industrialization

Christian Gregory christian11 at mindspring.com
Sat Apr 14 18:54:54 PDT 2001



>
The point is that the assumption of stationary prices is highly questionable in regards to the course of capitalist development. So at the least it is an interesting question what happens when Marx is tested in terms of models in which that assumption is disallowed.

Shaikh, I think, accounts for the variability of prices by emphasizing that the tendency of the rate of profit to fall and the rising organic composition derive from rising real wages. (Or he claims that that is Dobb's idea.) He raises the argument that technical improvements will be made by capitalists only if they know the wage rise will not offset productivity increases, but doesn't take that argument very seriously, since such foresight is what competition excludes.

Christian



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