[OPE-L:3396] RE: equalisation of profit rates

From: Chai-on Lee (conlee@chonnam.ac.kr)
Date: Thu Jun 01 2000 - 00:08:15 EDT

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Dear Paul,

In Capital 3 Chap. 21, Marx says, Interest Bearing Capital and Banking Capital do not enter into the formation of socially average profit. However, in computing the amount of social capital as a whole, I think their fixed capitals must be taken into account. Otherwise, what are they?

A problem is that if their fixed capitals are included, another socially average rate of profit must appear in distinction from the average rate of profit computed with banking capital excluded.
An interpretation of the double average rates of profit is needed.

With Regards,


-----Original Message-----
From: owner-ope-l@galaxy.csuchico.edu [mailto:owner-ope-l@galaxy.csuchico.edu]On Behalf Of Paul Cockshott
Sent: Thursday, June 01, 2000 12:04 AM
To: ope-l@galaxy.csuchico.edu
Subject: [OPE-L:3391] equalisation of profit rates

I have a query about the rate of profit.

Do list members think that the fixed capital of the banking sector
should enter into the general rate of profit, and if so by what

The practical relevance of this is that when one wishes to
look at time series for the organic composition of capital in a
country one has to decide if the fixed capital of the banking
sector ( its buildings and equipment ) should be included
in the figure for total constant capital or not.

I tend to think that it should not be included, as I can see
no plausible mechanism by which it can influence the rate
of profit of industrial capital.

What practice do other members follow when constructing
such time series.

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