Posted To Steve Keen’s DebtWatch Site 04/21/2016

Most economists, not being accountants,. miss the underlying micro factor that makes inflation inherent, which is the empirical fact that the rate of flow of total costs always tends to exceed the rate of flow of total individual incomes. Most accountants, not being businessmen, miss this fact as well. This is not marginalism which indeed is invalid, but rather a flaw in cost accounting conventions which appropriately enables business to better handle depreciation costs, but which does not credit the individual with capital appreciation so that the macro-economy actually can be equilibrated.

As for advertising, all businessmen need to do is stay attuned to present time and present statistics and adjust production accordingly. Due diligence is necessary for the savvy businessman, and most understand this or go out of business. However, if the individual is not credited with a supplementary income over and above what he/she makes from work for pay then the economy will never be stabilized, especially as innovation and AI disruptively reduce aggregate demand.

Leave a comment