dogmatic wrote:I agree with

[DJP]

dogmatic wrote:

I agree with you on everything except the bold part which has been proven wrong : Okishio’s theorem is a mathematical theorem formulated by Japanese economist Nobuo Okishio. It has had a major impact on debates about Marx’s theory of value. Intuitively, it can be understood as saying that if one capitalist raises his profits by introducing a new technique that cuts his costs, the collective or general rate of profit in society – for all capitalists – goes up.Okishio [1961] establishes this theorem under the assumption that the real wage – the price of the commodity basket which workers consume – remains constant. Thus, the theorem isolates the effect of ‘pure’ innovation from any consequent changes in the wage.

 Actually Okishio’s ‘proof’ is not as strong as you might think and is actually logically inconsistent and so has been junked several times. I don’t have the time to write a full response just yet but will refer you to chapter 7 of Andrew Kliman’s ‘Reclaiming Marx’s Capital’