And if I'm not mistaken, this problem was Engel's observation (being a mfg. bean counter) rather than Marx's discovery - not that there's much difference. And seems the <19 November 1869> letter was Engels to Marx ("Dear Moor"), not Marx to Engels. Sorry, can't view other cites, as I don't have Penguin Capital, only International, nor your book (yet).
On Tue, Mar 8, 2011 at 11:15 PM, michael perelman < michael.perelman3 at gmail.com> wrote:
> 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
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