Contents -- List of Illustrations -- Preface -- Acknowledgements -- 1 Economics and Liberating Theory -- People and Society -- The Human Center -- The Laws of Evolution Reconsidered -- Natural, Species, and Derived Needs and Potentials -- Human Consciousness -- Human Sociability -- Human Character Structures -- The Relation of Consciousness to Activity -- The Possibility of Detrimental Character Structures -- The Institutional Boundary -- Why Must There Be Social Institutions? -- Complementary Holism -- Four Spheres of Social Life -- Relations Between Center, Boundary and Spheres -- Social Stability and Social Change -- Agents of History -- 2 What Should We Demand from Our Economy? -- Economic Justice -- Increasing Inequality of Wealth and Income -- Different Conceptions of Economic Justice -- Conservative Maxim 1 -- Liberal Maxim 2 -- Radical Maxim 3 -- Efficiency -- The Pareto Principle -- The Efficiency Criterion -- Seven Deadly Sins of Inefficiency -- Endogenous Preferences -- Self-Management -- Solidarity -- Variety -- Environmental Sustainability -- Conclusion -- 3 A Simple Corn Model -- A Simple Corn Economy -- Situation 1: Inegalitarian Distribution of Scarce Seed Corn -- Autarky -- Labor Market -- Credit Market -- Situation 2: Egalitarian Distribution of Scarce Seed Corn -- Autarky -- Labor Market -- Credit Market -- Conclusions from the Simple Corn Model -- Generalizing Conclusions -- Economic Justice in the Simple Corn Model -- 4 Markets: Guided by an Invisible Hand or Foot? -- How Do Markets Work? -- What is a Market? -- The 'Law' of Supply -- The 'Law' of demand -- The 'Law' of Uniform Price -- The Micro 'Law' of Supply and Demand -- Elasticity of Supply and Demand -- The Dream of a Beneficent Invisible -- The Nightmare of a Malevolent Invisible Foot -- Externalities: The Auto Industry -- Public Goods: Pollution Reduction.

The Prevalence of External Effects -- Snowballing Inefficiency -- Market Disequilibria -- Conclusion: Market Failure is Significant -- Markets Undermine the Ties that Bind Us -- 5 Micro Economic Models -- The Public Good Game -- The Price of Power Game -- The Price of Patriarchy -- Conflict Theory of the Firm -- Income Distribution, Prices and Technical Change -- The Sraffa Model -- Technical Change in the Sraffa Model -- Technical Change and the Rate of Profit -- A Note of Caution -- 6 Macro Economics: Aggregate Demand as Leading Lady -- The Macro Law of Supply and Demand -- Aggregate Demand -- Consumption Demand -- Investment Demand -- Government Spending -- The Pie Principle -- The Simple Keynesian Closed Economy Macro Model -- Fiscal Policy -- The Fallacy of Say s Law -- Income Expenditure Multipliers -- Other Causes of Unemployment and Inflation -- Myths About Inflation -- Myths About Deficits and the National Debt -- The Balanced Budget Ploy -- Wage-Led Growth -- 7 Money, Banks, and Finance -- Money: A Problematic Convenience -- Banks: Bigamy Not a Proper Marriage -- Monetary Policy: Another Way to Skin the Cat -- The Relationship Between the Financial and Real Economies -- 8 International Economics: Mutual Benefit or Imperialism ? -- Why Trade Can Increase Global Efficiency -- Comparative, Not Absolute Advantage Drives Trade -- Why Trade Can Decrease Global Efficiency -- Inaccurate Prices Misidentify Comparative Advantages -- Unstable International Markets Create Macro Inefficiencies -- Adjustment Costs Are Not Always Insignificant -- Dynamic Inefficiency -- Why Trade Usually Aggravates Global Inequality -- Unfair Distribution of the Benefits of Trade Between Countries -- Unfair Distribution of the Costs and Benefits of Trade Within Countries -- Why International Investment Can Increase Global Efficiency.

Why International Investment Can Decrease Global Efficiency -- Why International Investment Usually Aggravates Global Inequality -- The Balance of Payments Accounts -- Open Economy Macro Economics and IMF Conditionality Agreements -- 9 Macro Economic Models -- Bank Runs -- International Financial Crises -- International Investment in a Simple Corn Model -- Banks in a Simple Corn Model -- Imperfect Lending Without Banks -- Lending With Banks When All Goes Well -- Lending With Banks When All Does Not Go Well -- International Finance in an International Corn Model -- Fiscal and Monetary Policy in a Closed Economy Macro Model -- IMF Conditionality Agreements in an Open Economy Macro Model -- Wage-Led Growth in a Long Run, Political Economy Macro Model -- The General Framework -- A Keynesian Theory of Investment -- A Marxian Theory of Wage Determination -- Solving the Model -- An Increase in Capitalists Propensity to Save -- An Increase in Capitalists Propensity to Invest -- An Increase in Workers Bargaining Power -- 10 What Is To Be Undone? The Economics of Competition and Greed -- Free Enterprise Equals Economic Freedom - Not -- Free Enterprise is Efficient - Not -- Biased Price Signals -- Conflict Theory of the Firm -- Free Enterprise Reduces Economic Discrimination - Not -- Free Enterprise is Fair - Not -- Markets Equal Economic Freedom - Not -- Markets Are Fair - Not -- Markets Are Efficient - Not -- What Went Wrong? -- 11 What Is To Be Done? The Economics of Equitable Cooperation -- Not All Capitalisms Are Created Equal -- Taming Finance -- Full Employment Macro Policies -- Industrial Policy -- Wage- Led Growth -- Progressive Not Regressive Taxes -- Tax Bads Not Goods -- A Mixed Economy -- Living Wages -- A Safe Safety Net -- Worker and Consumer Empowerment -- Beyond Capitalism -- Replace Private Ownership with Workers Self- Management.

