ABSTRACT

Money is “infiltrated” in the very act of real production and not between products. The word expenditure is one of the most common but its meaning is not at all known by “the man in the street”. Expenditure is an operation with two facets: positive and negative. Any monetary expenditure is the creation-destruction of a sum of money. In the absence of money, production is immediately a consumption; money being introduced in the real flow, it operates the splitting up of production-consumption into a net production and a net consumption. The expenditure of wages has two instantaneous effects. The money-form of matter is destroyed, but the utility-form is so as well as it would have been right from production if money had not been interposed to give it a temporary shelter.