Reply to Gerry:
>(1) Define accumulation of capital.
>
>(2) Assume v = 0.
It seems to me that some unnecessary confusion is ramifying around this v =
0 issue. For one thing, it isn't clear whether "Assume v = 0" means "I
believe that in some real capitalist society v = 0", which I don't really
think anyone believes or "For the sake of the argument, let's look at the
case where v = 0 as a way of thinking about situations where v is very
small, or because it simplifies the algebra without changing the
fundamental insight", which seems to me to be a legitimate way of
proceeding, as long as everyone is clear on the reasons for making the
assumption.
>
>(3) If other assumptions are made, we can derive a "maximum rate of
> profit."
>
>(4) The *maximum* rate of profit happens, subject to the above, *only* in
> the case where accumulation of capital is non-existent.
I'm not sure I follow you here. If v is very small, won't the profit rate
will be close the maximum, whether or not the capitalists invest or consume
the surplus value?
Duncan
Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
(212)-854-3790
fax: (212)-854-8947
e-mail: dkf2@columbia.edu