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Topic: Rate of profit

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Profit

Rate of return on investment

Organic composition of capital

Return On Capital

Political economy

Return On Equity

Net present value

Economics

Income statement

PE ratio

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	THE RATE OF PROFIT AND THE FUTURE OF CAPITALISM
		Therefore, the main underlying cause of the limited increase in the rate of profit is the same as the main cause of the previous decline in the rate of profit: a continued increase in the costs of unproductive labor.
		This gross profit is the appropriate measure of the total returns to capital and is the fundamental determinant of the rate of capital accumulation for the economy as a whole.
		The strong increase of this ratio throughout the postwar period was both the cause of the significant decline of the rate of profit in the early postwar period and of the limited increase of the rate of profit in recent decades.
	www.mtholyoke.edu /~fmoseley/RRPE.html (5208 words)

	The “Millennium Crisis” and the Profit Rate
		In terms of its short-term impact on the economy, the actual rate of profit could be seen as a measure of the amount of “gas” in the average capitalist speedboat.
		Its magnitude is nothing like the previous fall in the profit rate, while profitability has hardly returned to the levels seen during the “golden age.” The slowness of the profit recovery simply encouraged those pursuing the one-sided class war to redouble their efforts.
		However, the profit rate’s rise does represent the rational basis for the stock-market surge in the1990s, until it became a speculative bubble at the end of the decade.
	myweb.lmu.edu /jdevine/talks/newOhio.htm (8017 words)

	Rising profit rate in US economy
		Such profits as a ratio of net stock of capital, including equipment, structures, work in progress and inventories would be broadly termed the rate of profit.
		The rate of profit of the economy is the addition to the stock of capital at the end of the year, divided by the stock of capital at the beginning of the year.
		Such high rates of profits, on an average basis, were not dreamt of in the immediate post-War period and the period just before the War.
	www.blonnet.com /businessline/2001/07/07/stories/040720ma.htm (1304 words)

	Rate of profit and capitalist crisis
		They saw the profit rate, and the share of profit in the economy which is easier to work out from national income accounts, as being caused by the rising share of wages.
		In other words the drive for profit and the same tendencies that produce a tendential fall in profit rates are responsible for the problems confronted by capitalists of how to realise their surplus value (by selling the goods).
		This is another continually operating factor which checks the fall of the rate of profit, although it may under circumstances encroach on the mass of profit by reducing the mass of capital yielding a profit.
	www.marxist.com /Economy/profitrate_crisis.html (10701 words)

	Profit Margin - RATE OF PROFIT
		Profit margin is related to other measures such as the rate of profit (sometimes called the rate of return), which comprises various measures of the amount of profit earned relative to the total amount of capital invested (or the stock of capital) required to generate that profit.
		Thus, while the profit margin measures the amount of profit per unit of sales, the rate of profit on total assets indicates the efficiency of the total investment.
		The difference between the profit margin measure and the profit rate concept then lies in the rate at which the capital stock depreciates, and the rate at which the production process repeats itself, or turnover time.
	www.referenceforbusiness.com /small/Op-Qu/Profit-Margin.html (928 words)

	Glossary of Terms: Fa (Site not responding. Last check: 2007-10-13)
		Marx claimed that there was a tendency for the rate of profit to fall in the course of history, and saw this as one of the sources for an historic crisis of capitalism.
		For a given rate of exploitation of labour, (s/v) (i.e., the ratio of surplus labour, s, to the necessary labour time workers must be paid for their labour power, v), what Marx calls the rate of profit, s/(c + v), must decline.
		Profit is also the source of income for the burgeoning classes of hangers on, and combined with the overproduction of capital as a result of the credit system, a falling rate of profit generates intense crisis in the ranks of the capitalists themselves.
	www.marxists.org /glossary/terms/f/a.htm (3176 words)

