Re: imcu questions

[Bruce McFarling <ecbm@xxxxxxxxxxxxxxxxxxx>]

On 3 Jun 2002 11:14:51 -0500, Mon, 3 Jun 2002 12:19:31 -0400
"Gunnar Tomasson" <gunnar.tomasson@xxxxxxxxxxx> wrote:

>In the quoted passage, Keynes fails to distinguish between alternative
>"first uses" of the buried-and-recovered" money, namely, (a) its use to
>purchase final output, and (b) its use to purchase factor inputs for
>production.

>As underscored by Bentham in the early 1800s, only (b) would increase the
>"community's real income and capital wealth".

In the case of (a), if the result was to mobilise unemployed
resources, in what way would this fail to increase the
community's real income?  Again, it seems to be implicit
in the argument that capital wealth is fully employed.


--
Dr. Bruce R. McFarling, PhD
Bus. Office 1.72 -- (02) 4348-4078
School of Business
Faculty of the Central Coast
Newcastle University, Ourimbah