Table Of ContentTHE STRUCfURE OF A MODERN ECONOMY
Also by Kenneth E. Boulding
BEASTS, BALLADS AND BOULDINGISMS
BEYOND ECONOMICS
COLLECTED PAPERS: VOLUMES I-VI
CONFLICT AND DEFENSE
DISARMAMENT AND THE ECONOMY (edited with Emile Benoit)
ECODYNAMICS
ECONOMIC ANALYSIS
ECONOMIC IMPERIALISM (edited with Tapan Mukerjee)
ECONOMICS AS A SCIENCE
*THE ECONOMICS OF HUMAN BETTERMENT (editor)
THE ECONOMICS OF PEACE
THE ECONOMY OF LOVE AND FEAR
EVOLUTIONARY ECONOMICS
HUMAN BETTERMENT
THE IMAGE
THE IMPACT OF THE SOCIAL SCIENCES
LINEAR PROGRAMMING AND THE THEORY OF THE FIRM (edited with
W. Allen Spivey)
THE MEANING OF THE TWENTIETH CENTURY
THE OPTIMUM UTILIZATION OF KNOWLEDGE (edited with
Lawrence Senesh)
THE ORGANIZATIONAL REVOLUTION
PEACE AND THE WAR INDUSTRY (editor)
A PREFACE TO GRANTS ECONOMICS
A PRIMER ON SOCIAL DYNAMICS
PRINCIPLES OF ECONOMIC POLICY
THE PROSPERING OF TRUTH
READINGS IN PRICE THEORY: VOLUME VI (edited with George J. Stigler)
A RECONSTRUCTION OF ECONOMICS
REDISTRIBUTION THROUGH THE FINANCIAL SYSTEM (edited with
Thomas F. Wilson)
REDISTRIBUTION TO THE RICH AND THE POOR (edited with
Martin Pfaff)
THE SKILLS OF THE ECONOMIST
THE SOCIAL SYSTEM OF THE PLANET EARTH (with Elise Boulding and
Guy M. Burgess)
STABLE PEACE
THREEFACESOFPOWER
TOWARDS A NEW ECONOMICS
TRANSFERS IN AN URBANIZED ECONOMY (edited with Martin and
Anita Pfaff)
THE WORLD AS A TOTAL SYSTEM
*Also published by Macmillan
The Structure of a
Modern Economy
The United States, 1929-89
Kenneth E. Boulding
sometime Distinguished Professor of Economics, Emeritus
University of Colorado at Boulder
with the assistance of Meng Chi
!50th YEAR
M
MACMILLAN
© the estate of the late Kenneth E. Boulding 1993
Softcover reprint of the hardcover 1st edition 1993
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London W1P9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
First published 1993 by
THE MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
ISBN 978-1-349-12945-4 ISBN 978-1-349-12943-0 (eBook)
DOI 10.1007/978-1-349-12943-0
A catalogue record for this book is available
from the British Library.
Contents
List of Figures and Tables vi
Abbreviations ix
Preface X
1 The Structure of an Economy 1
2 Human Capital 14
3 Sizes and Proportional Structures
of Total Output and Income 25
4 Money and Prices 40
5 Capital Structures 53
6 The Role of Government 70
7 The World Economic Environment 84
8 Towards Understanding and Control 96
9 What of the Future? 111
Notes and References 126
Appendix: Data Tables 129
Index 210
v
List of Figures and Tables
Unless stated otherwise, all figures are for the United States and all
dates are for 1929-89.
