Re: [OPE-L] Okishio Theorem - do anyone think it is relevant?

From: Anders Ekeland (anders.ekeland@ONLINE.NO)
Date: Wed Oct 31 2007 - 03:25:49 EDT

At 23:56 30.10.2007, you wrote:
> >
> > Just to mention one stylised fact: The profit rates achieved after
> > the enormous destruction of physical capital (and the switch from
> > elite to mass consumption of cars, electrical articles, chemical
> > products etc.) that we saw in the decades after the II WW - will be
> > hard to repeat. That profit rates will be temporarily restored when
> > the workers movement suffers defeats - f.ex. by the neo-liberal
> > offensive - point again to the cyclical nature of the accumulation
> > process which the tendency of the profit rate fall in an
> > *organic/endogenous* interplay with the counteracting tendencies creates.
>But Anders labor is flat on its back in the US. The NRLB has been fully
>captured, unit labor costs have fallen, workers can be fired without
>cause, employers coerce workers with threat of relocation or part time
>work without medical benefits if they don't accept reduced wages, overtime
>hours are shaved all the time...yet productive investment in the US is

But that's no wonder Rakesh - a defeat for the workers movement also
means insufficient aggregate demand - when the possibility of
stimulating investment by lending is exhausted - like it more and
more seem to be. Capitalist dynamics are not a simple system cause
and effect, it is a multitude of contradictory and related
mechanisms, the tendency of profit rates to decline is one of them.

If my memory does not fail me - as it did when I wrote Meek instead
of Dobb - there is a theorem that says that three deterministic
difference equations is enough to create a path with no clear pattern
inside some rather wide boundaries. On top of that you have conscious
players trying to do arbitrage, make policy, defend their interests -
so the macro result of all this micro behavior becomes very hard -
but not entirely impossible to predict. But it is like weather
forecasting - a lot of non-linear processes makes this still a
difficult sport more than a couple of days ahead - sometimes not even
that is possible, when there is a lot of movement (wind).


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