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The aim of this chapter is to compare the content of two essays: Oskar Lange's 1931 ‘Crisis of Socialism’ and Tadeusz Kowalik's 1996 ‘August – the Bourgeois Revolution of the Epigones’ in order to try to determine the extent to which Lange's paper influenced Kowalik's ideas. We find that Lange's article was possibly Kowalik's only source of theoretical knowledge about bourgeois revolutions and their course when he wrote his 1996 piece. What probably struck Kowalik most in ‘Crisis of Socialism’ in the context of Polish transformations was the similarity (real or apparent) between the situation in Poland in 1905–1918 and that in 1980–1989 (or even 1980–1992), that is, the possibility of constructing a ‘bourgeois class state’ only through a workers revolution immediately preceding such a construction. On the basis of this analogy, in ‘August…’ Kowalik, as we argue, introduced a novelty into his reflections: he fortified his earlier, more lax analyses with the concept of ‘bourgeois revolution.’

This chapter aims at introducing the key themes in two entries written by Tadeusz Kowalik for the Encyclopaedia Einaudi. These two long essays represent further developments of Kowalik's interpretation of the nature of capital and the cause and consequences of cyclical developments in capitalism. While the chapter is divided into two sections corresponding to the two entries, at the same time it tries to highlight the structural method of the author for which the categories of capital and crisis are historically, economically and politically entangled.

For almost half a decade, after World War II, capitalism and socialism coexisted on the European continent. Some believed that these systems would converge, with state intervention stabilising capitalism in the west and socialism became more democratic in the east. Michał Kalecki, in his last published article, co-written with Tadeusz Kowalik, wrote about how governments had implemented a crucial reform in the developed capitalist economies. State investment had filled the demand gap, which could potentially result in the long-term mitigation of capitalism's slumps and crises. Tadeusz Kowalik later extended this notion of the crucial reform, to the troubled socialist systems in Eastern Europe during the 1980s. He argued that previous economic reforms had failed in the socialist countries as they had not been accompanied by sufficient democratic political reforms, which needed to be extended in order to fully revitalise the socialist economies. Ultimately the proposals for a crucial reform of capitalism and socialism were not realised and these systems did not converge economically or politically. This chapter examines the theses of Kalecki and Kowalik within the historical and intellectual tradition of Polish socialist and Marxist thought.

Rosa Luxemburg is not an under-consumptionist stressing the tendency to stagnation, it is rather an under-investment perspective: the effective demand crisis results from the disequilibria determined by a vibrant capitalist accumulation, and stems from production rather than circulation. To show this, the chapter deals with three dimensions of Rosa Luxemburg's economic thought. First, how Luxemburg's approach in her 1913 book is related with some of her prior writings, especially Social Reform or Revolution? and the Introduction to Political Economy. Second, the re-reading that Luxemburg herself provided of her own argument in terms of a macro-monetary circuit model like the one we read in her Anti-Critique. Third and last, in which sense Marx's monetary labour theory of value was for her the essential starting point, which cannot be just set aside. This last point will be preceded by a détour, the critical consideration of some key papers by Kalecki on capitalism and reform, including his late paper with Kowalik on the ‘crucial reform’. The chapter concludes with some hints pointing towards an interpretation of capitalism and its recurring crises where exploitation and effective demand are both essential in accounting for the ascent and collapses of different forms of capitalism itself.

The paper surveys selected standpoints in the Polish humanities that are visibly critical toward neoliberal assumptions and claims of economics. The resources used in the text are: Andrzej Szahaj’s philosophical postulates and assertions; Tadeusz Kowalik’s view; criticism and postulates of social economics articulated by the quarterly magazine Nowy Obywatel (The New Citizen). The purpose of this paper is to construct a possibly cohesive picture of this type of criticism by indicating important similarities between the approaches mentioned above, its strongest arguments, philosophical premises and political inclinations.

A conceptual synthesis and interpretation of theoretical standpoints and its philosophical premises, a comparative analysis of the text/content of the magazine (The New Citizen).

Each of the three standpoints discussed in the paper proves to be an interesting example of social economics. It is also symptomatic that they share a similar, critical attitude toward the way in which the transformation of the Polish economy from a socialist to a capitalist system had been carried out. The transformation is thereby interpreted as a process that is not accomplished at all from the point of view of the ideals of social justice and integrity.

The popularization of Polish normative views of economics taking into account the problem of social justice, and the possible transformation of the way in which economic problems are publicly understood in Poland.

The discussion of non-standard interpretations of Polish transformation and its effects that undermine and challenge neoliberal ideology in economics.

Industrial feudalism is a socioeconomic formation that the Polish Marxists Ludwik Krzywicki and Oskar Lange associated with monopoly finance capital. Industrial feudalism arises in a socially static capitalism where mobility between hierarchically defined social strata is restricted. Krzywicki's account predates Hilferding's Finance Capital and outlines the functioning of the capital market-based finance capital that has become more common in capitalism. Seemingly unaware of Krzywicki's pioneering articles, Oskar Lange then presented his own account of monopoly finance capital in the United States with similar social consequences in the early 1940s with state support for monopolies. Krzywicki's work on monopoly finance capital was discovered in the 1950s by Tadeusz Kowalik.

In The Accumulation of Capital (2015a), Rosa Luxemburg emphasises the importance of demand realisation in Marx's economics. First, by studying the history of political economy a refutation is provided of the suggested harmony between production and consumption (what came to be called Say's Law) first proposed by Say and J. Mill. Second, in her analysis of Marx's reproduction schemes, Luxemburg identifies the key role of demand constraints, set in the circulation of money. Central to this analysis is how the specific peculiarities of capitalism, such as constraints on the demand for commodities by wage labour, serve to intensify problems associated with Say's Law. The main purpose of this chapter is to consider how a refutation of Say's Law can be established in Luxemburg's treatment of the reproduction schemes that featured in Polish discussions of economic reproduction.

This analysis builds on the examination of Say's Law provided by Trigg (2020) under the confines of simple commodity circulation. Luxemburg's simple reproduction scheme provides a useful starting point for extending this refutation to the arena of capitalism. Core to this approach is how commodity money undergoes wear and tear as money circulates: a phenomenon that is considered by Luxemburg introducing a new department of production for the money commodity. By developing this system, and drawing on Marx's writings in Theories of Surplus Value, part 2 (Marx, 1968), the analysis will provide a systematic exploration of Marx's inevitability theory of crises under capitalism, as an extension of the more established possibility theory of crises under simple circulation.

Kalecki's 1968 paper on Marx's Reproduction Schemes aimed, starting from Marxian Schemes, to build an analytical bridge to the modern theories of Effective Demand and Growth. Kalecki accomplished his task modifying the structure of Marxian Schemes, reinterpreting them in terms of vertically integrated sectors, and this sidesteps Marx's analysis of the monetary intersectoral transaction. This chapter tries to show that the impossibility of implementing the intersectoral monetary transaction is not simply due to monetary technicalities, as held by Kalecki, but has crucial implications regarding Say's Law. Putting aside Marx's problem, Kalecki puts aside the true meaning of Marx's unsuccessful analysis: that an economy obeying Say's Law cannot function; as it were, Marx's Impossibility Theorem on Say's Law.