Capital, labor and profit

A popular topic. We have a finite set of capital transactions matched to a set of labor transactions.  Y and Z.    Now inventory is consumed so inventory imbalances are always positive.  

The owner is the semimartingale and works with a finite set of relative inventory imbalances.   The square square integral fable function is a finite Poisson. In this finite model we are partitioning goods, and keeping order  so that we can count sales price times output rate with producer price times input.    One can see we have a stable, finite Poisson queue, in to out. 

So all the social theories are about that profit  random process.  What are th conditions on that, for stability with the Lucas criteria, namely total market size is a fuzzy constant.  

Marx and Markov had similar theories, that spin variable is stuck in a fixed rate relative to capital and labor, else the imbalances will exceed bounds. Both those guys would call that volatile requants. 

Then some one added the corrupting influence of government.  If you add government to the equation, then government may work quite well, or not.   But government will attempt to pretend on the imbalances longer, along with profits; according to one of Marx's debaters. The Zombies get bailed out.  If this is not controlled we get the old Shock. The overnight decision.

The trick is to notice that this is a repeat action, one way or the other. Smart small state revenues would say, 'Ok, let us at least do it more often in smaller amounts'.   Then the small state senator would say,'Ok, let's see how many serious liquidity events between now and the next 15 years.'  They convert the process to a matched binomial because all smart small state governors can see the bet, it becomes a binomial with 15 coin tosses.  In other words, rather than fake it for 40 years, why not fake it for just 15, then declare losses again, under a Fed contract.