Roads to Social Capitalism
Show Less

Roads to Social Capitalism

Theory, Evidence, and Policy

Peter Flaschel and Sigrid Luchtenberg

The current crises in the financialization of capitalism, and their repercussions on the financial viability of entire countries, severely question the achievements of mainstream economics and its disregard of Keynes’s theory of effective demand and finance. In view of this, Peter Flaschel and Sigrid Luchtenberg consider roads to a type of capitalism that could eventually be considered as ‘social’ in nature. The authors underpin their study with theory, empirical evidence, and policy from a positive as well as a normative perspective. As points of departure for their concept of social capitalism, the theoretical framework provides a synthesis of the work of Marx, Keynes, and Schumpeter on ruthless capitalism, regulated capitalism, and competitive socialism.
Buy Book in Print
Show Summary Details

Chapter 6: Schumpeterian Innovations Waves from a Classical Perspective by Reiner Franke

Peter Flaschel and Sigrid Luchtenberg

Extract

6. Schumpeterian Innovations Waves from a Classical Perspective Reiner Franke In this chapter1 we finally consider – in addition to the two preceding chapters on Marxian distributive cycles in a dynamic Keynesian framework and the role financial markets play in the Keynesian view of the working of the economy – Schumpeterian long waves in processes of technological innovations and their diffusion as one further big challenge along the way from simple ELR systems of ‘full’ employment via the generation of institutions of the flexicurity type towards the model of Social Capitalism which we will finally opt for in the next part of the book. We therefore here return to a supply side framework with Classical elements in the theory of income distribution and now focus on long waves in technological change, to be contrasted and combined with the long-phased distributive cycle of Chapter 4 in future research. 6.1 Introduction Classical and neoclassical theories of growth and income distribution have one thing in common: even in models with technical progress, both theories suppose that all firms have free access to the most efficient technological knowledge, or that the competitive process works so fast as to drive old production methods out of the market immediately when a new and more profitable technique enters the stage. Apart from the wide gap between this idealised world and the industrial structure to be observed in reality, the assumption raises a fundamental problem at the theoretical level, namely, that there would be no one within...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.