Re: [OPE-L] calculating the not rate of profit

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Mon Apr 02 2007 - 17:52:53 EDT

In practice one is reliant upon the judgement of accountants
in quoting figures for capital depreciation.
Paul Cockshott

-----Original Message-----
From: OPE-L on behalf of glevy@PRATT.EDU
Sent: Mon 4/2/2007 10:21 PM
Subject: [OPE-L] calculating the not  rate of profit
> Even more difficult than getting a handle on secondhand goods is the
> challenge  figuring out the value of used capital goods that have not
> been marketed.  Without knowing the value ( monetary value of course) of
> these goods to termination of the rate of profit becomes impossible.

Hi Michael P:

Good point.  It's also the case that since the *rate of moral
depreciation*  can't be reliably estimated in advance, individual and
average rates of profit can not be known _ex ante_.   This is especially
important when the economy is experiencing a period in which technological
breakthroughs in means of production abound.  This is not merely an
accounting problem: because of moral depreciation the rate of profit is
*IN PRINCPLE* unknowable ex ante.  It can *ONLY BE KNOWN EX POST*.

In solidarity, Jerry

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