Re: basic sectors 1or more

From: clyder@GN.APC.ORG
Date: Thu Sep 25 2003 - 16:48:04 EDT


Quoting Ian Wright <ian_paul_wright@HOTMAIL.COM>:

> Hello Paul,
>
> I don't understand how there can be more than one basic sector
> if the definition of a basic sector is those commodities that directly
> or indirectly enter into the production of every other commodity.
> Given a set of basic commodities, A, and the set of non-basic commodities,
> B, then every commodity in B requires all the elements of A for
> its production. If there is a second set of basics, C, then either:
> (i) a commodity in C enters into the production of all commodities in
> B, in which case C is an element of the first set of basics, A, or
> (ii) a commodity in C does not enter into the production of all
> commodities in B, in which case it is not a basic commodity, and is an
> element of B.
>

Consider 3 departments
Ia produces means of production some of which it uses itself
Ib produces means of production some of which it uses itself
II is wage goods which use both Ia and Ib
Ia and Ib however are autarchic

One could complicate this by allowing II to split into
IIa and IIb each of which is fed by its own basic sector
but both of which are consumed as wages by workers in
all sectors.

There is now no single basic sector acting as an upper limit
on the rate of profit. At first sight, it would seem that
were there a uniform rate of profit, then whichever of
the sectors Ia and Ib had the smaller eigen value would
constrain the overall rate of profit. I am not sure about this though

> ?
>
> -Ian.
>
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