An interesting demonstration of this approach's high level of generality,
is its ability to evaluate the central tenet of Keynes's "General Theory
...".
What he calls a "psychological law", or the propensity of individuals in
a community to proportionally save more than consume out of any marginal
increase in income; is to be compensated for, by increasing entrepreneurial
investment in order to maintain full employment. Sidestepping for a moment,
how far away from ourselves we can push the philosophical need for exogeneity
to impart sense a priori, there is no apparent conflict; if the population
is axiomatically taken to be endogenous, its quantified activities are
determinate by definition. But his recognition that consumption is the sole
end and object of all economic activity, with unemployment
being [a] necessary [evil?] to keep investment at a level not to exceed the
provision of future consumptive demand, (the latter being hinted at on
p.105 of the GT) depicts a
systematic situation in dynamic equilibrium over
time; with an exogenous population, just as in the proposed new paradigm.
So even though Keynes professes "to state the obvious", I don't think he
fully grasped all its implications. That first part of the assertion comprises
a fair bit of data, and if we parse it further it means that consumption
determines value, and anterior to consumption, values are indeterminate.
Because means of production investment occurs prior to consumption; in Keynes's
model this is both indeterminate over time (as in the "obvious" first sentence),
and determinate with an endogenous population in time, as he
takes it to be in the bulk of the GT. Hence the internal contradiction and
resulting overdetermination of economic assets in Keynes's GT.
All exogenous impulses (propensities, investment decisions, CB interventions
and the like) are indeterminate by definition and cannot produce determinate
effects; they neither, by themselves, can be equilibrating, nor depended
upon to restore an existing disequilibrium. In Keynes's overdetermined model
they effect paradoxes, or a "riddle" as he calls it; which in and of itself
is already proof of erroneous, and/or too many, axioms. Endogenous population
economic theories are most problematic, as objectivity has to fall by the
wayside; and even if 'subjective quantification' is no utter self-contradiction
in terms, its rationalization is tautological at best.
Meanwhile, the "novel expedient" he is looking for is not so novel at all;
it finds its cradle with Adam Smith and the classical separate determinants
(resolves) of wages, rents, and profits. Keynes's obligation to Marshall
simply proved too great an obstacle, leading to an internally contradictory
half-way measure to tackle the unemployment problem; for not full employment
but neutral money, through the time it takes to fully
resolve economic costs and profits, is the condition whereby
the (neo)classical edification would come into its own again. The marginalists'
approach to economics, apparently oblivious that exogeneity is imperative
to prevent a degeneration into meaningless circular reasoning, while charting
a make-belief course as if the economy is a determinate
structure, can never comprise reality either; so it is a dead end for the
very same reason. And any socio-economic order, although able to confer rights
upon abstractions (capital, interest, income) as if these are real, is yet
altogether powerless to prevent the occurrence of crises and/or burst
economic bubbles, that arise from not having heeded to the very difference
between abstraction and reality. The only option to get to the bottom
of all of this, is to go back as far as Sismondi's first hints about
determination, and endogenous values being abstract, and take it from there.