Amandla: Early in 2009 you published your book The Great Financial Crisis (coauthored with Fred Magdoff). Could you reflect now almost a year later on what made the current recession more severe than previous recessions? Why has it been compared to the Great Depression and what type of recovery are we likely to see? […]
The essence of Keynes’s contribution was the demolition of Say’s law of markets. Say’s Law argued that supply created its own demand, so that there could never be an actual glut of production. Marx had rejected Say’s Law from the beginning, calling it “the childish babbling of a Say, but unworthy of Ricardo.” But neoclassical economics was built on it.