[Xmca-l] Re: A question on Profit.

[David H Kirshner]

Harshad,

I’m not an economist, and answered your initial question as a mathematician.
You are now introducing some economics ideas like “exchange ratio” that are beyond my ken, so I’ll have to back off here.
Hopefully others can pick this up.

David

From: xmca-l-bounces@mailman.ucsd.edu <xmca-l-bounces@mailman.ucsd.edu> On Behalf Of Harshad Dave
Sent: Sunday, March 21, 2021 10:35 AM
To: eXtended Mind, Culture, Activity <xmca-l@mailman.ucsd.edu>
Subject: [Xmca-l] Re: A question on Profit.

David,
I clarify here.

1. The "e." is of i. e. If you again read it... it is a part of the sentence. Anyway... not so important. Please ignore it.

2. Regarding product commodity quantity Q... it is my mistake but I have taken as... Q is a quantity of production done by L1 to L10 during one wage day.

3. I agree with you that sv1+....+sv10 (the sum) is the profit of M.

Now M is going to exchange (sale) the product commodity with any party against money.

Now, if we take production of product commodity for two different  days... say Q1 and Q2, his sum s1+...+s10 will be same.... even if it is different on both the days let it be profit1 and profit2 respectively.
But.... now....
When he exchanges the product commodities Q1 and Q2 on different day and exchange ratio on both the days are different....then
What is the official status of the amount of money due to the above said difference? How it gets interpreted or how should it be explained?
Harshad


On Sun, 21 Mar 2021, 16:57 David H Kirshner, <dkirsh@lsu.edu<mailto:dkirsh@lsu.edu>> wrote:
Harshad,

Ignoring "e." which precedes the list sv1, sv2, ..., which I take to be a typo, I see the statement  “Limit of profit of M for the day can never be higher than the sum sv1+sv2+…. + sv10" as true. Equally true, Limit of profit of M for the day can never be lower than the sum sv1+sv2+…. + sv10.
The reason is that you have defined your variables categorically, without variation.

You introduce Q as the total quantity of product community produced, suggesting that Q may be a variable. But Q does not play a role in the final statement you are asking us to evaluate, so its variation is not relevant to the question. Put another way, either the surplus value changes (is recalculated) each day depending on Q (and other unknown variables like, price per unit quantity), or Q is constant, and there is no need to recalculate the surplus value each day. Either way, by definition, the surplus value svi is the profit earned by M from the labor of Li. So M's daily profit can never be anything but sv1 + sv2 + sv3 +…. + Sv10.

David

-----Original Message-----
From: xmca-l-bounces@mailman.ucsd.edu<mailto:xmca-l-bounces@mailman.ucsd.edu> <xmca-l-bounces@mailman.ucsd.edu<mailto:xmca-l-bounces@mailman.ucsd.edu>> On Behalf Of Harshad Dave
Sent: Sunday, March 21, 2021 5:52 AM
To: eXtended Mind, Culture, Activity <xmca-l@mailman.ucsd.edu<mailto:xmca-l@mailman.ucsd.edu>>
Subject: [Xmca-l] A question on Profit.

Dear All,

As per labor theory the unpaid labor (surplus value) is the profit. I present one simple case here with a question.

There is a Master M with a productive work set up under his command. A raw commodity is processed and the product commodity is exchanged by M with third parties. There are L1, L2, ….. L10 labours working in the work set up on a daily wage basis and get reward in terms of money wage say wg1, wg2, wg3… wg10 respectively. As per the labor theory there must be unpaid (surplus value - sv) labor amount in each wage i.
e. sv1, sv2, sv3…. Sv10. If Q is the quantity of the product commodity produced by labours (L1, L2 …L10) Then… my question is….

Is it true that “Limit of profit of M for the day can never be higher than the sum sv1+sv2+…. + sv10?

NB: I have tried to explain my question with all the possible clarity.
However, if you need still further clarity, please feel free to ask before you extend your views.

Regards,

Harshad Dave

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