[OPE-L:5461] Re: Re: Re: Re: Re: turnover time and surplus value

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Sun Apr 29 2001 - 13:30:46 EDT

re 5456:

>Well, my point was to show how a reduction in
>turnover time could increase the mass of
>surplus value and profit even when the rate
>of surplus value and the OCC remain constant.

Jerry, you mean even with the real or simple rate of surplus value 
remains constant. What is the 'status' of the annual rate of surplus 
value in your estimation?

>This means that it must be taken as an
>independent variable rather than being de-
>composed into either the rate of surplus value
>or the composition of capital. However, as I also
>noted in the second paragraph of [5441],
>a reduction in turnover can *also* manifest itself
>-- where e.g. there is a reduction in constant
>circulating capital -- through a decreased OCC.

Again I think we need to be clear about how we are to measure the 
OCC; for what purpose did Marx devise this index?

>>  Let's assume that there are certain minimum
>>  capital requirements for
>>  further accumulation of new means of
>>  production, and that this
>>  minimum mass of surplus value cannot be
>>  amassed out of one turnover
>>  of capital. So part of the depreciation fund is idle > until it becomes
>>  big enough to be laid out again on new means of > production.
>This might be an example of the 'fallow'
>money-capital that Grossmann was referring to.
>Recall that he mentioned three different forms
>of 'fallow' capital.

The important thing is that if any capital is to lie fallow, any 
capitalist will prefer it to then be in the form of money capital. At 
least in that form he will be able to get some interest.

>This is another possibility (that I will have to
>think about some more).  My point, though,
>wasn't that this way in which there was a
>reduction in turnover time [caused by a
>reduction in circulation time and with it a
>freeing-up of  money-capital that had
>previously taken the form of commodity
>capital]  was the _only_ way in which
>turnover time could be reduced -- rather it
>was _1_ of  the forms in which turnover time
>could be reduced.

Yes. So we'll have to think through the implications of all the 
different ways in which turnover can be reduced.

Yours, Rakesh

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