Now Richard Murphy goes Multi-Capital · Rebel Economist (Free)

Now Richard Murphy goes Multi-Capital

Highly recommended

I comment his efforts on my Patreon Blog.

Too much of policy is steered by economics thinking, which is glaringly not fit for purpose. I realised this whilst on Steve Keen’s Rebels course (highly recommended).

The problem is, the way economists talk and act, it sounds like they are the best equipped to advise policy. Scientists have a way of presenting things in a non-actionable way. It seems I am not alone. Bringing Real Capital into accounting and the narrative, I hope a new breed of advisors emerges to provide better decision and policy bases.

For my part I have worked out ways of valuing and quantifying real capital (I call it the Real Capital Framework). I am collecting all info I can on the multi-capitals, and adding my view.

Some comments from my research on his video:

a) A pile of money should never be called capital. Calling it financial capital is a misnomer. True capital is as said in the video: something used but not used up (like resources) but worn down without a flow of maintenance and spare parts.

b) He did not mention metals (or stone) – I call them Natural Capital, and like the atoms used as the basis of life (C,H,N,P,Ca,O etc) they could be recycled if our production system was set up that way. They are finite too.

c) social capital includes our institutions, and this is where accounting could come in more. We need our institutions to be financially stable and capable of delivering.. (Caring for our institutions). And we need them to possess the built capital that has the capability to be circular (that is caring for the Earth). d) I am really sensing a productive overlap between caring for people, planet and the concrete, measurable, rational demand for the minimum state of the capitals for that to be the case.

e) When national budgets are made, there is an expectation expenditure will be balanced via taxes etc returning. There is an implied claim on the multi-capitals – often a drawing down of natural, social and human – to make that budget work. That is the link to MMT

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