Replace Markets with Democratic Planning -- Participatory Economics -- Reasonable Doubts -- Conclusion -- Index -- accumulation -- 53 -4 -- 56 -7 -- 61 -- 66 -- 67 -- and economic justice 67 -- and economic justice 68 -70 -- and wage suppression 157 -8 -- unfair 27 -- unfair 28 -- acid rain -- 85 -6 -- 94 -- AFL-CIO 188 -- aggregate demand -- 128 -- 129 -31 -- 132 -6 -- 140 -1 -- and inflation 140 -- and inflation 141 -- and inflation 149 -50 -- and potential GDP 130 -- and potential GDP 131 -- and potential GDP 132 -- and potential GDP 136 -- and potential GDP 138 -9 -- and potential GDP 267 -- and potential GDP 270 -- multiplier effect 141 -- multiplier effect 143 -7 -- multiplier effect 168 -- multiplier effect 202 -3 -- multiplier effect 221 -3 -- aggregate supply -- 129 -31 -- 138 -- 220 -- AIDS victim problem 31 -- Albert, Michael 281 -- Allende, Salvador 151 -- anarchism -- 11 -- 281 -- anti-trust policies 259 -- apartheid -- 15 -- 18 -- appreciation 200 -- arbitrage 75 -- Asian "tigers " -- 184 -- 269 -- Asian financial crisis -- 73 -- 171 -- 193 -5 -- 211 -- autarky -- 48 -9 -- 50 -- 57 -8 -- 60 -- 61 -- and banks 216 -- and banks 218 -- and international investment 213 -- and international investment 214 -- and international investment 215 -- auto industry, externalities -- 85 -8 -- 94 -- autogestion 278 -- balance of payments accounts [BOPs] -- 198 -201 -- 203 -4 -- 225 -6 -- capital account 198 -- capital account 199 -200 -- capital account 226 -- surplus and deficit 200 -1 -- surplus and deficit 204 -- surplus and deficit 227 -30 -- trade account 198 -- trade account 199 -- trade account 200 -- trade account 226 -- balanced job complexes 285 -- banks -- 162 -8 -- and economic efficiency 172 -- and economic efficiency 173 -- and economic efficiency 216 -17 -- and economic efficiency 219.

and government insurance 165 -7 -- and insolvency 164 -- and insolvency 165 -7 -- and profit 164 -5 -- bank run model 173 -- bank run model 208 -11 -- bank run model 218 -- foreign ownership of 273 -- in simple corn model 216 -19 -- multinational 190 -1 -- publicly owned 273 -- regulation 164 -- regulation 165 -- regulation 266 -- Barkin, David 190 -- barter exchange economy 160 -1 -- Bechtel Corporation 273 -- Bellah, Robert 101 -- Bellamy, Edward -- 27 -- 69 -- benefits, internalizing 94 -- Blair, Tony 279 -- Blecker, Robert 267 -- Blumenthal, Michael 206 -- Bolivia -- and price of tin 182 -- privatization 273 -- bond market 169 -70 -- Bookchin, Murray 281 -- borrowing -- by businesses 134 -- by businesses 142 -3 -- by governments 135 -6 -- by governments 152 -4 -- international 176 -- Borsage, Robert 156 -7 -- bottleneck sectors -- 259 -60 -- 268 -- Bowles, Samuel 99 -100 -- Brat, David 23 -- Brazil -- 205 -- in open economy macro model 225 -31 -- Brown, Jerry 247 -- budget, balanced -- 134 -- 154 -7 -- 222 -- Bureau of Economic Analysis 22 -- Bush, G.W. -- 223 -- 279 -- business cycle 156 -- Cambridge, living wage ordinance 276 -- Campbell, Al 281 -- capacity utilization -- 158 -9 -- 232 -- 235 -- 241 -- capital account -- 198 -- 199 -200 -- capital intensive technique [CIT] -- 46 -7 -- 50 -2 -- 55 -6 -- 57 -- 58 -9 -- 186 -- 213 -18 -- capital, in simple corn model -- 47 -- 48 -- 49 -50 -- capitalism -- 4 -- 259 -- 261 -- 265 -- alternatives to 247 -- alternatives to 278 -90 -- and corporate power 159 -- and democracy 247 -8 -- and economic freedom 243 -7 -- and equal opportunity 69 -- and equal opportunity 245 -6 -- and production technology 113 -- and production technology 117 -19 -- and production technology 120 -- and production technology 122 -4 -- and production technology 249 -50.

and property rights system 243 -4.