Industrial structure and the macro economy

Abstract

In this chapter, we consider the nature of modern capitalist structures and trace its implications for macroeconomic performance and for broader issues of democracy and freedom. Our central proposition is that modern capitalist structures are monopolistic or oligopolistic, and that, consequently, they are inherently unstable and prone to economic crises. Moreover, the dominance of large transnational corporations generally impedes the democratic process to the detriment of the wider public interest. In taking this line, our approach follows that of Baran and Sweezy (1966), Kalecki (1971), Cowling (1982) and Cowling and Sugden (1994, 1998) and draws upon both orthodox and heterodox perspectives.