Economics approaches the fork in the road. Labor self-financing and tax free compensations or toil of deficit and deflation

  • Authors

    • Mieczyslaw Dobija Cracow University of Economics
    2015-06-02
    https://doi.org/10.14419/ijaes.v3i2.4290
  • Capital, Labor, Earnings, Deficit, Deflation.
  • The aim of this paper is pointing out the causes of persistent budget deficits, and the emergence of deflation. As a result of the theoretical analysis of capital and labor tandem the phenomenon of labor self-financing is revealed. Discerning the money-goods economy in the form of the two parallel streams of products, and money lead to the alternative equation of exchange, which indicates an acceptable credit size? The main outcome of this study is clarify that deflation is related to funding of work in the public sector by taxes. It results in imbalance between the value of the product and the money streams. If inflation is under control then deflation reveals itself. Additionally it is concluded that economics without deficit, inflation and deflation may exist. It is further claimed that in the present economics there is a correspondence between the amount of necessary issuance of money and the amount of salaries in the public sector.

  • References

    1. [1] Atkins P (2007) Four Laws that Drive the Universe. Oxford University Press, New York.

      [2] Barrow JD (2003) From Alpha to Omega. The Constant of Nature. Vintage Books, London.

      [3] Baumol WJ (1999), Retrospectives Say's Law. Journal of Economic Perspectives, Vol. 13, No 1 195-204 http://dx.doi.org/10.1257/jep.13.1.195.

      [4] Bliss Ch (1975) Capital Theory and the Distribution of Income. North-Holland Publishing,Oxford.

      [5] Bliss Ch, Cohen AJ, Harcourt GC (2005) Capital Theory, Vol. I-III, Edward Elgar Publishing Limited, Northampton, Massachusetts.

      [6] Bossone B, Fazi T, Wood R (2014) Helicopter money: The best policy to address high public debt and deflation, VOX CEPR's Policy Portal, http://www.voxeu.org/article/.

      [7] Cieślak I, Dobija M (2007) Teoretyczne podstawy rachunkowości kapitału ludzkiego. Zeszyty Naukowe UEK, No 735, 5-24.

      [8] Cieślak I (2008) Value of Human Capital and Wage Disparities, In General Accounting Theory Evolution and Design for Efficiency (Górowski I ed). Wydawnictwa Akademickie i Profesjonalne, Warsaw, pp 289-303.

      [9] Dobija D (2003) Pomiar i sprawozdawczość kapitału intelektualnego przedsiębiorstwa, Wydawnictwo WSPiZ, Warsaw.

      [10] Dobija M (1998) How to Place Human Resources into the Balance Sheet, Journal of Human Resource Costing & Accounting, Vol. 3, No. 1, 83-92. http://dx.doi.org/10.1108/eb029044.

      [11] Dobija M (2000) Human Resources Costing and Accounting as a Determinant of Minimum Wage Theory, Zeszyty Naukowe UEK, No 553, 36-61.

      [12] Dobija M (2007) Abstract Nature of Capital and Money. In New Developments in Banking and Finance (Cornwall LM ed.) Nova Science Publishers, New York, pp.89-114

      [13] Dobija M (2011) Abstract Nature of Money and the Modern Equation of Exchange, Modern Economy, Vol. 2, No. 2, 142-152. (DOI: 10.4236/me.2011.22019) http://dx.doi.org/10.4236/me.2011.22019.

      [14] Dobija M (2011) Labor Productivity vs. Minimum Wage Level, Modern Economy, Vol. 2, No. 5,780-787. (DOI: 10.4236/me.2011.25086) http://dx.doi.org/10.4236/me.2011.25086.

      [15] Dobija M (2012) Antykryzysowe zarządzanie produktywnością pracy, Organizacja i Kierowanie, No1 (150), 115-130.

      [16] Dobija M (2014) Pomiar aktywności ekonomicznej państwa, Zeszyty Teoretyczne Rachunkowości, No. 75(131), 7-22. http://dx.doi.org/10.5604/16414381.1098720.

      [17] Dobija M, Kurek B. (2013) Scientific Provenance of Accounting, International Journal of Accounting and Economics Studies, Vol. 1, No 2, 16-24, (DOI: 10.14419/ijaes.v1i2.1054) http://dx.doi.org/10.14419/ijaes.v1i2.1054.

      [18] Forbes (2014) FED ogranicza dodruk pieniądza giełda reaguje wzrostem, http://www.forbes.pl/, (Accessed September 20, 2014).

      [19] Goetzmann WN, Ibbotson RG (2005) History and the Equity Risk Premium. Yale ICF Working Paper No. 05-04. SSRN: http://ssrn.com/abstract=702341.

      [20] Hutt WH (1974) A Rehabilitation of Say's Law, Ohio University Press: Athens.

      [21] Kates S (1998) Say's Law and Keynesian Revolution. How Macroeconomic Lost its Way, Edward Elgar, Cheltenham.

      [22] Koshulko O (2012) Examining a level of minimum wage in Ukraine and an influence on human capital development. (In Russian), Ekonomiczeskij Analiz: Teoria i Praktyka, No. 7 (262), 65-76.

      [23] Kozioł W (2011) Rozwój rachunku kapitału ludzkiego, In Kapitał ludzki w perspektywie ekonomicznej (Dobija M ed.), Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, pp. 47-80.

      [24] Kozioł W (2009), Struktura wiedzy w społeczeństwie jako determinanta godziwych nierówności płacowych w gospodarce, Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie Nr 796, 21-32.

      [25] Kozioł W (2010) Kształtowanie płac stałych na podstawie kapitału ludzkiego,In Teoria pomiaru kapitału i zysku (Dobija M ed.) Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, (2010), pp. 73-100.

      [26] Kurek B (2011) Hipoteza deterministycznej premii za ryzyko, Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, Kraków.

      [27] Kurek B, Dobija M (2013) Towards Scientific Economics, Modern Economy, Vol. 4, No. 4 293-304. (DOI: 10.4236/me.2013.44033). http://dx.doi.org/10.4236/me.2013.44033.

      [28] Pacioli L (1494) everything about Arithmetic, Geometry and Proportion (original title: Summa de Arithmetica, Geometria, Proportioni et Proportionalita), Venice.

      [29] Pikulska-Robaszkiewicz A (1999) Lichwa w paÅ„stwie i prawie republikaÅ„skiego Rzymu, Wydawnictwo Uniwersytetu Åódzkiego, Åódź.

      [30] Renkas J (2012) Empiryczny test modelu kapitału ludzkiego i minimalnych wynagrodzeń, Nierówności społeczne a wzrost gospodarczy, No 24, 280-291.

      [31] Rosenberg N, Birdzell LE (1994) Historia kapitalizmu, Signum, Kraków.

      [32] Solow R (1963) Capital Theory and the Rate of Return, North-Holland Publishing Company, Amsterdam.

      [33] Wójcik-Żołądek M (2013) Nierówności społeczne w Polsce, Infos, Biuro Analiz Sejmowych, No. 20(157), 1-5

      [34] Wright R (2000) NONZERO. Logika ludzkiego przeznaczenia, Prószyński i S-ka, Warszawa.

  • Downloads

  • How to Cite

    Dobija, M. (2015). Economics approaches the fork in the road. Labor self-financing and tax free compensations or toil of deficit and deflation. International Journal of Accounting and Economics Studies, 3(2), 86-94. https://doi.org/10.14419/ijaes.v3i2.4290