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By Gunnar Myrdal

Opposed to The circulate: serious Essays On Economics, by way of Myrdal, Gunnar

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48 CHAPTER 3 In Chapter g, Sections 3 and 4, I shall comment on this glib theory that the poor nations must be aided in order to preserve peace in the world. When aid in the United States is justified as being "in the best interests of the United States," these interests are more specifically defined primarily in the coarser terms of political, strategic, and military advantages to the United States in the cold war. Both in the United States and in most other developed countries, additional national interests propounded as reasons for aid are those of continued cultural domination ( France in particular) and, even more generally, commercial advantages.

They create deep-seated unrest in all relationships, from those between citizens and government to those between husband and wife. Relations to the foreign exchange front were seen as crucial, but it was not made clear that the great insecurity in regard to balance of payments that became the rule for almost all countries had its roots in the common pattern of lack of internal monetary stability. The long-time attitude of relative indulgence on the part of economists toward the ongoing inflation was, of course, in the beginning a legacy from the Keynesian approach, which paid one-sided attention to the dangers of deflation.

The entire system of organizations in a society is in all countries grossly biased, and this becomes increasingly important as organizations are also becoming stronger. The interests of salary-earning employees and of profitearning employers are not always conflicting. While within an ongoing inflationary development the former rationally have to count on higher costs of living and to press for higher wages, the latter can in the same way often count on higher prices for their products or services.

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