Keynes’s Politics and Economics

The central thesis of this paper is that Keynes invented the IS-LM mod-el to justify non-Marxist socialism. This paper outlines the chronology of Keynes’s ideas to demonstrate that he invented Keynesian economics to justify his previously held political beliefs. This paper shows that Keynes is best de-scribed as a non-Marxist socialist. Then the papers confirms that the IS-LM model is the correct interpretation of the General Theory. Finally, the IS-LM demand constraint equations and diagram are used to illustrate Keynes’s eco-nomic justification of non-Marxist socialism. Keywords: John Maynard Keynes, IS-LM model, Socialism, Socialization of In-vestment JEL Classification: E12, E22, E32, E52, P20, P26, B22, B24 Resumen: La tesis central de este trabajo es que Keynes perfiló el modelo IS-LM para justificar el socialismo no marxista. Este artículo establece la cronología de las ideas de Keynes para demostrar que creó la economía keynesiana para justificar las creencias políticas que sostenía previamente. Muestra que Keynes puede caracterizarse como un socialista no marxista. Posteriormente, confirma que el modelo IS-LM es la interpretación correcta de la Teoría General. Por último, utiliza las ecuaciones y diagramas de restricción de demanda del mo-delo IS-LM para ilustrar la justificación económica de Keynes del socialismo no-marxista. Palabras clave: John Maynard Keynes, modelo IS-LM, socialismo, socialización de la inversión Clasificación JEL: E12, E22, E32, E52, P20, P26, B22, B24

Dual-Labor Market and Unemployment Compensation

This paper discusses the impact of unemployment compensation on the employment and wages of regular and non-regular labor in a dual-labor market. The model in this paper assumes an effective demand constraint and an imperfectly competitive market. The results obtained are as follows. An increase in unemployment compensation increases the wages of regular labor to maintain its productivity. However, this temporarily decreases the employment of regular labor, so that the productivity and wages of non-regular labor decrease. The result is an increase in the relative wage rate of regular labor and the relative amount of non-regular labor employed. This result is independent of any economic regime. In terms of the impact on employment volume, the existence of two regimes, one wage-driven and one profit-driven, is confirmed. However, the effect on employment is weaker if unemployment compensation is financed by taxing profits.

A Bi-Objective Approach to Minimize Makespan and Energy Consumption in Flow Shops with Peak Demand Constraint

With the growing concern of energy shortage and environment pollution, the energy aware operation management problem has emerged as a hot topic in industrial engineering recently. An integrated model consisting of production scheduling, preventive maintenance (PM) planning, and energy controlling is established for the flow shops with the PM constraint and peak demand constraint. The machine’s on/off and the speed level selection are considered to save the energy consumption in this problem. To minimize the makespan and the total energy consumption simultaneously, a multi-objective algorithm founded on NSGA-II is designed to solve the model effectively. The key decision variables are coded into the chromosome, while the others are obtained heuristically using the proposed decoding method when evaluating the chromosome. Numerical experiments were conducted to validate the effectiveness and efficiency by comparing the proposed algorithm and the traditional rules in manufacturing plant. The impacts of constraints on the Pareto frontier are also shown when analyzing the tradeoff between two objectives, which can be used to explicitly assess the energy consumption.

A Model for Determining the Effect of Irregular Power Supply on Machining Foundry Products in a Developing Economy

In this paper, profit is maximized (or production cost is minimized) by developing an Integer programming (IP) model to determine, at a given respective unit cost, optimal numbers of outputs obtainable per production cycle (time) using public electricity generated from national grids and alternate electricity from generators subject to production output capacity or demand constraint. The results obtained showed that production cycle time has a great impact on the determination of optimal outputs for the respective conditions. Also, increase in cost of public electricity per unit product has an upper limit beyond which it has negative effect on the profitability. The results served as determinant factors for production industry in establishing the level of outputs that sustained the profitability by providing optimal cost of public electricity to operate without having any effect on the profit, at a given cycle time. Keywords— Constraint, cycle time, integer programming, optimal number, model