[OPE-L:5475] Re: Counteracting factors

From: Gerald_A_Levy (Gerald_A_Levy@email.msn.com)
Date: Tue May 01 2001 - 16:52:25 EDT

>From former listmember, Jurriaan/ YFTR, Jerry

----- Original Message -----
From: "Jurriaan Bendien" <j.bendien@wolmail.nl>
To: <Gerald_A_Levy@email.msn.com>
Sent: Tuesday, May 01, 2001 3:28 PM
Subject: Counteracting factors

 Two important counteracting factors to the tendency of the rate of profit
 to decline which Marx doesn't explicitly list are the abbreviation of the
 turnover time of capital (or if you like an increase in the rotation speed
 of the capital stock) and the arms industry (see Ernest Mandel, Late

 Nor does Marx discuss the macro-economic effect of the stratification of
 fixed capital on the replacement of fixed capital (see Geert Reuten's
 article in CER).

 Marx doesn't really discuss various types of "creative accounting", through
 which declining realised returns are compensated for by increasing
 depreciation charges, transfer pricing or revaluing inventories etc.

 Further Marx doesn't discuss how, in inflationary times or under
 monopolistic conditions, businesses can simply raise their output prices to
 offset declining returns.

 More generally, many of the counteracting factors which Marx lists should
 be re-examined in the modern context, where they may operate rather
 differently than from the past. Global corporations may be able to take
 advantage of geographical disparities to enhance profits, in ways that they
 could not in Marx's day.

 To say that the falling rate of profit is offset by a rising rate of
exploitation, is to refer really to a host of variables some of which are
 really "non-economic". For example, smashing or neutralising trade union
 power, or creating changes in organisational culture, or improving the
 productive capacity of labour, can help increase the rate of exploitation.


Jurriaan Bendien

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