Re: costs of unproductive labor

Paul Cockshott (wpc@CS.STRATH.AC.UK)
Thu, 22 Jan 1998 10:31:06 -0000

> From: jurriaan bendien <>
> For the purpose
> of calculating the true general profit rate, we need to estimate the
> of circulating capital, in its variable and constant components (and in
> constant components I suggested we include expenditure on unproductive
> labour). The difficulty is, although some information is available on
> inventories of raw materials etc., how do you estimate "stock levels" of
> the capital tied up in wages, what sorts of assumptions do you make, for
> example about production periods, stock rotations and turnovers. We know
> for instance that generally speaking employers do not tie up (hold in
> reserve) the entire annual expenditure of wages, this expenditure is
> partially recouped from current income.

I think you are in danger of getting into double counting here. There
is no capital tied up in wages in economies that use credit money. The
total capital stock consits of
Plant and equipment
Stocks of raw materials in the hands of manufacturers
Stocks of work in progress
Stocks of finished goods in the wholesale and retail sector.

If one had this information there is no need to consider turnover,
stock rotations, etc.
There is no way that a flow of wages to bank clerks etc can be included
in any of these stocks.