Re: Some questions

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center     974-4221
dear Doug: Sorry I have not responded to this very good query before -- but I
had some computer problems. The rentier and profit recipients can be at odds wi
th each other. Sidney Weintraub went into great detail on this in his 1958 book
AN APPROACH TO THE THEORY OF INCOME DISTRIBUTION. In 1964 Davidson and
Smolensky touched on this in Chapter 10 of our book AGGREBATE SUPPLY AND DEMAND
ANALYSIS. One essential difference is that since rentiers are fixed income reci
pients (receiving the fixed money costs of business as income) they do not
want to see a  either a wag-price inflation or a profit-price inflation. The fo
rmer erodes their income while reducing the real burden of fixed costs on
profit recipients, while the latter swells profits while again reducing the
real fixed costs of the firm. Either type of inflation puts the interest of
rentiers in conflict with the interest of profit recipients. Paul Davidson

Have a good day!