reading “pay less prior claims on pay equals earned pay equals gross realized work
equals realized work plus realized (recovered) human depreciation”.
Prior claims means outflow (transfer out), from sources other than the direct receiver of revenue, which are recovered in it and owed back to them. Maintenance consumption can be defined as any transfer out from any asset of either factor, outside the human capital of the earner, which supports pay in the sense that any
less maintenance consumption would have realized less pay. This meets every
criterion of prior claims but one. Maintenance consumption is the prior claims
meant by z, in (A5.5) if and only if it is actually recovered in pay or so intended.
I gave my arguments that it is neither, but is rather exhausted in satisfying our taste
for survival, in Chapter 6 and elsewhere. If I am right, (A5.4) gives
m,.=0 and = W, +D(H), = W, gross , (A5.5)
so that pay would measure and compensate gross realized work. This is the pay rule.
By (A3.3), positive cash flow is gross realized output less plowback from revenue.
That comes to
F(H), = W, gross 1, =a-T, . (A5.6)
Now we have
F(H)=F(H), -F(H)_ =2-2,-(C,-2,)=2-2,-C.+m,=2-C, , (A5.7)
APPENDIX A: The Argument in Notation 3/7/16 13
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