The sources of profits and their sustainability: A survey of basic theoretical issues
AbstractThe volume of profits in an economy is a magnitude, which is out of sight of orthodox macroeconomics textbooks and effectively ignored by neoclassical economics. In contrast, Kalecki's approach brings to the forefront the sources of profits and makes possible their further analysis. The sources of profits are examined one by one and their impacts, as well as the inter-relations among them are studied in some detail. The sustainability of the profits' sources tends to have inevitable limits, which are discussed and elucidated. On the basis of these limits, two phases in the operation of the sources may be distinguished. The beneficial phase is transformed into a pathological one, as the limits are approached. Consequently, profits may be distinguished according to the source from which they flow, as well as the phase in which they arise. Taking into account both source and phase, a terminology is proposed to highlight the distinctive character of the different kinds of profits.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46567.
Date of creation: 26 Apr 2013
Date of revision:
profits; investment; export surplus; budget deficit; consumption out of profits; saving out of wages; profits' limits and sustainability;
Find related papers by JEL classification:
- B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
- B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-05 (All new papers)
- NEP-HME-2013-05-05 (Heterodox Microeconomics)
- NEP-HPE-2013-05-05 (History & Philosophy of Economics)
- NEP-PKE-2013-05-05 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. Jay Levy, 2001. "Profits: The Views of Jerome Levy and Michal Kalecki," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 24(1), pages 17-30, October.
- Thomas Herndon & Michael Ash & Robert Pollin, 2013. "Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogo ff," Working Papers wp322, Political Economy Research Institute, University of Massachusetts at Amherst.
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