Re: [OPE-L] Robert Brenner, "That hissing? It's the sound of bubblenomics deflating"

From: glevy@PRATT.EDU
Date: Sun Sep 30 2007 - 11:07:20 EDT


It is not my perspective which is in question.  It is yours. To
refresh your memory, you said that if it was the case that
wages decreased and/or the intensity of labor increased then
the rate of profit "must" rise.  This perspective illustrates the
dangers of taking a simple analytical claim made by Sraffa
concerning the relation between the wage and rate of profits in the
standard system and extending that to an analysis of a concrete
development (in this case, the unfolding economic situation in the US
economy). I am reminded here of Hamlet's comment to Horatio.  The
wage-rate of profit fronteir was drawn - as you well know - under the
ceteris paribus assumption.  For your claim to be true about what "must"
happen to the rate of profit under the circumstance of a rising wage
and/or increasing intensity of labor to be true, you (not I) would have to
show that these are the _only_ variables _in practice_  which can cause
there to be a change in the rate of profit.  Failing that, you would have
to recognize that what happens to the r following a change in these two
variables is uncertain (i.e. it is uncertain whether r would decrease at a
lesser rate, increase, or remain unchanged).

In solidarity, Jerry

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