Introduction
Bank of Canada
Monetarism
Unbelievable!
Believe It!
Ideology
Article 18
Ex. 1/Ex. 2
A Vision
Conclusion

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. Dominant Revenue
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. (For more information, we refer you to our Tutorial on Economics, or our Video, "Towards a Mixed Economy".)

But there's more. Media consolidation further legitimates the claims of DR interests by reducing information and debate about the issues raised in this tutorial.
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. The point being: any effort to refute DR claims are dismissed as ill-informed, or frivolous. But is this so?

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