Re: [OPE-L] What Ahmadinejad actually said - lost in translation...

From: Rakesh Bhandari (bhandari@BERKELEY.EDU)
Date: Wed Jan 24 2007 - 21:23:11 EST

> On Wed, 24 Jan 2007, Rakesh Bhandari wrote:
>> Most interestingly Jha accounts for the unraveling of the Westphalian
>> order in the terms of a theory of overaccumulation, which explicitly
>> draws from Giovanni Arrighi but echoes a one William Playfair (on
>> whom Henryk Grossman wrote his last essay).
> The William Playfair who invented time-series graphs in economics?

Yes that very trendspotter. Playfair described the transition from an
industrial economy in which liquid capital was just sufficient for
investment opportunities to a creditor nation in which liquid capital has
become superabundant. Drawing on Arrighi, Jha talks of a scissors movement
of liquid capital accumulation and investment opportunities. "As a gale of
creative destruction sets in, opporunties for the invesment of liquid
capital in new fixed capital equipment rises rapidly As the new equipment
replaces the old, the rate of profit rises and icnreaes the rate of
capital accumulation. But each replacment of the old geeneratin of
equipment, and older management practices with the new, circumscribes the
opportunities for further rapid increaes in productivity. The rate of
profit on future investments in fixed capital therefore reaches begins to
fall just as the rate of profit on existing capital reaches a peak. This
creates an inexorable pressure for the mounting stocks of profit on past
investment, ie. of liquid capital, to find new investment opportunities.
That is when capitalism assumes it hegemonistic form and begins to
reorganize large parts of the world." Jha, p. xix

But this sounds like Playfair who anticipated Hobson who was exhaustively
cited by...


> Allin Cottrell

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