On Fri, 26 Oct 2001, Rakesh Bhandari wrote: > > > > 2. From the mid-70s to 1997, the rate of profit recovered, but only > > partially (only about half of its prior decline), so that the rate of > > profit in 1997 remained about 25% below its earlier postwar peak. The > > main reason for such a weak recovery of the rate of profit was the > > continued increase of the ratio of unproductive labor to productive labor, > > which partially offset a sharp increase in the rate of surplus-value and > > its positive effect on the rate of profit (the composition of capital > > increased only slightly during this period, due mainly to slower capital > > accumulation and lower costs of raw materials). > > OK, so was the decline in the costs of raw materials less or more > important as > the rise in s/v in the (partial) recovery of the profit rate? I haven't done a detailed study of this, but I think the increase in the rate of surplus-value was much more important. > what made for > lower costs of raw materials? technological improvements in extraction, > breaking of cartels by entry of new states? I think the lower raw material prices were mainly due to the slower growth of the world economy, which reduced the demand for raw materials, especially oil.
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