To Alan:
I think that in the simultaneous solution the conditions of productions -
the input data *and* the output data - are given, hence also the working
day is over and cannot change. That is why "the rate of profit [seems to
be] independent of the length of the working day". There is no conflict
with Marx's statement, once it is clear that prices are set *after* the
valorization process. If the real wage stays the same and there is an
increase in the capitalist surplus, the rate of profit would go up.
Of course, one may dislike the fact that L is given in the simultaneous
solution - but is not p(t)A also a given in Alan's sequential view?
riccardo
At 23:53 6-10-1996, Alan Freeman wrote:
>Here's a question.
>
>My reading of Marx is that if the working day is extended,
>this creates more value and ceteris paribus more profit for
>the capitalist.
>
>But, in the equation systems of Fred and Bruce, as far as I
>can see, the rate of profit is independent of the length of
>the working day.
>
>For, let variable capital be V. The profit equation can be
>written:
>
>pX = (pA+V)(1+r)
>
>where X = output
> A = inputs
> p = price
> r = rate of profit.
>
>This seems to be to give a magnitude of r that is independent
>of the length of the working day, unless V is a function of
>the length of the working day, and I see no reason to suppose
>that it is.
>
>In that case, how can the capitalists gain anything from
>increasing the working day?
>
>In a sequential presentation this problem does not arise since
>p(t)A is given at time t. Letting Q stand for the value of
>total output we have
>
>Q(t+1) = p(t)A + L(t)
>
>which clearly will be bigger, the larger is L. Hence total
>profit, given by
>
>Q(t+1)-V
>
>will be bigger and so will the profit rate, for a given p(t)A.
>
>This seems to me to be quite a substantial problem for the
>simultaneous interpretation.
>
>Alan
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Riccardo Bellofiore e-mail: bellofio@cisi.unito.it
Department of Economics Tel: (39) -35- 277505 (direct)
University of Bergamo (39) -35- 277501 (dept.)
Piazza Rosate, 2 (39) -11- 5819619 (home)
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