The Chimera of Macroeconomics

  As opposed to the human asset, there in traditional economics are two types of physical assets, namely, physical capital and land . Instead, we herein use the terms “a machine” for physical capital and “a (piece of) soil” for land.              Incidentally, “ physical capital ” is a type of asset while “ financial capital ” is not. An asset creates a value on a side over the time; while a financial instrument balances previously-created values between two sides time after time and “many times over.” On the other hand, a unit of land is rented either as a site for occupation or as a soil for creation. We might regard a site as an asset without being a power; the site stands still while the power keeps on running.   The problem of “ full employment .” When ready to run, a machine as asset changes both the “nominal” name and the “real” hat to a mechanical  power . The machine in the warehouse is an asset ...

There are two broad categories of “the market.” The one is to trade the title of the product or the asset. The second category is the market for rental right of space or creative powers . H erein we are interested in the second.  We call the right holder the  renter  and the title holder the lender .  What to rent. First, we need space whatever we are to do; residing, staying, idling, leisuring, travelling, consuming, creating, trading and the like. Second, we need the human power, also mistakenly called “labor” ( L ), in the process of creation. Third, we in creation additionally need physical powers out of “ physical capital ” ( K ) or “land” ( N ). Again, we with “creation” ( Y for GDP per annum, for instance) mean production of goods and services ( C for consumption) and construction of new assets ( I for investment).                While the powers are running for the renter, needless to say, ...