Re: [OPE-L] Ajit's Paper on Sraffa and Late Wittgenstein

From: Ian Wright (wrighti@ACM.ORG)
Date: Wed Jun 07 2006 - 00:06:25 EDT

HI Allin

> Ian, you are definitely off the rails here.  Any magnitude with
> dimension $/$ has to have a value of 1.0 in any sane system.

Not at all.

A capitalist invests $100 over a year and receives $10 return. The
rate of profit is:
10/100 = 0.1$ per $ invested.

On what grounds could you think that a ratio of values in the same
units should necessarily equal 1.0?

> The interest rate (or rate of profit) necessarily has a time
> dimension, although "per annum" is generally implicit (and
> also generally legally enforceable).

Yes of course. But the period of production is *undefined*. In
Sraffa's interpretation it is generally considered to be a "year". But
there is no need to explicitly represent the length of the production

> I offer you 50% on your money.  You snap up the offer, but are
> disappointed by the interest checks you receive.  I reply, "Aha, I
> meant 50% per century!"  You can then sue me, with a reasonable
> probability of success.  The Austrians may make a fetish of time,
> but it's not their property.

Choose any length of time you wish in order to interpret the period of
production represented by linear production theory. The rate of profit
occurs over that time period.

It does not have dimensions "1/time" as Paul suggested. That sounds
like "waiting".

Best wishes,

This archive was generated by hypermail 2.1.5 : Fri Jun 30 2006 - 00:00:03 EDT