[OPE-L:3230] RE: FRP/Current Costs

John Ernst (ernst@nyc.pipeline.com)
Wed, 2 Oct 1996 11:24:39 -0700 (PDT)

[ show plain text ]

Fred,


In your posts on the valuation of constant capital
is the notion that we should be using current costs
to price the constant capital. I think the following
is relevant.


1. In none of the examples we have been discussing does
the rate of profit as you measure it fall.

2. Constructing an example of what you consider the
relevant rate of profit with negligible wages and
only one commodity is impossible. But perhaps I am
wrong here, if so, please note

that, for Marx, "... if the productiveness of labour
uniformly cheapens all elements of constant capital
and the variable capital...", the rate of profit will
not fall. (V3,p226,Int Ed.)

Hence, in the type of models we are considering to
construct a current cost falling rate of profit where
the prices fall uniformly seems to aiming at something
other than what Marx had in mind.

John