[Marxism] The organic composition of capital and profit rates

Ambrose Andrews ambrose-bulk at vrvl.net
Sun Dec 9 05:09:00 MST 2012


On 9 December 2012 20:46, En Passant with John Passant
<en.passant at bigpond.com> wrote:
>
>
> 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.
>
>
> 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?
>
> John Passant
>

The OCC is the ratio/relation of constant and variable capital (dead
and living labour)

I'd assume the 'rate of profit' referred to above is for the whole
economy, not a particular sector, or rather that it is referring to
profit rate *prior* to the equalisation of rates of profit across
different sectors....  profit is distributed between sectors via the
market such that while a sector may be contributing to low
economy-wide profitability, this effect will not in the end be visited
on that sector in particular.

These (mining) profits are distributed from other sectors with lower
OCC via the markets. The labor which creates the value is from other
sectors of capitalist production.  Labor-created surplus value across
the whole economy is reallocated to different sectors not in
accordance with the labor in

(*because* of the high OCC)

So, merely having an average rate of profit in a high OCC sector is
not a speficially monoploy effect I'd say.  The superprofits of mining
are another story.

That's my reading anyway.

  -AA.


-- 
Ambrose Andrews
LPO box 8274 ANU Acton ACT 0200 Australia
http://www.vrvl.net/~ambrose/
mailto:ambrose at vrvl.net
voicemail:+61_261112936
work:+61_261256749
mobile:+61_415544621
irc:{undernet|freenode|oftc}:znalo
xmpp:ambrose at jabber.fsfe.org
diaspora:znalo at diasp.eu
CE38 8B79 C0A7 DF4A 4F54  E352 2647 19A1 DB3B F823
556A 6D19 0904 827C 9DB8  3697 32D0 1E11 403F 2BE1




More information about the Marxism mailing list