Re: Surplus Value or Profit - CG II

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Claude:

Re. the following:

 In opposition to Ohlin's view, Keynes argued that 'finance' is a
> flow (the corresponding money is not taken out of a pre-existing stock but
> is created in payments) that results in the building up of a stock, both
> saving and investment, so that "there will always be exactly enough ex
post
> saving to take up ex post investment "

In the context of *pure* theory, (a) the concept of *investment* in
entrepreneurial production is a measure of the *factor content* of work in
process; and (b) the concept of *saving* is the counterpart of such
*investment*.

In other words, *saving* is the factor income equivalent of such
*investment* - *saving* is nominal purchasing power paid out by
entrepreneurs in exchange for supply of factor services, whose *value* in
terms of eventual final output is identically equal to such *saving*.

In early 19th century writings on related issues, this led some writers to
suggest that "final demand inflation" as defined in my previous message was
a form of *theft* - others pointed out that such *theft* was benevolent
because it was the source of *profit* without which entrepreneurial
production could not thrive.

I wrote a brief working paper on the subject matter in the 1980s - I will
look it up and forward it to you.

Gunnar