Equalisation of profit

Chris Burford cburford at gn.apc.org
Thu Jun 15 19:59:44 MDT 1995

Paul, I would be grateful if you can expand just a bit more
about the tendency of the rate of profit to equalise as I have
a problem with the conciseness of the argument.

Are there any counter-tendencies that could be behind your
empirical observation of an inequality in the rate of profit?

How do capitalists from their own limited point of view come
to accept a lower rate of profit in industries with high
organic compositions?

Many thanks.

Chris B

Paul   Wed, 14 Jun 95
the entire argument against value theory that you
have been advancing is based on a false hypothesis:
that the rate of profit is independent of the
organic composition of capital.

In fact the rate of profit is negatively correlated
with the organic composition. Industries with high
organic composition have on average lower rates of

What we see in fact is a partial transformation
from values to prices of production. The process
of equilibration of the rate of profit never goes
far enough to complete the transformation. This
only makes sense if values have an underlying
reality as an attractor for the price vector,
with a tendancy towards profit equalisation acting
as a form of systematic noise on the signal.

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