Class Conflict, Keynesian Policies, and the Business Cycle

Abstract

With the economy on the brink of crisis and the administration's policies adrift, radicals justifiably feel vindicated in their long-run or secular analysis of the contradictions in modern American capitalism. But there is some confusion about the state and direction of economic activity and the government's probable policy response. We have explanations of the secular functions of Keynesianism and some understanding of its contradictions," but, with the principal exception of the brilliant 30-year-old essay by Kalecki on "The Political Aspects of Full Employment," radical theorists have done little to explain and interpret the political-economic function of short-run macro-policy, i.e., monetary and fiscal policy, and its class implications.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.