debunking economics

["William B. Ryan" <william_b_ryan@xxxxxxxxxx>]

While Professor Keen has taken on the impossible task of arguing against
conventional economics from within that theory's welter of contradictions
and false premises, he does for the most part arrive at the correct conclusions.
 This is from a paper posted at his "debunking" website http://www.debunking-economics.com/Maths/Present_for_Sraffa.htm
:

"...In this dynamic format, the objective of the firm is no longer the
static one of maximising profit at any point in time. Instead, it is
more sensible to see the key variable in the firm's objective function
as being the rate of change of profit over time."

This is indeed the correct approach.  In the real world, the entrepreneur
does not attempt to "maximize" his profit over some hypothetical "period"
however small, but continually tries to increase his revenue and decrease
his costs.  Every entrepreneur is individually trying to do this at every
point in time as a matter of statistics.

Keen's "rate of change of profit over time" can be translated into more
precise mathematical language as the "rate of change in the rate of profit".
 It is an acceleration.

The information supplied to the entrepreneur by his accountant is a proxy
or benchmark measurement for this.



--
William B. Ryan
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