On Tue, 20 Jun 95 [EMAIL PROTECTED] (Paul Cockshott) said: >John asks >------------ >All of the above is true but seems to miss the point of the Okishio Theorem. >That is, Okishio points out that rattional capitalists make investments to >increase their rates of profit or, at least, to keep them at >their current level. Thus, why would a capitalist invest to bring about a >fall in the rate of profit? This question was first raised by Tugan-Baranowsky > using a one commodity model as Van Parijs pointed out. > >Paul >---- >The point is that in the real world, as opposed to equilibrium models, >capitalists do not know what their profits are going to be this year let alone >next. They do not know what the level of effective demand will be nor next >years price level. > >I think that it is unrealistic to expect to be able to construct a theory of >the rate of accumulation at this kind of micro level, since it is inherently a >dynamic macroeconomic phenomenon, affected by interest rates, existing >accumulation levels, changes in wages etc. The point about the declining >tendancy of the rate of profit is that over long periods, the fall in profit >rates relative to interest rates tends to act as a limiting factor on the rate >of accumulation. It is this macroscopic limitation that is the interesting >factor. John says Ok. Let me see if this question clarifies matters. Do capitalists invest in ne techniques which, using current prices, will reduce their rates of profit? -- John R. Ernst