Figures
2.1 Total population 15
2.2 Live births and deaths, 1910-88 15
2.3 Total annual increase in population 16
2.4 Population by age group, 1929-87 17
2.5 Labour force and population of labour force age,
1929-87 18
2.6 Population in non-labour force, labour force and
employment 18
2.7 Employment by sector (percentages) 19
2.8 Employment by sector (thousands) 23
3.1 Per capita national account index 26
3.2 Per capita real net product of the civilian labour
force 28
3.3 Major components of the gross capacity product
(in constant 1982 dollars) 29
3.4 Major components of the gross capacity product
(as a percentage of GCP) 30
3.5 National income by type of income 33
3.6 Average gross weekly earnings and real
compensation, 1947-89 35
3.7 Percentage share of aggregate income, 1947-87 36
3.8 Families, distribution by total income, 1947-88 37
4.1 Implicit price deflator (1) (gross national product) 41
4.2 Implicit price deflators (2) (personal consumption
expenditure, gross private domestic investment) 41
4.3 Implicit price deflators (3) (exports, imports,
government purchases of goods and services) 42
4.4 Federal government deficit or surplus vs consumer
price index, 1929-89 44
4.5 Purchasing power of the various forms of liquid
assets, 1959-89 46
vi
List of Figures and Tables vii
4.6 Average currency held per capita 46
4.7 Per capita currency plus demand deposits, and GNP
deflators 47
4.8 Components of Ml 48
4.9 Consumer price indexes: all items, rent and
residential, 1913-89 49
4.10 Consumer price indexes: food, clothing and upkeep,
1913-89 50
4.11 Consumer price indexes: commodities, durables and
non-durables, 1935-88 50
4.12 Consumer price indexes: transportation and medical
care, 1935-89 51
4.13 Common stock price indexes, 1929-86 52
5.1 Balance sheets for the US economy: non-financial
corporate business, 1945-88 54
5.2 Balance sheets of the household sector, 1945-88 55
5.3 Consumer credit outstanding 56
5.4 Mortgage debt outstanding as percentage of GCP,
1939-89 57
5.5 Mortgage debt outstanding by type of property,
1939-89 57
5.6 Mortgage debt outstanding by holder, 1939-89 58
5.7 Private domestic investment 59
5.8 Capital consumption 60
5.9 Real net private domestic investment 61
5.10 Increase in real capital 61
5.11 Interest rate vs interest as percentage of national
income 64
5.12 Real rate of return and interest rate 65
5.13 Components of manufacturers' inventories by stage
of process, 1953-89 66
5.14 Components of manufacturers' inventories by
durability of goods, 1953-89 67
5.15 Inventories of manufacturing and trade, 1948-89 68
5.16 Sales by manufacturing and trade, 1948-89 68
5.17 Gross private domestic investment 69
6.1 Government expenditure 71
6.2 Federal outlays, fiscal years 1940-91 72
6.3 Federal receipts, fiscal years 1940-91 74
6.4 Government budget surplus/deficit (in current
dollars) 75
viii List of Figures and Tables
6.5 Government budget surplus/deficit (in constant 1982
dollars) 75
6.6 State and local government revenue by source, fiscal
years 1927-88 76
6.7 State and local government expenditure by function,
fiscal years 1927-88 77
6.8 Tariff indexes, 1929-87 80
7.1 Trade per capita vs GNP per capita for 114
countries, 1985 86
7.2 Relative shares of world trade: average of exports
and imports, 1960-86 87
7.3 Relative shares of world trade: exports by major
regions, 1960-86 88
7.4 Relative shares of world trade: imports by major
regions, 1960-86 89
7.5 World trade total, 1865-1987 91
7.6 Exports and imports 92
7.7 Foreign exchange rates of US dollars, 1967-89 93
7.8 World petroleum wholesale price, 1960-87 94
7.9 Crude oil and petroleum product imports, 1973-89 94
8.1 Federal Reserve discount rates vs prime rates,
1939-89 100
8.2 Corporate profit/(profit + interest) vs unemployment
rate, 1929--44 105
8.3 Corporate profit/(profit + interest) vs unemployment
rate, 1944-61 106
8.4 Corporate profit/(profit + interest) vs unemployment
rate, 1961-87 107
8.5 Business inventories vs the unemployment rate,
1929-51 108
8.6 Business inventories vs the unemployment rate,
1951--68 108
8.7 Business inventories vs the unemployment rate,
1968-87 109
Tables
3.1 Income distribution by population fifths, families,
1988 39
4.1 Price deflators in the Great Depression, 1929-33 42
4.2 Liquid assets, 1959 and 1989 45
Abbreviations
COMER Committee on Monetary and Economic Reform
GAIT General Agreement on Tariffs and Trade
GCP Gross Capacity Product
GNP Gross National Product
GPDI Gross Private Domestic Investment
ISEW Index of Substainable Economic Welfare
MMMF Money Market Mutual Fund
NCP Net Capacity Product
NNP Net National Product
NPDI Net Private Domestic Investment
OPEC Organisation of Petroleum Exporting Countries
PCE Personal Consumption Expenditures
PIG Profit and Interest Gap
ix
