13-5b2d Production processes in the evenly rotating economy are interchangeable, hence the analysis becomes scale-independent and substrate-independent

Because the rate of return will be equalized, at least in the evenly rotating economy.ERE

“The fact that different durations of production processes and different degrees of vertical integration make no difficulties for aggregation permits us to use the diagram almost interchangeably for a single production process and for the economy as a whole.” (p. 394)

“There can be no long-run deviation of the rate of interest on the consumption loan market from the rate of interest return on productive investment. Both are aspects of one time market.” (p. 420)

“The productivity of production processes has no basic relation to the rate of return on business investment. This rate of return depends on the price spreads between stages, and these price spreads will tend to be equal. The size of the price spread, i.e., the size of the interest rate, is determined, as we have seen at length, by the time-preference schedules of all the individuals in the economy.” (p. 424)

Next:

• 13-5b2e There is no substantial difference between debt and equity, at least in the evenly rotating economy

Related:

• On scale-independencerevisit
  • 5-1b1a1c3 The interoperability law means we can do away with dynamical laws because the former is scale independent
  • 10-2g1g Scientific knowledge implies location-time-scale-independent applicability
• On substrate-independence (or medium-independence)revisit
  • 5-1b1a1c1 The interoperability law - information can be copied from any system that can embody information to any other such system, irrespective of the details (i.e., substrate-independent)
  • 9-2b1.2 Marshall McLuhan - ‘It is the medium itself that is the message, not the content’
• Similarly, to the extent that knowledge is never a scarce resource, humans are potentially interchangeablerevisit
  • 13-6a1 Without knowledge, self-identity is no stronger than the identity between any two people
• The rate of interest can be uniform in the evenly rotating economy, because the incommensurable differences are mediated by time-preference schedules (which are comparable thanks to money):revisit
  • 5-1b1a2b Anything physical can’t do away with its own contingency
  • 10-2g2e7 Abstraction is universal, precisely because they are in the abstract (i.e., itself not contingently constrained by its own physicality)
  • 13-1a3a2a The difference is implied in any exchange and division of labor
  • 13-5b2a Because of money, the concept of rate of return can be abstracted to the ratio between present goods exchanged against future goods in general
  • 13-5b2a0 Utilities or values between persons cannot be compared—but demonstrated time-preference schedules can be compared
• 13-5d1 Capital goods per se are not productive
• 13-5d2 Interest is not the reward of capital goods per se—it is derived from the generalized investment of time