Re: (OPE-L) Ajit's paper (costs)

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Fri Jun 11 2004 - 11:14:24 EDT


I was rather obscure in my phrasing.  What I meant to say was that profits were
positive when calculated using the historical cost convention but negative when
using replacement cost accounting.  I did not means to imply that replacement
costs could be nagative.

Quoting clyder@GN.APC.ORG:

> Quoting Philip Dunn <pscumnud@DIRCON.CO.UK>:
> 
> >
> > How is the above relevant? There is no need to suppose the price rises go
> on
> > indefinitely.  Let them stop before they contribute more than negligibly
> to
> > inflation.  The upshot will be that profit will have been made where
> > replacement cost profit is negative.
> >
> > Phil
> 
> This would surely be a transfer from the capitalists who sold
> the means of production. When one looks at the social totality
> the replacement costs can not be negative.
> 
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Philip Dunn


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