In <199603260714.CAA28519@pipe1.nyc.pipeline.com>, John R. Ernst wrote:
>>John asked in [OPE-L:1548]:
>>
>>> 3. When we speak of the falling rate of profit, about what rate of
>profit
>>> are we talking? The equilibrium rate? Andrew's? The "ex ante"
>one?
>>
>>I thought Marx was pretty clear: its the "law of the tendency for the
>>*general* rate of profit to decline" (emphasis added, JL).
>>
>>I don't interpret the general r as either the "equilibrium rate" or the
>>"ex ante" one. Do others agree or disagree?
>
>
>Here, whether or not others agree or disagree, while essential to our
>dialog, misses my point. Within the literature on the falling rate of
>profit the "general" rate of profit is most often seen as the
>equilibrium rate of profit.
>
The rate of profit that is relevant is that arrived at by dividing
the current book value of aggregate national capital by the total
profit of all firms in the industrial, commercial and financial
sectors.
This is not in any sense an equilibrium rate. But it is real
and measurable.