Michal Kalecki quotes

Michal Kalecki was a renowned Polish economist, known for his pioneering work in macroeconomics and the theory of economic cycles. His insights predated and paralleled many of those of John Maynard Keynes, particularly in the analysis of effective demand and unemployment. He influenced generations of economists with his innovative ideas on economic policy and income distribution. Here are 16 of his quotes:

The capitalists of a country which manages to capture foreign markets from other countries are able to increase their profits at the expense of the capitalists of the other countries. Similarly, a colonial metropolis may achieve an export surplus through investment in its dependencies.

Michal Kalecki

It is the export surplus and the budget deficit which enable the capitalists to make profits over and above their own purchases of goods and services. The connection between 'external' profits and imperialism is obvious.

Michal Kalecki

Generally speaking, changes in the prices of finished goods are "cost determined" while changes in the prices of raw materials inclusive of primary foodstuffs are "demand determined."

Michal Kalecki

It may thus be concluded that in the absence of 'development factors' the system lapses into a stationary state. These factors thus appear to be a prerequisite of a steady growth.

Michal Kalecki

It should first be stated that a joint-stock company is not a 'brotherhood of shareholders' but is managed by a controlling group of big shareholders while the rest of the shareholders do not differ from holders of bonds with a flexible rate of interest.

Michal Kalecki

[C]apitalist savings 'lead' profits. This result may appear paradoxical. 'Common sense' would suggest the opposite sequence-namely, that savings are determined by profits. This, how ever is not the case.

Michal Kalecki

In a sense the budget deficit can be considered as an artificial export surplus.

Michal Kalecki

It has been frequently assumed that V is constant; and this indeed is the cornerstone of the quantity theory of money. But it seems fairly obvious that the velocity of circulation in fact depends on the short-term rate of interest.

Michal Kalecki

We have found that the degree of monopoly is likely to increase somewhat during depressions.

Michal Kalecki

In any case of the budget deficit the private sector of the economy receives more from government expenditure than it pays in taxes.

Michal Kalecki

The most important prerequisite for becoming an entrepreneur is the ownership of capital.

Michal Kalecki

It should be noticed that the whole approach is in contradiction to generally accepted views.

Michal Kalecki

Armaments and wars, usually financed by budget deficits, are also a source of this kind of profits.

Michal Kalecki

An increase in the number of paupers does not broaden the market.

Michal Kalecki