[lbo-talk] An Orgy of Speculation?

[michael perelman]

Marx repeatedly noted that new technology destroys capital values so
rapidly that no factory covers its production costs (Perelman, 1987,
Ch. 4; see Marx to Engels on 14 August 1851, in Marx and Engels, 1982,
p. 424; Marx 1967, III, p. 114; and Marx, 1963, p. 65; Marx to Engels,
19 November 1869; in Marx and Engels, 1942, p. 270).  He cited
Babbage's example that frames for making patent net that sold for 1200
pounds a few years hence, cost only 60 pounds (Marx, 1977, p. 528;
Babbage, 1835, p. 286 and 214; see also Baumol and Willig, 1981; and
Gaskell, 1833, p. 43: cited in Alberro and Persky, 1981).


> Marx emphasized turnovers of capital more than depreciation of fixed capital
> as a simplification. To him price and market value are secondary in the
> general analysis of value-based profitability.

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

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com