From: Paul (clyder@gn.apc.org)
Date: Sat Aug 24 2002 - 16:20:04 EDT
RAKESH > It is after all in Japan that the productive powers have been put on newest basis, upon the basis of the most advanced mechanization; and it is in automatistic Japan that the falling tendency of the rate of profit has been closing on the system. One has difficulty explaining this outcome with a use value or physical surplus theory of profit determination but not with the TSS value theoretic theory of profit determination (Ernst, Giusanni, Kliman, Freeman and other missing OPE-Lers) . ----------- Paul Why is there any problem with explaining a falling rate of profit with a rising organic composition of capital in a Sraffian/von Neumann model. The von Neumann model has built into it the possiblility of lower growth rates if the ratio of the physical surplus to the physical stock of capital falls. There is no reason to assume that automation should not prevent this, indeed the issue of automation is, at least at a theoretical level orthogonal to this.
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