The Truly General Theory of Employment: How Keynes Could Have Succeeded

Abstract

There is not much use to attack standard economics because deep in his heart the representative economist long knows that he is tied to a degenerating research program. The problem is, rather, that it seems to be exceedingly difficult to build up a convincing alternative. Keynes, for one, tried and was successful – albeit not fully. Unfortunately, he got some basics wrong. The conceptual consequence of the present paper is to discard the accustomed subjective-behavioral axioms and to take objective-structural axioms as the formal point of departure for the analysis of employment as the main practical issue of economics.

Keywords: new framework of concepts, structure-centric, axiom set, price setter, full employment, multiplier, price mechanism, profit mechanism

JEL Classification: B59, E12, E24