13-3b All the decisions to supply present goods on the present-future market to provide for the maintenance of the capital structure must be considered—various intercapitalist transactions cannot be netted out as duplications

“The temptation has been simply to write off the various intercapitalist transactions as duplications. The inference from such concepts is that even without any savings, consumption expenditure is alone sufficient to maintain the productive capital structure intact. This thesis is tragically erroneous. For with production divided into stages, we must consider all the decisions to supply present goods on the present-future market to provide for the maintenance of the capital structure.” (pp. 396-398)

Next:

• 13-3c What maintains capital is gross expenditure and gross investment and not net investment

Related:

• 2-1a0a ‘Occam’s razor’ & ‘Irreducibility’ - Simplify the problem but don’t oversimplify.
• 13-4d4d A man is necessarily a consumer, but not necessarily a producer
• 13-4d6 The economist must take account of all the interrelations in the economy and recognize that money costs are determined by final prices reflecting consumer demands and valuations