[OPE-L:6094] Re: falling profits - 2

From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Fri Oct 26 2001 - 13:32:18 EDT


> 2.  From the mid-70s to 1997, the rate of profit recovered, but only
> partially (only about half of its prior decline), so that the rate of
> profit in 1997 remained about 25% below its earlier postwar peak.  The
> main reason for such a weak recovery of the rate of profit was the
> continued increase of the ratio of unproductive labor to productive labor,
> which partially offset a sharp increase in the rate of surplus-value and
> its positive effect on the rate of profit (the composition of capital
> increased only slightly during this period, due mainly to slower capital
> accumulation and lower costs of raw materials).  

OK, so was the decline in the costs of raw materials less or more important as 
the rise in s/v in the (partial) recovery of the profit rate? what made for 
lower costs of raw materials? technological improvements in extraction, 
breaking of cartels by entry of new states?


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