From: Gerald A. Levy (Gerald_A_Levy@MSN.COM)
Date: Sat Apr 24 2004 - 14:02:46 EDT
Hi Paolo. > If the value of the means of production are reduced > we can have capital accumulation with a lower M > at the beginning of the new circuit. Good point. A cheapening of the elements of constant capital, e.g. brought about by technological change and representing moral depreciation, could mean just that. I'm glad you brought up the topic of how technological change fits into this process. But, what happens when there is technological change in those branches of production in Department II which produce commodities destined for working-class consumption? Suppose that the value of means of consumption for the working-class goes down. What effect on capital accumulation will that have? Unless workers agreed to a reduction in their nominal wages (highly unlikely) then this will cause their real wages to go up. If that happens how will that affect the magnitude of unpaid labor time and surplus value? It could be that under certain circumstances even if the M goes up, s and capital accumulation could go down. In solidarity, Jerry
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