tag:blogger.com,1999:blog-5154389358831836369.post5100704062847707590..comments2024-03-28T02:00:36.854-04:00Comments on The Slack Wire: Long Run Growth and Functional FinanceJW Masonhttp://www.blogger.com/profile/10664452827447313845noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5154389358831836369.post-42476499591747691732019-12-17T17:13:09.492-05:002019-12-17T17:13:09.492-05:00PLEASE READ!!Hello Guys!!! I am Caro I live in Ohi...PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.comCaro Williamshttps://www.blogger.com/profile/07069629319338780440noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-41807992793897246872015-11-30T23:55:54.483-05:002015-11-30T23:55:54.483-05:00bad credit payday loans @ http://badcreditpaydaylo...bad credit payday loans @ http://badcreditpaydayloansx.co.uk<br />bad credit loans @ http://badcreditpaydayloansx.co.uk<br />payday loans for bad credit http://badcreditpaydayloansx.co.uk<br />Anonymoushttps://www.blogger.com/profile/02100820139649176665noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-21960079233889918882014-08-13T05:56:07.620-04:002014-08-13T05:56:07.620-04:00Its a better idea to grow in the market with finan...Its a better idea to grow in the market with financial functional to be considered and make a great sign in the market turned.<br /><br /><a href="http://www.marketmagnify.com/freetrial.php" rel="nofollow">Free Stock Market Tips on Mobile</a>Anonymoushttps://www.blogger.com/profile/15188340603604794652noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-37897173002504188542014-03-31T11:10:16.074-04:002014-03-31T11:10:16.074-04:00Thanks for the answer!
I have two nitpicks:
1) I ...Thanks for the answer!<br /><br />I have two nitpicks:<br />1) I wrote "real average profit rate[1]", and I forgot to write the footnote. But of course it is the rate of profit on the marginal capital that counts. However, where high profit sectors have monopolies, I think that those monopolies are generally reflected in the valutation of their "immaterial capital", so that while their material capital has an higer rate of profit, their total financial assets are higer so that their final rate of profit is the same.<br /><br />2) You say that a decreasing capital-output ratio is unlikely. This is true in material terms, but in price terms it is not so unklikely.<br />For example, suppose that car factories have big and increasing scale efficiencies. Every car maker will try to undercut its competitors by lowering car prices and stal market shares. But then the price of cars fall vs. the cost of capital. In this situation every carmaker sujectively faces increasing returns on capital investiment, but the car making industry as a whole will face decreasing rates of profit.Random Lurkerhttp://gemito2073english.blogspot.it/noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-18645125569744672182014-03-29T23:56:11.970-04:002014-03-29T23:56:11.970-04:00A few responses.
In the real world we should expe...A few responses.<br /><br />In the real world we should expect profit rates on new investment to be higher than interest rates. High profit sectors always have some degree of monopoly power that will limit new investment, many productive enterprises are credit-constrained to some degree, and embodying capital in the form of fixed assets always involves costs and risks above those of holding it in money form. I've seen estimates of average industrial profit rates in 19th century Britain being on the order of 10 percent, implying a value for your k of less 0.5. However, the broader point is still legitimate. This was Wicksell's big idea -- that the "natural" rate of interest had some definite relationship to the expected profit rate on new investment.<br /><br />If we adopt the assumption that all profits are reinvested and there is no investment out of wage income (the assumption of the classical economists, including Marx), then the profit rate and the growth rate are not two independent variables. Rather, the gross profit rate will be equal to the growth rate plus the depreciation rate plus the change in the capita-output ratio. Here we are talking about the realized aggregate profit rate, rather the expected marginal rate. In this story there is no role for the interest rate as an independent determinant of investment.<br /><br />To have the profit rate net of depreciation persistently above the growth rate requires that either the profit share is increasing, or the capital-output ratio is decreasing. Both are logically possible, tho the latter seems unlikely. On the other hand, it's not clear that net of depreciation is the right way to think of this, since depreciation depends mainly on competition rather than any kind of physical wearing out of means of production. Then we can have the gross profit rate rise relative to the growth rate with no implications for distribution, if the depreciation rate also rises. This kind of more rapid scrapping of old equipment during a profit boom is a regular feature of the history of capitalism.<br /><br />I'm sorry this isn't a very coherent answer. I am trying to figure this stuff out also.JW Masonhttps://www.blogger.com/profile/10664452827447313845noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-41789303622081220182014-03-29T23:53:11.435-04:002014-03-29T23:53:11.435-04:00Yes, it's very good news. (Tho I'm more of...Yes, it's very good news. (Tho I'm more of a Fairway person.)JW Masonhttps://www.blogger.com/profile/10664452827447313845noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-90061898078758218362014-03-28T21:01:24.540-04:002014-03-28T21:01:24.540-04:00If you not hanging out at Zabars already alongsid...If you not hanging out at Zabars already alongside the grey-ing eminence;<br />http://www.huffingtonpost.com/2014/02/28/paul-krugman-retire-princeton_n_4873500.html<br /><br />Anonymoushttps://www.blogger.com/profile/12484917117498516493noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-43666966290273348122014-03-28T17:29:42.669-04:002014-03-28T17:29:42.669-04:00we want moar posts!
Ask and ye shall receive.<i>we want moar posts!</i><br /><br />Ask and ye shall receive.JW Masonhttps://www.blogger.com/profile/10664452827447313845noreply@blogger.comtag:blogger.com,1999:blog-5154389358831836369.post-17007658072702222182014-03-28T11:59:16.522-04:002014-03-28T11:59:16.522-04:00Hey JW: we want moar posts!
But I can't just ...Hey JW: we want moar posts!<br /><br />But I can't just write a comment so short, so I'll try to say something about functional finance and growth.<br /><br />So, my point is: the real interest cannot be much lower than the real average[1] profit rate, because, if it is much lower, a lot of people would borrow and invest in capital stuff and make a lot of money, until they reach the "end of possible productive investiment" point, lowering the average profit rate to the real interest rate. Let's say for ease that the real interest rate is i = k p, where k is a coefficient close to 1 and p is the real profit rate.<br /><br />We know that i <= g is necessarious to have a sustainable debt path.<br /><br />This means that in pratice to have a sustainable debt path (private or public) we need that:<br /><br />p <= g/k<br />(since k is close to 1 this means p <= g).<br /><br />That is, the real rate of profit has to be lower or equal to the real rate of growth or we will incur in a financial crisis.<br /><br />Is this correct?<br /><br />Also, intuitively I think that if p<=g the share of income that goes into wages has to be stable or growing, whereas if the share of income that goes into profits is growing it means that p>g, which sorta explains why we had a really big financial meltdown.<br /><br />Is this correct?Random Lurkerhttp://gemito2073english.blogspot.it/noreply@blogger.com