With reference to diagram-1 attached also archived at http://www.geocities.com/socredus/diagram-1.jpg
Every firm is individually making A1 payments and B payments, the totality [see note 1] of which are becoming translated into consumer income (A1 + A2). Consumers are receiving A1 immediately and B after a delay (A2) from the spending of each firm. In dynamic stasis B = A2 because inputs to aggregate firms sector account balances will equal outputs. So while the balances are some positive number which is a subtrahend from system flow, the amount adding to the balances as B payments exactly equals the amount subtracting from the balances as A2 in stasis. If A1 + B are increasing in steady-state, B must be greater than instantaneously measured A2 because account balances are increasing in the firms sector, but also the ratio between B and A2 is remaining constant. So while A2 is less than current B it is equal to B at some previously determinable point in time. Because in steady-state the delay is constant (some fixed period of time) the delay is easily accommodated through term contracts and double entry accounting recording the requirements for future performance. But if the ratio of B is increasing to A1 [see note 2], more and more consumer income is becoming delayed in terms of the costs of production. Plotted on a chart with time being the horizontal axis, A1 + A2 will be seen to be falling in respect to A1 + B. See diagram-2 attached archived at http://www.geocities.com/socredus/diagram-2.jpg [note 1] This is an simplifying assumption for the purposes of developing the argument. In actuality, less than the totality is translated into consumer income. Some of it is ultimately "short circuited" back to the banks without ever reaching consumers. [note 2] Variously called "labor displacement," "lengthening in the period of production," "increasing roundaboutness in production," etc. _____________________________________________________________ Get 25MB, POP3, Spam Filtering with LYCOS MAIL PLUS for $19.95/year. http://login.mail.lycos.com/brandPage.shtml?pageId=plus&ref=lmtplus ==^================================================================ This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^================================================================
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