Re: [OPE-L] J Winternitz's "The Marxist Theory of Crisis" online

From: Michael Perelman (michael@ECST.CSUCHICO.EDU)
Date: Mon Dec 20 2004 - 21:18:22 EST

I don't have time to answer in detail, but the empirical evidence is that
replacement investment does take place more vigorously during downturns, when
competitive pressure is strongest.  I discussed this in my Keynes book.

On Mon, Dec 20, 2004 at 05:53:57PM -0800, Rakesh Bhandari wrote:
> At 1:36 PM -0500 12/20/04, Gerald_A_Levy@MSN.COM wrote:
> >  > Winternitz is arguing that in the boom demand may be strong enough
> >>  both to effect continously technical change as embodied in
> >>  accumulated capital goods and to keep running equipment that will
> >>  become outdated in the recessionary phase.
> >
> >Rakesh,
> >
> >Why will the constant fixed capital become outdated in the
> >recessionary phase but not the expansionary phase of the cycle?
> It does, only less so. Bankruptcy, obsolescence are permanent
> features. Capital is never in equilibrium.
> >In other words, there doesn't have to be a global shortage of labor power
> >for an international crisis to be triggered by the shortage of labor power
> >in one or more major capitalist social formations.
> I wasn't contesting the theory as a matter of logic; it does not seem
> to me empirically robust at the present time.
> >
> >In solidarity, Jerry

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at

This archive was generated by hypermail 2.1.5 : Thu Dec 23 2004 - 00:00:01 EST