me:
>> Neither of these are "perfect" competition; though Marx's analysis  implies 
>> equilibrium, I don't think that he believed it was ever achieved.  The first 
>> one tends to destroy small firms, etc.<<

nathan tankus wrote:
> the new school marxists argue that their is a tendency for the rate of  
> profit to equalize but it is disrupted by various factors such as technical 
> change so that marx's theory is actually dynamic, where  others see statics.<

they're right. competition helps drive technical change, which
disrupts any equilibrium or prevents it from being attained.

My dissertation involves a similar dynamic vision, though I don't deal
with technical change much. There's a quote from Mandel about how any
equilibrium is disrupted by the normal workings of capitalism.

me:
>> I don't think that his theory needs to be updated. His statement in  his 
>> early POVERTY OF PHILOSOPHY that competition generates monopoly  and _vice 
>> versa_ makes a lot of sense. It just needs to be made more  concrete.<<

> have you read howard botwinick's book? (as an aside, i picked this  book up 
> off of amazon when it was at 30 dollars, now it's priced in  the 100's, have 
> i made a capital  
> gain?:http://www.amazon.com/Persistent-Inequalities-Disparity-Capitalist-Competition/dp/0691042977)<

it's not a realized capital gain, which is what counts.

Anyway, I don't remember being impressed by the presentation I heard
him give. If I remember correctly, he argued that unions could capture
rents from their employers, which isn't an especially new idea. I
really don't think that Marx's theory of land-rent differs that much
from the standard theory of scarcity rents except that (like most 19th
century authors) he focused on the scarcity of land and used the
framework of his Law of Value. It's at the volume 3 level of
abstraction, which is about competition among capitalists (and much
closer to the "surface of society" than volume 1), so it's no big
surprise that Marx's analysis isn't that unique.

> i think the new school marxist vision of competition is very  developed. 
> whether it's wrong in crucial respects, is another matter.  a matter by the 
> way, i'm curious to here discussed on pen-l.<

it's a better job than discussing Jobs. Oh, the tribulations of Job!

-- 
Jim Devine / "In an ugly and unhappy world the richest man can
purchase nothing but ugliness and unhappiness." -- George Bernard Shaw
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