Re: (OPE-L) RE: tendencies for equalization

From: Allin Cottrell (cottrell@wfu.edu)
Date: Tue Sep 21 2004 - 10:07:19 EDT


On Tue, 21 Sep 2004, ajit sinha wrote:

> In any case, my main argument was that you simply don't know whether
> the good fortune of your neighbor is due to excess demand in the
> market for her products or her higher skill or her harder work. You
> simply don't know which one is the case, so how can you make your
> move?

This epistemological pessimism, IMO, is far too extreme.  In a
probabilistic manner and over the long run it is possible to arrive at
judgements on these matters.

Taken at face value, your argument would apply equally to a tendency
for profit-rate equalization under capitalism.  How does capitalist X
know whether the high profits made by Y are due to high demand for Y's
product or to Y's superior entrepreneurial or managerial skills? And
so how can capitalists "make their move"?

Allin Cottrell


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