>If one assumes that accumulation occurs as an exogenous constraint,
>unexplained at this level of micro analysis then the above assumption
>and the theory as a whole falls. It becomes possible to have investments
>in technologies which on a flow basis ( as dealt with in the standard
>input output model ) are more efficient, but which entail a higher
>stock of fixed capital, which depresses the profit rate.
On the basis of this higher stock of fixed capital, the capital output
ratio presumably increases. For Brenner this means that the profit rate
falls due to a a fall in overall labor productivity, taking into account
both capital (indirect labor) and (direct) labor inputs. He argues that
this Marxist argument is thus really Malthusian as the falling profit rate
is derived from a fall in the productivity of labor, considered overall.
Do you agree with this argument?
Yours, Rakesh