In my previous post, it was mentioned in passing that although Kalecki agreed with a “solid majority” of economists that, economically, full employment could be maintained through a government spending program, he argued in his famous 1943 essay, Political Aspects of Full Employment, that political factors would prevent such a policy from being viable under capitalism. He then used this argument to explain what is now known as the ‘political business cycle’. Here, I will just focus on Kalecki’s explanations for political opposition to full employment. Although I don’t necessarily agree with his conclusions on this point, I do think he identifies genuine political obstacles that help to explain resistance to full-employment policies.

Continue reading →