Profit from the Perspective of the Power Theory of Money

Yaroslav N. Stefanov ()

Economics of Contemporary Russia, 2022, issue 4

Abstract: In this article, profit is considered from the point of view of the power theory of exchange and money. This allows solving several problems at the micro- and macroeconomic levels. At the microeconomic level, both classics and neoclassic have difficulty explaining production and trade profits. Considering these phenomena from the position of the power theory of exchange and money, allows to give simple exhaustive explanations, which are based on the idea that production and trade profits are due to an increase in generalized power. In the case of macro-profit, two ways of creating profit are investigated: the first is due to the non-closeness of the system (colonial method), the second is due to the creation of money within the system (financial method). Modern financial capitalism profits as a share of government-created fiat money. The resulting profit is stored in the form of non-monetary financial objects, which leads to an increase in generalized power. The powerful theory of exchange and money reveals the power nature of money and, consequently, of profit and this allows considering profit-phenomenon not only in a strictly economic, but also in a broader political and economic context, that is, in connection with power, state, political processes. The growth of capital means an increase in the generalized power of the capitalists. The widely practiced conversion of generalized power in the symbolic form of money into political power violates the democratic principles of the formation of the power system and therefore should be limited.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ack:journl:y:2022:id:811

DOI: 10.33293/1609-1442-2022-4(99)-17-29

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