Re: Surplus Value or Profit

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

At 13:15 24/11/01 -0500, Gunnar Tómasson
<gunnar.tomasson@xxxxxxxxxxx> wrote:

>...
>"...But, apart from this, the conclusion that the *costs* of
>output are always covered in the aggregate by the sale-proceeds
>resulting from demand, has great plausibility, because it is
>difficult to distinguish it from another, similar-looking
>proposition which is indubitable, namely that the income derived
>in the aggregate by all the elements in the community concerned in
>a productive activity necessarily has a value exactly equal to the
>*value* of the output."

>I fail to see how this *indubitable* proposition can be squared
>with the notion that "the creation of purchasing power through
>finance" is part of Keynes's core thesis.

Of course ... if you did not fail to see this, you would not be
pursuing these particular misinterpretations of the General
Theory. In any event, lets see how difficult it is to square the
two:

A portion of the purchasing power generated by income, plus
purchasing power created through finance, provides the effective
demand for the output of businesses and determines the value of
the output, barring mis-anticipations of effective demand which
lead to unanticipated changes in inventories.  This value of
output is the income derived from in the aggregate by all the
elements in the community concerned in a productive activity.

Simple.

Virtually,

Bruce McFarling, Shortland, NSW
ecbm@xxxxxxxxxxxxxxxxxxx