Posted To heteconomist 12/17/2016

@peterc,

I’m referring to the macro-economic flow of individual incomes in ratio to total costs. The more concrete fixed capital/development we create the more additional costs we create due to depreciation, obsolescence and waste, over and above the credit created to create that development itself. This is a cost accounting observation of the most basic disequilibrating factor in modern developed economies and needs to be addressed. As Steve Keen has observed economists can get their PhD in economics without so much as taking an elementary course in accounting. It’s a weakness in current theorizing. In fact Keen himself, dispite being a disequilibrium theorist, is still caught up in accounting equilibriums and so misses the above cost accounting reality.

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