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 > _______________________________ Do you Yahoo!? Declare Yourself - Register online to vote today! http://vote.yahoo.com
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