Re: [OPE] webpage computing and the sperm rate of profit

From: Dave Zachariah <>
Date: Sun May 17 2009 - 11:03:09 EDT

Jurriaan Bendien wrote:
> As I've said previously on OPE-L, average inventory levels (input
> stocks + output stocks) can be up to about 30% of the total measured
> physical capital stock, and since wage-payments can be recouped from
> ongoing sales, the actual capital tied up in wage payments at any one
> time (the "stock" of wages) are more likely circa 10-16% of the annual
> wage payments flow. In addition of course there are other operating
> expenses including faux frais of production. The true figures are
> often manipulated for tax-deductibility.
> Maximally, inventory + wages could be about 30-40% of the physical
> capital stock, it depends on the industry. The USA has traditionally a
> particularly high inventory/fixed capital ratio in manufacturing, and
> a comparatively low fixed capital/net output ratio in manufacturing.
> However, it can be shown that whether or not inventory and wages are
> included in the total physical capital stock does not affect the
> overall longrun profitability trend, only the shorter term fluctuations.

These are relevant methodological issues when using the available data.
Anwar Shaikh also informed me about further issues about the measurement
of the capital stock itself. These issues are beyond what my competence
and resources can correct. I hope the model can be tested with more
accurate data by Marxian economists.

However, I would avoid mixing up financial assets with the real capital
stock because I'm concerned primarily with the rate of return on capital
directly invested in production.

//Dave Z
ope mailing list
Received on Sun May 17 11:05:07 2009

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