Morphing into Concordian economics, 2010

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Concordian Economics : 

Concordian Economics On the transformation of the “dismal science” of economics into The Economics of JUBILATION by Carmine Gorga

Keynes’ Model: 

Keynes’ Model Income = Consumption + Investment Saving = Income – Consumption Saving = Investment

Mainstream Economics: 

Mainstream Economics Does not respect principles of IDENTITY NON-CONTRADICTION EQUIVALENCE

Classical and Neoclassical Analysis: 

Classical and Neoclassical Analysis A BLACK BOX D S E Price Quantity E = equilibrium and exchange

Pivoting Keynes’ Model: 

Pivoting Keynes’ Model Y = C + I S = Y - C S = I

Flows Model: 

Flows Model Income = Consumption + Saving (H) Investment = Income – Saving (H) Investment = Consumption H = Hoarding

Parable of Talents: 

Parable of Talents Investment equals Income minus Hoarding

Parable of Talents: 

Parable of Talents 0% Investment 100% Hoarding More hoarding, less growth More hoarding, more inflation More hoarding, more poverty

Investment = Consumption: 

Investment = Consumption Investment is only and always investment Consumption is only and always consumption Investment is production of real wealth Consumption is expenditure of money Investment is equivalent to Consumption

An Equivalence: 

An Equivalence The Economic System is observed from Three Points of View PRODUCTION or real wealth DISTRIBUTION of ownership rights CONSUMPTION of monetary wealth

Production Process: 

Production Process P = CG + KG + GH KG = P – (GH + CG) KG = OKG P = Production of real wealth CG = Consumer Goods KG = Capital Goods GH = Goods Hoarded OKG = Ownership of capital goods

Distribution Process: 

Distribution Process D = OCG + OKG + OGH OKG = D – (OGH + OCG) OKG = I D = Distribution of ownership rights OCG = Ownership of Consumer Goods OKG = Ownership of Capital Goods OGH = Ownership of Goods Hoarded

Consumption Process: 

Consumption Process C = Eh + E I = C – Eh I = E Eh = money reserved for Hoarding-Expenditure E = money reserved for Expenditure (on consumer goods and capital goods)

General Synthetic Model: 

General Synthetic Model p· = fp(p,d,c) d· = fd(p,d,c) c· = fc(p,d,c) p· = rate of change in total production d· = rate of change in distribution of ownership rights c· = rate of change in total expenditure

General Analytic Model: 

General Analytic Model p· = f(r,d,mec) d· = f(YL,rW,R), c· = f(w,d,m) r = rate of interest; d = existing distribution mec = marginal efficiency of capital YL = labor income; rW = capital income R = rent; w = real wealth m = monetary wealth

Disaggregating AS: 

Disaggregating AS A Poincaré section of production process CG KG GH CG = Consumer goods KG = Capital goods GH = Goods hoarded

Disaggregating ADO: 

Disaggregating ADO A Poincaré section of distribution process % owning majority of assets % owning remainder of assets % owning only debt

Disaggregating AD: 

Disaggregating AD A Poincaré section of consumption process ECG EKG EGH E = expenditure on consumer goods (CG), capital goods (KG), and goods hoarded (GH)

Flows of Values: 

Flows of Values

Strange Attractor: 

Strange Attractor

The Bubble: 

The Bubble MW = Monetary Wealth RW = Real Wealth DO = Pattern of Distribution of Ownership Rights

Theory of Economic Justice: 

Theory of Economic Justice Participative Justice Commutative Justice Distributive justice

Economic Rights and Economic Responsibilities: 

Economic Rights and Economic Responsibilities Toward Common Goods We all have the right of access to natural resources—and the responsibility to pay taxes for the exclusive use of those resources; We all have the right of access to national credit—and the responsibility to repay loans obtained on the basis of national credit;

Economic Rights and Economic Responsibilities: 

Economic Rights and Economic Responsibilities Toward Private Goods We all have the right to the fruits of our labor—and the responsibility to offer services equal to the value of our compensation; We all have the right to protect our wealth—and the responsibility to respect the wealth of others.