Political Aspects of Full Employment in Retrospect.

The article focuses on Michał Kalecki's 1943 essay "Political Aspects of Full Employment," which analyzes how full employment can be achieved through fiscal policy within capitalism and the political resistance it faces from business and finance. Kalecki argued that while government spending can secure full employment, business leaders oppose it due to concerns over state interference, competition with private enterprise, and the loss of labor discipline, which threatens their social and political dominance. He also outlined how full employment challenges capitalist institutions and may serve as a transitional phase toward socialism, requiring new social and political structures reflecting increased working-class power. Additionally, Kalecki anticipated a political business cycle driven by conflicts between popular demand for employment and business interests, and he proposed financing full employment through government securities and a capital levy to manage public debt without harming investment or profits. The essay contrasts Kalecki's views with Keynesianism and fascist economic policies, emphasizing the political economy dimensions of maintaining full employment in capitalist democracies.