[OPE-L:5453] Re: Re: Re: Re: turnover time and surplus value

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Sat Apr 28 2001 - 13:57:53 EDT

>>Re my [5449]:
>>I think I might have botched the numbers in the
>>hypothetical example that I gave but the
>>fundamental point remains sound. Specifically,
>>one can see  that when there is a reduction in
>>turnover time due to decreased circulation time
>>that the mass of surplus value and profit
>>can increase even where the rate of surplus value
>>and the organic composition of capital remain
>>In the case of a reduction of  productive capital
>>in stock where there is a reduction in turnover
>>time caused by a reduction in production time,
>>the effect is two-fold. Firstly, this reduction in
>>fallow productive capital in stock (e.g. the stock
>>of  constant circulation capital not currently
>>"in use") "frees up"  a quantity of money capital for
>>additional investment in c and v.  This then allows
>>for an increase in the mass of surplus value and
>>profit. Secondly (and this is where Paul C and
>>Allin are right), this reduction in constant
>>circulating capital has the effect of reducing the
>>organic composition of capital and thereby
>>leading to an increase in the rate of profit.
>>Just-in-time (kanban; flexible) production could
>>be seen in this way.
>>In solidarity, Jerry

Jerry, I don't understand what you all mean by constant circulation 
capital--is this raw materials or unfinished goods? thanks for the 
yours, R

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