Michael L. touched on what I consider to be the most important and least 
acknowledged 
part of the falling rate of profit -- the destruction of the values of constant 
capital.  Imagine you need the latest technology to remain competitive.  You 
buy a 
new computer, only to find that next week it is obsolete, long before you have 
a 
chance to earn an equivalent value.

Even with a high rate of surplus value, you will not make a profit.  You may 
make an 
healthy profit based on current costs, but the loss of capital values will 
negate the 
current profits.


-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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