Marx, Veblen and Contemporary Institutional Political Economy : Henry on O'Hara

Abstract

Marx, Veblen and Institutional Political Economy has its origin in author's PhD dissertation under direction of Allen Oakley, and is part of a long-run project dedicated to help bring about a unified political based on merging of theoretical insights of Marx and Veblen. book is divided into three sections: The Foundations, where theories of Marx and Veblen are evaluated; Contemporary Institutional-Evolutionary Political Economy, in which current neo-Marxist and Veblenian institutional writings are critiqued; and Social Structures of Accumulation and Socioeconomic Crises of Modem Capitalism, where analysis of post-World War II (in main) capitalism is undertaken. Initially, I would suggest that this format is not only proper, but most helpful in understanding O'Hara's main objective: reader is treated to some fundamental theoretical positions developed by the masters, then is taken through relevant literature of contemporary authorities, following which argument that has been established is used to try to decipher what has been occurring in capitalist society, and why we observe what we do. central hypothesis of work is stated at outset: certain institutional themes within heterodox political economy complement each other sufficiently to raise question of integration and reconstruction for purpose of producing an historically specific analysis of evolutionary reproduction of (p. 1). Essentially, O'Hara views Marx and Veblen as complementary authorities and contemporary Marxists and Veblenian institutionalists (along with post Keynesians, feminists, neo-Schumpeterians, and social economists) as sharing enough of a common theoretical position to allow development of a general theory that will potentially dislodge neoclassicism as dominant economic view in today's world. Obviously, this is a most ambitious and worthy project. In part one, O'Hara undertakes a sustained argument in which he demonstrates that central thrust of Marx's work was an examination of necessary conditions allowing capital to reproduce itself--the accumulation process. Included in this reproduction process is reproduction of social institutions on which economy is dependent for its long-run accumulation and which, in turn, accumulation process affects. Marx, however, while mindful of reciprocal relationship between economic and social relations did not go far enough in analyzing social forces that could promote or prevent socialist transformation of society, even though economic changes wrought by capitalist reproduction would call for such a change. Veblen, while sharing a similar understanding of capitalism, devoted a good deal of his analytic powers in examining just those factors. How is it, asked Veblen, that a regressive economic system could be maintained in power even though it could be demonstrated that such an economy no longer served vital interests of majority? His response, of course, was a detailed examination of powers of emulation, business (as opposed to industrial) principles, family structure, religion, patriotism, etc. in promoting an institutional set of forces that maintained existing economic relations. These forces were integral to nature and continuation of capitalism. That is, for O'Hara, Marx laid out central analysis of economic reproduction, but Veblen provided institutional analysis that serves to deepen our understanding of capitalism in holistic sense and allows us a better grasp of its progressive and regressive characteristics. In allying Veblen with Marx, O'Hara is quite aware that Veblen undertook some strong criticism of Marx (or at least his followers). He shows why Veblen's criticism of natural right of labor to full product was misplaced, and evaluates Veblen's charge that Marx's laws of motion were teleological (and deterministic). …