Abba P. Lerner was quite a pack rat when it came to his lecture notes (but also his correspondence!). This post offers a glimpse into the archival record of lecture outlines and keywords preserved as found in these notes. Sometimes we have a polished outline, sometimes there is what appears to be a brief lecture synopsis, and in this case we also have both handwritten drafts of notes as well as his typed notes (on note cards…who would have thought?) for the lectures.
All the material transcribed below comes from a single folder in Abba P. Lerner’s papers:
Source: Library of Congress. Papers of Abba P. Lerner, Box 23. Folder “Lectures and speeches: Other”.
I have added a source note to each item with a brief description of its physical form (typed, handwritten, paper v. notecards).
Abbreviations encountered in Lerner’s notes:
ap–average product (of labor)
DF–Democratic Functionalism
FE–Full Employment
FF–Functional Finance
mp–marginal product (of labor)
NG–no good
TU–Trade Union
________________________
An
Economist…
Looks
at Labor
Series of Five Lectures
by Abba P. Lerner
Tuesday Evenings, 7:30-9:30, March 1 to 29, 1949
March 1—Philosophy—Capitalism, Socialism, Laborism
March 8—Ideology—Labor and Democracy
March 15—Theory—Bourgeoisie, Marxist and Laborist Economics
March 22—Policy—Labor and Prosperity
March 29—Prophesy—Labor Under Full Employment
THE SPEAKER
Mr. Lerner is an economist of international reputation. One of the leading exponents of the Keynesian school, he contributed to the development of the concept of functional finance which underlies the Employment Act of 1946 and the British White Paper on Full Employment of 1944. He started his academic career as a lecturer at the London School of Economics, and has lectured at the Universities of California and Virginia, at Columbia University, and at the New School for Social Research in New York. His book, “The Economics of Control,” published in 1944 by Macmillan, is an outstanding exposition of the theory of planning for economic welfare. Mr. Lerner is Professor of Economics at Roosevelt College.
ADMISSION
Tickets for the whole series (five lectures): $4.00
Single lecture tickets, if available, may be purchased at the door at $1.00
CREDITS
One hour of college credit will be given for the series of five lectures if a written examination is taken at a sixth session on April 5.
Students who wish to secure credit will be charged at the regular rate of $10.00 for one semester hour. They should register in advance at the main floor information desk.
PREREQUISITES FOR CREDIT
Students may enroll for credit if they have complete six semester hours of introductory courses in the social sciences or introductory courses in economics, sociology, or political science. Consent of the lecturer may replace these prerequisites
Series tickets may be secured from the Business Office in Room 818.
Sponsored by
DEPARTMENT OF ECONOMICS
Roosevelt College—Chicago
430 SOUTH MICHIGAN AVENUE, CHICAGO 5—Wabash 2-3580
Source: Official printed event poster.
________________________
The Role of Labor
in Present-Day Society
Ever since Karl Marx, social reformers and progressives have looked upon labor organizations as the carriers of economic and social progress.
Since the inception of trade unionism, organized labor has come a long way. From revolutionary institutions outside the framework of private property and free enterprise, they have become part and parcel of our social and economic system. Labor leaders, once impotent outlaws, are now the holders of great political and economic power. The discussion of unionism used to center around the problems of the underdog; but today we are concerned with the responsibilities that should go with the increasing power of labor.
The following questions are frequently raised: “Which are the goals that organized labor tries to attain by the use of its power?” “Can the exercise of this power be harmful to society and should it be restricted?” How is “Economic Democracy” related to political and social democracy? Are the ideals of a free society compatible with the goal of “class liberation”?
Professor Lerner will endeavor in this series of lectures to analyze these and similar problems. He will pay particular attention to the problems of monopoly, both of capital and of labor, and to the role of labor in a society which has succeeded in achieving and maintaining full employment.
Source: From the printed announcement flyer.
