Abstract
The first great contribution of the Classics lay in their understanding of the crucial importance of the physical surplus generated by the process of production. As Classical economics developed, this grasp of the fundamental concept of surplus grew into an exploration of the allocation of surplus output. This led to an articulation of the distinction between luxury consumption and growth. As Classical theory matured, it was seen that surplus arose throughout production, and not only in agricultural sectors, and it was argued that there was a tendency for an economy to move toward a long-period position such that physical surplus would be reflected in prices which embodied a uniform positive rate of profits across all sectors. There followed the development of the Classical analysis of the distribution of the total product of society into wages, profits and rents.
it is hardly an exaggeration to say that the standard works of the classical economists — Smith, Ricardo, Marx — not only contain but essentially are theories of economic growth (Adolph Lowe, 1976, p. 5).
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© 1992 Joseph Halevi, David Laibman and Edward J. Nell
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Walsh, V. (1992). The Classical Dynamics of Surplus and Accumulation. In: Beyond the Steady State. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10950-0_2
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