Reisman's net consumption, net investment theory of aggregate profit: exposition and comparison to Mises and Rothbard. From: The American Journal of Economics and Sociology | Date: July 1, 2004| Author: Kirkpatrick, Jerry | COPYRIGHT 2004 American Journal of Economics and Sociology, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

This paper presents the essentials of George Reisman's net consumption, net investment theory of aggregate profit as discussed in Capitalism: A Treatise on Economics. The paper then relates Reisman's ideas to those of Austrian School economists Ludwig von Mises and Murray Rothbard. Delimiting time preference to determining the rate of net consumption, the primary determinant of aggregate profit, Reisman argues that under an invariable money, a onetime increase in the rate of saving is suffi...