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Sraffa, Keynes, Rendite e Sistema Fiscale

Giuseppe Vitaletti ()
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Giuseppe Vitaletti: Università Tuscia

Working papers from Società Italiana di Economia Pubblica

Abstract: In the first and second paragraphs the following four important conclusions are reached: a) the price system revolves around an average, with prices depending on technology and the ratio between interest and wages; b) the GDP tends to grow, with fluctuations: this is mostly due to the influence of industry; c) when Investment overtakes Saving, the rate of interest is high; when, on the contrary, Saving overtakes Investment, the rate of interest tends to zero. This happens even if Investment is high; d) the situation of full employment tends to be preserved in any case, because the difference between Saving and Investment is filled up by money, which is one of the commodities of the system. Mathematics has been used to reach such conclusions. In the third and fourth paragraphs no mathematical instrument is used. Five propositions emerge: e) the Keynesian situation, and specifically unemployment, depends on the fact that money is paper-money, and it is no longer one of the commodities of the economic system; f) the only remedy is public debt. When debt becomes high, the rate of interest grows into a sort of rent: an international agreement is needed, to make the rate of interest converge structurally to zero, with regulated exceptions. The control of interest can be of the fiscal type; g) the rents due to decreasing returns are increasingly high. Agriculture, extraction of raw materials, real estate are the principal sectors of generation of such rents; h) an important source of rents, which is stressed in this paper, lies in increasing returns: these ones are due in the first place to markets in which it is normally impossible to enter, and in which there are firms with different quantities: the greater quantities imply rents. Other rents are attached to this situation. All together rents reach around 40% of national GDPs; i) the only way to treat the phenomenon of rents is a fiscal system, which, instead of the present ones, is inspired by De Viti’s and Einaudi’s main ideas. The basis is the benefit principle, and the reporting of the fiscal sovereignty to the nation. The context is a system of soft international regulation, with agreements on public deficit, on the basic rates of taxation, on levies on imports. These arrangements are among the big areas of the world, which agree to the balance in the foreign exchange among them. Only with such organization is it possible to restore the equilibrium between the State and the market.

Keywords: Sraffa; Keynes; rate of interest; rents; De Viti de Marco; Einaudi; fiscal system (search for similar items in EconPapers)
JEL-codes: D2 D3 E1 H2 H5 H6 (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-mac and nep-pke
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