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

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Wed Sep 22 2004 - 07:43:32 EDT


--- Allin Cottrell <cottrell@WFU.EDU> wrote:

> 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
_________________
Well, I think most of the time stock market tells you
what is hot and what is not. The information is
completely public. I don't think capital and
capitalists should be confused with managerial skills
and managers. Also if we are not taking the
Schumpeterian view of the things, then profit is not
considered a return to entrepreneurship. In a
Schumpeterian world, of course, profits do not
equalize. Cheers, ajit sinha
>




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