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I inadvertently endowed my enterprise with inventory it didn't need (more
haste, less speed...) which created a confusing example.
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?
> -----Original Message-----
> From: Allin Cottrell [SMTP:firstname.lastname@example.org]
> Sent: Wednesday, May 03, 2000 2:50 PM
> To: email@example.com
> 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
> > 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
> > £100.
> > Rather than buy the extra inventory required now, the managers put the
> > 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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