Michal Kalecki and Rosa Luxemburg on Marx’s Schemes of Reproduction: Two Incisive Interpreters of Capitalism

18 Pages Posted: 28 Aug 2012

See all articles by G.C. Harcourt

G.C. Harcourt

UNSW Australia Business School, School of Economics

Peter Kriesler

UNSW Australia Business School, School of Economics

Date Written: July 14, 2012

Abstract

Both Rosa Luxemburg and Michal Kalecki utilised Marx’s scheme’s or reproduction as the starting point of their analysis of economic dynamics. However, Luxemburg did not realise that they were not meant to serve as models of capitalist growth, but rather to show that the conditions for stable growth were unachievable. Luxemburg was an early proponent of the stagnationist thesis which was popularised by Kalecki, Steindl, Baran and Sweezy. She argued that capitalist economies were doomed to stagnate unless markets outside the capitalist arena could be utilised, although she also acknowledged the importance of government expenditure on armaments. Kalecki, while acknowledging some of the limitations of her analysis, was able to extend it to incorporate the main elements of modern capitalist growth.

Keywords: reproduction schema, Marxian economics, economic growth, economic cycles, effective demand, imperialism

JEL Classification: B14, B24, B51, E11, E12

Suggested Citation

Harcourt, G.C. and Kriesler, Peter, Michal Kalecki and Rosa Luxemburg on Marx’s Schemes of Reproduction: Two Incisive Interpreters of Capitalism (July 14, 2012). UNSW Australian School of Business Research Paper No. 2012-34. Available at SSRN: https://ssrn.com/abstract=2128363 or http://dx.doi.org/10.2139/ssrn.2128363

G.C. Harcourt

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Peter Kriesler (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

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