Archive for June, 2007

Marginal Productivity Theory and the Mainstream

Thursday, June 7th, 2007

In an earlier discussion on the state of orthodox economics hosted by TPM Café, I posted an article excavating the microeconomic foundations of neo-classical economics. In that article I wrote:

“There is one place that even orthodox lefties dare not go. That untouchable place is marginal product theory of income distribution, which basically says that competitive markets ensure that people are paid their contribution to production. This theory provides both a justification and an explanation of income distribution.” (more…)

The Profit vs. Country Dilemma

Tuesday, June 5th, 2007

Vladimir Ilyich Ulyanov, alias Lenin, was the leader of the 1917 Bolshevik revolution in Russia. One of his best known quotes is “The capitalists will sell us the rope with which we will hang them.” Today, Lenin must be chuckling in his Moscow mausoleum as he watches US business dealings with China. (more…)