ECON 001A Lecture Notes - Lecture 9: Industrial Policy, Macroeconomics, Incomes Policy
19 May 2020
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Document Summary
Over time, the cost of industrialization goes up. Later developers require more coordinating from the state to accumulate and direct capital. Late late developers require a strong ideology to legitimate the repression associated with capital extraction. The free market will not work for late developers: you need capital. This is too ambiguous because people interpret things differently. If you"re an institutionalist, then they"ll say they are sticky. Different patterns of banking and different views of the role of state in the market emerged during industrialization. Main argument: institutional legacy profoundly influences policy choices. Especially interested in the institutional organization of capital and capital"s interests. Where are capitals interest and how do they get to be that way. Capital does not need to organize to be important because it always is versus labor is organized and it"s difficult to overcome (thus, it"s weaker) but both important. Singular relationship between financial capital and industrial capital.
