Ioannis Katselidis, Angelos Vouldis and Panayotis G. Michaelides
This paper aims to analyze Emil Lederer's and Sumner Slichter's theses on the concept of technological unemployment.
Abstract
Purpose
This paper aims to analyze Emil Lederer's and Sumner Slichter's theses on the concept of technological unemployment.
Design/methodology/approach
Given the presence of core elements of both economists' visions in the famous Debate on Technological Unemployment (1928‐1933), it is surprising that so little attention has been paid to their works. This paper makes an attempt to interpret certain parts of Emil Lederer's oeuvre in association with the writings of Sumner Slichter based on a careful examination of their writings and their theoretical investigations.
Findings
The writings of both economists seem to converge to similar views. Analytically, they both attempted to explain the inability of the economic system to readjust and absorb the unemployed workers. Moreover, both economists disputed the assertion of Say's law that full equilibrium would be assured by the functioning of market forces. In contrast to other economists, they both attached increased significance to the supply side of the economy and in particular to the role of technical change. Furthermore, it seems that both authors were in favor of restrained technological change, which would be absorbed smoothly from the economic system. Another interesting aspect of both economists' investigations is their respective theoretical shift around 1930, which could be attributed to the disastrous consequences of the Great Depression. The paper concludes that, despite some differences between Lederer and Slichter, the parallels are impressive.
Originality/value
Most aspects of Slichter and Lederer's works remain unexplored. Thus, the connection between them may be very useful for promoting dialogue between different schools or strands of thought.
Details
Keywords
Panayotis G. Michaelides, John G. Milios, Angelos Vouldis and Spyros Lapatsioras
Joseph Alois Schumpeter's ideas are in the discussion agenda of various economists working in different theoretical traditions. However, several aspects of his work remain…
Abstract
Purpose
Joseph Alois Schumpeter's ideas are in the discussion agenda of various economists working in different theoretical traditions. However, several aspects of his work remain unexplored. In particular, the origin of his ideas in the context of the then prevalent economic theories of the German‐speaking camp, have not been widely discussed. The purpose of this paper is claim that the elaborations of certain German‐speaking heterodox economists and/or schools of economic thought may be traced in Schumpeter's oeuvre.
Design/methodology/approach
The influence of the German Historical School and specifically of Gustav von Schmoller, Max Weber and Werner Sombart on typical Schumpeterian themes is examined. In a similar vein, it is argued that Schumpeter's analysis presents striking similarities with the works of the Austro‐Marxist Economist Rudolf‐Hilferding and the Austrian Social Democrat Emil Lederer.
Findings
In this context, certain Schumpeterian insights appear less original.
Originality/value
Conclusively, it may be inferred that a deeper understanding of Schumpeterian economic analysis presupposes an acquaintance with certain heterodox theoretical traditions of the German‐speaking world.