ABSTRACT
This chapter challenges the plausibility of Weitzman's assumptions, for the implicit neglect of Keynesian and classical unemployment and of the persistent inflationary feedbacks of full employment and the lack of workers’ participation in enterprise decision-making under continued full employment. It questions the viability of Weitzman's model within the framework of its own assumptions; argues that the model has systemic instability because of its proneness to mergers in the short run, the entry of non-income-sharing new firms in the medium run, a built-in tendency to revert to the wage economy in the long run. The chapter sums up the arguments and assesses their impact on the proposal. Weitzman's model implicitly assumes the absence of classical unemployment and Keynesian unemployment.
