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photo Pierre Whalon; Haiti, March 2010

“To help the poor, study economics”: income inequality, justice, and economic theory

In the introduction to his General Theory, Mr. Keynes considers the objection that only the more intelligent type of expert is able to understand the highly abstract theorems of modern economics. His answer is not altogether satisfactory. He says that if practical men such as politicians and bankers and industrialists do not succeed in grasping the issues, then inevitably they will be eliminated. Undoubtedly they will, but so shall we, for they are our leaders. […] What is needed is a new political economy that is free from the mistakes of the old, a democratic economics that can issue practical imperatives to plain men.[6]

The facts of the macroeconomy are already well known. What is lacking is a clear and precise understanding of the mechanism behind such obvious facts as expansion and contraction of the economy, employment and unemployment, inflation and deflation, and many other that are just common knowledge.[9]

Introduction to Circulation analysis

Thus a ton of iron may be employed at any of three levels. Employed at the lowest level, one ton of iron yields one ton of automobile parts or farm implements. Employed at the second level, one ton of iron yields one ton of machinery for making one ton of automobile parts or farm implements or what you please. Employed at the third level, one ton of iron yields one ton of machinery for making the machinery with which automobiles or other implements are made.

Written by

Bishop in charge, Convocation of Episcopal Churches in Europe, 2001–2019. French-American. Musician, composer, author, happily married. www.pierrewhalon.info

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