________________________
Typed draft description
There is much loose talk nowadays about the rise of labor to power and the responsibility that should go with this power. This can be interpreted positively as directing attention to ways in which labor would exercise this power toward the end of implementing the ideals that are associated with the labor movement, But it can also be interpreted negatively as suggesting that labor should be so careful to avoid using its power in ways that would harm society that it would simply not exercise its power at all. No judgment can properly be made on the meaning of Labor’s responsibility without first clarifying the nature of both the ideals and the dangers; and this cannot be done without first distinguishing between the ideals and the interests of the working people on the one hand and of the organizations that we often call “labor” on the other. It is also necessary to explore the relationships between the liberal ideals of a free society and labor’s ideals of class liberation, between democracy and “economic democracy”, and between the economic theories that are often identified with the interests or prejudiced of capitalists, and those that are more closely associated with labor and its economic and political organizations.
Professor Lerner will endeavor in this course of lectures to analyse these problems and will pay particular attention to the problem of monopoly, both of capital and of labor, to the problems connected with achieving and maintaining full employment and to the special problems that would arise in connection with labor in a society which had succeeded in achieving and maintaining full employment.
Source: Carbon copy of typed single page.
________________________
Outline of the Five Lectures
Abba P. Lerner
An Economist Looks at Labor Five Lectures March 1, 8, 15, 22, 29, 1949 at 7:30 P.M.
(For those taking the course for credit an examination period following the lectures.
Prerequisite Soc. Sc. 102 or Ec. Pol Sci and Soc 101)
- Philosophy—Capitalism, Socialism and Laborism.
What does labor want? What can Labor get? The nature of social cooperation. The means and the ends. Labor and labor organizations. - Ideology—Labor and Democracy.
The interest of Labor and the general interest. Property and privilege. [handwritten note:“T.U.’s (trade unions’) & workers’ dignity”] Welfare economics. Laborism and Liberalism. Economic Democracy. Democratic Functionalism. Output, effort and income. Labor organizations and liberty. Progress and the progressive Democracy. Dictatorship and Efficiency. Imports and wages. - Theory—Bourgeoise, Marxist, and Laborist Economics.
The share of labor. Marginalism. Bargaining power. The labor theory of value. The International Labor Office. Labor legislation. Capitalism Cooperation and Competition. Monopoly in business and in labor. The dictatorship of the proletariat. Payment and productivity. [handwritten note:“wages & efficiency”] Minimum wages. [handwritten note:“Wider meaning of exploitation”] - Policy—Labor’s stake in and responsibility for prosperity.
The determinants of employment. Labor’s freedom from some dogmas. Inflation and Deflation. Wage rates and cost of living. Full employment policy. Anti-labor objections to Full employment policy. Functional Finance. - Prophesy—Labor under Full Employment.
Inflationary pressure. Excessive bargaining power. Function of the Trade Unions. Residue of fear of unemployment. Dangers to Capitalism. Dangers to Freedom. Dangers to Progress. A substitute for collective bargaining. Effects on Liberty, Equality and Fraternity.
Source: Typed single page outline.
________________________
Typed draft of notes for Lecture 1 (Version A)
Lecture I Capitalism, Socialism, Laborism. Philosophy
I am feeling my way[.] Sentimental associations and loyalties[.] Humanism basic. Identification with Labor organisations. We must check. In case the organization claiming to enhance the dignity of the working man may not be lowering it instead.
means not ends—
Labor organisations as part of the organization of our whole society.
Capitalism. From the point of view of the private capitalist and th[at] from the point of view of the collectivist (anti-capitalist) socialist.
Two extreme dogmas.
Socialism from the extreme points of view. Labor org[anisation]s as means to communism.
Enlightened capitalism-enlightened capitalists who still seek profit—and enlightened socialism—meet in Democratic Functionalism.
