Abstract
The sectors that make up the real economy mutually cover the fixed costs for maintainingproductivity. The theory of social cost-shifting passed on from J. M. Clark to K. W. Kapp showsthat shifting costs from one sector of an organic mutually supportive network has a chaineffect on other connected sectors, possibly leading to a serious recession and a decline inproductivity. This clearly differs from theory of cost-shifting based on marginal costs inmainstream economics.
