Re: [OPE] No rise is s/v? Kliman's empirical work on the falling rate of profit

From: wpc <>
Date: Sun Oct 25 2009 - 16:47:50 EDT

Jurriaan Bendien wrote:
> But since we also have to factor in tax evasion and avoidance, tax
> exemptions and "hidden" or unrealised capital gains, the true net capital
> gains must be significantly more than that. In the US, for example, if a
> couple makes a $500,000 capital gain on the sale of the house in which they
> lived 2 out of 5 years before the sale, it's tax exempt income. It is very
> difficult to get any accurate measure of the total, but it could well be an
> amount of income equal to about 10% of GDP, or more. The significance of
> this is not so much the gain in asset values involved itself, but the
> additional income the asset gains generate - income which is spent and
> accumulated.
 Surely this is a zero sum process Jurrian. The couple who sold the home
may be
able to buy things from the capital gains, but somebody else had to use
income to buy the house. So the capital gains were a deduction from the
income and not an independent source of income.
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Received on Sun Oct 25 16:53:44 2009

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