[OPE-L:3002] RE: Re: RE: Re: RE: Re: Defining accumulation

From: P.J.Wells@open.ac.uk
Date: Wed May 03 2000 - 13:44:01 EDT


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Allin,

I inadvertently endowed my enterprise with inventory it didn't need (more
haste, less speed...) which created a confusing example.

Revised version:

On Monday evening the enterprise has:

(a) spare capacity at its current rate of output

(b) Monday's output of yarn, which when sold for 1100 replaces the
circulating capital of 1000 needed for Tuesday's output at the same level
as before, together with a surplus value of 100.

(c) plans to increase output by 10 per cent on Wednesday.

I agree that on Tuesday weavers must have 1100 capital in the form of yarn;
but isn't the point that at the same time the spinners only have 1000
capital in the form of cotton etc.?

There will be book-keeping entries related to both the 1100 and the 1000,
but this seems to leave 100 unaccounted for in physical terms.

What's the physical counterpart of the other 100 received by the spinner?

Julian

> -----Original Message-----
> From: Allin Cottrell [SMTP:cottrell@wfu.edu]
> Sent: Wednesday, May 03, 2000 2:50 PM
> To: ope-l@galaxy.csuchico.edu
> Subject: [OPE-L:2999] Re: RE: Re: RE: Re: Defining accumulation
>
> On Wed, 3 May 2000 P.J.Wells@open.ac.uk wrote:
>
> > Try this instead -- take a cotton-spinning enterprise which has
> >
> > (a) spare capacity
> >
> > (b) at the end of a day's work
> >
> > (i) enough cotton inventory to sustain tomorrow's production at the
> present
> > level
> > (ii) yarn which is sold realising surplus value of 100
> >
> > (c) plans to increase output the day after tomorrow.
> >
> > The planned output increase will require an increase in capital advanced
> of
> > 100.
> >
> > Rather than buy the extra inventory required now, the managers put the
> 100
> > in the bank for a day.
> >
> > What's the status of the 100 while it's in the bank?
>
> Same story. The 100 is just an accounting entry. The real
> asset is the yarn that was sold for that amount. Presumably it
> figures as working capital for whatever enterprise bought it.
>
> It's funny to ask about the status of the 100 "while it's in
> the bank" because it's _always_ in the bank. When one agent
> spends it, it doesn't leave the bank but rather is transferred
> to some other agent's account.
>
> Allin Cottrell.



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