By Steve Roth – “Wealth” is just the beginning. As Noah Smith has said so aptly, economics terminology is a dumpster fire. The carnage extends right down to (necessarily accounting-based) definitions of income, saving, and investment.
The national accounts and the terminology therein have both embodied and promulgated an incomplete (and deeply regressive) economic world view. Even accounting-based adepts often find themselves conceptually trapped inside these incomplete, inconsistent, jumbled, and muddled concepts and definitions.
Everyone agrees that government deficit spending and bank lending create “money” (much better: “assets”) in ways that are impossible in the simplified spending-equals-expenditures circuit diagram.
Nevertheless, a huge amount of economic thinking quietly operates inside that simple circular model. more> https://goo.gl/HUF5RZ
- Labor Theory Of Value: A Primer, Branko Milanovic, socialeurope.eu