[OPE] replacement cost and historical cost (again)

Of course it is possible for a change in depreciation schedules to change
the average rate of profit for industries, since a change in depreciation
schedules can alter the part of gross revenue which can be claimed as gross
profit. Marx's argument is only that the divergences between output prices
and output values can only occur within certain limits, and that products
are created as values before they have actual prices for which they actually
exchange. But if they are priced differently, as a result of changes in
depreciation techniques, this transmits a different social valuation to
individual enterprises, and thus changes in price can lead to adjustments in
labour utilisation, and consequently to changes in output-value. We should
not confused the analytical stages for understanding a process with the
actual process itself, which involves continual feedbacks between the
different elements of the process which are difficult to understand in one
fell swoop.

Jurriaan

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Received on Fri Sep 11 14:50:18 2009