Concomitance is, I would claim, the key word in Lonergan’s economic thinking. (Philip McShane, Fusion 1, p. 4, ftnt 10)
“Concomitance,” “solidarity,” “implicit definition,” “functional interdependence,” and “unification” are the key principles foundational to the equation(s) providing the scientific general explanation of the organic economic process. Proper adherence to the principles ensures a unification of all explanatory conjugates and relations of the unitary system. The patterns in the terms and relations of the explanatory equation(s) would be isomorphic with the actual patterns constituting the process of velocitous (dynamic) production and exchange. (Also click here)
Consider the theoretical significance and, thus, the explanatory significance of the following:
There is a sense in which one may speak of the fraction of basic outlay that moves to basic income as the “costs” of basic production. … the greater the fraction that basic income is of total income (or total outlay), the less the remainder which constitutes the aggregate possibility of profit. But what limits profit may be termed costs. Hence we propose ….to speak of c’O’ and c”O” as costs of production, having warned the reader that the costs in question are aggregate and functional costs…. [CWL 15 156-57]
Thus, we have basic Outlays-Incomes, c’O’ +c”O” = I’, explanatorily conjugate with – i.e. functionally related to – basic expenditures, E’ = P’Q’, which are implicitly defined in the following implicit equation:
P’Q’ = p’a’Q’ + p”a”Q” [CWL 15,156-62].
As was pointed out regarding Einstein’s general relativity equation – Gab = 8πTab – in our treatment The Einsteinian Context: Curvature and Relativity (click here and here): Continue reading →