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Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
22 August 2017 | Pago Pago, American Samoa
09 August 2017 | Pago Pago, American Samoa
09 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa
08 August 2017 | Pago Pago, American Samoa

The Kalecki Profit Equation

08 August 2017 | Pago Pago, American Samoa
Kimball Corson
Kalecki was an economic and mathematical genius, who was too poor and had no opportunity to get a college degree in anything. He was all self taught in economics and he anticipated Keynes' General Theory on most of its analysis by a few years before Keynes wrote and published that treatise. As the famous economist, Joan Robinson at Cambridge, wrote --

"Michal Kalecki's claim to priority of publication over Keynes is indisputable. With proper scholarly dignity. . . he never mentioned this fact. . . The interesting thing is that two thinkers, from completely different political and intellectual starting points, [Lord Keynes and Michal Kalecki] should come to the same conclusions [on how the economy and business cycle operated]. For us in Cambridge, it was a great comfort [because it was all so new and revolutionary]."

For example, Kalecki came up with the famous Profit Equation as follows:

The assumptions are: divide the whole economy into two groups: workers, who earn only wages, and capitalists, who earn only profits.

Workers do not save.

The economy is closed (there is no international trade) and there is no government sector.

With these assumptions Kalecki derives the following accounting identity:

P+W=Cw+Cp+I which looks like Y = C + I

where P is the volume of gross profits (profits plus depreciation), W is the total of all wages, Cp is capitalists' consumption, Cw is workers' consumption and I is the gross investment. That is, the total of all profits and wages or income is equal to everyone's consumption and total investment.

Since we have supposed workers who do not save, then W = Cw in the preceding equation), we can substitute and simplify to get

P=Cp+I, the famous Kalecki Profit Equation

that is, profits are equal to capitalist's consumption plus their investment (remember workers don't save, so they can't invest). That is not a bad first order approximation to reality at all.

Good economist that he was, he also figured out which way causation ran. Workers couldn't decide squat. Also, profits did not determine Cp or I, but capitalist could decide how much to consume and invest so that is how causation ran. Capitalists control the economy.

Kalecki's profit equation. Anyone can understand it.
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Vessel Name: Altaira
Vessel Make/Model: A Fair Weather Mariner 39 is a fast (PHRF 132), heavily ballasted (43%), high-aspect (6:1), stiff, comfortable, offshore performance cruiser by Bob Perry that goes to wind well (30 deg w/ good headway) and is also good up and down the Beaufort scale.
Hailing Port: Lake Pleasant, AZ
Crew: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
About:
Kimball Corson: I am a 75 year old solo sailor, by choice. However, I did take on a personable, but high maintenance female kitten, now a full grown cat, named KiKiPoo when she is sweet, or KatKatPo after she has just killed something like a bird or bat. [...]
Extra:
Although I was a lawyer and practiced law with good success for thirty years, creating significant new law, I never really believed in the law, the politics of law or in the over reaching self-interest of most lawyers I met. Too much exposure to Nietzsche and other good and seriously thoughtful [...]
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Profile

Who: Kimball Corson. Text and Photos not disclaimed or that are obviously not mine are copyright (c) Kimball Corson 2004-2016
Port: Lake Pleasant, AZ