Parallel in the price mechanism. DF [“Democratic Functionalism”]
none of these views is that of Laborism. Getting more.
as narrow as any private capitalism. Re prices until very lately and that not very clear. More on this in lecture 3. degree of monopoly and rate of markup.
combinations of narrow interests remains narrow log rolling pork barrels.
interests of the TU [trade union] bureaucrat, loyalty works the same way. (like national sovereignty)
[handwritten note:“Labor as agent for extending Democracy – Univ(ersal) Suff(rage), Univ(ersal) Education”]
Source: Typed single page of notes.
________________________
Typed draft of notes for Lecture 1 (Version B)
Lecture 1 March 1st 1949 Philosophy. Capitalism, Socialism, Laborism.
Not Work, or even working men, but the organisations of working men. In relation to the interests of working men as a majority of all men in which I am interested.
This what is meant by “not believing in the class struggle”. Humanism is the basic philosophy that I start with and that I find all decent people do to when you get down to rock bottom. Sometimes it is difficult to get down to rock bottom.
Dogmas get in the way. The class enemy as an excuse for inhumanity, just like the National or Racial enemy. Labor organisations as means. Always check whether it really does work for the interests of working men, to raise their dignity rather than to lower it. And incidentally, we find that a wider interest in all men helps rather than hinders the well-being of working men.
Capitalist view. 1.2. The two extreme views go together. Profit, Exploitation 3: A social organization enlightened capitalism, (not enlightened capitalists—capitalists must seek profit)
Socialism: Robbery, millennium through abolition of profit. class collaboration the greatest sin.
Democratic Functionalism. Serving society, Property, private and social, as means for serving society. serving people better. providing wealth, freedom, opportunity, maximum freedom which includes wealth.
Laborism, something else. Getting more. As narrow as any business man, applies not to labor but to the particular group. like “business” Works on relative shares.
Degree of monopoly or rate of markup determine rel[ative] share of labor as a whole, not the wage bargain.
The price mechanism parallel. Cap[italism]. Soc[ialism]. DF [Democratic Functionalism].
The interests of the labor organization, its officials etc. (bureaucracy) rationalisations; higher wages lead to greater productivity assumes higher real wages, assumes greater productivity.
Source: Typed page of notes.
________________________
Typed notes for Lecture 1 (one note card)
Fancy Outline
I Philosophy. Cap[italism], Soc[ialism], Laborism.
Not work. Orgn of workers,
for working men, all men. Not
Class Struggle. Humanism
Decency.vs. Dogmas & Inhumanity.
Harmony of Workers and Men.
What Lab org can get for Workers.
Extreme Cap view
Profit as right, public be damned.
Lab org as enemy.
narrow
ignorant
Extreme Soc view
Propty as theft
Millenium by abolition of Prpty
Class war. Collaboration sin.
Reasonable views meet. Serve Socty.
D.F. max freedom. Equality, free
sectors, inequality if functional.
Freedom and Welfare the same.
U.S Soc?
Laborism 1. Group, narrow just like Bus.
2. Org. means & ends.
Dogma –worse—
If widened
Social cooperation: Max Freedom.
force can increase freedom. Place for State. Law—avoid arbitrariness.
Money wages to illustrate all.
(stands for all bargaining)
Source: Typed note card.
________________________
Typed notes for Lecture 2 (one note card)
Lecture II March 8th 1949
Ideology—Labor and Democracy
Repeat
Humanism vs. Class view.
narrowness of interest
narrowness of ignorance. Social [point of] view.
organization as means.
DF functional inequality only.
vs. revolutionary demands.
Capitalism, Socialism, Laborism
Capitalism & Democracy—
Identification of Labor with Democracy
suffrage, education
Economic Democracy? meaningless?
Dignity of the worker in collective
bargaining. If not lost in the
bargaining organisation. Rackets.
The real job is real wages. scale of living.
derived from this are hours and conditions
paradox of lower pay for meaner work.
marginalism. Dtermination of real wge.
