Re: [OPE-L] Marx on the 'maximum rate of profit'

From: Jerry Levy (Gerald_A_Levy@MSN.COM)
Date: Tue Oct 10 2006 - 08:51:08 EDT

> Unfortunately the citation you brought is not related to the issue.

Hi Paolo:

It is related to the issue in the sense I specified:  Marx  did not claim
that wages equal zero at the maximum rate of profit.  My point was simply
that when current authors refer to a "maximum rate of profit" they are
referring  to conditions quite different from those specified by Marx.
Marx's maximum rate of profit has political-economic and historical
meaning; the more modern use of the expression is hopelessly inadequate
for the comprehension of any real economic process.

>  In the maximum rate of profit argument all new value created stands in
> the numerator and capital advanced in the denominator, the well
> known L/c,  where L is the new value crested and c the constant capital.
> Then, the argument goes, if the
> value composition of production c/L (as Shaikh(?) calls it) presents a
> tendency to increase, the maximum rate of profit L/c must present a
> tendency to fall.

I basically agree with Ajit's response about the centrality of the V = 0
assumption to that argument.

In solidarity, Jerry

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