From: Allin Cottrell (cottrell@wfu.edu)
Date: Wed Sep 28 2005 - 23:46:21 EDT
On Wed, 28 Sep 2005, Ian Wright wrote: > These are complex issues: I might be mistaken. But it would be > useful to go into a little more depth on the problem of > "self-reproducing non-basics". Having now read Sraffa's appendix on this issue, I'm not convinced of its importance (though I too may be mistaken). Sraffa points out that one can 'solve' the SRNB problem if one is willing to assume that the commodity in question fetches a price as output that is greater than its price as input (for then its rate of profit, which is presumed to be limited below that determined within the basic sector, can be jacked up). This is of course contrary to the usual Sraffian idea -- but it seems to me it's a temporary concession. The implication -- if I'm understanding this right -- is that the price of such a commodity must rise continuously relative to the general run of commodities. But then, surely, before long it prices itself out of the market. Demand goes to zero and it's no longer produced. Since it's not a basic, there are no repercussions. Allin Cottrell
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