Instability of capitalism inflation, unemployment, and business cycles
This paper investigates the instability of capitalism defined as a condition under which capitalism creates inflation, unemployment, and business cycles. Great economists such as Marx, Veblen, and Schumpeter have examined this problem, concluding that capitalist instability will transform capitalism...
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| Format: | Article |
| Language: | deu |
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Faculty of Economics University of Rijeka
2006-12-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
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| Online Access: | https://www.efri.hr/sites/efri.hr/files/cr-collections/2/01_mouhamed.pdf |
| _version_ | 1819296324453924864 |
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| author | Adil H. Mouhammed |
| author_facet | Adil H. Mouhammed |
| author_sort | Adil H. Mouhammed |
| collection | DOAJ |
| description | This paper investigates the instability of capitalism defined as a condition under which capitalism creates inflation, unemployment, and business cycles. Great economists such as Marx, Veblen, and Schumpeter have examined this problem, concluding that capitalist instability will transform capitalism. A model is developed in this paper to investigate instability, and the finding is that the basic causebehind instability is the conflict on income share: wages and profits. The fluctuations in the share of profits create inflation, unemployment, and business cycles. This generalization has been verified by using data from the American economy for the 1970s, 1980s, and the 1990s. Over this period, the paper concludes, whenthe profit share is high, moderate inflation and employment were generated, and when profit share is low, inflation, unemployment, and business cycles have appeared. |
| first_indexed | 2024-12-24T04:56:18Z |
| format | Article |
| id | doaj.art-5af31d59f00e49249e464fc86c56f29f |
| institution | Directory Open Access Journal |
| issn | 1331-8004 |
| language | deu |
| last_indexed | 2024-12-24T04:56:18Z |
| publishDate | 2006-12-01 |
| publisher | Faculty of Economics University of Rijeka |
| record_format | Article |
| series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| spelling | doaj.art-5af31d59f00e49249e464fc86c56f29f2022-12-21T17:14:23ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80042006-12-01242165184Instability of capitalism inflation, unemployment, and business cyclesAdil H. MouhammedThis paper investigates the instability of capitalism defined as a condition under which capitalism creates inflation, unemployment, and business cycles. Great economists such as Marx, Veblen, and Schumpeter have examined this problem, concluding that capitalist instability will transform capitalism. A model is developed in this paper to investigate instability, and the finding is that the basic causebehind instability is the conflict on income share: wages and profits. The fluctuations in the share of profits create inflation, unemployment, and business cycles. This generalization has been verified by using data from the American economy for the 1970s, 1980s, and the 1990s. Over this period, the paper concludes, whenthe profit share is high, moderate inflation and employment were generated, and when profit share is low, inflation, unemployment, and business cycles have appeared.https://www.efri.hr/sites/efri.hr/files/cr-collections/2/01_mouhamed.pdfBusiness cycleInstability of capitalismConflict on income shareProfit inflationUnemploymentPlanning and competitive sectorsPowerInnovationSurplus value |
| spellingShingle | Adil H. Mouhammed Instability of capitalism inflation, unemployment, and business cycles Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu Business cycle Instability of capitalism Conflict on income share Profit inflation Unemployment Planning and competitive sectors Power Innovation Surplus value |
| title | Instability of capitalism inflation, unemployment, and business cycles |
| title_full | Instability of capitalism inflation, unemployment, and business cycles |
| title_fullStr | Instability of capitalism inflation, unemployment, and business cycles |
| title_full_unstemmed | Instability of capitalism inflation, unemployment, and business cycles |
| title_short | Instability of capitalism inflation, unemployment, and business cycles |
| title_sort | instability of capitalism inflation unemployment and business cycles |
| topic | Business cycle Instability of capitalism Conflict on income share Profit inflation Unemployment Planning and competitive sectors Power Innovation Surplus value |
| url | https://www.efri.hr/sites/efri.hr/files/cr-collections/2/01_mouhamed.pdf |
| work_keys_str_mv | AT adilhmouhammed instabilityofcapitalisminflationunemploymentandbusinesscycles |