re Jerry's 5371 >In response to [5370], I would like to ask Paul >C a few questions (with sub-parts): > >> > Another related issue concerns the timing of >> > the transfer of value and creation of value and >> > s. Thus, if turnover time for the aggregate >> > capital was reduced, would this alter the >> > magnitude of s produced or only the *timing* >> > of when s is created? >> Neither. >> The thing that changes is the stock of work in >> progress which counts as part of C. > > >1) On the above > ========== > >a) Why doesn't a change in the turnover time >of capital affect the timing of when value and >surplus value is created? Doesn't it lead to >a reduction in both production and circulation >time? In the example which I suggested, a reduction in turnover (actually production time) reduces the capital which had been advanced for the year's production and thus raises the rate of exploitation and the rate of profit. This effect of the reduction of turnover holds even if we are assuming that the working day, the size of the working population and the real wage remain constant. > >2) On the literature and empirical measurement > ============================== > >a) as I'm sure you remember, the subject of >a reduction of turnover time was considered by >Ernest Mandel in _Late Capitalism_ (London, >NLB, 1975) to be "one of the fundamental >characteristics of late capitalism" (p. 223, see >Ch. 7). Here Mandel was concerned with a higher rate of moral depreciation, no? So now we are talking about many things under the name of turnover: moral depreciation, production time, circulation time (and if we assume that productive capital is idle in that period, as Charlie recognized, a reduction of circulation time will increase the magnitude of surplus value as well). >b) In emphasizing a role for turnover time, Mandel >-- it seems to me -- is following in the footsteps of >one of his mentors, Henryk Grossmann. Why do you characterize the relationship that way. Mattick who was a student of Grossmann was quite critical of Mandel's multicausal theory of crisis, as you know. > Note in this connection that >Webber/Rigby have claimed in their work, _The >Golden Age Illusion_ that changes in turnover >times "have offset any tendency of the rate of >profit to fall" (in the period that W/R study for >the four countries, Aus, Can, Jap, US). Does >the empirical work that Allin and you did tend >to confirm or cast doubt on this perspective? I don't get where the data comes from. I would appreciate any help. Yours, Rakesh
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