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Essentials of Constructive Heterodoxy: Profit

18 Pages Posted: 9 Mar 2015 Last revised: 10 Mar 2015

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: March 7, 2015

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

Suggested Citation

Kakarot-Handtke, Egmont, Essentials of Constructive Heterodoxy: Profit (March 7, 2015). Available at SSRN: https://ssrn.com/abstract=2575110 or http://dx.doi.org/10.2139/ssrn.2575110

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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