Raising money wges does not help. Illusion
from the particular. Capitalist form in
objecting, in blaming for unemployment.
Laborist form in demanding and blaming for
unemployment. Communists more consistent.
ILO Ideal layout for rev. demands.
preventing hyperdeflation. sparking infl.
I.e. useful in depression.
Offsetting monopsony. Making a market
But the real protection is the dignity of
full employment.
Full employment brings us to the political
field.
Source: Typed note card.
________________________
Typed notes for Lecture 3 (one note card)
III Theory—Bourgeoise, Marxist, Laborist
Last week:
Particularist Illusions, Cap & Lab.
TU cant raise gen real wage
Can prevent hyperdeflation.
reove [sic , “remove”?] monopsony
Real Wage determination
mp. Monopoly a factor. Exaggerated.
Bargaining, indeterminacy
irrelevant for general.
As long as private enterprise
significant. (rationality)
(Bourgeoise Theory OK)
Exploitation theory
Sentimentality (of Laborism) exploited by Marxism.
demagoguery of nationalization Profits.
Vulgar Marxism.
Marx and Pigou ap & mp
Justice and efficiency
Both (comp. a means)
Equality. Functional inequality
Non-functional inequality
is the test of expltn.
Source: Typed note card
________________________
Typed synopsis of Lecture 3
Abba P. Lerner
Lecture III. An Economist Looks at Labor March 15th 1949
Trade Unions are comparable to Governments rather than to free associations. The pressure on workers to belong and pay for the benefits they get whether they belong or not is just like the pressure on citizens to pay taxes to the State or Municipality toward the cost of services from which they would benefit whether they paid their taxes or not.
The parallel extends to the way in which governments use their sovereignty for the benefit of their nationals as against the nationals under other governments. In the same way the benefits provided by trade unions are largely at the expense of the members of other unions, and there is the same kind of resistance to unification as there is to world government. We even have in this country two labor organizations although their rivalry is not anything like as dangerous as the counterpart in world power organization.
The opposition to the only explanation of the level of real wages, the explanation in terms of marginal analysis, springs from a sentimental attachment to the labor theory of value which is being exploited by the servants of present-day totalitarianism. Modern marxists in particular are doing just what Marx excoriated in what he called “Vulgar Political Economists” so that the proper name for them would be “Vulgar Marxists”. They extol the elimination of a particular kind of “exploitation” as the end of all “exploitation” closing their eyes to the fact that it may be replaced by New forms of exploitation that from any human point of view is much worse than what is abolished.
Source: Typed page of notes.
________________________
PRESS RELEASE
for Lecture 3
FOR RELEASE TUESDAY, MARCH 22 [1949]
“Labor and Prosperity” will be discussed by Abba P. Lerner, noted economist, in a Roosevelt College public lecture March 22, 7;30 p.m., in Altgeld Hall at the college.
Dr. Lerner will make the parallel between the practices of unions which place pressure on workers to belong and pay for the benefits they get and the pressures exerted by governments on their citizens to pay taxes toward the cost of services from which they would benefit whether they paid taxes or not.
The lecture is part of an institute titled “An Economist Looks at Labor.”
Dr. Lerner, professor of economics at Roosevelt College, has been a member of the faculty of the London School of Economics and has lectured at leading American universities. He is the author of “The Economics of Control,” an outstanding exposition of the theory of planning for economic welfare.
Sent to: 4 Met. Papers, Journal of Commerce, Christian Science Monitor
cc: Dr. Sparling, Dean Hart, Dean Leys, Mr. Dibble, Mr. Lerner, E. Morrison, Information Desk, Torch, Community News Service, Al Morey—WBBM, Consolidated Clipping Serv., FILE
Source: Lerner’s copy of Press Release.
________________________
Draft notes for Lecture 3 (typed with hand corrections)
Lecture III March 15th 1949
- Last week:
Illusion of the particular, capitalist and laborist.
