When failure becomes success: Class and the debate over stabilization and adjustment

This article criticizes the current debate over stabilization and adjustment and develops an alternative, class-analytic approach. First, the respective theories and policy recommendations of neoclassical and structuralist economist are analyzed. Then, the article considers the recent experiences of Argentina, Brazil, and Peru where orthodox and heterodox policies have been attempted and subsequently declared failures. Finally, it is shown that those failures with respect to employment, inflation, and the balance of payments become successes to the extent that they involve increasing exploitation and otherwise strengthening the class aspects of capitalism.