Re: What is Marx's view of fiscal policy ?

[Gernot Koehler <gko15@xxxxxxxxxxx>]

Quoting Fred Moseley 3 Jun 2007

Hi Gernot. . .

Are you suggesting that services generally have a lower composition of
capital than manufacturing, so that a shift from manufacturing to
services will reduce the aggregate composition of capital (or slow down
its increase)?  If so, I think you are right, and this has been a
factor in the recovery of the rate of profit in recent decades, which
has nothing to do with fiscal policy.
. . .

GK: yes, that's what I tried to say - mind you, in the sense of a
speculation or hypothesis, since I do not have any systematic data to
support the idea. If one disaggregates manufactuing and services further,
there could be further differences in organic composition of capital in the
subgroups. For example, it requires more fixed capital to produce cars and
nuclear misslies than to produce software for arcade games or, in services,
it requires more fixed capital to sell cars than to sell life insurance and
vacation tour packages.

Thanks for your comment,
Gernot

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