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

The reason the profit is still 10 billlion is that we assume that the labour force remains the same and the rate of surplus value is unchanged.
Why don't they just consume all the capital?
Remember this is an overall social process in which different capitalists acting in their short term self interest produce this change in the accumulation rate. There is no long term strategy here, other than maxims of fund managers like : make the assets sweat, maximise shareholder value. These principles discourage large long term investment, and express the parasitic rentier interest.

--- original message ---
From: "Paul Zarembka" <zarembka@buffalo.edu>
Subject: Re: [OPE] Just published: THE NATIONAL QUESTION AND THE QUESTION O F CRISIS (RPE, Vol. 26)
Date: 30th November 2010
Time: 2:20:07 am

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 Tue Nov 30 16:19:55 2010