Victor, you questioned some remarks I made regarding assets as the residual of bank-financed expenditure.
Think of it this way: Say you purchase a house through a mortgage, which you pay-off over time. What remains is "equity." If you were a business rather than a homeowner the story does not end there. That "equity" is expensed against continuing production as it depreciates which transfers costs to consumers without a corresponding disbursement of purchasing power.
Think of the firms sector as being divided into two departments: the department manufacturing labor saving machines which they sell to the other firms, and the department of the other firms purchasing the labor saving machines.
With labor displacement, the firms purchasing the machines *prospectively* increase their profit by displacing labor, and the firms selling the machines *realize* profit as they sell the machines.
The realized profit is an offset to bank debt--which translates into increasing equity that does not exist in the form of money that is unencumbered in either the firms sector or in the hands of consumers.
It is a dilemma that cannot be resolved without the establishment of something like a national "macroeconomic" capital account, from which dividends may be paid--bringing the flow of purchasing power into equivalence to the flow of costs.
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