209. Kim:
If you have studied CAPITALISM: A Treatise on Economics by George Reisman tell me what you think of his use of input-output tables that resemble those of Wassily Leontief (Nobel Prize, 1973) and the earlier Tableau conomique (1st ed., 1758) of the French Physiocrat Fransois Quesnay for his accounts but applying them to laissez-faire capitalism?
His only real problem with Marxism is the notion that profits necessarily decline over time. This is at variance with the facts. Also his postulates of: All this spending in the Gross National Revenue accounts depends on how much money there is, not upon how productive the economic system is and that profits, as well as interest rates, are determined, not by productivity, but by the proportion of investment to consumption, which is ultimately tied to the (time) preference for present goods to future goods. Have been put to bed by the recent failures of the economy – he was the Republicans pet economist. Personally I prefer the much more science based and accurate methodology of Krugman.
