The sources of profits and their sustainability: A survey of basic theoretical issues

Athanasios Thanos Skouras

MPRA Paper from University Library of Munich, Germany

Abstract: The volume of profits in an economy is a magnitude, which is out of sight of orthodox macroeconomics textbooks and effectively ignored by neoclassical economics. In contrast, Kalecki's approach brings to the forefront the sources of profits and makes possible their further analysis. The sources of profits are examined one by one and their impacts, as well as the inter-relations among them are studied in some detail. The sustainability of the profits' sources tends to have inevitable limits, which are discussed and elucidated. On the basis of these limits, two phases in the operation of the sources may be distinguished. The beneficial phase is transformed into a pathological one, as the limits are approached. Consequently, profits may be distinguished according to the source from which they flow, as well as the phase in which they arise. Taking into account both source and phase, a terminology is proposed to highlight the distinctive character of the different kinds of profits.

Keywords: profits; investment; export surplus; budget deficit; consumption out of profits; saving out of wages; profits' limits and sustainability (search for similar items in EconPapers)
JEL-codes: B5 B59 E12 P16 (search for similar items in EconPapers)
Date: 2013-04-26
New Economics Papers: this item is included in nep-hme, nep-hpe and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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