Re: [OPE-L] accumulation of capital and the working class - actual non existence of variable capital

From: Dave Zachariah (davez@KTH.SE)
Date: Fri Jan 11 2008 - 13:41:12 EST

Jerry, do you think there is any advantage to measure profitability as
s/(c+v) over s/K? The latter tells us the maximum growth of the stock of
real capital.

//Dave Z

on 2008-01-11 14:03 Jerry Levy wrote:
>> I would express it as as r = (s-u)/K
>>  where u is unproductive wages
> Hi Paul C:
> That would be consistent with the idea that u represents a
> deduction from s.
> Another alternative would be to write:
> r = s/(c+u)+v
> This would retain v in the formula, which - as you have
> explained - you object to. OTOH, it would put u in the
> denominator and thereby make it clear that u is a cost of
> production, but one unlike v (because it doesn't produce
> value) and also unlike c (because it represents expenditures
> for labor rather than means of production).
> There is a temporal dimension to the perspective that u
> represents a deduction from s that doesn't quite fit.
> I.e. wages for v and u are actually (and logically?) paid
> out at the same time rather than v being paid out first
> followed by a temporal lag when s is realized and then
> u is paid out.  This lag becomes obvious if we put the
> issue in terms of period analysis (which, as we both agree,
> has inherent limitations).
> In solidarity, Jerry

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