[OPE-L:4195] Re: profit rate determination

aramos@aramos.b (aramos@aramos.bo)
Wed, 12 Feb 1997 15:54:55 -0800 (PST)

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1) Andrew K wrote in [OPE-L:4191]:

> > These are the issues. They have NOTHING to do with whether "perfect"
> > capital mobility ACTUALLY EXISTS. If it does not (and it doesnt),
> > profit rates are not equalized (and theyre not), commodities dont
> > exchange at their production prices (and they dont), and capitalists
> > have to seek the highest profit rate than can actually achieve, given
> > the additional constraints they face (such as inability to enter certain
> > sectors and/or costs of transferring capital from one sector to
> > another). But again, thats not what is at issue in the debate over
> > the transformation. It is not a model of an ACTUAL economy, with its
> > actual rigidities and so forth.

2) Now, Jerry in [OPE-L 4192]:

> OK, lets assume that everything above is true. Where does that leave
> us in terms of profit rate determination in actual capitalist
> economies where these constraints and rigidities exist? In other
> words, how do we theorize the impact of capital immobility, etc.
> on profit rate determination?

3) Finally, Alejandro:


I find that your questions are fundamental, not only for understanding
"actual capitalist economies" but also for formalizing more concrete
steps of Marx's own theoretical account.

However, I am not clear about the meaning of:

"lets assume that everything above is true".

Does this mean that, in your opinion, the "transformation debate" is
over? In other words, do you think that the "transformation debate" --
as set by Tugan, Bort, Sweezy, Seton, Samuelson, Steedman, etc.-- has
been effectively overcome on the basis of the new interpretations
such as TSS or SSS? Does this mean that the well known charges
against Marx raised by the above-mentioned "specialists" (and others)
were false?

Alejandro Ramos M.