Title:
Leading Issues in the British Economy
expected date of publication 1st Quarter, 2012This book is a timely publication which addresses many of the issues giving rise to the current financial crisis. Indeed, the work undertaken and covered in this book on the Real Incomes approach to economics was motivated by clear failures in economic theory and practice which surfaced during the last major economic crisis in the later 1970s.
This book provides a comprehensive review of the main developments in the Real Incomes Approach to economics developed during the last 36 years (1975 to 2011).
It contains a critical review of the shortcomings of Keynesianism, Monetarism and Supply Side economics.
A major constraint of conventional policies is their lack of traction, that is, there is an inability to drive the condition of the economy as far as required in the desired direction and within an appropriate timeframe. Traction is lacking because the electoral, legislative and policy-making frameworks lack appropriate decision analysis techniques. There is a need for a more effective resolution of conventional conflicts between the diversity of individual preferences and the concept of majority governance which imposes policies which do not reflect such diversity nor, in fact, any particular majority view.
The Real Incomes Approach attempts to:
- support normal management decisions to secure higher real incomes
- achieve an acceptable level of distribution of real incomes
- avoid disruptive monopoly market interventions by the state such as the practices of demand management and/or fixing of money rental (interest) rates
- stimulate a more effective use of resources with important implications on natural resources and the environment
- demonstrate the benefits of the Minority Principle over the Majority Principle for elections and government decision-making methods
Besides a comprehensive review of theory this book sets out practical policy structures for the implementation of a Price Performance Fiscal Policy (PPFP) with due regard to both the specification of the macroeconomic policy instruments and the provision of guidelines on the management of firms under such a policy. The system includes integrated salaries and bonus structures which provide a direct motivation to drive corporate performance towards the most profitable and optimised operations.
The author, Hector McNeill is an economist who has developed the Real Incomes Approach since 1975.
