Re: Surplus Value or Profit

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

At 13:08 25/11/01 -0500, Gunnar Tómasson wrote:
>Now you write:

>> 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.

>Comment:

>You have yet to identify the passage in Chs. 1-6 in which Keynes

So I can take it that you accept that this argument "squares"
the passage that you quote with Keynes' system of primary demand
and secondary demand, in which finance as well as income creates
purchasing power, and your sole concern is where in the General
Theory Keynes lays out this system?

Or are you going to engage in a long and extended dispute in
interpretation of the General Theory, only to dispute at the
end of it that the argument above does in fact square the
two pieces of Keynes income-expenditure loop ... that is,
the generation of effective demand, and then the translation
of effective demand into income via production.


Virtually,

Bruce McFarling, Shortland, NSW
ecbm@xxxxxxxxxxxxxxxxxxx