| --- |
| title: "House Oversight: Estate Documents (Nov 12) (HOUSE_OVERSIGHT_011024)" |
| source: "House Oversight: Estate Documents (Nov 12)" |
| sourceUrl: "https://www.justice.gov/epstein" |
| date: "2026-01-01" |
| category: "House Oversight" |
| eftaNumber: "HOUSE_OVERSIGHT_011024" |
| ocrPages: 1 |
| ocrChars: 1884 |
| ocrElapsed: 0.0 |
| parseTier: "external-legacy" |
| engine: "engine undisclosed (ep-nov-12.greg.technology mirror)" |
| externalSource: "greg-ep-nov-12" |
| externalLicense: "not granted" |
| externalCredit: "ep-nov-12.greg.technology" |
| externalUrl: "https://ep-nov-12.greg.technology" |
| --- |
| |
| per unit time. But Petty showed that the idea of human capital as discounted cash |
| flow measured in a money sum allows the factors to be summed together. The |
| revival of interest at the Chicago school soon introduced the term physical capital |
| for land and man-made things that can be bought and sold, and total capital for the |
| sum. Physical capital is a misnomer in that we are physical too. But I have used it |
| throughout so that economists can follow me and general readers can pick up some |
| of their language. |
| From the Y = C + I Equation to the Y Rule |
| Chapter 2 summarized my argument adjusting the Y = C + I equation to the Y rule. |
| Chapter 4 spelled out the former in (4.1). The Y rule made the hidden asterisks of |
| the Y = C + I equation explicit. I said in both chapters that the free growth equations |
| are the same for both when we allow for the asterisks. |
| Let's go through the derivation of the Y rule again. (4.1) shows |
| output = investment + consumption. |
| I generally mean the version of this where "ex post net" is understood before both |
| "output" and "investment". I said that this idea is implicit in the Mill quote, and is |
| probably as old as economics. Net output, here or anywhere, means creation of |
| value. Then the equation would be guaranteed by the truism, at the collective scale, |
| if net investment meant growth of all value existing, meaning total capital, while |
| consumption meant elimination from total capital collectively and nothing else. But |
| net ex post investment as meant throughout this book, and anywhere in macro, |
| means growth in physical capital alone. Consumption includes Schultz' invested |
| consumption transferred into human capital as well as his pure consumption |
| eliminated from total capital as a whole. What the truism guarantees is rather |
| output = total growth + pure consumption, |
| (5.1) |
| Chapter 5 Bringing Human Capital In |
| 1/13/16 |
| 5 |
| HOUSE_OVERSIGHT_011024 |
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|
