Re: (OPE-L) Re: recent references on 'problem' of money commodity?

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sat Nov 20 2004 - 17:06:54 EST

In any event, I see no reason for supposing that over the long-term
the composition of capital in gold-mining production will lag behind
the rest of the economy.  What would happen in your thought
experiment if:

a) the composition of capital in gold-mining is equal to the social

b) the composition of capital in gold-mining is higher than the
social average?
I knew nothing of this debate on inflation in German social democracy.
Why did they consider the organic composition to be important?

Given that it is an extractive industry would I would have
thought that the determining factor would be the physical
availability of gold ore close to the surface.

As surface sources are used up, the mines have to be
sunk deeper - that is certainly the case in the Witwatersrand
mines. A deeper mine may increase the organic composition
of capital in one sense - if one views the shaft for
instance as an element of constant capital. But this will only
occur if the labour associated with the mining does not increase
in proportion to the depth - it is conceivable that it might due
to greater expenditure on pumping, maintainance etc.

It should not be too difficult to get rough figures for labour
productivity in gold by comparing employment in the South African
gold mining industry with the output of the South African mining

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