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The Economic Surplus, the Baran Ratio, and Long Wave Cycles

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  • Lambert, Thomas

Abstract

This paper briefly outlines the idea and development of the economic surplus concept at the macroeconomic level as opposed to the one in microeconomics often labeled as a Marshallian surplus. Of special interest and focus is the concept as developed and used by heterodox economists. The notion of a residual amount of output or income over and above what is necessary for a society’s consumption (education, housing, food, clothing, health care, transportation, and other necessities of life) that can be used either for further consumption by an elite class, used for reinvestment in productive activities, and/or wasted on unproductive efforts is one that has been and continues to be taught and used in heterodox and neo-Marxian economics. The relevancy of the economic surplus view to modern and recent US economic growth is examined especially in light of new ways that have been created to apply the economic surplus concept. Applications using the Baran Ratio and long wave cycles theory are demonstrated, and it appears that the Baran Ratio is a useful concept to help predict long wave movements that are based on the economic surplus.

Suggested Citation

  • Lambert, Thomas, 2023. "The Economic Surplus, the Baran Ratio, and Long Wave Cycles," MPRA Paper 117537, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:117537
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    References listed on IDEAS

    as
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    3. Frederic Lee & Tae-Hee Jo, 2011. "Social Surplus Approach and Heterodox Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(4), pages 857-876.
    4. Leo Wolman, 1933. "Wages during the Depression," NBER Books, National Bureau of Economic Research, Inc, number wolm33-1.
    5. Thorstein Veblen, 1899. "Mr. Cummings's Strictures on "The Theory of the Leisure Class"," Journal of Political Economy, University of Chicago Press, vol. 8(1), pages 106-106.
    6. Thomas E. Lambert, 2023. "The Baran Ratio, investment, and British economic growth and development," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 46(1), pages 142-172, January.
    7. Thomas E Lambert, 2019. "Monopoly capital and entrepreneurship: whither small business?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 43(6), pages 1577-1595.
    8. Thomas E. Lambert, 2020. "Monopoly Capital and Management: Too Many Bosses and Too Much Pay?," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(3), pages 644-666, July.
    9. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
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    More about this item

    Keywords

    Baran Ratio; economic surplus; investment; Kondratiev waves; monopoly capital;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;

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