Re: [OPE] Just published: THE NATIONAL QUESTION AND THE QUESTION O F CRISIS (RPE, Vol. 26)

Paul C.,

Thanks for the elaboration. But why would the total profits remain at
10 billion, as the capital stock falls from 100 to 95 and continues to
fall to 50?

In your scenario, capitalists might as well only consume luxuries as no
drop in capital stock can harm profits (dropping thereby the denominator
to zero). That 10% depreciation falls toward 10% of 0. Means of
production mean nothing, or, put another way, means of production are
themselves, technically-speaking unproductive.

Paul Z.

=====
(V23) HIDDEN HISTORY OF 9-11, Seven Stories Press, 2nd ed. softcover
(V24) TRANSITIONS IN LATIN AMERICA (V25) WHY CAPITALISM SURVIVES CRISES
(V26) THE NATIONAL QUESTION AND THE QUESTION OF CRISIS
====> Research in Political Economy, Emerald Group, Bingley, UK
====> P.Zarembka, Ed., www.emeraldinsight.com/books.htm?issn=0161-7230
.

On 11/29/2010 6:20 PM, Paul Cockshott wrote:
> In consequence after a year the capital stock will have fallen to 95 billion. The rate of profit will now be
> 10 billion
> ------------- which is more than 10%.
> 95 billion
>
> Year by year the capital stock will fall until the system is once more stable with a capital stock of 50 billion, this will depreciate by 5 billion a year
> just enough to compensate for the gross investment of 5 billion.
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Received on Mon Nov 29 21:21:24 2010