Re: [OPE] Just published: THE NATIONAL QUESTION AND THE QUESTION O F CRISIS (RPE, Vol. 26)

No that is not quite right. The formula is independent, in the long run, of the rate of surplus value. In the short run changes in the rate of exploitation have a big impact on the profit rate, but in the long term, two economies with different rates of surplus value, but the same share of unproductive use of surplus value, the same rate of technical change and the same population growth and the same physical life expectancy of capital stock, will end up with the same rate of profit. The economy with the high rate of exploitation can afford a higher long term organic composition.

Of course as dave says, a country with a highrate of accumulation is likely to have a more rapid groth in labour productivity, this devalorises its capital stock and tends to offset the rise in organic composition, so, withlags, u in the equation will affect t'.

--- original message ---
From: "Paul Zarembka" <zarembka@buffalo.edu>
Subject: Re: [OPE] Just published: THE NATIONAL QUESTION AND THE QUESTION OF CRISIS (RPE, Vol. 26)
Date: 29th November 2010
Time: 5:43:11 pm

Paul C.,

I think your result is that the higher the level of unproductive
expenditures there is, the higher must be the surplus value (therefore,
profits) to SUSTAIN those high unproductive expenditures. Am I correct?

Jerry seems to claim that you are "partially Smith-inspired" but yours
seems to be mostly (or equally?) a marxist result.

Jerry also comments that your result suggest that "if corporations and
states want to increase the long-term rate of profit all they have to do
is increase unproductive expenditures", but I think you are talking long
run.

Paul Z.

=====
(V23) HIDDEN HISTORY OF 9-11, Seven Stories Press, 2nd ed. softcover
(V24) TRANSITIONS IN LATIN AMERICA (V25) WHY CAPITALISM SURVIVES CRISES
(V26) THE NATIONAL QUESTION AND THE QUESTION OF CRISIS
====> Research in Political Economy, Emerald Group, Bingley, UK
====> P.Zarembka, Ed., www.emeraldinsight.com/books.htm?issn=0161-7230
.

On 11/27/2010 2:48 PM, Paul Cockshott wrote:
> Theoretically I mean a rise in the undproductive expenditure causes a rise in the rate of profit. The equation is the one I presented at the conference in Turkey last year,
> R=(l'+t'+d)/(1-u)
> where R is the attractor for the rate of profit
> l' is the time derivative or rate of growth of the labour force
> t' is the time derivative or rate of growth of labour productivity
> d is the rate of depreciation of capital
> u is the share of surplus value unproductively consumed
> This formula can be deduced from first principles of the labour theory of value as I showed in the paper in Turkey
> We can empirically verify it using real data, as we have done in a number of draft papers.
> ________________________________________
> From: ope-bounces@lists.csuchico.edu [ope-bounces@lists.csuchico.edu] On Behalf Of Paul Zarembka [zarembka@buffalo.edu]
> Sent: Saturday, November 27, 2010 1:49 PM
> To: Outline on Political Economy mailing list
> Subject: Re: [OPE] Just published: THE NATIONAL QUESTION AND THE QUESTION OF CRISIS (RPE, Vol. 26)
>
> Paul C.,
>
> "An increase is unproductive expenditure has been the main means ... to
> raise the rate of profit". Do you suggest causation or correlation?
> Unproductive expenditure is an expenditure, after all, not a source of
> profits as such.
>
> Paul Z.
>
> =====
> (V23) HIDDEN HISTORY OF 9-11, Seven Stories Press, 2nd ed. softcover
> (V24) TRANSITIONS IN LATIN AMERICA (V25) WHY CAPITALISM SURVIVES CRISES
> (V26) THE NATIONAL QUESTION AND THE QUESTION OF CRISIS
> ====> Research in Political Economy, Emerald Group, Bingley, UK
> ====> P.Zarembka, Ed., www.emeraldinsight.com/books.htm?issn=0161-7230
> .
>
>
> On 11/27/2010 3:10 AM, Paul Cockshott wrote:
>
>> The work that me , Allin and David have been doing on the rate of profit shows that the increase in unproductive expenditure has been the main means used by capitalism in the metropolises since 1980 to raise the rate of profit.
>>
>>
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Received on Mon Nov 29 13:20:33 2010