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

From: Jerry Levy (jerry_levy@VERIZON.NET)
Date: Sat Jan 12 2008 - 08:12:44 EST

> I don't think unproductive labour is a cost of production: if it > were it should be regarded simply as that, like ancillary labour > of machine servicing etc.

Hi Ian H:

Regarded by whom?  Don't you think that corporations themselves
regard their expenditures on their advertising, legal, and
public relations departments to be costs of production?

I agree that expenditures on unproductive labour are not the same
as expenditures on c or v (a point I made previously).  The issue is what are the implications (advantages/disadvantages) of assuming that u is an addition to the denominator vs. a subtraction from the numerator?

> It should be noted that all of the different
> proposals have different effects on the rate of profit: that may > be one way of deciding which method is best,

Since quantitatively having a given quantity of u as a deduction in the numerator vs. an addition to the denominator shouldn't change the magnitude of r, I guess you mean the relative implications of having c + v in the denominator vs. K?   Yes, that would have different effects on the r.  But, how could that be seen as a way of deciding which method is best?  If it is done in one way vs. the other it might have "perverse" or logically inconsistent results?  Please explain.

In solidarity, Jerry

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