s complaints about exorbitant executive salaries, bonuses, stock options, extortionate credit card charges and monopolistic price gouging all refer generically to unearned revenue.

    The distinction between income that is earned – wages and profits – and unnecessary rentier transfer payments can be traced back to the 13th century, to the medieval scholastics who set to work refining the concept of Just Price reflecting reasonable cost and risk. Economic thought down through the late 19th century would elaborate the distinction between market price and intrinsic cost value.

    The aim was to define the extent to which prices in the marketplace exceeded the necessary cost of production (or more precisely, reproduction under existing technological and social conditions). The labor theory of value was the first stage in defining economic rent as prices in excess of these necessary costs. This included the costs embodied in the capital equipment and materials used up in production (ultimately provided by labor) and the cost of research, technology development and education of laborers at each stage.

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This entry was posted on May 29, 2009 by in Interviews.
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