Essentials of Constructive Heterodoxy: Profit

Abstract

The goal of theoretical economics is to explain how the actual economy works. Since Adam Smith economists have consistently failed to clarify the nature and magnitude of overall profit. No economist, though, would deny that profit is an important phenomenon. Yet, obviously economists are still mired in utter confusion about the most fundamental concept of their discipline. Hence, in the strict sense, there is no valid economics. From all this follows for a methodologically ambitious Constructive Heterodoxy that the accustomed foundations of Orthodoxy have to be replaced. In technical terms this is what a paradigm shift is all about.

Keywords: new framework of concepts, structure-centric, Structural Law of Supply and Demand, monetary profit, distributed profit, Law of Overall Profit, economic stability, positive feedback

JEL Classification: B59, E10