Re: (OPE-L) Ajit's paper (costs)

From: Phil Dunn (pscumnud@DIRCON.CO.UK)
Date: Sun Jun 13 2004 - 12:35:28 EDT


Ajit wrote:

>
>Phil, I have a feeling that by now you have understood
>the bankruptcy of your argument, but don't want to
>accept it publicly.

A communication problem here. Ajit.  I am grateful to you for
providing a counter-example which demolishes replacement cost
accounting.  Any system of inflation accounting should default to
historical cost accounting when there is no inflation.  Replacement
cost accounting does not do this.

>  The point I'm making is a logical
>one. Now you realize that the TSS calculation of
>profits is irrational.

I do, do I?

>  It can show a continuous
>positive rate of profits for sectors that are
>economically not viable.

Give your definition of viable.  It is not, by any chance, static, is it?

>  This contradiction is a
>logical contradiction. I gather from Fred's earlier
>postings that he is also doing the same thing, and
>thus this criticism applies to him as well. Cheers,
>ajit sinha

Please spell out the argument.

Phil


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