CHINA: 2018 RATE OR PROFIT AND RATE OF TURNOVER.
January 31, 2019 3 Comments
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This WordPress.com site is dedicated to independent working class politics. Contact me at briangreen@theplanningmotive.com
January 31, 2019 3 Comments
THEPLANNINGMOTIVE.COM 
Dear Brian,
I have just read your piece on turnover and I was surprised I did not read something similar on China up to now, my fault of course. Have you written the article either theoretical or based on empirical data?
I am convinced of the key importance of turnover time in Marx’s theory of value, since my first reading of Capital Volume II. I am writing a long monography on the transformation problem and went through what you wrote on transformation commenting on Moseley’s book Money and Totality. Your sentenze is perfect:
“The transformation problem, described as such by Marx, is the need to explain the transition from market value to prices of production or their final form, market prices of production.”
Hi,
Thank you for you kind and perceptive words. All my work is based on empirical data. Fortunately China provides both the production and the circulation period in the form of inventory turnover, days before payment, or credit outstanding. This correlates to +-3% the results obtained by applying the turnover formula. In China’s case instead of gross output, industry revenue suffices. I have proved the turnover formula repeatedly testing it against bourgeois formulas such as cost of annual sales/(current assets less current liabilities). I have found no evidence to refute it. The biggest disappointment is that it has not entered in common usage in Marxist circles.
The transformation problem is, as you will agree, the acid test for Marx’s labour law of value. Most Marxists who have tried to solve it have failed. That was the reason I set myself the task four years ago of providing a robust solution to the transformation problem. Here is the link on this site to that article. https://theplanningmotivedotcom.files.wordpress.com/2015/09/transformation-solution-pdf.pdf I am not sure if you have read it but I believe it will assist you in your work. If you would like me to review what you have done please contact me on ucanbpolitical@aol.com
Dear Brian,
thank you very much for your kindness. I have quickly read your articles since I was sincerely curious and I found them very interesting; especially on turnover times, I would subscribe to any of your comments. I am less convinced though on your take on market prices of production.
I am writing on Marx’s theory of value since I was a Ph.D. student at the New School for Social Research in NY in 1996-2001, trying to convince my friends on the importance of turnover time for the temporal dimension of the money capital circuit (without much success I have to say). Finally, pushed by some Italian friends I decided to do something with my manuscript and I am giving the final shape to a long text (grown in the last years to more than one hundred pages). Unfortunately, I can work on it only in my short spare time, mostly on the weekends. As you can imagine this means that there is a lot of discontinuity in my readings (for example, I am sure I read a couple of years ago your posts in the Kliman-Moseley discussion following the Patrick Murray’s review of Money and Totality, however, only now I found out that you wrote much more on the topic!).
I appreciate a lot your availability to give your comments on my paper and as soon I have completed reviewing some of the comments I have already received I’ll send to you the revised text (hopefully also divided in two or three separated papers).
Please tell me more about you. Are you in the US? Are you currently teaching? I see on your web page https://theplanningmotive.com/ that you have a long pamphlet “Planning the future”, I’ll read it asap, are you planning to publish it?
I hope we will keep in touch!
Guido De Marco
Il giorno sab 23 feb 2019 alle ore 18:54 theplanningmotivedotcom ha scritto:
> ucanbpolitical commented: “Hi, Thank you for you kind and perceptive > words. All my work is based on empirical data. Fortunately China provides > both the production and the circulation period in the form of inventory > turnover, days before payment, or credit outstanding. This correla” >