Post-Keynesian Essays from Down Under Volume III: Essays on Ethics, Social Justice and Economics: Theory and Policy in an Historical Context PDF
Preview Post-Keynesian Essays from Down Under Volume III: Essays on Ethics, Social Justice and Economics: Theory and Policy in an Historical Context
POST-KEYNESIAN ESSAYS FROM DOWN UNDER VOLUME III: ESSAYS ON ETHICS, SOCIAL JUSTICE AND ECONOMICS Th eory and Policy in an Historical Context Joseph Halevi G. C. Harcourt Peter Kriesler J. W. Nevile “The neo-liberal experiment has failed. The widespread deregulation of markets has led to financial crisis and mass unemployment. The contributors to this volume are Keynesian economists who for decades have resisted the neo-liberal onslaught. They believe that governments have the ability and duty to ensure full employment and decent pay for all. Their optimism is sorely needed.” — Emeritus Professor Robert Rowthorn, University of Cambridge, UK “The socioeconomic and political context has been carefully interwoven through these different essays relating to social justice, a widely debated topic in this day and age. It is impressive how the authors have developed Christian thought and the Christian call for social-welfare, prompting the reader to social-awareness and social-consciousness.” — The Most Reverend Dr Philip L Freier, Primate of Australia “This collection of essays makes an outstanding contribution to the discussion of eth- ics and economics. It moves economics beyond the limits of the “scientific” enquiry and the cramped options of dualism to embrace its moral responsibilities. Halevi, Harcourt, Kriesler and Nevile share a sense of humanity, sometimes characteristic of post-Keynesian economists, and identify those human rights which must form part of the objectives of any economic decision. The essays incorporate into their analyses ethical implications of economic goals, their priorities and the policies which serve these; they show that introducing ethical work practices (eg) tends to raise productivity rather than costs. Their ap proaches are empirical and analytical. The authors are especially well qualified, individually and in combinations, to comment on Australian institutions, within a global economy, and on mainstream as well as post-Keynesian analytical approaches. This invaluable project confirms their presence as significant leaders in developing the ethical ambitions of economics and its policies through a post-Keynesian oeuvre and Australian example.” — Prue Kerr, Visitor in School of Economics, University of Adelaide, South Australia “The authors of this volume studied, taught and did research to make the world a better place for ordinary people. If their work was often extraordinary, their motiva- tion was typical of the generation that entered economics in the wake of the Great Depression and Keynes’s General Theory. Alas, their sense of economics as a moral endeavor, and of the work of an economist as a calling, has long since ceased to be a major drawing card, and economics is the worse for the absence of debate and discus- sion of its moral foundations. Both for students just entering the field and for mature scholars who either never encountered or have forgotten the moral dimension, this volume is a timely corrective to the idea that economics can or should exist in an ethical vacuum.” — Stephen A. Marglin, Walter S. Barker Professor of Economics, Harvard University, USA “Searching for gold, you must look down under. Here are riches for the questioning economist, perplexed by unjust policy outcomes of seemingly neutral analysis. Enjoy finding many nuggets of wisdom on the undervalued but inescapable impact of ethics and of historical-institutional context, with tributes to some true pioneers of ideas.” — J. Gay Meeks, Senior Research Associate in the Centre of Development Studies, University of Cambridge, UK This page intentionally left blank Post-Keynesian Essays from Down Under Volume III: Essays on Ethics, Social Justice and Economics Theory and Policy in an Historical Context Joseph Halevi Center CRIISEA of the Universit é de Picardie, Amiens, France, Senior Lecturer, University of Sydney, Australia, International University College, Turin G. C. Harcourt Visiting Professorial Fellow in the School of Economics, University of New South Wales, Australia Peter Kriesler Associate Professor, University of New South Wales, Australia and J. W. Nevile Emeritus Professor, University of New South Wales, Australia Palgrave macmillan © Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-47531-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2016 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-56952-6 ISBN 978-1-137-47532-9 (eBook) DOI 10.1057/9781137475329 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Typeset by MPS Limited, Chennai, India. Contents List of Figures and Tables vii Preface viii Acknowledgements x About the Authors xii Introduction to Ethics and Economics 1 Part I Social Justice 1 Faith, Works and Talents Entwined: Driving Forces Behind John Nevile’s Contributions 13 G. C. Harcourt, Peter Kriesler and John Langmore 2 The Root of All Evil 24 J. W. Nevile 3 Just and Unjust Macro-economic Policy 34 J. W. Nevile 4 Policies to Minimise the Costs of Unemployment 45 J. W. Nevile 5 Overcoming Social Exclusion 67 J. W. Nevile 6 Economic Rationalism: Social Philosophy Masquerading as Economic Science 86 J. W. Nevile 7 Deregulation and the Welfare of the Less Well Off 98 J. W. Nevile 8 Economic Rationalism, Income Distribution and Productivity 115 J. W. Nevile 9 Economic Rationalism: The Human