Capitalist profit calculation and inflation accounting

How are profits calculated under capitalism? This paper discusses the forms of profit calculation that have been put forward by the accounting profession to deal with the problem of inflation. In so doing it also raises the issue of the disjuncture between the calculation of profit made by the capitalist enterprise/ firm and that generally associated with Marx and subsequent Marxist writings. Finally, the paper addresses the wider issue opened up by the debate about ‘inflation accounting’; in particular the question of the legal constitution of corporate trading bodies and the control of the flow of investible money- capital within the economy.     

Poverty and profit in Central American forest policies

The failure of forestry to contribute to poverty reduction in Central America is due to public policies which inhibit its profitability. Absence of public regulation of harvesting and competing subsidies to agriculture keep forestry stumpage prices artificially low. This encourages destruction of the forest resource, which damages both the environment and the potential to reduce poverty. A comparison of Costa Rica and Honduras reveals two dissimilar approaches toward forest policy. While Costa Rica attempts to raise producer and grower stumpage prices by tax credits, soft loans and differential species fees, Honduras enforces price ceilings and uses centralized authority to control forest production and export. Both countries exhibit weaknesses in the management control cycle of programming, budgeting, implementing and evaluating their forest policies. Yet the Costa Rican approach has increased stumpage prices already, which bodes well for their forest sector. By contrast, the major beneficiary of Honduran forest policy has been COHDEFOR, the state enterprise responsible for forestry management, controlling production, and running its national system of agroforestry cooperatives. Despite greater public authority and resources than the Costa Rican forest service (DGF), the Honduran forest policy is not likely to increase producer profitability or reduce poverty in the near future.     

Capitalist profit calculation and inflation accounting: A comment

Abstract

Mises’ ‘calculation argument’ against socialism argues that monetary calculation is indispensable as a commensurable unit for evaluating factors of production. This is not due to his conception of rationality being purely ‘algorithmic,’ for it accommodates non-monetary, incommensurable values. Commensurability is needed, rather, as an aid in the face of economic complexity. The socialist Neurath's response to Mises is unsatisfactory in rejecting the need to explore possible non-market techniques for achieving a certain degree of commensurability. Yet Neurath's contribution is valuable in emphasizing the need for a balanced, comparative approach to the question of market versus non-market that puts the commensurability question in context. These central issues raised by adversaries in the early socialist calculation debate have continued relevance for the contemporary discussion.     

Economic integration and the relationship between profit and wage taxes

This paper analyzes the development of the ratio of corporate taxes to wage taxes using a simple political economy model with workers and capitalists that own internationally mobile and immobile firms. Among other results, our model predicts that countries reduce their corporate tax rate, relative to the wage tax, when preferences for public goods increase, or when the share of capital employed in multinational firms is rising. We further show how an increase in the wage share changes both the relative size of tax bases and the political influence of different income groups. The predicted relationships are tested using panel data for 23 OECD countries for the period 1980 through 2004. The results of the empirical analysis support our main hypotheses.     

Science,enterprise and profit: ideology in the knowledge-driven economy

Key policy documents relating to the 'knowledge-driven economy' show that policy makers, university heads and other interested academics have come to view the task of creating science-based industries through the lens of enterprise ideology.Proceeding on the assumption that the scientific fundamentals are already in place, the belief is that industrial applications can be achieved by infusions of enterprise. Such a framing is attractive to those unwilling or unable to engage with the complexities of scientific research or new product development. It offers a surface intelligibility combined with an apparent amenability to straightforward policy interventions. At the same time it is quite unclear, apart from the taking of risks, what attributes and behaviours are actually involved in enterprise. Even the relevance of risk is questionable. Despite the ideological pressure to demonstrate a link between entrepreneurship and risk, none of the relevant research has succeeded in doing so. Nor has risk been a prevalent feature of new venture creation in general and science-based start-ups in particular. The policy is an act of faith, based neither on research nor on experience. Its reliance on enterprise is less a solution than a hope that one will spontaneously appear.     

Semiotics of pride and profit: interrogating commodification in indigenous handicraft production

This study investigates the shifting terrain of pride, profit and power relations in minority language communities under contemporary globalisation. While “pride” associates linguistic-cultural heritage with identity and preservation, “profit” views these as sources of economic gain. In contemporary late capitalism, “pride” seems to be increasingly giving way to “profit”. Arguing that this transformation needs to be interrogated in terms of complexity and that a detailed, multilayered semiotic analysis can open a privileged window for such an inquiry, this study combines critical multimodal discourse analysis and an ethnographic approach to analyse processes of semiotic commodification in handicraft production in the indigenous minority language community of the Sámi in northern Lapland. The investigation focuses on the activities of an innovative Sámi artist and entrepreneur, and within these a range of paper notebooks, which are, although designed by the Sámi artist and sold in her handicraft shop in Lapland, produced by women living at the border of Thailand and Laos. The investigation illuminates two critical shifts: how the move towards profit can open up space to contest the ownership of pride within an ethnic community. Second, how this move makes way for new, globalised modes of production of ‘indigenous handicrafts’ and creates global vectors of power, engaged in both empowerment and exploitation, in the production of both pride and profit. The study thereby contributes to the understanding of the increasingly complex power relations and the ambivalence and multiple effects of practices constituting the apparent shift from “pride” to “profit”.     

Reaching for profit in the welfare state: Patrimonial economic voting in Denmark

Economic voting has been well-studied in a number of advanced industrial democracies, including Denmark. However, that work has been almost entirely on the valence dimension, i.e., rewarding or punishing government according to whether the overall economy prospers. Recent work has looked at other economic voting dimensions, including patrimony, i.e., the impact of property ownership on the vote. A patrimonial effect has been found in the UK, the US, and France. However, it seems to differ somewhat depending on the welfare-character of the state, with the US at one end and France at the other. Here we examine patrimonial economic voting in a still more extreme welfare state - Denmark. In our analysis of voting in the 2011 parliamentary election, we establish two new findings: 1. patrimonial economic voting exists in Denmark and, 2. its effect is stronger than that for other countries studied thus far.     

论非生产劳动、剩余价值与金融利润的关系

马克思关于生产劳动与非生产劳动的划分是从产业资本和商业资本的角度出发的,对于金融领域雇佣劳动的性质问题需要另做说明。金融领域的雇佣劳动属于非生产劳动,但同样为金融资本家创造剩余价值,但金融利润却不是直接来自于金融领域雇佣工人的剩余劳动,而是来自于生产领域中形成的剩余价值的再分配,金融领域中工人所创造的剩余价值部分抵消了金融领域活动的资本所产生的费用。     

Morality without Intention

Abstract

An examination of how, in literature, silence and veiling are related to moral significance. The paper emphasizes Walter Benjamin’s essay on Goethe’s Elective Affiniites and Nathaniel Hawthorne’s “The Minister’s Black Veil” and poses the question of how the literary can possess moral meaning or effect when, as in these two works, silence and veiling appear as a means of refusing or denying intention. Benjamin’s and Hawthorne’s different critiques of the symbol are presented as the central issue around which the possibility of moral meaning is decided as an intentionless act. Benjamin’s preservation of the moral is interpreted as the cause of the paradoxical and contradictory sources of the expressionless and its critical violence as well as the veiling and secrecy he identifies as forming the true work of art. Against this account, Hawthorne’s story is read as the refusal of any preceding secret as the basis of a moral claim and thus as the defining category of the work of art.