Shaikh’s path 4 Keynes and Classical Economics

The video explores Keynesian macro theory, focusing on effective demand and its impact on economic dynamics. It discusses the relationship between investment, profitability, and competition, highlighting historical examples like the gold discovery in California. The video also examines the effects of effective demand on economic growth, inflation, and stagflation, particularly in the 1970s and 1980s.

What are the key differences between Classical economics and Keynesian theory as discussed in the text?

What role does the author believe purchasing power plays in capitalism?

In what way does the author connect the ideas of Keynes and Marx regarding aggregate demand?

How does the author relate the concept of effective demand to profitability?

What explanation does the author provide for the stagflation of the 1980s?