TITLE:
The Rent in Capitalism since Keynes General Theory and the Euthanasia of the Rentier: The European and the Greek Economies as Case-Studies
AUTHORS:
Alexandros M. Goulielmos
KEYWORDS:
The Joint Stock Company & the Separation of Control from Ownership, The Effective Demand, The “Krimpas-Asimakopulos” Model, Rentiers’ Euthana-sia, Greek and EU-22 Economies as Case-Studies
JOURNAL NAME:
Modern Economy,
Vol.14 No.12,
December
29,
2023
ABSTRACT: Keynes, in his book short titled as the “General Theory”-GT in 1936,
dealt with 2 key figures:
the Enterprise-man and the Rentier. The 1st is a business-man…
forecasting the marginal efficiency of capital—MEC, the
entrepreneur of today’s time. The 2nd holds the community’s quantity of money: a kind of private banker. When companies distributed
their stock to a great number of shareholders, the persons capable of
management separated. Both the Entrepreneurs and the Rentiers are required in
any economy, we believe. We graphed thus—for the first time—the “demand for rents and their supply curves”.
We further proposed the “money wage” to be equal to the “Cost of Living”, thus
the “Trade Unions” will have to bargain for a money wage covering their
members’ cost of living! “Full employment” depends on the effective demand, which, given that the required
investment may fall short, involuntary
unemployment will emerge. No EU country ever, since 1950, achieved
full employment, and thus the Western European countries learned to live with the unemployed, at a fixed 5.65% on average
on their entire labor force! We presented the “Krimpas-Asimakopulos growth
model” based on Mrs. J Robinson’s work. This showed the effort of almost all
models built since Keynes to use the so-called “mark-up pricing” (a non-competitive & a non-monopoly practice)! Moreover, this led us to
propose a “controlled” free entry into the market. A further innovative
phenomenon—since 2013—emerged in France, where a high
taxation on “dividends to be paid”, boosted “investment”! In the EU-22, there is confusion regarding: “corporate” and “dividend” tax! We showed that one
variable, which dominated the economic scene, since 2009, was Money! We also showed that the
“greed inflation” emerged, so that to make it urgent for the “super-normal
profits” to be taxed heavily, by 90% say, and so to finance the so-called green transition!