Re: [OPE-L] the global labor force and capital accumulation

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Fri Jan 20 2006 - 07:33:30 EST

Rakesh Bhandari wrote:

>> Oversupply of labour is temporary. It will come to and end
>> within 25 to 40 years. The growing workforce means an period
>> of exponential growth of the accumulation fund - a growth that
>> is faster than the natural population growth.
> This proved true after Malthus falsely thought the problem of labor
> oversupply intrinsic to the human condition. But will
> the accumulation fund grow exponentially this time? I suggested
> reasons for skepticism (see long Grossman quotes in my original post).
It depends what the bourgeoisie of India and China are like.
If they have a high propensity to accumulate rather than spend
on luxuries, the period of exponential increase in the
size of the proletatiat will coincide with a similar
rise in the surplus and thus in the accumulation fund.

>> By the end
>> of the 2030s the economies of China and india will be looking
>> for external places ot invest their surplus capital - where will
>> that be?
> Why will there be surplus capital? Because there will be a shortage of
> available labour power or because as a result of a shortage of
> surplus labor in the production process surplus value will become surplus
> to accumulation demand?

Because once demographic transition has occured, a capital
stock growing at the rate of profit * A , where A is the
accumulation ratio out of profits, will be growing faster than
the rate of growth of the population.

Allin and I have a paper comming out in the Indian Journal of
development economics, arguing this case. A preprint under
the title 'Demography and Long Term Profit Rates' appears
on my web page

> Rakesh

Paul Cockshott
Dept Computing Science
University of Glasgow

0141 330 3125

This archive was generated by hypermail 2.1.5 : Sat Jan 21 2006 - 00:00:01 EST