|Subject:||[socialcredit] OFFLIST Re: Comments on Richard C. Cook's concept of "credit"|
|Date:||Sunday, August 26, 2007 14:13:14 (-0700)|
|From:||william_b_ryan <william_b_ryan @.....com>
Forgive me Gunnar if I'm mistaken about your position.
You might remember that we had several conversations
on this over at the old Post Keynesian list. I
thought your position is that there is no profit in
the absence of what you call "final demand inflation."
Then perhaps I'm not clear on what you mean by final
demand inflation. It seems to me that you're saying
that profit equals something like M' - M in the
Marxist formulation, where profit is the net surplus
in terms of cash in sales receipts over cash
disbursements. Whereas in actuality firms are always
disbursing more cash (in a normally expanding economy)
than they are receiving back over the sales counter,
yet are recording a profit.
From: "GUNNAR TOMASSON" <email@example.com>
Date: Sun, 26 Aug 2007 14:20:37 -0400
Subject: [gang8] RE: Comments on Richard C. Cook's
concept of "credit"
Briefly with respect to the following:
1. [Comment] In the modern analysis, firms are
demarcated from consumers. Spendable income to the
owners of factor services are salaries, wages and
dividends. Factor income as you define it is not fully
distributed as salaries, wages and dividends to final
consumers in a normally expanding economy, but,
because of labor displacement, accumulates
increasingly into working account balances held by
My approach is an alternative to "modern analysis".
2. [Comment] This completely misconstrues profit in
double entry accounting. In double entry accounting
Net Profit is Sales minus Expense, where expense is
determined by the rules of double entry accounting.
See the first attached diagram also archived at
In (the hypothetical condition of) a normally
expanding economy, disbursements by firms are always
exceeding sales receipts by firms, yet firms are
always recording a profit.
This completely misconstrues my concept of “profit”.
Pinpoint customers who are looking for what you sell.