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

From: michael perelman (michael@ECST.CSUCHICO.EDU)
Date: Thu Dec 23 2004 - 13:17:17 EST

Rakesh Bhandari wrote:

> Michael,
> I'll want to read this excerpt again. Meanwhile, a few quick points:
> 1. Recessions may not improve best practice as much as bring capital
> into line with it. Webber and Rigby consider this type of technical
> change.

Yes, that is what I am proposing.

> 2. Even though a recession induced technological upgrading may
> increase the OCC, the recession induced cheapening of constant and
> variable capital may imply that the VCC (measured as c/v+s) does not
> rise proportionately. A point made by Mattick Jr.

Again, I agree, although I push this more directly in my Marx book..

> 3. Whatever the effect on the VCC, the new investments undertaken in
> a recession to ensure that costs fall faster than prices may require
> an increase in minimum capital requirements and thus lead to the
> concentration of capital. A point made long ago by Okishio.

No problem here either.

> Yours, Rakesh


Michael Perelman
Economics Department
California State University
michael at
Chico, CA 95929
fax 530-898-5901

This archive was generated by hypermail 2.1.5 : Fri Dec 24 2004 - 00:00:01 EST