Re: [OPE] Reply to critics

On 2010-10-22 23:54, Paul Cockshott wrote:
> Instead the profits that capitalists in dept 3 make all comes from purchases of luxuries by other capitalists in dept 3.
> Thus if they collectively attempt to do what Gerry proposes, reduce their purchases of luxuries and increase their purchases of means of production by $1billion, their profits will fall by exactly $1 billion. Any attempt to divert profits out of dept 3 actually eliminates their profits.
>

This also addresses the question of changing the form of employment from
'servants' into 'servant workers'. Let u denote the fraction of
surplus-value in sectors I and II unproductively consumed, then the
means of production and wages from non-capitalist servant sector III
(chefs, chauffeurs, etc.) are set by

    u*(s1 + s2) = c3 + v3

The surplus labour performed the servants does not realize as profits.

Now suppose sector III becomes capitalist, with firms employing chefs,
chauffeurs, etc. and report profits, then

    u*(s1 + s2) + s3 = c3 + v3 + s3

The surplus labour is now realized as profits only to the extent that
the profits earned in III are unproductively consumed within it. It
matches dollar for dollar by s3. In other words, nothing has changed
materially and the apparent creation of surplus value by a mere shift of
employment will cease the very moment it is no longer unproductively
consumed within itself. Socially nothing has changed either, apart from
the creation of a few illusions.

//Dave Z
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Received on Sat Oct 23 04:44:46 2010