From: Francisco Paulo Cipolla (cipolla@UFPR.BR)
Date: Tue Oct 10 2006 - 17:38:42 EDT
I do not think the maximum rate of profit argument is a mathematical tautology since it is grounded on the idea of a rising composition of capital (rising c/L) which is a historical tendency of capitalism. Rising rate of exploitation and falling rate of profit go together. Wasn´t this that Ajit said it was difficult to show? Paulo ajit sinha wrote: > --- 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
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