It never ceases to amaze me that economists can say things like “the fundamental direction of capitalist/profit making systems is up.” ….and then they make no attempt to deal with this fact policy wise. It ought to be a given that a macro-economic policy is called for in view of the statement, no? It’s either the economist is unconscious, or has no clue how to craft such a policy. I strongly suggest it is the latter, because that very statement was made by someone who I consider one of the leading economists on the planet. Actually it is a combination of both. Most economists are unconscious of the costing/pricing system and how time and additional costs are an inherent aspect of commercial operations themselves. In fact the same economist who made the above statement also said one of the reasons why economists are so ignorant of how the monetary economy operates was that they could get their economics degree without so much as taking a single course in accounting.  This was another excellent observation on the inadequacies of the curriculum of economics, and yet I told this same economist that he should investigate the empirical data in what is referred to as cost accounting which is the “on the ground” 3 and 4 dimensional aspect of accounting….and there was no response to my suggestion. This strongly denotes a lack of reality regarding accounting and the costing/pricing system that every enterprise must adhere to. Cost accounting is both a blessing and a curse because it is an excellent tool for determining whether or not the business is profitable or not, but also enforces a flawed convention on businesses, namely that all costs must go into price. This despite the fact that commercial enterprises always generate more costs than they distribute in individual incomes…with which to liquidate those costs.Hence the economy is systemically cost inflationary. In other words its fundamental costing and pricing system is “upward” despite there not being an equal amount of individual incomes. This is the most fundamental problem of the economic and monetary system and can only be remedied with a costless monetary gift to the individual and a means of reversing the systemic cost inflation at the correct point in the productive process, that is by a discount to prices at retail sale to the individual.

It pays to be conscious of cost accounting and the costing/pricing system of commerce