re 5458 >Re Rakesh's [5453]: > >> Jerry, I don't understand what you all mean >> [in 5451, JL] by constant circulation >> capital--is this raw materials or unfinished >> goods? thanks for the clarification. > >Think of it as was referring to raw materials >although I think it would also be the case for that >proportion of other constant circulating capital >inputs which are being 'stocked' and are lying >'fallow' (for example, an excess stock of >intermediate goods). > >In solidarity, Jerry again the question comes down to what the VCC measures; in my opinion it measures the value of the constant capital advanced for any production period (depreciated equipment, raw materials, intermediate inputs) over the value of the variable capital. The VCC is neither a dimensionless flow measure nor an annual accounting of embodied labor hours to persons. It simply measures a ratio of two different aspects of the value of the capital advanced for a given production period. In my example of a halving of production time the VCC actually increased, yet the profit rate rose. This was due to a doubling of the annual rate of surplus value which cannot in any way be decomposed into a reduction of the VCC. One could argue that an increase in the annual rate of surplus value simply indicates a faster turnover. That is, I may be wrong to describe the situation as heightened exploitation. This is a quite plausible argument, but a reduction in the VCC is not. I may simply be missing the point which you, Allin, and Paul are making. And I apologize for this if I am resisting the obvious. YOurs, Rakesh
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