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Welcome to the website for the Real Incomes Approach to Economics!

The Real Incomes Approach has evolved since I initiated its development in 1975, in Rio de Janeiro, into the only macroeconomic policy with a direct microeconomic foundation and that is wholly supply side. In 1976 my focus in its development moved from Brazil to the UK economy and to this day its development continues with a focus on the UK economy.

What emerged as "supply side" economics, in the late 1970s was no more than a fiscal device which, in practice, failed. The recognition of supply side being the issue to resolve slumpflation was correct at the time but the solution was moulded in the light of existing, proven-to-be-ineffective, policy instruments so this did not resolve the issue. As a result there was a good deal of suffering imposed by the policy solutions.

I was not involved in the developments of "supply side economics" and was surprised when I reviewed it in early 1980s to find that it has very little to do with supply side, so why was it has that name remains a mystery. My own view on what supply side should be is easy to understand and can be found here: What are the elements of a supply side policy?

My motivation for initiating the economic analysis, that ended up as the Real Incomes Approach, was that having studied post-graduate economics and both Cambridge and Stanford Universities I found that, in 1975, when I tried to work out a solution to slumpflation I was unable, with my understanding of the existing policy instruments, to find one that I found acceptable. All options would cause serious prejudice to segments of the economic and social constituencies. I therefore set about investigating why conventional economic theory and practice was so defective. I found it unacceptable that poorly conceived socially destructive policies could be called "essential medicine" for economic recovery. Unfortunately this blunderbuss mindset persists today in many politicians and many economists around the issues that are referred to as:
  • austerity
  • living within our means
  • the magic money tree
The bandying around of these terms convey little and they reflect an intellectual deficit and a worrying level of ignorance of the economic and financial options that are superior to what passes for conventional macroeconomics with its threadbare tool kit of currently available policy instruments. In reality Keynesianism, monetarism and supply side operate using different perspectives on a common but flawed Aggregate Demand Model (ADM) which I refer to as KM policies. So the electoral cycles that result in each false option coming to the fore to be applied and then, of course, failing, is wholly predictable.

I am aware that few know about the Real Incomes Approach. This development work has been largely a personal endeavour and I am not part of any department of some university so general exposure has been limited. This website should help clarify some questions and hopefully encourage feedback on this topic.

If this is your first visit to this site, I would encourage you to read the Introduction page. This provides a broad sweep of the breadth of impact that a Real Incomes Approach to policy can have and, hopefully, this will encourage you to read further or at least ask questions.

Hector McNeill
SEEL - Systems Engineering Economics Lab


Telephone: +44 (0) 7 760 444 625
National Health Service

I will be posting shorter articles to focus on the role of the Real Incomes Approach in addressing current issues. Some of the titles to be released soon, include the following:

  • Why mainstream economic theories fail to shape beneficial policies
  • The productivity paradox: Productivity rises, real incomes fall - why?
  • Improving the representation of constituent economic interests in Parliamentary decision-making
  • The imperative of transparent public choice and constitutional economics

I am pleased to report that SEEL-Systems Engineering Economics Lab has recently upgraded the cloud-based PACM (Production, Accessibility & Consumption Model) simulator. PAC provides a transparent analysis of real incomes determinants and is able to provide an adequate analysis of the recent trends in real income and productivity declines and worsening income distribution. I will be reporting on its findings.

17th March, 2019

The Real Incomes approach - A new paradigm - Introduction, the main outcomes, notable aspects of policy, relevance
BREXIT - Price Performance Policy - the last policy standing - Why not give it a try? -
A comparison of conventional policies & the Real Incomes Approach (table)
What is the Real Incomes Approach? - Resumé
The Real Incomes Approach - The main theoretical principles & policy options
The PAC Model of the economy
Macro-micro coherence
Policy Decision Analysis & the Real Incomes Approach
Tacit & explicit knowledge
Appropriate business rules for competitivity & growth
Getting rid of corporation tax
Policy Decision Analysis & Constitutional Economics
The journey from 1971 to 2014 - the consolidation of financialization
pEc - Price elasticity of consumption
Constitutional questions arising from macroeconomic management
Slumpflation, the policy-induced crisis
Slumpflation or Deflationary Slump?
It all depends on what happens to...
Quantitative easing for people
Why Gordon Brown made the Bank of England "independent"
Economists endorsing Jeremy Corbyn's economic policies
Gordon Brown on electability
Clause IV and all that ..
The Scotland Effect - The Quest for Fiscal Autonomy
The Minority Pinciple
Leaving austerity behind - the prospects for the UK
Public service provisions - a note
Private & public goods
Why Real Incomes?
In spite of policy - a note
Reducing the negative
impacts of financialization
on productivity
and real incomes

The inevitable stop-go
The Tarshis paradox
Solving the PPR puzzle
The profit paradox
The fiscal paradox
The monetary paradox
Macroprudential regulation
IMF confirms that monetary policy is an incentive for speculation
Brazilian economic prospects - The needed transition from the Real Plan to a plan for Real Incomes
Greece & the Eurozone - Part 1
Greece & the Eurozone - Part 2
The Real Growth Multiplier
Growth impetus
Constitutional aspects of the Real Incomes Approach
Real Incomes & the Quantity Theory of Money
 The state of knowledge on the Real Incomes Approach
Positive Systemic Consistency
The importance of Constitutional Economics
How constitutional economic principles saved a nation
The Price Performance Ratio
Macroeconomics - the problems   - media article
Macroeconomics - a solution   - media article
From chain gang to Blockchain - the necessary transition
The Price Performance Levy
Asset and productive economies
Some evidence on the failure of supply side economics

All content on this site is subject to Copyright
All copyright is held by © Hector Wetherell McNeill (1975-2015) unless otherwise indicated

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