Re: [OPE-L] what is irrational in the functioning of capitalism?

From: Dogan Goecmen (Dogangoecmen@AOL.COM)
Date: Mon Dec 04 2006 - 05:02:51 EST

_Gerald_A_Levy@MSN.COM_ (mailto:Gerald_A_Levy@MSN.COM) :

I think  that his presentation of the law of the tendency for the general 
rate of  profit to decline (LTGRPD) is implicitly a critique of Smithian  
doctrine.  But, I admit that there isn't textual evidence to show that  Marx intended 
the LTGRPD in part to
be a critique of  Smith.

Hi Jerry,
I have been reading in Capital and Grundrisse on this. I agree with you  on 
this and there is textual edidence. But I think Marx intends to develop his  
theory of the tendency for the general rate of profit to decline (LTGRPD) to  
criticise the whole of political economy - even of his days'. As to the textual  
evidence please compare the fourth paragraph in the chapter XIII in the 
volume  3. He says: 
"Simple as this law appears from the foregoing statements, all of political  
economy has so far had little success in discovering it, as we shall see in a  
later part. [K. Marx, Theorien über den Mehrwert. K. Marx/F. Engels,  Werke, 
Band 26, Teil 2, S. 435-66, 541-43. — Ed.] The  economists perceived the 
phenomenon and cudgelled their brains in tortuous  attempts to interpret it. Since 
this law is of great importance to capitalist  production, it may be said to 
be a mystery whose solution has been the goal of  all political economy since 
Adam Smith, the difference between the various  schools since Adam Smith having 
been in the divergent approaches to a solution.  When we consider, on the 
other hand, that up to the present political economy  has been running in circles 
round the distinction between constant and variable  capital, but has never 
known how to define it accurately; that it has never  separated surplus-value 
from profit, and never even considered profit in its  pure form as distinct 
from its different, independent components, such as  industrial profit, 
commercial profit, interest, and ground-rent; that it has  never thoroughly analysed 
the differences in the organic composition of capital,  and, for this reason, 
has never thought of analysing the formation of the  general rate of profit — if 
we consider all this, the failure to solve this  riddle is no longer 
K. Marx, Capital, Moscow: Progress Publishers, 1971, pp.  213-214.
Alternatively: _ 

This archive was generated by hypermail 2.1.5 : Sun Dec 31 2006 - 00:00:04 EST