1. Chris seems to agree with me about the general rate of
profit - that it is determined by social totals and is determined
independently of competition and prices of production.
Competition only equalizes the individual rates of profit to this
independently determined general rate of profit.
2. I don't understand what Chris is arguing about the average
rate of profit. I don't understand Chris' distinction between
THEORETICAL DETERMINATION and ACTUAL EXISTENCE.
I have argued that, for Marx, the average rate of profit is also
determined independently of competition and prices of
production, as a weighted average of individual rates of profit
according to the assumption that individual prices equal their
values (i.e. individual capitals are considered as "aliquot parts"
of the total social capital). Again, competition ONLY EQUALIZES
the individual rates of profit to this INDEPENDENTLY
DETERMINED average rate of profit. The average rate of profit is just
another way of looking at the general rate of profit in order to
emphasize that the general or average rate of profit depends on the
distribution of capital across industries.
Chris seems to agree with this to some extent, but then argues
that this average rate of profit is a "mere theoretical"
determination or even a "mere arithmetic" result, which does
not have an actual existence. The actual existence of this
average rate of profit is brought about by competition and
comes into existence together with prices of production.
But, Chris, when this actual average rate of profit comes into
existence, how is its LEVEL determined? That is the crucial
question. Is it not the "theoretically determined" average rate
of profit? This is not a "mere theoretical" determination, but is
instead the determination of the average rate of profit in the
real world. For Marx (as I understand him), competition does
not determine the level of the average rate of profit, but only
equalizes the individual rates of profit to the independently
determined level. There is no difference between the general
rate of profit and the average rate of profit in this regard.
So, Chris, if you want to argue that competition somehow
determines the LEVEL of the average rate of profit, please
explain how.
Comradely,
Fred