I think Chaion raises an important point. In making investment decisions,
capitalists are presumably trying to forecast the future profitability.
This is a different issue from the ex post accounting of past profits on
past investments.
Duncan
On Mon, 25 Mar 1996, chaion lee wrote:
> Dear Andrew,
> Perhaps we should have two kinds of the profit rate conception. By definition,
> of course, the rate of profit may well be a ratio between the new value increment and the original (old) value as it is to be estimated over a certain period.
> An interest rate, too, is not to be calculated on the two terms of the same points of time.
> However, when we think of the competitive capitalists, they have to compute the
> profit rate, if he/she intends to enter a new branch of production, by reference to the present (new) input and output values. So, Marx's equal rates of profit
> are to be calculated on the (new) input values if it is related to the capitalist competition. So, I think there are two kinds of profit rates. One is actual, customary profit rate, the other is an economic (competition-inspired) profit
> rate. How do you think?
> With regards
> Chai-on
>
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