	Arne Swabeck: Falling Rate of Profit (1949) (Site not responding. Last check: 2007-10-13)
		It is possible, of course, that Nathan does not understand the theory of the tendency of the falling rate of profit or, at least, ignores it.
		One of the outstanding factors counteracting the tendency of the falling rate of profit is represented by a greater intensity of exploitation of labor.
		The tendency of the falling rate of profit is checked also by such means as the cheapening of the elements of constant capital.
	www.marxists.org /history/etol/writers/swabeck/1949/11/profitrate.htm (2166 words)

	Tendency of the rate of profit to fall - Wikipedia, the free encyclopedia
		The Tendency of the rate of profit to fall (TRPF) is a hypothesis in economics and political economy, generally accepted in the 19th century, but mostly rejected by mainstream economists today.
		On the contrary, Fred Moseley argues, in the US the rate of profit is lower than it used to be in earlier decades after the second world war, because of a rising share of unproductive labor with respect to productive labor.
		Secondly, if the income of the unproductive sector is apportioned to S (=surplus value) in the profit ratio S/(C+V), rather than to C (=constant capital) or V (=variable capital), the effect is that every increase in the income of the unproductive sector must increase S, and therefore raise the profit rate, rather than reduce it.
	en.wikipedia.org /wiki/Tendency_of_the_rate_of_profit_to_fall (2762 words)

	Course of corporate profit rate in US
		The rate of return to capital, or the rate of profit in the corporate sector can then be derived, and a time series of the same constructed.
		It may be noticed that the rate of return, or the corporate rate of profit, pre-tax, was as high as 11 per cent plus in the mid-1960s.
		The post-tax profit rate in the corporate sector ranged between 4.6 per cent and 6.9 per cent in the 1960s and 1970s.
	www.thehindubusinessline.com /2001/07/28/stories/042820ma.htm (1139 words)

	The Decline in the Rate of Profit and The Thoery of Crises
		The Decline in the Rate of Profit and The Thoery of Crises
		The Decline in the Rate of Profit and The Theory of Crises
		The transformation of the rate of surplus value into the rate of profit is merely the expression of the ratio of surplus value to total, instead of only to variable, capital.
	struggle.net /mhf/profitcrisis.htm (1296 words)

	Why Profit Gets Priority – World Socialist Movement
		The rate of profit is the amount of profit made over a given period, normally a year, as a percentage of the monetary value of the assets of the business at the beginning of the period.
		If a higher rate is being made in one branch this will tend to attract more capital into it as a result production will increase and the extra supply will cause prices to fall—bringing the rate of profit back towards the average or 'normal' level.
		If, on the other hand, the rate of profit is lower than average somewhere capital will tend to flow out of that branch production will fall, the lessened supply will drive prices up and the rate of profit will tend to rise to the average level.
	www.worldsocialism.org /articles/why_profit_gets_priority.php (466 words)

	Rate of profit on all savings schemes reduced -DAWN - Top Stories; July 1, 2003
		The reduction in the rate of return would, however, reduce the take-home income of the people between 8.7 per cent to 20 per cent if compared with their earnings under the existing rates.
		According to the official announcement, the rate of return on the Defence Saving Certificates has been reduced from 10.03 per cent to 8.5 per cent, causing a reduction in take-home income by 15 per cent.
		The scheme is of 10 years maturity and promises profit on monthly basis at the rate equivalent to the return on the Pensioners’ Benefit Account (PBA), i.e., 10.08% per annum.
	www.dawn.com /2003/07/01/top12.htm (557 words)

	The Internet, Creative Destruction and The Falling Rate of Profit Crisis (Site not responding. Last check: 2007-10-13)
		What has occurred, is that periodic falls in the rate of profit have been met with periodic increases in the rate of profit, at least from about 1790 to about 1930.
		The banks did not begin lowering their rates as soon as Greenspan began lowering the banks's rates in 1989, thus the stimulative effect on the 'real' economy of the rate cuts, almost $ 700 billion over two years, was delayed until late 1992.
		If the 1800s were a period of profits from increasing growth in labor-absorbing innovations, punctuated by periodic drops in the rate of return; the 1930s were a period of stagnant or falling GDP, with unstable profits maintained through investment in labor-saving innovations in the existing capital infrastructure.
	www.southerndomains.com /SouthernBanks/p1.htm (8011 words)

