Re: Surplus Value or Profit

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

Yes, I agree that Samuelson's protrayal of Keynes'
circular flow model is more or less closed as an
abstract system (I am not really qualifying here ...
just fudging due to lack of time)

But it was Samuelson who provided the closure, not
Keynes.

Primary Demand Plus Secondary Demand generates
Income by the principle of effective demand, and
it is income that generates secondary demand by
the definition of secondary demand.  However, the
level of primary demand is analytically open, both
by definition (it is the aggregate of the creation
of purchasing power through financial arrangments
other than expenditure of income) and as Keynes
preforms his own analysis of it.  And it is the
open facet of primary demand that Post Keynesian
theory insists upon in its focus on true uncertainty:
the net present value of an investment is specifically
influenced but not determined by economic conditions,
because it could only be determined if we were able to
receive information from future states of the economy.


Virtually,

Bruce McFarling, Shortland, NSW
ecbm@xxxxxxxxxxxxxxxxxxx