ABSTRACT
The major problems of collective capitalism are not the product of internal contradictions in our system, but the product of contradictions between collective capitalism and the set of policies appropriate to private capitalism. It was not the Marxian revolution in which labor seizes the instruments of production, but a more basic and less obvious revolution which rejected the principles and policies of private capitalism and made a start toward developing a new set of principles and policies applicable to a new type of capitalism. This revolution rejected the principle that under capitalism automatic forces would tend to maintain full employment and that any significant departure from a prosperous condition is only temporary. A characteristic of demand inflation under the conditions of collective capitalism shows itself first in the prices subject to classical competition, but only with substantial lag for administered prices and wage rates.
