transformationInstability
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ABCDEFGHIJKLMNOPQRSTUVWXYZAA
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SectorcvslabourvalueProfit rate
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I£200£67£33100£30012.50%
Means of production
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IIa£67£133£67200£26733.33%
Necessities
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IIb£33£67£33100£13333.33%
Luxuries, arms etc
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Total used£300£267£13340023.53%
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wage £0.67
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Rate of s/v
50.00%
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The dark shaded areas of the reproduction table are constrained by Marx's reproduction equations
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The light shaded cells are the ones that you can alter to see what the effects of changing the distribution of labour
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or changing the value of constant capital in sector I. These are the only free variables of the reproduction system.
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The spreadsheet will automatically recalculate the result of any changes to the free variables.
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Next we see what will happen if there is a marginal transfer of capital from dept 1 to iia
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transferscvtotal
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from I£9.00£3.00£12.00Supply
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to IIa£2.67£5.33£8.00
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to IIb£1.33£2.67£4.00
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Change in demand-£5.00£5.00
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This shows that a transfer of £12 capital from dept 1 to dept 2 will exacerbate the inequality since it will cause the demand to fall for dept I further reducing its profit rate and also blocking reproduction
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