FMM Working Paper

: Power, Wages, and the Market: Kurt Rothschild's Vision of Distribution in a Post-Keynesian Framework

Kurt W. Rothschild, an Austrian economist known for his multiparadigmatic and interdiscipli-nary approach, made significant contributions to Keynesian and post?Keynesian economic theory. Born in 1914 in Vienna, his work encompassed price theory, labor market economics, growth and distribution, power and ethics in economics, and economic policy. His incisive critique of neoclassical theories, advocacy for state intervention, and commitment to methodological pluralism distinguish his work as a vital contribution to economic thought. Since income distribution is a central theme in Rothschild's research, this paper examines his contributions to post?Keynesian distribution theory. Following a brief overview of his life, academic formation, and the historical context that shaped his thinking, the paper explores his theoretical innovations, emphasizing his rejection of mono?causal explanations in favor of an approach that integrates economic, political, and social dynamics. Rothschild's perspective on income distribution as a product of complex interactions between markets, institutions, power structures, and ongoing conflict is a defining feature of his work. The paper concludes by assessing the continued relevance of his insights for contemporary economic research. His legacy remains a guiding framework for scholars seeking a more holistic and dynamic understanding of income distribution and its policy implications.

Keywords: Kurt Rothschild, Multiparadigmatic Approach, Post-Keynesian Theory, Bargaining Power, Labor Market Economics, Distribution Theory