[ox-en] Re: Profit and Value, was: Re(2): [ox-en] extrinsic motivation = coercion

Mark Fawzi writes:

>I'd agree with Franz but profit can be a "fixed" percentage, e.g. 10%,
>above "median cost" (assuming a collective costing/pricing model is
>used.. see 'p2p energy economy' for details)  .. This is in addition
>to profit that can be achieved through lower-than-median cost of
>production (due to higher efficiencies)


actually what you point at is the "rate of profit" which indicates a
relation between costs of production and profit. The rate of profit
according to Marx theory is subject to a process of equalisation - towards
average profit - by capital streaming into sectors with high
profitability, increasing competition and thereby lowering the market
price of commodities.

Given the model of an "average" rate of profit there is a tendency as you
mention to lower the rate of profit regardless of monetary competition by
replacing workers by machines which results in lower value of same or
increased outputs - a process totally hidden to the actors because they
cannot see the difference between value - transforming and value -
building elements of the production process. (They could see it if they
forgot their interest in profit for a minute.)

The problem with "fixing profit" is that in this model the underlying
dynamics of the capitalist production system is cut. We should really look
thoroughly at the failed Soviet model and ask ourselves if they did not
try to do exactly what you described above and what excat consequences
this had.

Franz

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