[Marxism] The organic composition of capital and profit rates
En Passant with John Passant
en.passant at bigpond.com
Sun Dec 9 02:46:52 MST 2012
The Marxist Glossary says:
The organic composition of capital, c/v, measures the difference between the rate of surplus value, s/v, and the rate of profit, s/(c + v) - the higher the organic composition of capital, i.e., the more capital-intensive the industry, the lower the rate of profit.
Why is this so? For example the mining industry in Australia is extremely capital intensive and much of it earns (or did until recently) 'super-profits'. Is that reflective of some form of monopoly - both in the land and the global supply (sort of), the finite nature of the resources in the long term and high demand from China? Where does OCC fit into this then?
Does the monopoly type situation mean that mining companies purloin more than their share of surplus from other capitalists even though they have a high OCC?
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