[OPE-L:4239] Re: The Effect of Turnover on the Rate of Profit

john erns (ernst@pipeline.com)
Mon, 17 Feb 1997 13:51:50 -0800 (PST)

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Jerry (OPE 4237) wrote:

(snip)

However, if we consider the logical structure of V3, Part 1 and its
relation to the rest of V3 we might observe some "clues" about the
possible content of Ch. 4. Or, more specifically, we might be able to
extrapolate what would _not_ be included in Ch. 4.

John:

Given the title of Ch 4, one would expect to find some general
way of computing the rate of profit as fixed capital turns over.
It isn't there. I do not have answer to the question of what
should be there and hence find it difficult to speculate about
what shouldn't be there.

Jerry:
(snip)

Our discussions on moral depreciation have primarily taken place within
the context of considering: a) reductions in the price of elements of
constant fixed capital, and b) the effect of "BETTER" machines. Yet, ...
what are the implications of the subjects of "The Effect of Changes in
Price" (Ch. 6) and "Economy in the Use of Constant Capital" (Ch. 5)
being presented _after_ the plan to present "The Effect of Turnover on
the Rate of Profit"?

John:

Given the problem in Ch. 4, it is clear that Marx skipped something
as he wrote the chapters following it. If we knew what should be
there, we may find the following chapters you mention lacking as well.

Jerry:

Couldn't one reasonably conclude that most of the topics that we have
been discussing relating to the turnover of fixed capital and
depreciation concern a more concrete level of abstraction than that
relevant to Ch. 4?

John:

We would be drawing this conclusion on what basis? We do not
know the content of a "complete" Ch. 4. A large part of the
difficulty we have with the topics under discussion stems from
the lack of agreement on "the effect of turnover on the rate
of profit."

Jerry:

Of course, this raises many more questions. For instance, where logically
is the appropriate place to consider the turnover of fixed capital and
moral depreciation on the periodicity of the trade cycle? Marx does not
tell us.

John:

Clearly, like Marx, I do not have an answer to your question.

Jerry:

While I agree that it is worthwhile to consider the relation of the
turnover of fixed capital to the rate of profit in terms of considering
what Marx wrote _after_ the drafts of V3, my point was additionally that
this topic should be considered in relation to the logical structure of
the rest of V3. Do you not agree? Why or why not?

John:

The prior question is -- would answers to the questions that arise when
we consider the relation between the turnover of fixed capital and the
rate of profit change the structure itself? We could then, also, see
if the answers would change the manner in which subsequent topics are
treated. There is nothing sacred about the "logical structure" of
CAPITAL.

John