# US RATES OF PROFIT 1980 – 2019.

September 10, 2020 5 Comments

I would like to apologise to my readers. Writing a complex post whilst under the influence of mild seasonal flu is never a good idea. As a result I inadvertently used corporate profit data derived from Table 1.14 rather than the intended non-financial corporate data. I have now replaced the defective article and worksheet with the corrected ones. The only damage has been to my pride. The corrected data are more supportive of my conclusions than the defective data used originally.

“There is no need to revise the rate of profit previously provided. The BEA figure for

2019 non-financial corporate fixed assets came in at $18001.3 versus my estimate of £17993.2

a difference of .0005% or $8 million.”

There is a mistake somewhere in this as the £ = $1.28

Oops meant to use a $ sign not a £ sign. Thanks for pointing it out. I will reload the article with that corrected. Still you must admit, it was a good estimate.

now corrected

There is no formula for the rate of turnover in your table 1.14

Thomas I will post an article on fictitious capital this weekend. It has gone to Cameron for proofing. When posted it will have Table 1.14 attached with new workings including calculations for the rate of profit.. Essentially the rate of profit I use, is unadjusted pre-tax non-financial corporate profits divided by the sum of fixed and circulating capital. I use the unadjusted variant of profit because it is closer to the net operating surplus or net value added less compensation. To obtain circulating capital I use the following formula, gross output less net surplus, both divided by turnover. By deducting the surplus from gross output we arrive at the cost of gross output and thus the sum of circulating capital over the course of the year which needs to be reduced to a period of circulation by dividing it by the annual rate of turnover. Fixed capital is current cost produced assets. (However I am disturbed by the treatment of elements of I.P. since 2012, namely R&D and in-house software, as capital rather than as costs. As a result I.P. has become a bigger component of fixed capital which has helped reduce the rate of profit.)