[OPE-L:5639] Re: [OPE-L:5561] RE: Luxury goods and profit rate

Ajit Sinha (ecas@cc.newcastle.edu.au)
Mon, 27 Oct 1997 15:05:55 +1100

[ show plain text ]

At 22:58 23/10/97 -0400, Duncan Foley wrote:
>Some comments on Ajit's OPE-L:5561:
>
>
>...
>
>After some discussion of my last post commenting on his critique of the New
>Solution, Ajit says:
>
>>
>>I think you are right if you define the rate of exploitation as
>>p(I-(A+bl))x/pblx. However, this is nothing but the ratio of the money
>>value of total profit divided by the money value of total wages, and is NOT
>>the rate of exploitation defined by the 'new solution' as I understand it.
>
>One question I have, which also bothered me in reading your paper on the
>New Solution, is where you get your understanding of these concepts. Both
>Dumenil and I, at least, do argue that the Marxian rate of surplus value
>(or exploitation) is the ratio of total profit divided by the money value
>of total wages.
_____________

I concede this point. The ratio of the money value of the net output in the
two monetary regimes would be equal to the ratio of the money value of the
given wage basket in the two monetary regimes. The measure in terms of
'value of money' is irrelavent because they cancel out. However, this issue
has nothing to do with my critique of 'new solution' in RRPE. That critique
stands on its own.

Cheers, ajit sinha