Definition & Reality in the General Theory of Political Economy

by Thomas Cool

· Net position of the subsistence worker B + gp + q

· The real income ratio RIR

(B/Pb + gpr + qr) / (Net[W]/P + gnr + gpr + qr)

The government would set RIR at a specific value, and then determine B from the other values:

B = Pb { RIR (Net[W] / P + gnr) - (1 - RIR) (gpr + qr) } (27.1)

One thing to show is that B has a small multiplier on itself because of b. We can use the average tax rate difference Z between national and private average:

Z