[OPE-L:3147] Re: The Maximum Rate of Profit and v = 0

Duncan K. Fole (dkf2@columbia.edu)
Thu, 26 Sep 1996 13:00:33 -0700 (PDT)

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No problem, I think.

>.. and right when I thought we put this issue to bed, Duncan asks me a
>question in [OPE-L:3129]:
>> I'm not sure I follow you here. If v is very small, won't the profit rate
>> will be close the maximum, whether or not the capitalists invest or consume
>> the surplus value?
>The issue I was posing didn't concern what the rate of unproductive
>consumption of surplus value was re the accumulation of capital. The issue
>was whether there is or can be accumulation of capital where v = 0. So long
>as there is a stipulation that v is "very small" (or the like), the profit
>rate can be "close" to the maximum rate. This is why in recent days when
>John, Andrew, or yourself stipulated "very, very, very ..." et al., I did
>not object.
>Although this issue sounds trivial, it concerns the implications of
>assumptions specified in models. The differences between v = 0 vs. v =
>"approaching 0" may be very small quantitatively, but the v = 0 assumption
>carries with it all kinds of ramifications which conflict with the ability
>of the model to allow for any "fundamental insights."
>In OPE-L Solidarity,

Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
fax: (212)-854-8947
e-mail: dkf2@columbia.edu