(C4SS) Kevin Carson's comments on World War II and the Great Depression.
I believe that Horwitz, in countering Krugman’s argument with a description of how economic growth would be achieved in a free market, ignores the point that the industrial system we’ve had over the past 150 years hasn’t even remotely resembled a free market. It has been a corporatist system built from the ground up through overwhelming state intervention and massive collusion between big business and big government.
The state has promoted the overaccumulation of capital in mass-production facilities that are only profitable when they can amortize the cost of their expensive specialized machinery by running at full capacity without regard to preexisting demand, and then find some way to dispose of the product. And the only way to dispose of that full product has been through state-aided planned obsolescence, state-aided expansion in to foreign markets, direct state purchases of surplus output and surplus capital, and–as a last resort–massive state destruction of output and capital in war.Read more at c4ss.org