thermodynamics

clyder at gn.apc.org clyder at gn.apc.org
Mon Sep 22 02:11:30 MDT 2003


Quoting Rakesh Bhandari <rakeshb at stanford.edu>:
 >   I don't think TSS is saying that with their temporal conception of 
> value the rate of profit has to fall as a result of viable technical 
> change; they seem only to be saying that it can indeed fall where the 
> Okishio Theorem based on a simultaneist conception of value says it 
> cannot. So I don't think Laibman's findings are a refutation of TSS's 
> refutation of the generality of the Okishio Theorem; at best, 
> Laibman's findings show that the rate of profit cannot reasonably be 
> expected to fall as a result of viable technical change even given 
> the TSS conception of value and that in most cases or in realistic 
> cases the value rate of profit will track the material rate of profit 
> over the long term. 

I think the issue of technical change is a red herring.
Leaving aside the rate of surplus value, the main issue determining
the rate of profit is whether the rate of accumulation is higher 
than the rate of growth of the employed population. If it is
then the organic composition rises and the rate of profit tends
to fall. If it is not, then the oganic composition falls.


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