PEN-L message, Re: super-profits belatedly

The BLS also publishes a CPI-W, for "urban wage earners and clerical
workers," that's little different from the CPI-U ("all urban
consumers").

Thanks Doug - I was aware they produced different series, but I did not know about that once. In general, the BLS are amazingly comprehensive within the framework of the legal edifice they have to operate under. The website has also improved since I have been looking at it.

As regards superprofits, this concept surfaced especially in the development of the theory of state monopoly capitalism (stamocap theory) by the Marxist-Leninist camp. But to my knowledge it never had a solid foundation in economic theory; it had more a moral connotation suggesting that "excessive" profits were being appropriated. In Marx's theory, there aren't superprofits (except in French language perhaps) but surplus-profits (extra-Mehrwert). Surplus profits arise either because of a superior bargaining position in competition (facilitating unequal exchange), or because competitors are blocked off in the market (examples include absolute ground rents, technological rents etc.). The idea that superprofits have something to do with corporate monopolies or with imperialism is misleading, because surplus-profits have been a feature of the normal operation of capitalism from its beginnings, regardless of colonies. The moral identification of superprofits with greed is also misleading, because what drives the process, is competitive advantage in the market, competition and greed is only one factor among others that can play a role. Even if there is no greed, there are still surplus-profits, so really a more profound inquiry would expose the conditions which permit the greed to occur. Currently the US profit rate seems to be rising while wages don't really increase, and this reflects the balance of forces between workers and owners of capital. Greed occurs more at the point of disbursement (distribution) of profits.

I am not sure about the notion of "bribing" as it is used here - I certainly tend to think that politicians in the US are often "bought" but whether you could say that the US working class is being "bought off" is something I am more iffy about.

Jurriaan