Economic power, employment and economic theory
Professor Dr. Rubens R. Sawaya
Postgraduate Professor in Political Economy, Department of Economics PUCSP - Pontifícia Universidade Católica de São Paulo – Brasil
Please cite the paper as:
Professor Dr. Rubens R. Sawaya, (2016), Economic power, employment and economic theory, World Economics Association (WEA) Conferences, No. 1 2016, Capital Accumulation, Production and Employment:, 15th May to 15th July 2016
The debate about economic growth and unemployment in Brazil is hindered by Friedman’s imported theory, based on the “natural rate” of employment that today pervades global economic thought as adopted by new classical and new Keynesian economists. This misguided view is responsible for a brutal recession, with rising unemployment and a drop in aggregate production, failing at that which it purports to do: recover metaphysical credibility for companies. This matter concerns the political power of a specific social group, which today extends beyond political parties. It is the result of an imported theory from abroad that also is damaging the global economy by imposed economic austerity.