By Gunnar Myrdal
Opposed to The move: severe Essays On Economics, by way of Myrdal, Gunnar
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Extra info for Against the Stream: Critical Essays on Economics
The interests of salary-earning employees and of profitearning employers are not always conflicting. While within an ongoing inflationary development the former rationally have to count on higher costs of living and to press for higher wages, the latter can in the same way often count on higher prices for their products or services. When inflation is worldwide, this also applies to export industries. This is, of course, one of the forces behind the cost-push effects in an inflationary process, but they are apt to operate with different and changing strength depending on the institutional setup and the power relations.
Correlations are not explanations, and besides they can be as spurious as the high correlation during a long period in Finland between foxes killed and divorces. Much more research needs to be directed toward analyzing in depth the causal mechanism of driving forces in the inflationary process. Such an analysis of an inflationary 28 CHAPTER 2 movement must come to concern itself much more with the institutional factors exemplified above, and it will then shift character. I see everywhere in recent literature scattered efforts to do this, though ordinarily inhibited and frustrated by the common adherence to simplified model thinking.
I have been fascinated to discover that over the ages the great world religions, including, on a purified doctrinal level, even Hinduism, and the grand philosophies attached to these religions have all been egalitarian in principle and thus endorsed the fundamental valuation basic even to modern social policy. 3 Why and how did it happen, that this shining, idealistic vision of the dignity of the individual human being, of his basic right to equality of opportunity and also his right to assistance when in need, came to be developed so early and everywhere?