[OPE-L:1601] Re: definitions and capitalist relations of

Paul Cockshott (wpc@cs.strath.ac.uk)
Thu, 28 Mar 1996 02:41:31 -0800

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On the topic of KRP and their relation to the
existence of profit.

If one is willing to approach the matter from the
other direction - that of aggregate reproduction in
society as a whole, then it can be argued that the
essential precondition for profit is that there
exists a class that owns the entire product immediately
on production.

One can then use the Kalecki reproduction equation

total sales = workers consumption + capitalist consumption
+ investment

profit = total sales - wages

and the assumption that

wages = workers consumption

to derive that profit = capitalist consumption + investment

It then becomes clear that capitalist property relations
ensure that for the owners of the product as a class,
consumption and investment are self financing.

Thus the profit = (m' - m ) is explained as an epiphenomenon
of the aggregate monopolisation of the product by a particular

Kalecki's results were of course drawn from the reproduction
balances in Vol II. In this case, what is relevant about the
employment of labour power, is not that labour creates value,
since these equations operate at a monetary level, but the
fact that workers have no title in the product.