Re: [OPE-L] calculating the not rate of profit

From: glevy@PRATT.EDU
Date: Wed Apr 04 2007 - 18:02:15 EDT


> I haven't been clear enough. The question is how, ex post, to distribute
> value transfer over the life of an asset for the purposes of value
> accounting.  If we have no way of doing that we are unable to draw up ex
> post value accounts.


Hi Phil:


The current value post moral depreciation could be considered to be the
*current re-sale value of the means of production*.  However, as Michael
noted, the re-sale value could simply be its *scrap value* (minus
transport  and processing costs).  Note that this could mean that the
morally depreciated means of production could come to represent *negative
value* since the owners of the means of production might have to pay
another capitalist to transport and safely dispose of the machinery.  This
could, also as Michael suggested, be thought of as a form of economic
waste and the value that the means of production represented prior to
moral depreciation should be considered to be a *loss* in the national
accounts.  The idea advanced by some Marxians that there is no net loss of
value because of moral depreciation but simply a redistribution of value
among capitalists can not be supported empirically or historically, imo.


In solidarity, Jerry


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