[OPE-L:7538] Sraffa/von neumann and falling rate of profit

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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