RE: [OPE] webpage computing dynamic rate of profit

We are talking at cross purposes. A static equation for the rate of profit will have these properties as you say.
What is new in our work is the discovery that the dynamic attractor of the rate of profit is independent of the rate of exploitation.
Basically the equation for the dynamic attractor works out what rate of profit will cause the organic composition to stablise given the current share of reinvestment out of profit which is the source of new constant capital, and also the rate of depreciation, the rate of moral depreciation and the the rate of growth of the workforce, all of which are facturs tending to pull down the organic composition.

If you look at the countries for which statistics are good ( basically the OECD ones ) on the web site you can see that the actual rate of profit ( calculated with the static equation you are used to ) tends to approach the equilibrium rate. This is illustrated particularly well by Japan.

The equilibrium rate is basically a dynamic solution to the problem of the falling rate of profit.

________________________________________
From: ope-bounces@lists.csuchico.edu [ope-bounces@lists.csuchico.edu] On Behalf Of GERALD LEVY [gerald_a_levy@msn.com]
Sent: Monday, May 18, 2009 1:21 PM
To: Outline on Political Economy mailing list
Subject: RE: [OPE] webpage computing dynamic rate of profit

> One has to distinguish the rate of return on investment in equities which is affected by all
> the volatility of the stock market from the rate of return on real productive investment.

Hi Paul:

Well, a demystified formula for the rate of profit from a Marxian perspective
should include surplus value (S) and allow for S to be increased in ways other
than just through increasing investment in (constant) capital stock. If V and
S aren't included in the formula then it makes comparisons of the rate of
profit to the organic composition of capital and the rate of exploitation more
difficult: i.e. if you include c, v, and s in all three formulas then you shouldn't
have a comparing apples and mangos type problem.

In solidarity, Jerry_______________________________________________
ope mailing list
ope@lists.csuchico.edu
https://lists.csuchico.edu/mailman/listinfo/ope_______________________________________________
ope mailing list
ope@lists.csuchico.edu
https://lists.csuchico.edu/mailman/listinfo/ope
Received on Mon May 18 09:05:58 2009