Surplus Value

choi

Steve Forbes, Why the Left Should Love Big Profits. Forbes, May 26, 2014
www.forbes.com/sites/steveforbes ... ble-for-prosperity/
(“Innovation renders existing businesses obsolete, thereby obliterating their capital”)

Note:
(a) “Classical economists going back to the time of Isaac Newton’s extraordinary scientific breakthroughs believed the economy to be a self-contained entity, a closed system. A key concept was ‘equilibrium’”

Equilibrium. Economist.com, undated.
www.economist.com/economics-a-to-z/e
(classical economics (qv))
(b) “Keynesianism, Marxism and monetarism are heresies of classical economics, but all share the idea of a closed economy, where perfect competition is the ideal. * * * Karl Marx posited that after recouping the costs of building and organizing a factory, for instance, the owner had no right to pocket a profit. After all, labor produced the value of the product, and profit meant the owner was underpaying his workers. * * * It [profit] was greed of the first magnitude and came at the unjustified expense of workers, thundered Marx and his followers. * * *This [profit; according to Marx] should be distributed to the struggling laborers whose sweat created the wealth in the first place. Thus the origin of the belief that wealth comes from exploiting labor, from underpaying workers.”

Surplus value?
(c) “Why do McDonald’s and Wal-Mart have to be so piggish over their enormous profits?”

(d) “It was the economist Joseph Schumpeter who clarified the crucial, indeed moral, role profit plays. Schumpeter regarded the classical role of equilibrium as nonsense. He explained the process of ‘creative destruction,’ which takes place in an ever evolving economy.”

Joseph Schumpeter
http://en.wikipedia.org/wiki/Joseph_Schumpeter
(1883-1950; born in Austria-Hungary (now Czech Republic) and died in Connecticut; Harvard professor (1932-1950); section 2.2 Evolutionary economics)
(e) Peter Drucker
en.wikipedia.org/wiki/Peter_Drucker
(1909-2005; an Austrian-born American)