Lakshmi Rhone <[email protected]> wrote: > if the rate at which sv is capitalized picks up as the rop falls--and > Marx, following Richard Jones thought that this would be the case; it's an > early EXAMMPLE of positive feedback analysis in that FROP calls forth > tendencies that compound it, the rising mass of sv masking the dynamic for > some time--then the FROP cannot itself explain an accumulation crisis.
I really don't understand why a rise in the mass of surplus-value should counteract a fall in the rate of surplus-value, so that the rate of accumulation (dK/K) rises. Maybe Marx or Jones said it, but it doesn't make sense to me. Please explain the economic logic behind this idea. More reasonably, I think that there's often a disconnect between current profit rates and expected profit rates, where it's the latter (what Keynes might call the "average efficiency of capital") that motivates accumulation (and to some extent, expectations reflect an extrapolation of the past). The extension of credit allows businesses to following their expectations rather than being constrained by the actual rate of profit. It also encourages the accumulation of debt, which can be a serious economic imbalance. I really don't care about theories explaining a FOP if it's due to increasing capital intensity of production (rising OCC), since that's a bogus theory. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