Dimension 127 J. W. Nevile 10 Book Review: “Ethics and Economics” 142 J. W. Nevile Part II Human Rights 11 Economic Perspectives on Workers’ Rights 151 Peter Kriesler and J. W. Nevile v vi Contents 12 The Right to Work 157 Peter Kriesler and J. W. Nevile 13 The Global Financial Crisis and the Right to a Decent Job 164 Peter Kriesler and J. W. Nevile 14 Minimum Wages, Unions, the Economy and Society 188 J. W. Nevile and Peter Kriesler 15 Full Employment, a Neglected, but Indispensable and Feasible Human Right 202 J. W. Nevile and Peter Kriesler 16 Human Rights: Issues in the Welfare State 220 J. W. Nevile Part III Economics with a Human Face 17 Writing Biographies of Economists 233 Peter Kriesler 18 Post-Keynesian Theory, Direct Action and Political Involvement 245 G. C. Harcourt 19 Piero Sraffa: A Tribute 258 G. C. Harcourt 20 Peter Kenyon 1952–2012: A Memoir and a Tribute 262 G. C. Harcourt 21 Phyllis Deane 1918–2012: A Memoir and a Tribute 267 G. C. Harcourt 22 Allan Barton 1933–2012: A Tribute 270 Selwyn Cornish, G. C. Harcourt and Richard Holden 23 Frank Hahn 1926–2013: A Tribute 273 G. C. Harcourt 24 On Topical Themes in Veblen and Commons’s Contributions. Remarks Upon Receipt of the Veblen-Commons Award 276 G. C. Harcourt 25 Paolo Sylos-Labini’s Contribution to Modern Economic Theory 284 Joseph Halevi Index 307 List of Figures and Tables Figures 7.1 Percentage increase – all cases 102 7.2 Percentage increase – singles 25–64 103 7.3 Percentage increase – couples with children 104 7.4 Percentage increase – couples under 65 without children 105 14.1 The profit maximising wage and employment levels for a firm with market power 191 14.2 Employment, wages and the labour market 192 Tables 7.1 All income units: distribution of private equivalent income 1981–82 and 1989–90 101 7.2 Singles aged 25 to 64: distribution of private equivalent income 1981–82 and 1989–90 103 7.3 Couples with children: distribution of equivalent private income 1981–82 and 1989–90 104 7.4 Couples under 65 without children: distribution of equivalent private income 1981–82 and 1989–90 105 9.1 Distribution of before-tax income by households, Australia, 1975–76 and 1984 133 9.2 Distribution of disposable income by households, Australia, 1975–76 and 1984 134 9.3 Distribution of private income by households, Australia, 1975–76 and 1984 135 9.4 Family income distribution, Australia, 1981–82 and 1985–86 136 9.5 Before-tax income distribution by income units, Australia, 1978–79 and 1981–82 137 9.6 Before-tax income distribution of married couples with dependent children, Australia, 1981–82 and 1985–86 138 9.7 Poverty among families in seven countries (Poverty rate is below half median equivalent income) 139 9.8 Distribution of family income in the United States 140 vii Preface Geoff Harcourt intended to put together one more volume of selected essays in order to reach double figures. But then Peter Kriesler reminded him that since he joined the School of Economics at the University of New South Wales in August 2010 as a Visiting Professorial Fellow, they, sometimes with John Nevile, had published several joint papers. Moreover, Peter and John, and Peter and Joseph Halevi, had also been publishing joint papers for many years. All their works, whether as sole author or jointly, had important com- mon themes. The underlying theoretical framework was essentially post- Keynesian.1 They all stressed the importance of the underlying institutional framework, of the economy as an historical process and, therefore, of path determinacy. Money and finance were an integral part of the economy, with monetary variables affecting real variables and vice versa at all stages of analysis. In addition, all the works saw the ultimate goal of economics as being a tool to suggest policy – even the theoretical works were motivated by the desire to make the world a better place, with better being defined by an overriding concern with social justice. So arose the proposal we made to Taiba Batool that we put together four volumes of selected essays by “Post-Keynesian Essays from Down Under,” subtitled “Theory and Policy in an Historical Context.” She enthusiastically accepted the offer, ably assisted by Ania Wronski. We therefore set about putting the selections together. When Taiba left Palgrave Macmillan for pas- tures new, she passed the project onto Laura Pacey and Rachel Sangster who, just as enthusiastically, oversaw the bringing together and publication of the four volumes. Laura, in particular, has been extremely helpful and patient in our journey from idea to manuscript. Our grateful thanks go to Joan Harcourt for forgiving Geoff for breaking the promise never again to undertake a major research project, witnessing yet again her love and support of over 60 years; to Teresa, Peter’s wife, for her continual love and support; and to Fay, John’s wife, who, in the absence of a secretary, typed much of his introductions to chapters (and commented that the names had not changed much since the last time she did this when, as a young wife, she typed drafts of John’s PhD thesis). We would also like to thank Roni Demirbag for his help in getting Joseph’s papers in order, and Jason Antony for his gracious and good-natured multi- dimensional expert help in assembling the volumes. viii Preface ix Note 1. For an overview of what we consider to be post-Keynesian economics see Harcourt, G. C. and Kriesler, P. 2015 “Post-Keynesian Theory and Policy for Modern Capitalism,” Journal of Australian Political Economy, No. 75, Winter 2015, 27–41.
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