From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Wed Sep 12 2007 - 06:26:20 EDT
--- ajit sinha <sinha_a99@YAHOO.COM> wrote: > --- Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote: > > > Quoting ajit sinha <sinha_a99@YAHOO.COM>: > > > _____________________________ > > > I really don't understand the nature of your > > problem. > > > As Ricardo clearly tells you what is a > circulating > > > capital for one could be treated a relatively > > fixed > > > capital for other. The distinction between fixed > > and > > > circulating capital is a matter of convention. > > > Ultimately all these differences boil down to > > > differing time-structure of capital--and this is > > the > > > source of all the problem. Differences in > organic > > > composition of capital of Marx must show up as > > > differences in time-structure of capital of > > Ricardo. > > > > > > Ajit, this is not my problem. This is a problem > in > > Sraffian theory. > > The problem, as I have explained in an earlier > post, > > is that Sraffian > > theory (in which all capital is treated as > > circulating capital, because > > fixed capital is treated as a “joint product”), > all > > industries must be > > assumed to have the same turnover period, if the > > rate of profit that is > > determined by the system of equations is to be > > equalized over the same > > period of time. If, on the other hand, turnover > > periods were not equal > > across industries, then the rate of profit > > determined by the equations > > would be equalized for different turnover periods, > > which would mean > > that the annual rate of profit for different > > industries would not be > > equal, contrary to the prevailing tendency. > > > > For example, if a given capital in one turnover > > period has a rate of > > profit of 5%, and it turns over twice a year, then > > it will have an > > annual rate of profit of 10%. If another capital > in > > another industry > > also has a rate of profit of 5%, but turns over 10 > > times in a year, > > then its annual rate of profit would be 50%. > > > > I hope this clarifies the problem. Any suggested > > solutions? > > > > Fred > _________________________ > That definitely clarifies the problem, which is > that, > as I had expected, the problem is with your > understanding of the problem rather than with > Ricardo > or Sraffa. Rate of profits is given in terms of > period > of time. Now a days banks compound your rate of > interest on almost daily basis, if your bank tells > you > that the rate of interest on your deposit is 5%, > then > would you expect that your daily rate of interest > should be (5x365)%? Why not just read Ricardo? He > will > solve all your problem. Cheers, ajit sinha ________________________ Fred, What I meant above was "your annual rate of interest" not daily. Further, your mathematics above does not take care of the real nature of compounding of the rate of profits. Cheers, ajit sinha > > > > > > > > > ---------------------------------------------------------------- > > This message was sent using IMP, the Internet > > Messaging Program. > > > > > > > ____________________________________________________________________________________ > Shape Yahoo! in your own image. Join our Network > Research Panel today! > http://surveylink.yahoo.com/gmrs/yahoo_panel_invite.asp?a=7 > ____________________________________________________________________________________ Take the Internet to Go: Yahoo!Go puts the Internet in your pocket: mail, news, photos & more. http://mobile.yahoo.com/go?refer=1GNXIC
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