>>Re my [5449]: >> >>I think I might have botched the numbers in the >>hypothetical example that I gave but the >>fundamental point remains sound. Specifically, >>one can see that when there is a reduction in >>turnover time due to decreased circulation time >>that the mass of surplus value and profit >>can increase even where the rate of surplus value >>and the organic composition of capital remain >>constant. >> >>In the case of a reduction of productive capital >>in stock where there is a reduction in turnover >>time caused by a reduction in production time, >>the effect is two-fold. Firstly, this reduction in >>fallow productive capital in stock (e.g. the stock >>of constant circulation capital not currently >>"in use") "frees up" a quantity of money capital for >>additional investment in c and v. This then allows >>for an increase in the mass of surplus value and >>profit. Secondly (and this is where Paul C and >>Allin are right), this reduction in constant >>circulating capital has the effect of reducing the >>organic composition of capital and thereby >>leading to an increase in the rate of profit. >>Just-in-time (kanban; flexible) production could >>be seen in this way. >> >>In solidarity, Jerry > > Jerry, I don't understand what you all mean by constant circulation capital--is this raw materials or unfinished goods? thanks for the clarification. yours, R
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