Re: Re: The rate of profit and recession

[Rakesh Bhandari <rakeshb@xxxxxxxxxxxx>]

oops left out a NOT

Excess capacity and the global competition to which it gives rise are
the effects, rather than the causes, of a retrenchment in investment
which is itself caused by diminishing profit prospects which thus
remains to be explained.

The explanations which are consistent with the labor theory of value
include a falling rate of profit caused by rising OCC and/or rising
U/P labor ratio or a fall off in the level of investment demand that
would equal total potential supply because of a perceived shortage of
living labor which is the only source of value added. Fred M prefers
the former explanation; I am suggesting that the latter canNOT be
ruled out.

Rakesh

ps may I recommend to Professor Phillips Professor Anwar Shaikh's
Introduction to the History of Crisis Theories. In US capitalism in
Crisis, ed. Bruce Steinberg. 1978.