super exploitation pdf

DOMESTIC INDUSTRY cash flow vs investment + graph (spreadsheet)


Please replace the second paragraph on page three with the following one.

Here Roberts and Carchedi make a serious error. Prices of production, that is the movement of capital between industries to equalise the rate of profit, does not apply within an industry. It does not apply between the auto companies in Mexico, the USA or China because they are part of one industry. Here market value applies which sets the floor for the cost price of cars, with the volume of production and hence the selling price being set by the movement of capital between this industry and others in pursuit of profit.

(In my linking of market value to selling price instead of cost price, the role played by the prior movement of capital in determining the selling price and hence the rate of profit for the industry, is obscured. The corrections are in italic. The original formulation degraded the relation between market value and market prices of production.)

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