Andrew wrote that it:
"... devalues capital but ignores the moral depreciation."
With this statement, I think we can begin to isolate differences
between the TSS view and the usual way of computing the rate of
profit. That is, assuming all agree that both moral depreciation
and the devaluation of constant capital occur as accumulation
takes place, how do we show the losses due to moral depreciation?
Put another way, do such loses play any role in reckoning the
rate of profit?
Andrew's efforts are a good start from the TSS standpoint. I have
no idea how those who disagree would account for "moral depreciation"
in computing the rate of profit. Is it a deduction from profit?
If so, does the profit used in the numerator of the rate of profit
expression reflect the loss? If not, why not? If so, how?
John