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Heterodox Economics

Foundations of Alternative Economics

Hasan Gürak

Mainstream economic textbooks propose a kind of economic world which can only exist in fictitious markets where producers and consumers interact like robots, relations are mechanical and assumptions utopian. Accordingly, the expositions are, in substance, nothing but sophistry. Yet, many economists are becoming more and more discontent with the sophistries of mainstream doctrines. The book presents some realistic alternative approaches to the conventional ‘unrealistic’ attitudes of mainstream economists in order to pave the way for a further development of new ideas.


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In commercial societies, production is realized through the initiative of entre- preneurs who combine the various inputs of production along with the labor- power services who process all the inputs and turn them into products with ex- change-values. The inputs of production vary from raw-materials to capital- goods, intermediaries, tools, energy which includes laborers. In the previous chapter, the laborer was determined as the only input of production capable of producing added value. It was also determined out that all input prices, including wages, i.e., production costs, are known in advance by the entrepreneurs. How- ever, the market price (MP) is, in principle, always higher than the production cost (PC) due to the transforming process of any input by the labor force. This is called the end-product. Technology is an indispensable during the process of production. Every production process benefits from "a technology" the level of which depends di- rectly on the general technological development level of the country as well as the quality of the labor-force. The higher the general development level, the more advanced the technologies that are employed will be. Sometimes, a coun- try might have access to both advanced technologies and an advanced labor- force in some specific areas, while remaining relatively less developed in others, depending on the specific conditions of the country. Specific inputs with the exception of technology were analyzed in Part-2. Before proceeding further, it would be useful to consider the term "Technology", the indispensable input of production. On Technology Technology or...

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