In the graphs of CWL 15, pages 121-25, it is easy to become disoriented by the symbols on the vertical axes and by the titles and annotations. In particular, one might tend mistakenly to view *Q* as a symbol for an absolute quantity or an accumulation rather than for a **rate of flow **of a quantity. Recall:

In Lonergan’s circulation analysis, **the basic terms are rates** – **rates** of productive activities and **rates** of payments. The objective of the analysis is to discover the underlying intelligible and dynamic (accelerative) network of functional, mutually conditioning, and interdependent **relationships of these rates to one another**. [CWL 15 26-27 ftnt 27]

Lonergan **never used terms for magnitudes**, only for **rates and their accelerations (‘rates of rates’)** in the *Essay in Circulation Analysis*. [CWL 15, 182]

But if the ultimate product *q*_{i} is related by a double summation to the contributions of factors of production *q*_{ijk}, then the total **flow** of ultimate products Q_{i} is also related by a double summation to the *rates* of the contributions of the factors of production *Q*_{ijk}, where both *Q*_{i}and *Q*_{ijk} are instances of *the form* **‘***so much or so many every so often*.’ *(CWL 15, 30)*

In the graphs superscripts identify basic (‘) or surplus (“) elements. Absence of superscripts here indicates “in any case.”

Continue reading →