[OPE-L] Grossman, Science and Society, Trigg

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Fri Aug 18 2006 - 15:14:24 EDT


Well Rakesh you could always defend your point of view in a formally
published article...

The main point I'm trying to make here as regards the reproduction schemes
is rather simple. The average industrial rate of profit is not the same as
the average general rate of profit, and total production capital is not
equal to the total capital stock.

The wealthier a society is, the more capital assets exist which are neither
current outputs or inputs to current outputs.

Why is that important to know? You can build a model of how the profit rate
on production capital will decline, to the point of crisis, but if you do
not consider the circuits of capital external to production, the model is
likely to be counterfactual, or apply only in highly special cases.

Cheers

J.


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