[OPE-L:7935] Re: Re: relation of value to organic composition of capital

From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Wed Nov 06 2002 - 12:25:51 EST

In 7921 Andrew B writes:

>  At any
>rate, on the my view this means that the TCC and OCC can go up,
>with the VCC staying the same. Indeed, the OCC *always* and
>*only* changes with the TCC on this view. The OCC is an index of
>the TCC.  The question of abstraction comes in here also. The
>OCC *abstracts* from all changes in the VCC that do not reflect
>changes in the TCC (on the view I am suggesting).

  It would seem that the OCC (as you, Alfredo and Simon are defining 
it) is not mirroring changes in the VCC which result only from 
technical change because your OCC makes no allowance for the 
reduction of unit values and current prices effected by technical 

Yet why else would have Marx thought the OCC does not rise as sharply 
as the TCC if in measuring the OCC itself he wasn't taking into 
account the reduction in current prices effected by the continuous 
reduction of unit values resulting from technical change? That is, it 
does seem to me that Marx was indeed taking into account the changes 
in current prices effected in the realm of circulation in measuring 
the OCC. Bauer's scheme notoriously failed to do just that, as 
Grossmann was the first to point out.

I would say that the VCC rises faster than the OCC because current 
prices are only brought into the orbit of their new lower unit values 
which have resulted from on-going technical change through the 
periodic effects of crisis.

The VCC thus races ahead of the OCC and is only brought into 
conformity with it through crisis.

Yours, Rakesh

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