	Surplus-Value 5 (Site not responding. Last check: 2007-10-13)
		If there were a higher rate of profit in one industry than another, investors would shift their capital into the high-profit industry, depressing its price and its profit rate, and out of the low-profit industry, raising its price and profit rate, until the rates of profit were equal.
		This is the law of the equalization of the rate of profit.
		In both industries, the rate of exploitation is 100%, that is, s=v -- half of the value created by the labor day is appropriated by the employer, so s/v=1.
	william-king.www.drexel.edu /top/prin/txt/marx/marx8.html (412 words)

	Table of Contents; Marx, Capital, Volume III: Library of Economics and Liberty
		III The Relation of the Rate of Profit to the Rate of Surplus-value.
		IV The Effect of the Turn-over on the Rate of Profit.
		X Compensation of the Average Rate of Profit by Competition.
	www.econlib.org /library/YPDBooks/Marx/mrxCpCtoc.html (337 words)

	Rate of profit - Wikipedia, the free encyclopedia (via CobWeb/3.1 planetlab2.cs.virginia.edu) (Site not responding. Last check: 2007-10-13)
		where surplus-value corresponds to unpaid labor in the production process or to profits, interest, and rent (property income).
		Two concepts to measure the value of capital exist, capital at historical cost and capital at market value.
		In the case of inflation, for example, with generally rising prices, historical cost would not take account of rising prices of equipment.
	en.wikipedia.org.cob-web.org:8888 /wiki/Rate_of_profit (455 words)

	Profit Growth Rate Calculator (Site not responding. Last check: 2007-10-13)
		ANNUAL GROWTH RATE Calculator is a completely automatic software that simulates trade with a specific initial investment $ amount for the company chosen by the subscriber.
		From the results of Profit Growth Rate calculations, you can estimate the profit from the potential investment in the chosen company.
		Our research was done on thousands of companies, and it displays a high level of statistical accuracy (go to "Software Performance Analysis"), but Stock-Forecasting does not recommend our "Mechanical Trading System" as an ABSOLUTLY PERFECT SOLUTION and can not be responsible for any loss or gain during the trade.
	www.stock-forecasting.com /Demo/Calculator.aspx (218 words)

	Falling Rate of Profit
		loanable funds theory of the rate of interest
		Falling rate of profit was held by all leading classical economists except the English writer
		Scottish economist Adam Smith (1723-1790) regarded the decline in profit as a result of 'the competition of capitals' whereas English economist David Ricardo (1772-1823) noted that diminishing returns in agriculture raised the real wage and reduced profits with which wages were inversely related.
	www.economyprofessor.com /economictheories/falling-rate-of-profit.php (126 words)

	SSRN-References Cited 'On the Link Between the Flat Rate of Profit and the Internal Rate of Return (and Its ... (Site not responding. Last check: 2007-10-13)
		SSRN-References Cited 'On the Link Between the Flat Rate of Profit and the Internal Rate of Return (and Its Implications for Islamic Finance)' by Michael Osborne
		On the Link Between the Flat Rate of Profit and the Internal Rate of Return (and Its Implications for Islamic Finance)
		Notes i It is permissible, under some interpretations of Sharia rules, to compare this rate of profit with conventional measures, such as LIBOR, in order to get an idea of the competitiveness of the rate.
	papers.ssrn.com /sol3/RefUsedIn.cfm?abid=403100 (311 words)

	EconPapers: A CELLULAR AUTOMATA MODEL OF THE GENERAL RATE OF PROFIT
		Abstract: We present a simulation exercise of classical free competition in which individual capitals attracted by prospective rates of profit move across industries in their Moore neighborhoods.
		Capitals, in general, never settle down to a fully equalized general rate of profit position and the most common characteristic of the series of cross sectional average rate of profit is the never ending gravitation around the average rate of profit determined by the number of capitals in the lattice-economy.
		The statistical properties that emerge from the interaction of our agents resembles stable distributions chracterized by skewness and heavy tails.
	econpapers.repec.org /paper/anpen2005/006.htm (313 words)

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