On a more serious note, one of my squabbles is with these latent Marxist ticks... Very dusty linear readings of time disguised as bespoked diagrams of nonlinear cybernetic processes. This obsession with the M-C-M diagram is an hindrance.
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it just undermines the thesis that markets are commanded by consumption, and establishes the primacy of production. it's the internal logic of capitalist enterprises (increasing productive apparatus) that establishes capital autonomy.
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How does it establish the primacy of production?
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you have to produce something before being able to consume, hence supply yields its own demand.
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Your conclusion doesn't exactly follow from your premise.
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And why produce something for which no demand exists? U might also say (just as accurately) demand creates its own supply. the problem with both statements is that the flow of income in the economy is circular. there's no time zero from which the whole of economic activity begins
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i don't really disagree, the point is that you need to produce before you can consume, which establishes at least a logical precedence of production (if not necessarily a temporal one). otherwise I agree, a circuit is a matter of auto-production.
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the point is that aggregate supply creates aggregate demand (income is expenditure), not that production precedes consumption
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that's the neoclassical reading, yes.
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