"this approach can never give a
theoretical grounding to the "Law of
the Falling Tendency of the Rate of Profit"
because under it there is no necessity for the productivity of labor to tend to increase less rapidly than
capital intensity.
Shane Mage is right about this, even
though physicalists try to deny it. Disaggregated data in fact seem
to indicate a rising ratio of output to physical "capital" over
time.
BTW, does anyone know of any decent (or half-decent) measures of capital *advanced* or *invested*, in flow-of funds terms, as opposed to quasi-physical measures of the value of the "capital stock"? Or if it is feasible to construct such measures? What is needed is essentially the running total of capital spending minus the running total of depreciation charges and write-offs.
Andrew Kliman
