Re: Falsifiability and the law of value

["Devine, James" <jdevine@xxxxxxx>]

Title: RE: [PEN-L] Falsifiability and the law of value

Drewk writes: 
>  If
> increases in productivity imply falling prices, ceteris paribus,
> and if falling prices imply falling profit rates, ceteris paribus
> (which they do), then ....

doesn't it matter what comes first? if prices fall (say, due to rising international competition due to a high US$ exchange rate), that would squeeze profit rates. But if labor productivity rises (or wages fall) before prices fall, the first thing to happen would be a rise in the rate of profit (likely temporary).

Jim