Monetary Calculation

Monetary calculation is the guide of economics. The economy is chaos without it. Calculation makes it possible to determine if there is profit or loss. Not just a business, various sectors of operation within a business. An entrepreneur will fund the profitable sectors and defund the losing sectors. An entrepreneur funding the losing sectors won’t be an entrepreneur for long. Monetary calculation is impossible unless there is private ownership of the means of production.

All goods and services are bought and sold against money—with a few exceptions. When statistician summarize total profits, all they’re doing is adding up the profits and losses of individuals. Adding up individual profits and losses to come to “social” profit is completely meaningless. “Social” profits and “social” welfare are imaginary and are just emotive terms. Profit can only be applied to an individual/business, never society.

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