[OPE-L:5445] Re: Effect of turnover on the rate of profit

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Fri Apr 27 2001 - 12:46:58 EDT

>I've prepared a short mathematical statement on this.  Since (although
>the math is just simple algebra) it's difficult to present my argument
>clearly in plain ascii I'm making it available as a PDF file
>The note is intended to show how to decompose the effect on the rate
>of profit of an improvement of labour productivity into the two
>components (a) increased exploitation effect, (b) reduced turnover
>time effect.

Allin, I am not clear as to why circulating capital would be cut in 
half by a halving of production time. If by circulating capital we 
mean (say) raw materials, then the circulating capital per production 
period should not change.
Twice as much raw materials would be used per year, no? And what 
happens if assume that constant capital is used up in each period? It 
seems to me that we should assume such a pure circulating capital 
model to isolate the effect of an increase in the annual rate of 
surplus value. That is in effect what my simple example tried to do.

Yours, Rakesh

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