On Fri, 12 Dec 2003, Devine, James wrote:
> Paul,. your story makes sense (though I'd add a lot). My question is
> for Fred, though. The classical Marxian story stresses the role of the
> "organic composition" rising due to some societal or technological
> imperative. For Fred, the rise of the ratio of productive to
> unproductive labor costs has replaced -- or now complements -- that's
> story. I wanted to know his logic.
Jim, I argue that the increase of unproductive labor complements the
increase of the composition of capital. The rate of profit varies
inversely with both of these, and varies positively with the rate of
surplus-value.
The simple algebra of this Marxian theory of the conventional rate of
profit is as follows (as I am sure you know):
RP = P / K
= S - U / C + Ku
= [ S/V - U/V ] / [ C/V + Ku/V ]
Comradely,
Fred
