Dominant
Revenue
-The concept of 'Dominant
Revenue' (DR) put forward by Francois Perroux (1903-1987), a
leading figure of the French school of economics during the sixties, is
helpful. In every historic period the revenue of a particular group is
taken to be the DR.
Perroux:
"During a
specific period of development the dominant revenue is that one to which
the others adapt themselves..It is presented as the revenue that, by the
rate and mass which it achieves, determines whether the given economy
functions properly.
In the institutional framework
corresponding to the given dominant revenue, that is in fact the case;
but in another context, it would be otherwise." |
To put it another
way: the DR could be seen to operate as a barometer of the
well-being of the population as a whole. But one can see that this
barometer may not necessarily be accurate!
Perroux also maintained that a distinct economic
theory was associated with each successive DR:
l Merchant
Capitalists maintained that value lay primarily in the net flow of
precious metals. This notion closely resembles Monetarism,
referred to earlier in our tutorial. Monetarism was in vogue from the
mid-70s to the early 90s. 
l Early
Industrial Capitalism abided by Laissez-faire economic theory,
which stated that economic systems function best when there is NO
(government) interference in the marketplace. This remains an integral
part of DR rhetoric today.
l
Advanced Industrial Capitalism
adhered to The Market Theory of Value (or marginal utility theory)
as the DR theoretical framework.
l
Financial speculation (out-and-out
gambling!!!), made possible by Deregulation and Globalization, has been
the DR for much of the last decade!
The point is, DR 'economic theories' are
used to give voice to and legitimate the claims made by the DR
stakeholders. Today, these stakeholders are primarily national and
international banks and related financial institutions, transnational
corporations, and global organizations which regulate and police monetary
(bank) and economic (political) policy.
Policymakers must take
DR claims into account when assessing any economic theory, no
matter how wonderful it might be or sound! The crisis of modern-day
economics springs from a quixotic attempt to understand a mixed economy in
which profit is no longer the DR- in terms of a theory based on the
assumption that it is.
But there's more. Media
consolidation further legitimates the claims of DR interests by
reducing information and debate about questions raised pertaining to
speculative banking.
Historically,
progress has always been founded on open discussion and debate, not closed
meetings or silence. Today, social systems worldwide present an all but
solid front: of press, tv, DR "think tanks", etc.,
which, without much questioning, uphold DR perspectives. Any effort to
refute DR claims are dismissed as ill-informed, or frivolous. Time
for a change.