Power or Pure Economics?

1. Front Matter

   Pages i-xxxvii

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2. The Fundamental Principle of Distribution Theory

   1. Front Matter

      Pages 1-1

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   2. Preliminary Remark

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 3-5

   3. The Economics and Sociology of Distribution

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 6-31

   4. Foundations of the Wage Theory

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 32-47

   5. The Social Marginal Product

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 48-52

   6. Critical Discussion

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 53-60

   7. Peculiarities of the Labour Market

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 61-66

   8. The Wage Theorem of Unilateral and Bilateral Monopoly

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 67-71

   9. The Problem of the ‘Artificial Rise’ of Wages

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 72-86

3. Equilibrium and Power

   1. Front Matter

      Pages 87-87

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   2. Power and the Economy: The View of an Anti-Schumpeterian

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 89-105

   3. Why Can Wages be Rigid? An Alternative Foundation for Keynes’ Premise

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 106-118

   4. Why Interest Remains Positive even in Static Equilibrium: Another Anti-Schumpeterian View

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 119-151

   5. Disequilibrium in Factor Markets due to Power, with Special Reference to Agricultural Land Rent

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 152-160

   6. The Twentieth Century and Secular Disequilibrium in the Economy: A Power-Theoretic View

      • Joseph A. Schumpeter, Yasuma Takata

      Pages 161-169

4. Back Matter

   Pages 170-192

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This volume examines central questions about the nature of economic theory, its historical development and its explanatory power. What determines economic distribution - can pure economic theory itself explain the fundamentals of distribution or is a broader economics incorporating theories of power in society necessary? The book presents the debate through classic statements of each position from two leading economists of the century, Joseph A. Schumpeter and Yasuma Takata. A substantive introduction from Michio Morishima assesses and places in context the work of both Schumpeter and Takata.

• economic theory
• economics
• equilibrium
• John Maynard Keynes
• Joseph A. Schumpeter
• Keynes
• Schumpeter

JOSEPH A. SCHUMPETER (1883 - 1950) was sometime Professor of Economics at the Universities of Graz, Bonn and Harvard. His major works which made him one of the all-time great economic theorists and historians of economic thought included Business Cycles; Capitalism, Socialism and Democracy and The History of Economic Analysis.

YASUMA TAKATA (1883-1971) was sometime Professor of Economics at Kyoto and Osaka Universities. In 1965 he received the Bunka Koro-sho (Prize for Contribution to Culture) and in 1971 the Kun-itto (the first class honour) both from the Japanese Government. His major works, all published in Japanese, included Principles of Political Economy (5 volumes), On the Rate of Interest and Essays in Power Theory of Economics.

The editor, MICHIO MORISHIMA is Professor Emeritus of Economics at the London School of Economics and Political Science.

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