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On Feb 6, 2013, at 2:34 PM, Ralph Johansen wrote:

Shane Mage wrote

On Feb 6, 2013, at 6:47 AM, Ed George wrote:


"Me: Capitalists introduce technical change because it allows them (the innovators) to realise an above average rate of profit (at least for a period of time). Other capitalists are forced to adopt new techniques (through competition) to avoid being priced out of the market. My question is: why are capitalists *necessarily* driven to pursue surplus-profits? That they are is an observable fact; but why are they?"


The answer is insecurity. In the competitive-capitalism model used by Marx (well reflecting the institutional framework of that epoch's capitalism) productivity-raising technological change allows its adopter to undersell the others and drive the weaker ones out of the market.

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I looked quickly at this exchange. I sense that the point ignored which causes this circular discussion may be that the origins, as v the operative functions and mechanisms, of the system called capitalism are not front and center.

It is a profound methodological mistake to believe that the historical origins of a system automatically help to explain current behavior within the system. The origins are (in the case of capitalism) thousands of years old and--more important--totally outside the consciousness of the actors whose behavior is to be explained (an originating event can remain within the active collective unconscious of a people for a long time--as in the historical cosmic catastrophes whose cultural echoes among the meso- American peoples survived for millennia in the religious practice of mass human sacrifice--but explanation of current religious practices among the descendants of the Olmec, Maya, Toltec and Aztec peoples can scarcely be helped by invocation of those catastrophes). There must be some clear way in which the origins of a practice survive in the collective unconscious of a people (as in the ritualistic words with which Jews unconsciously reinforce the memory of such a catastrophe as experienced in the time of Moses) before they can explain anything at all about people's current behavior.


Shane Mage

"Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64





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