IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v63y2004i3p627-646.html
   My bibliography  Save this article

Reisman's Net Consumption, Net Investment Theory of Aggregate Profit

Author

Listed:
  • JERRY KIRKPATRICK

Abstract

. This paper presents the essentials of George Reisman's net consumption, net investment theory of aggregate profit as discussed in Capitalism: A Treatise on Economics. The paper then relates Reisman's ideas to those of Austrian School economists Ludwig von Mises and Murray Rothbard. Delimiting time preference to determining the rate of net consumption, the primary determinant of aggregate profit, Reisman argues that under an invariable money, a one‐time increase in the rate of saving is sufficient to stimulate an increase in the supply of capital goods indefinitely. Reisman thereby rejects the claim that capital accumulation causes a falling rate of profit.

Suggested Citation

  • Jerry Kirkpatrick, 2004. "Reisman's Net Consumption, Net Investment Theory of Aggregate Profit," American Journal of Economics and Sociology, Wiley Blackwell, vol. 63(3), pages 627-646, July.
    • Handle: RePEc:bla:ajecsc:v:63:y:2004:i:3:p:627-646
    DOI: 10.1111/j.1536-7150.2004.00307.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1536-7150.2004.00307.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1536-7150.2004.00307.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
    2. Mill, John Stuart, 1848. "Principles of Political Economy (V): On the Influence of Government," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 5, number mill1848-5.
    3. Mill, John Stuart, 1848. "Principles of Political Economy (II): Distribution," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number mill1848-2.
    4. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    5. Mill, John Stuart, 1848. "Principles of Political Economy (III): Exchange," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 3, number mill1848-3.
    6. Mill, John Stuart, 1848. "Principles of Political Economy (I): Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number mill1848-1.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stratford, Beth, 2020. "The Threat of Rent Extraction in a Resource-constrained Future," Ecological Economics, Elsevier, vol. 169(C).
    2. Christopher Coyne & Abigail Hall, 2014. "The empire strikes back: Adam Smith, John Stuart Mill, and the Robust Political Economy of empire," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(4), pages 359-385, December.
    3. Tsoulfidis, Lefteris & Alexiou, Constantinos & Parthenidis, Thanasis, 2015. "Revisiting profit persistence and the stock market in Japan," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 10-24.
    4. Damrich, Sebastian & Kealey, Terence & Ricketts, Martin, 2022. "Crowding in and crowding out within a contribution good model of research," Research Policy, Elsevier, vol. 51(1).
    5. Charles M. A. Clark, 2020. "On the Priority of Labor Over Capital," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(4), pages 1147-1180, September.
    6. Hupfel, Simon & Missemer, Antoine, 2023. "Decommodifying wealth: Lauderdale and ecological economics beyond the Lauderdale paradox," Ecological Economics, Elsevier, vol. 207(C).
    7. Kuś Agnieszka, 2020. "The Importance of Innovation in the Development of Polish Business Gazelles," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 28(1), pages 32-51, March.
    8. Simone Pellegrino & Guido Perboli & Giovanni Squillero, 2019. "Balancing the equity-efficiency trade-off in personal income taxation: an evolutionary approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(1), pages 37-64, April.
    9. Paulo Nakatani & Rémy Herrera, 2013. "Notes sur Keynes et la crise," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00829891, HAL.
    10. Mary A. Burke, 2015. "The distributional effects of contractual norms: the case of cropshare agreements," Working Papers 15-7, Federal Reserve Bank of Boston.
    11. Ian Keay, 2019. "Protection for maturing industries: Evidence from Canadian trade patterns and trade policy, 1870–1913," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1464-1496, November.
    12. Rosolino A. Candela & Vincent J. Geloso, 2020. "The Lighthouse Debate and the Dynamics of Interventionism," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(3), pages 289-314, September.
    13. Chen, Daniel L., 2016. "Does Empathy Beget Guile? Experimental Evidence," IAST Working Papers 16-42, Institute for Advanced Study in Toulouse (IAST).
    14. Prabirjit Sarkar, 2001. "The North-South terms of trade debate: a re-examination," Progress in Development Studies, , vol. 1(4), pages 309-327, October.
    15. James Foster, 2010. "Freedom, Opportunity and Wellbeing," OPHI Working Papers 35, Queen Elizabeth House, University of Oxford.
    16. Jacobsen, Catrine & Piovesan, Marco, 2016. "Tax me if you can: An artifactual field experiment on dishonesty," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 7-14.
    17. Oscar Molina Tejerina & Luis Castro Peñarrieta, 2020. "Unexplained Wage Gaps in the Tradable and Nontradable Sectors: Cross-Sectional Evidence by Gender in Bolivia," Investigación & Desarrollo 0120, Universidad Privada Boliviana, revised Nov 2020.
    18. Han Gao & Mariano Kulish & Juan Pablo Nicolini, 2020. "Two Illustrations of the Quantity Theory of Money Reloaded," Working Papers 774, Federal Reserve Bank of Minneapolis.
    19. Heindl, Peter & Löschel, Andreas, 2015. "Social implications of green growth policies from the perspective of energy sector reform and its impact on households," CAWM Discussion Papers 81, University of Münster, Münster Center for Economic Policy (MEP).
    20. Sergio Tezanos V�zquez, 2015. "Distributive Justice in Aid for Development," Oxford Development Studies, Taylor & Francis Journals, vol. 43(3), pages 310-329, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:63:y:2004:i:3:p:627-646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.