[OPE-L] Okishio Theorem

From: Rakesh Bhandari (bhandari@BERKELEY.EDU)
Date: Sun Oct 28 2007 - 00:46:16 EDT

Fred you write:

"I agree that TSSI initially claimed
to “refute the Okishio theorem on its own terms” (i.e. not that
Okishio’s “terms” were different from Marx’s “terms”).  But in Kliman’s
book (Chapter 7), the main argument is that the rate of profit in the
Okishio theorem is determined in a different way from the rate of
profit in Marx’s theory.  There is one paragraph that argues that the
Okishio theorem “also fails on its own terms”, but this claim is
emphasized much less than before.

What I think is the contribution of the TSSI is the argument that the
Okishio theorem is based on a different theory of the rate of profit
than Marx’s theory."

But TSSI a refutation on Okishio Theorem on its own terms--for all
practical purposes. Okishio Theorem is according to standard
interpretation an impossibility theorem--it's impossible for viable
technical change in itself to depress the profit rate. TSSI did the
impossible; it showed that viable techical change can depress the profit
rate. But...TSSI has not demonstrated that empirically David Laibman's
tracking theorem (the money rate of profit tracks the material rate of
profit) will not hold in the long term. But TSSI did the impossible, and I
can understand why they are so damn excited about it. Doing the impossible
is a large part of what intellectual progress is, no?


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