Omar F. Hamouda
Out of all the enormous literature written on Keynes, Keynesianism and the economic culture of policy stabilization attributed to Keynes, J.R. Hicks, in a crossroads of the development of ideas, is credited more than any other economist for having demystified Keynes’s General Theory. Hicks devised the famous, popular IS–LM tool of Keynesian analysis, which found its way into virtually all orthodox macroeconomic textbooks after the mid-1930s. Hicks’s interpretation remains the accepted understanding of Keynes’s Keynesianism. It is suggested in this chapter that the affinity between Keynes’s and Hicks’s theories, which has been taken for granted by the profession, is far from reflecting the facts. The two thinkers had different visions of the economic world and distinct approaches as to how to deal with its functioning. To a large extent, Keynesianism is antithetical to Keynes.
Omar F. Hamouda
How can policy interventions achieve their desired goal of alleviating income disparities? Is there an established, universal economic criterion that guides what determines or how to judge “fair” distribution? The economic structure of the twenty-first century is characterized by a production pattern in which capital is slowly eclipsing labour in the creation of added value, rendering a great deal of human participation redundant. In this environment, orthodox economics has little to contribute to the question of who should get what portion of the national dividend, and income redistribution is problematic. Insight from Keynes can help in rethinking the theory of income distribution.