APPENDIX A: The Argument in Notation

APPENDIX A: The Argument in Notation Output and Cash Flow My focus will be on absolute rather than per capita values. The usual custom gives capital letters for the former and lower-case ones for the latter. I will prefer the upper case for stocks and flows, and the lower one for rates. That need not hold true for Greek letters. The total return truism can be notated Y=K,+F, (A1.1) where Y is output, K,, is total capital and F is cash flow. Also F=t+C, and t=T,-T_, (A1.2) where T (tau) is net transfer, tT, is transfer out, t_ is transfer in and C, is pure consumption (exhaust in taste satisfaction). Cash flow is the net of positive less negative components. I define them by F=t,+C, F=t and F=F -F. (A1.2a) + At the collective scale, where transfers cancel internally, these equations combine for Y=K,+C, and F=F=C,. (A1.3) p Math reminds us continually that “equals” does not necessarily mean “is”. (A1.1) and (A1.3), for example, do not mean that output is growth plus cash flow or growth plus APPENDIX A: The Argument in Notation 3/7/16 1 HOUSE_OVERSIGHT_011127