Home Forum Political Economy Does capitalism have a growth imperative? Reply To: Does capitalism have a growth imperative?


On this subject, you might want to read:

Blair Fix, 2017, ‘Energy and Institution Size‘.

Bichler & Nitzan, 2020, ‘Growing Through Sabotage: Energizing Hierarchical Power‘.


The chart below, taken from our recent paper ‘The Limits of Capitalized Power. A 2020 U.S. Update‘, suggests that U.S. capitalists require not absolute, but strategic sabotage: not too cold, not too warm.

Like with Goldilocks, too much sabotage reduces their earnings share, but so does too little sabotage. The optimal level of sabotage — otherwise known as ‘business as usual’ — is what economists call the ‘natural rate of unemployment’.