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Some questions about Paul Kockshott and Rate of Profit

To draw some quotes from Marxists.org and Paul Kockshott:’’The really difficult question is this: how is this equalization of profits into a general rate of profit brought about, since it is obviously a result rather than a point of departure?’’’’On the other hand, it may be said that wherever an average profit, and therefore a general rate of profit, is produced — no matter by what means — such an average profit cannot be anything but the profit on the average social capital, whose sum is equal to the sum of surplus-value. Moreover, the prices obtained by adding this average profit to the cost-prices cannot be anything but the values transmuted into prices of production. Nothing would be altered if capitals in certain spheres of production would not, for some reason, be subject to the process of equalization. The average profit would then be computed on that portion of the social capital which enters the equalization process. It is evident that the average profit can be nothing but the total mass of surplus-values allotted to the various quantities of capital proportionally to their magnitudes in their different spheres of production. It is the total realized unpaid labour, and this total mass, like the paid, congealed or living, labour, obtains in the total mass of commodities and money that falls to the capitalists.’’Source: https://www.marxists.org/archive/marx/works/1894-c3/ch10.htm’’In the classical analysis—shared by Smith, Ricardo and Marx—the primary force working towards equalisation is the mobility of capital between sectors of the economy in response to profit-rate differentials. If industry X is showing above-average profit, capital will move in, increasing the supply of the product and hence driving down both price and profit-rate. If Industry Y shows below-average profit, capital will tend to exit the industry, reducing supply and hence raising price and profit-rate. This mechanism makes sense in itself,1 but it represents only one aspect of capitalist competition, understood broadly as the restless search for the greatest possible profit. Admit the other aspects of inter-capitalist rivalry (alluded to above), and it becomes an empirical question whether competition produces (a) an actual tendency towards equalisation, (b) a tendency towards ever greater dispersion, or (c) a roughly stable probability distribution for the rate of profit. As we have noted, the available data favour conclusion (c).’’Source: http://paulcockshott.co.uk/media/OnlineEconomicsPapers/vol3.pdfIf all enterprises have an equalized rate of profit then r=s/(c+v) /= s/C+v) where c is less than C, according to the law of value enterprises with different constant capitals must have different rates of profit ceteris paribus. https://www.reddit.com/r/Socialism_101/comments/eg3k5q/some_questions_about_paul_kockshott_and_rate_of/?utm_source=ifttt

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