At 04:11 PM 18/02/03 +1000, you wrote: > Can anyone explain to me how profits can be distributed as income >before a sale is made (price is met)? If there is insufficient purchasing >power to provide effective demand, i.e. meet the prices generated in the >same period of production which price includes profit, no sale can occur. >If a price is not met, no sale - no sale means no profit - no profit means >no income to distribute. V. Bridger
Of course, costs cannot be distributed as income before a sale is made without recourse to short term finance. In any given day, there is sufficient purchasing power to buy more than is purchased on the day. The income generated by that spending is sufficient to refund the costs and provide profit. And if all income is disbursed and then spent, the previous gross profit provides the effective demand that permits the next profit to be earned. Now, in the test case, it was simply supposed that there was a pool of savings, but this could just as well be rotating short term credit. Unlike Douglas' argument, there is no need for an expanding injection in the short term from either credit or exports simply to pay the minimum sustainable supply price of the product. ==^================================================================ This email was sent to: archive@mail-archive.com EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^================================================================
