ANALYSIS OF Q2 CORPORATE PROFITS IN THE USA (including a real time proxy rate of profit).
August 31, 2019 10 Comments
US SAVINGS AND INVESTMENTS (spreadsheet)
working paper Q2 2019 corporate profits (spreadsheet)
TABLE 1.14 QUARTERLY UP TO Q2 2019 (spreadsheet)
In the sub-section titled “A correction” it was recognised that the rate of turnover influences the rate of exploitation but not vice versa. That is correct. But a more precise formulation is required as to how this influence works. A structural change in the rate of turnover, as we have seen in the USA and which is demonstrated in Graph 5, where circulating capital is no longer declining relative to fixed, affects the annual rate of exploitation by increasing the employment of labour power and the rate at which profits are realised. This explains the curious phenomena where employment has increased despite the fall in the rate of profit and to which fall it has contributed.
Due to pressures of union work I rushed this article and thus did not deal correctly with the inter-relation of turnover and exploitation. It was wrong of me to say that a rise in the period of circulation from 50 to 60 days would necessarily affect the rate of exploitation, it wont. That would assume profits are made in the circulation process rather than the production period. For the correct way to deal with this issue please read the comments at the end of this article. I apologise for the confusion caused.
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