Global Keynesianism

Hello  everybody,

Paul's last posting is most interesting.

Equilibrium, central to 'Keneysianism', works without cumulative
causality overtone.  So when demand increases as life becomes better and
easier, supply lacks and prices go up leaving even more behind.  Barrier
to entry prevents immediate adjustments to lower level of prices.   Of
course it is assumed that free trade and modernity will eliminate any
such barrier, World Bank and IMF will help reduce polarization, however,
we have riots in Seattle and DC because of the disequilibrium, ceteris
paribus.  On the other hand, when quality of life is so high (as in
cloud nine), complacency comes into play.  So, we have the Fall of the
Roman Empire, the American War of Independence, the French Revolution,
the Russian Revolution, and "sleepless" in Seattle and DC.

How, on a historical path determinant manner, could equilibrium be
achieved is the interesting theme of Mark Setterfield's work entitled
"Rapid Growth and Relative Decline: modeling macroeconomics dynamic with
hysteresis" (St. Martin's Press, Inc. NY,NY.1997).  I have Grade 12 math
and wish I had more to understand the math linguistics.  However, it
seems that Prof. Setterfield's hysteresis model  could have interesting
applications in a global scale - could equilibrium evolve and
rejuvenate, is there a place in the capitalistic world for
pycho-cybernetics and endogenesis?

One thing comes to mind:  "how to avoid human errors committed in the
past".   Lock-ins may have to be addressed and resolved before solutions
could be found.  Habitual behavior due to effective and powerful AIDA
media bombardment might well have caused Lord Rothchild's feeling of
anger for those living in the 'groove'.  The Load's difficulty in
appreciating those whom he had successfully helped 'locked-in' is
understandable, not condoned.  Perhaps a 'cultural revolution' of sorts
is necessary, one not with arms and violence, one that is not hysteric
(pardon the pun which is not intended), but a basic shift in global
culture.

'Keneysianism' and laws of physics, such as hysteresis, may yet find
convergence in the common goal of mitigating conflict.  For humanity to
achieve sustainability in future,   humanity has to be re-examined from
the past.  Certainly world systems analysis could provide the platform.

Cheers.
K.S.Tso