Empirical confirmation for this proposition comes
from the revisions to productivity and labor income that came out last August.
The accounting dodge that permitted companies to nottake a charge against
revenues foremployee stock options effectively overstated their
profitability and
]
To: [EMAIL PROTECTED]
Sent: 27 January 2002 05:30
Subject: [PEN-L:21954] enron and the rate of profit
I have been proposing the idea that the profit rate has been artifically
high for some time. I had mostly thought in terms of decreased regulation
and the defeat of labor. Enron
Michael Perelman writes:I have been proposing the idea that the profit
rate has been artifically high for some time. I had mostly thought in
terms of decreased regulation and the defeat of labor. Enron and the
dot.com bubble makes me think more in terms of fraud. Any thoughts on
this?
it
Would you agree that those limits are at least a
contributing factor to the bursting of bubbles and the unravelling of
Enrons?
Jim Devine wrote,
it seems to me that it's quite possible that the
measured rate of profithas been high due to accounting tricks and the
like. But there
I have been proposing the idea that the profit rate has been artifically
high for some time. I had mostly thought in terms of decreased regulation
and the defeat of labor. Enron and the dot.com bubble makes me think more
in terms of fraud. Any thoughts on this?
--
Michael Perelman
Economics
