From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Mon Oct 09 2006 - 13:33:25 EDT
--- Francisco Paulo Cipolla <cipolla@UFPR.BR> wrote: > Jerry, V=0 is not a hypothesis. As a hypothesis it > wouldbe unsustainable. The > maximum rate of profit is the rate of profit > attaining under maximum rate of > exploitation, in fact, infinite. ______________________ Actually, maximum rate of profits cannot be infinite if there is positive constant capital. You must mean rate of surplus value, but then it is not the same thing as the rate of profits. ________________ Unfortunately the > citation you brought is not > related to the issue. In your citation what counts > is the rate of profit when > wages are squeezed down to a minimum, the > physiological minimum. In the > maximum rate of profit argument all new value > created stands in the numerator > and capital advanced in the denominator, the well > known L/c, where L is the > new value crested and c the constant capital. Then, > the argument goes, if the > value composition of production c/L (as Shaikh(?) > calls it) presents a > tendency to increase, the maximum rate of profit L/c > must present a tendency > to fall. This is the kind of argument Ajit said has > never seen in print. It is > already there regardless of being right or wrong. > Paulo ___________________ When did I say anything like that? What you say above is a sort of tautology--how can anyone deny a tautology (if c/L is rising then L/c must be falling is an elementary piece of mathematics and nothing else, there is no theory here). My point was about the relative immiseration of labor, that is, the thesis that though real wages are rising, the wage share in relation to profit is falling simultaneously with the long term trend of the rate of profits to fall. Since in your above example of c/L, V = 0, it simply cannot have any bearing on the problem. Cheers, ajit sinha __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com
This archive was generated by hypermail 2.1.5 : Tue Oct 31 2006 - 00:00:03 EST