[Marxism] The organic composition of capital and profit rates
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.
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