Re: Labour aristocracy

From: Paul Cockshott (clyder@GN.APC.ORG)
Date: Thu Jan 15 2004 - 18:23:00 EST

Could the high rate of surplus value in Mexico be
caused by the following mechanism.

1. Wage rates are determined by the rate of productivity
   in the non-internationally traded sector, and held low
   due to the continued existence of a substantial agricultural

2. The factories of multinationals trading internationally
   can take advantage of those low wage rates and sell their
   product at a dollar price only slightly below the dollar
   price of similar factories in the USA.

3. This gives these factories an above average rate of
   surplus value. Higher both than the Mexican or US average.

4. Because of their higher value productivity per hour when
   compared to the non-internationally traded sector, the
   firms in the internationally traded sector exercise a weight
   in the national accounts that is disproportionate to the
   number of workers employed.

5. Because of 3 and 4 above the net effect is to raise the
   average social rate of surplus value for the Mexican
   economy relative to the US economy despite the much
   lower productivity of the Mexican economy.

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