The Havoc Caused by Say’s Law

JEAN-BAPTISTE Say, a French economist who wrote in the late eighteenth century, had formulated a law to the effect that ‘supply creates its own demand’, which meant that there could never be an inadequate demand for the aggregate of goods produced in any economy. His argument was as follows. Whatever is produced generates an equal amount of income among those associated with its production. This income is either consumed or ‘saved’ (i.e., not consumed).

Obliterating the Truth about Nazi Defeat

NAZI Germany was basically defeated by the Soviet Union. The sacrifice made by the Soviet people in defence of their country in that war was utterly unimaginable. From the very beginning however there has been an effort by the western powers to obliterate this truth and to claim instead that the defeat of Nazi Germany was the result of their endeavour.

Neo-Colonialism in West Africa

FRANCOPHONE Africa was never fully decolonised. In the name of protecting French property located in its former colonies, France insisted on, and the former colonies agreed to, the stationing of French troops in those countries. This gave France immense opportunities to intervene in the politics of its former colonies. In addition, these countries were made to adopt a currency, the CFA franc, which had a fixed exchange rate vis-à-vis the French franc. And to maintain this fixed exchange rate, the monetary policy of these countries was controlled by the French central bank.

Tariff Negotiations and the Farmers

ELEMENTARY textbooks in economics invariably begin with a completely mythical concept: the concept of “perfect competition”, which is different from the concept of “free competition” that the classical economists and Marx had used. “Free competition” was characterised by the equality of wages (for equal skills) and of profit-rates across sectors; all it required for its realisation was free mobility of labour and of capital across sectors which was by no means a far-fetched assumption in the pre-monopoly era.

Terror on the Campus

INTERNATIONAL students on US campuses are at present a terrified lot: they can be abducted, sent to some detention centre hundreds of miles from where they live, kept there for any length of time, and then deported abroad. And all this can happen to them not because they have violated any known law, but entirely at the whim of the administration.

How Countries Like India Should Not Respond to Trump’s Tariffs

DONALD Trump has put off his proposed tariffs by ninety days; but countries like India have to respond to Trump’s measures whether now or after ninety days. These measures are not just an episodic act. Trump clearly threatens with tariffs any country that dares to act in a manner not approved by him; he is weaponising tariffs to assert US hegemony, quite apart from using them for economic ends like raising domestic activity and reducing the US current account deficit.

Trump’s Tariff Aggression

IT is important for an intellectual position not only to be right but to be right for the right reasons; and the near-universal condemnation of Donald Trump’s aggressive imposition of tariffs, though right, is right for the wrong reasons. A pervasive presumption underlying such condemnation has been that unrestricted trade is a good thing for all concerned; and that Trump, in deviating from this maxim, is being both nasty and stupid.

Europe’s Apparently Puzzling Bellicosity

ONE of the puzzling phenomena in world capitalism today is the bellicosity displayed by Europe vis-à-vis Russia. The claim that Russia has imperialist designs towards Europe, which the European ruling circles keep repeating, is clearly absurd. It is NATO that moved eastwards, in violation of a promise made by the US administration to Gorbachov, and provoked Russia; and it is NATO members, notably US and UK, that torpedoed the Minsk agreement reached between Russia and Ukraine which would have prevented the war.

The Return of Mccarthyism

THE Trump administration’s current clamp-down on free speech in the United States is eerily reminiscent of the 1950s when there had been a witch-hunt led by Senator Joseph McCarthy that had not only victimised a whole generation of artistes and intellectuals on the charge of being Communists, but had also left a deep negative imprint on the creative life of that country for decades to come.

Two Alternative Growth Paradigms

NOBODY can claim that the rate of growth of agricultural production, especially of foodgrain production, has been higher in the neoliberal period than during the years of dirigiste development that preceded it; it may have been somewhat lower but let us agree that it is certainly no higher. On the other hand the rate of growth of Gross Domestic Product is estimated to be significantly higher; several economists have argued that this growth rate is exaggerated, but again let us agree that taking the period as a whole it has been noticeably higher.

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Peoples Democracy

ECONOMIC NOTES