The Economic Surplus: Theory, Measurement, Applications

By Anders Danielson | Go to book overview

Mechanisms of Stagnation

The definition of surplus, as developed in Chapter 3, was calculated for Jamaica in the preceding chapter. It was shown there that the surplus--measured as Surplus II or Surplus III--increased significantly during the 1960s ,and 1970s (cf. Table 5.4). One possible explanation for this would be the Baran ( 1957) hypothesis of an increasing degree of monopoly capitalism. According to this hypothesis, the surplus increases as per capita incomes grow because markets (for commodities as well as for factors of production) become distinguished by increasing imperfections--monopoly on commodity markets and monopsony on factor markets. In addition, economic growth, according to Baran is, more often than not, characterized by a declining share of the employed labor force working in productive (i.e., surplus-generating) activities and the gap between the productivity and the wage of the productive labor force widens. Hence, according to Baran, increasing monopoly capitalism occurs when per capita incomes increase and this is reflected, inter alia, in an increasing share of the surplus being allocated to capitalists in the form of increasing profits.

However, in Jamaica profits fell more or less consistently between the late 1960s and the early 1980s, 1 which would not seem to indicate any increase in the degree of monopoly capitalism (at least not in Baran's sense). Furthermore, as noted in Chapter 5, the relatively rapid increase for most years of the 1960s of per capita incomes as well as of profits was in the 1970s turned into a deep and long recession. Per capita incomes--and for some years, even GDP--fell while the functional shares of GDP remained virtually constant, thus indicating that different classes in society carried their part of the burden of stagnation. One of the major points of Chapter 5, however, was that profits as share of Surplus II and Surplus III declined systematically throughout the 1970s: as Table 5.4 shows, the share of profits in Surplus III declined from approximately 39 percent in 1962-66 to 26 percent in 1977-81. This phenomenon was

-81-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Economic Surplus: Theory, Measurement, Applications
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Figure and Tables ix
  • Acknowledgments xi
  • I - Introduction 1
  • 1: Surplus and Economic Development 3
  • II - Theory and Measurement 11
  • 2 - The Role of Surplus in Classical Political Economy 13
  • Notes 27
  • 3 - Making Surplus Visible: A National Accounts Approach 29
  • Notes 43
  • 4 - Accumulation and the Agricultural Surplus 47
  • Notes 61
  • III - An Application: Jamaica under Manley 63
  • 5 - Size and Distribution of the Surplus 65
  • APPENDIX TO CHAPTER 5: SOURCES AND QUALITY OF DATA 78
  • APPENDIX TO CHAPTER 5: SOURCES AND QUALITY OF DATA 79
  • Mechanisms of Stagnation 81
  • APPENDIX TO CHAPTER 6: SURPLUS ACROSS COUNTRIES AND OVER TIME 92
  • 7 - The Role of Interest Groups 101
  • Notes 123
  • IV - Concluding Observations 127
  • 8: Is Surplus Obsolete? 129
  • References 137
  • Index 147
  • About the Author 153
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 158

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.