Quoting Fred Moseley 3 Jun 2007 Hi Gernot. . .
Are you suggesting that services generally have a lower composition of capital than manufacturing, so that a shift from manufacturing to services will reduce the aggregate composition of capital (or slow down its increase)? If so, I think you are right, and this has been a factor in the recovery of the rate of profit in recent decades, which has nothing to do with fiscal policy. . . . GK: yes, that's what I tried to say - mind you, in the sense of a speculation or hypothesis, since I do not have any systematic data to support the idea. If one disaggregates manufactuing and services further, there could be further differences in organic composition of capital in the subgroups. For example, it requires more fixed capital to produce cars and nuclear misslies than to produce software for arcade games or, in services, it requires more fixed capital to sell cars than to sell life insurance and vacation tour packages. Thanks for your comment, Gernot _________________________________________________________________ Windows Live Hotmail, with safety bar colour coding, helps identify suspicious mail before it takes your daughter out on a date. Upgrade today for a better look. www.newhotmail.ca?icid=WLHMENCA152
