Abstract
This paper presents a scheme of monetary profit realization
within the traditional structure of the monetary circuit. We point out that
in a framework reproducing a monetary economy of production without
exogenous components of demand and investments, the reciprocal
consumption of the capitalist class is the key channel of monetary profit
realization. We develop an Agent Based – Stock Flow Consistent model
of the monetary circuit consisting of a multiplicity of consumer sectors
where the original formation of monetary profits is due to unequal shares
of consumer goods in the wage basket and/or different labor productivities
across sectors. Within each production period, the sectors with a higher
weight in the production of wage goods will generate monetary profits
through the consumption of workers, while the capitalists’ consumption
resulting from such profits will recursively generate the monetary profits
of other sectors, and so on. In this sense, the core of the solution of the
profit paradox lies in the monetary mechanism through which the capitalist
class appropriates the corresponding share of production. This
representation confirms Kalecki's insight: “capitalists earn what they
spend, workers spend what they earn”.
Lingua originale | English |
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pagine (da-a) | 47-90 |
Numero di pagine | 44 |
Rivista | BULLETIN OF POLITICAL ECONOMY |
Volume | 17 |
Stato di pubblicazione | Pubblicato - 2023 |
Keywords
- Profit paradox
- Stock-Flow Consistent models
- Monetary circuit