From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Fri Mar 23 2007 - 10:04:23 EDT
--- Pen-L Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote: > According to Marx’s theory, in which commodities are > analyzed as > “products of capital”, with prices as flows of > components of capital, > rather than as individual commodities, with unit > prices. From this > perspective, the firms’ revenue is determined by > their capital consumed > in production (both constant capital and variable > capital, whatever > they are) plus the average profit on their invested > capital (which is > determined by the general rate of profit, which in > turn is determined > by a prior analysis of the determination of the > total surplus-value in > the economy as a whole). _____________________________ Okay, this is the last time I'm going to comment on this. Let me follow your reasoning step by step as put forward by you: (1)Firms revenue is determined by capital consumed (which is whatever it happens to be) plus the average profit on their invested capital. (2)The average profit is determined by the general rate of profit. (3) The general rate of profit is determined by the total surplus value in the economy as a whole. Let me assume that there is no problem with your procedure from (1) to (3). Thus according to your reasoning (1) cannot be determined unless (3) is known. Now, when I ask you how do you determine (3) or rather the total surplus value in the economy as a whole?, you tell me I take (1) as given and subtract the given capital (C+V) from it. And you think you do not indulge in circulat reasoning? Do whatever you want, but please don't attribute such reasoning to Marx--poor Marx has already got a pretty bad press, with friends like you he stands absolutely no chance! Cheers, ajit sinha ____________________________________________________________________________________ Finding fabulous fares is fun. Let Yahoo! FareChase search your favorite travel sites to find flight and hotel bargains. http://farechase.yahoo.com/promo-generic-14795097
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