[OPE-L:6354] Re: (Monopoly) Rates of Profit?

Allin Cottrell (cottrell@ricardo.ecn.wfu.edu)
Tue, 24 Mar 1998 22:07:23 -0500 (EST)

Jerry writes:

> It also matters that workers are paid a wage with which they purchase
> commodities. What would you call it if individual capitalists were able to
> get workers to pay higher prices for a significant percentage of
> commodities that workers purchase as a result of monopoly power? I would
> say, regardless of what you call it, that this can be a way that the real
> wages of workers can be lowered _outside_ of the traditional bargaining
> process between capital and labor.

You're saying that capitalists can jack up prices to the extent
that, in the aggregate of wage goods, price exceeds value. I
think that's just inflation. If the labor market is reasonably
tight, workers will be able to get money wages increases to keep
up with inflation. What matters is the situation in the labor