An Objective, Purely Relational System (Brief Item #87)

[7/2/20] Paraphrase of [CWL 21, 78]:  the aggregate (basic) price spread is a function of purely objective factors:

P’/p’ = a’ + a”(p”Q”/p’Q’) the basic price-spread ratio (CWL 15, 158)

of the objective acceleration factors, a’ and a”; of the objective rate of secondary costs, p”q”; and of the objective rate of primary costs p’q’.. The greater p”q” and the lower p’Q’, then the greater the price spread; …Obviously there is no necessary correspondence between this law and either the classical view that profits are due to intelligence, enterprise, and risk, or the Marxian view that profits are due to reckless exploitation of labor. … the primary price spread will increase no matter how benevolent and stupid the entrepreneurs may be: indeed it will increase even in Bolshevist Russia, where to avoid constant inflation the state must take the surplus which it denounces capitalists for taking. On the other hand, given a decrease in secondary costs with no corresponding decrease in primary sales, the (basic) price spread is bound to contract, no matter how … clever and enterprising the entrepreneurs may be; it contracts even in the lands of most rugged individualism.  [#87]

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