[OPE-L:2443] Re: Re: Re: Re: the employment contract and capitalism

From: riccardo bellofiore (bellofio@cisi.unito.it)
Date: Mon Feb 28 2000 - 10:24:39 EST

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At 15:58 +0100 28-02-2000, Prof. Ernesto Screpanti wrote:
>Riccardo wrote in [2406]
>At 12.36 24/02/00 +0100, you wrote:
>>Ernesto there are two ways out of your paradox (two ways that to me are
>>only one):
>>(i) no exploitation in the Marxian sense if you starts from prices of
>>production; to have exploitation you must reason with the labour theory of
>Well, then assume the organic comosition of capital is uniform. You have
>relative labour values that coincide with production prices. Is there

Definitely yes.
>>(ii) perfect equilibrium with no profits is a circular flow which is
>>definitely not capitalism; this circular flow is regularly broken by
>>innovation, and innovation is driven by class struggle at the point of
>When Samuelson says "zero profits" he means that a normal "profit",
>remunerating a director's work, is included in costs. But even if you assume
>that the director's wage is nil, the result does not change. A zero profit
>economy is not capitalist? Well, Samuelson would agrre. He could say that
>capitalism is an invention by Marx. In reality there are only "market
>The introduction of innovation complicates the picture but reinforces
>Samuelson's point in the way Schumpetr's would do. Profit does not arises
>from exploitation, but by the eroic entrepreneur's activity!

OK. And we may answer that the entrepreneur needs to be 'heroic', since he
is always pressed: (i) by the potential contestation from workers; (ii) by
the competion of other capitals. Schumpeter sees only (ii) - though in
Capitalism, Socialism and Democracy he comes very near to recognize (i).
What is sure is that a capitalism with normal profits, equal in all
sectors, and may be on a balanced growth path, is not Marx's.

BTW: Ernesto, I'm happy for the agreement arising out of the other two
answers from you.


        Riccardo Bellofiore
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