[OPE-L:8298] Re: A possible reason why profit rates do not equalise

From: glevy@pratt.edu
Date: Thu Jan 09 2003 - 09:48:37 EST

Re Paul C's [8297]:

Another consideration:  in the branches of production where
the organic composition of capital is higher than the average,
the proportion of total capital that takes the form of
constant fixed capital also tends to be higher.  The
fact that a large proportion of the total capital in a branch
of production takes the form of constant fixed capital can
present itself to the individual capitalists in that branch
as a "barrier to exit."   That is, while money capital
could "flee" to other branches, these capitalists might have
to prematurely "write off", and thereby lose the value, of
the means of production.  This, then, could slow the mobility
of capital among branches of production and thereby slow the
formation of prices of production and profit rate equalization.

Solidarity, Jerry

This archive was generated by hypermail 2.1.5 : Fri Jan 10 2003 - 00:00:01 EST