TU’s unable to raise general real wage level.
prevent hyperdeflation. Responsible neither for employment or unemployment.
except monopsony—providing a given rate to the employer.
- Real wage determination—marginal productivity—degree of monopoly a factor.
difficulty of figuring marginal really irrelevant.
bargaining and indeterminacy misses the point, passed on anayway.
except for measures that reduce degree of monopoly.
- Exploitation. Marx a.p., Pigou m.p. Justice and Efficiency. Both by different methods.
Equality (basic to socialism) and functional inequality.
National dividend equal (according to need) and wage equal to vmp. is the ideal. –competition (a means)
Vulgar Political Economy and Vulgar Marxism. Sentimentality exploited by Marxists. Demagoguery.
Exploitation need not be by private property any more than by slavery or serfdom. The test is non-functional inequality.
- How then can wages (real) be raised (in general)
- productivity. (TU’s are often tempted to hinder this. Lester and Shister)
Insights into Labor Issues
Unionism and Marginal Productivity Theory. Belfer and Bloom
TU Policy under Full Employment. Forsey
- productivity. (TU’s are often tempted to hinder this. Lester and Shister)
[handwritten addition: “Werth, Nation.”]
-
- Decrease monopoly, increase competition,
Limits to this. Rents not eliminated. - By redistributive taxation.
- By Full employment which helps all three of these.
- Decrease monopoly, increase competition,
- TU as sovereign bodieswith governmental functions
Political Power, narrow, like Nationalism.
Resistance to unification may be [two words illegible].
Monopoly on way to socialism.
Imperialism on way to World government.
Full employment prior to all of these.
Source: Lerner’s single typed page and handwritten additions for Lecture III.
________________________
Typed notes for Lecture 4 (three note cards)
IV Policy—Lab & Prosperity
Last week—
No function for TU
Real wages by prod x monply
Exploitation—Justice, Efficiency
Vulgar Marxism
Test—Nonfunctional inequality.
Eff & Justice. (cf Welfare & Freedom)
TU do not help. Sentiments. exploited.
TUs explicable rather in political terms.
Sovereignty.
Dues like taxes—for benefit
Power of Govts—before benefits to workers (dem helps)
Narro—like Nations.
Resist Unification—cf World Government.
Nothing more obvious.
Loyalty.
Monopoly of partial combn.
–cf Imperialism on way to World Gvt.
Economic representation difficulty of fitting in
with Geographical constituencies. Syndicalism.
How then raise Real Wages?
- Productivity
TU’s often hinder - Increase competition
[leaves rents (ap-mp)] - Redistribute Income & Wealth
FE prior to all these.
FE prior to these
Cf England labor restriction
increases competition
mobility useful, possible
How FE?.
Low wage and high wage fallacies.
particularism.
FE automatic, impossible Doctrinaire
Labor freer from Sound Finance dogma.
Governmental responsibility.
both Bus and Lab suspicious.
Unemployment in nobody’s interest.
Functional Finance.
Next Week: Problems in FE
Source: Three typed note cards
________________________
Loose typed notes for Lecture 4 [?]
The responsibility of labor for maintaining the value of money and thus of the price system and the free society.
Technique for maintaining a wage structure compatible with a constant cost of living. See older writings like The State Theory of Money (?)
one percent rise every four months with adjustments for deviations from the national average percentage of unemployment.
I shall have to develop the machinery for establishing wage rates, relative, without harming the interests of the working people. Avoid the word class though explain why before the analysis.
Why the free market will not do the trick—it depends on the use of mass unemployment as an instrument of adjustment.
Why control wages and not prices. See article on Inflation. In forthcoming RESt.
[handwritten note:“What are the prospect for CIO & AFL & Labor Party. Labor’s past contribution to dignity and democracy.”]
