Doesn't fraud also accompany a falling rate of profit? I have thought about this relationship quite a bit, but I have seen relatively little written about it.
As profit rates fall, companies resort to more and more risky behavior to compensate for the fall into rate of profit. In the process, they resort to first flaky and then fraudulent behavior. Any thoughts on this? "Devine, James" wrote:. > even without the financial mania, personal savings, a government surplus, > and the inflow of foreign funds (the current account deficit) can be tapped > to allow businesses to continue to invest in fixed capital even when cash > flow is insufficient. In recent experience it's the inflow of foreign funds > that's been most important in allowing U.S. investment to continue after the > profit rate fell. > Jim Devine -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901
