Lakshmi Rhone wrote: > For purposes of testing Marxist theory, which measure of profits should be > used--shareholder reported profits, NIPA profits, profits reported for tax > purposes or some other measure?
The Bureau of Economic Affairs of the US Department of Commerce calculates the rate of profit that it thinks is most relevant to non-financial business fixed investment decisions. If we want to test the impact of the workings of a Marxian theory on actual behavior, this is where I'd start. If not, we can follow Fred Moseley distinguish between the conventional rate of profit (CRP) like the BEA's number and the Marxian rate of profit (MRP). But then we have to make it clear how changes in the MRP trickle down to affect the CRP and business behavior. Many versions of the MRP include the wages & salaries of "unproductive labor" as part of the numerator, i.e., as part of surplus-value. Is that the way to go? -- Jim Devine / "In an ugly and unhappy world the richest man can purchase nothing but ugliness and unhappiness." -- George Bernard Shaw _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