Source: Typed single page of notes
________________________
Lecture notes for Lecture V
V Prophesy—Labor Under Full Employment
Last week—
TU’s [Trade unions] not economic but political, narrow, jealous
sovereignty,
loyalty
imperialism
protectionism (e.g. seniority)
raise real wages by
efficiency
competition
redistribution
Chief instrument full employment.
TU’s [Trade unions] freer from prejudices which prevent full employment policies. (business prejudices)
Fe via FF [Full employment via Functional Finance]
With Full Employment
Depression and inflation. cumulative movements. TU [Trade unions] prevent hyperdeflation.
inflationary pressure. Excessive bargaining power.
Preaching no use. price stability via unemployment,
price control no use, it also works only via unemployment.
Formula for wage determination (tentative) has to be fair.
One big union—Union responsibility, no obvious solution.
The formula 1%, 2% every 4 months.
no restrictions on entry, maximise mobility, full employment basic.
fair to those in, fair to those out. Fair to workers, fair to employers. Prevents exploitation, demands for more are demands for preferential treatment, demand to pay less is demand for maintaining substandards.
the functions of Trade Unions, negotiations, understanding, belonging
sliding scales no good.
Source: Typed, single page.
________________________
Typed notes for lecture 5 (two note cards)
V Prophesy Lab under FE
Last week: TU’s Political
Sovereignty
loyalty
imperialism
protectionism
World govt.
Efficiency, Comptn, Redistn
Via FE—Lab can help, freer from Prej.
FE via FF
With FE
Depn and Infln. Cumulatn.
Hyper defl, infl.
Excessive bargaining power
Preaching no use.
One Big Union, ?
Responsibility?
The Formula (with FE)
1%. 2%. Max mobility.
Fair to all.
Why control wages without controlling prices?
works via unemployment.
prevents all exploitation
functional inequality
Sliding scales NG [no good]
Other problems other means
redistribution
public utilities
compensation
Fairness, privilege, or under privilege
TU’s have other functions
feeling of belonging
human dignity
handling grievances
negotiation, clrifiction [sic]
Most important, work for FE.
Source: Two typed note cards
________________________
Draft of handout[?] for Lecture V
Abba P. Lerner 5th Lecture (also the last) March 29th 1949
An Economist Looks at Labor
V. — Prophesy[:] Labor Under Full Employment.
The objectives of Labor organizations, as far as labor as a whole is concerned, can be reached most effectively by a full employment policy. This would not only give workers security of livelihood, that would enhance their human dignity more than it could be enhanced even by the most successful of labor organizations and labor legislation, and would also increase the share of the national product enjoyed by labor by leading to an increase in the degree of competition or in other words to the diminution of the degree of exploitation of labor by monopoly. Full employment would also increase the efficiency of the economy as a whole and so actually enlarge the cake of which labor would also get a larger share.
But in full employment conditions, the bargaining power of workers’ organizations would be too strong.
From the point of view of each workers’ organization it seems essential that their strength be maintained. This is because any group of workers whose bargaining power is relatively weaker would be left behind in the struggle between wages and prices that ensues. But from the general or even from the workers’ point of view taking all the workers together, the bargaining power of the workers is too strong for their own good. The pressure on wages would result in continually rising wages and consequently in continually rising cost of production and of prices of products. The workers as a whole would not gain from this because they would lose in higher prices what they gain from higher wages, and would lose further from the disturbances and dislocations of the economy from the inflation. It would therefore be advisable for some other method to be adopted for the determining of wages which would maintain stability while still giving fair wages, as high as is permitted by the productivity of the country. Professor Lerner will suggest some lines on which such a method of determining wages could be developed that would not be an excuse for hiding or perpetuating any kind of exploitation, either of workers by employers, or of some group of workers in the interests of other groups.
Source: Typed single page of notes
Image Source: Publicity photo of Abba Lerner as Guest Speaker February 25, 1958 in the Beth Emet 1958 Forum. Library of Congress. Papers of Abba P. Lerner, Box 6, Folder 8.