[OPE-L:7162] [OPE-L:669] Re: Market Values and Market Prices

Gerald Levy (glevy@pratt.edu)
Sun, 14 Mar 1999 12:52:21 -0500 (EST)

John wrote in [OPE-L:668]:

> Thanks for noting my "interesting question." Perhaps someday
> it will be addressed.

Well, there's no use putting off to tomorrow what we can address today
(NB: Beware the Ides of March!), so perhaps we can begin to address this
issue with an answer to the following.

> As long as we insist on measuring profitability as though
> fixed capital does not exist or, put another way, with a
> simple rate of profit calculation, the movements of capital
> from one sector to another in response to changes in
> profitability will appear mysterious.

How do you calculate individual and social value and profit once fixed
capital is taken into consideration?

I would be interested in your answer to that question.

I agree that this *process* can not be grasped with a simple formula,
but what is wrong with the following equation for the aggregate rate of
profit (other than the fact that there is no explanation below for *how*
it comes about)?

surplus value
constant fixed capital + constant circulating capital + variable capital

In solidarity, Jerry