Supply and demand are irrelevant to marxist framing (it’s all hidden in phrase “socially necessary labor time” - aggregate bag of everything society needs) of profit. Capitalist arrives at the scene, looks at the cost of inputs and workers and decides whether its profitable to do stuff. Because the only thing he can vary on production stage is price paid per labor (after all, cnc machine costs more or less the same - it’s fixed expense (constant capital or capex in modern lingo). if he cannot find a way to couple variable expense (price of labor) to the fixed expense to average expected profit rate, he just won’t start producing stuff. N.B. - that they are irrelevant doesn’t mean they aren’t real. Cute curves of demand mean jack shit for price of food, it’s inelastic or whatever. By marxist logic, porkies would produce food until they find acceptable return on investment, not until demand is satiated (which is why in imperial core everyone subsidizes agriculture, but that’s whatever). if the standard of roi was 50% you better believe they would watch you starve instead of expanding (see rents in usa)
Now, modern porky fights a lot of fights: can he remove regulations via lobbying? (e.g. chemical industry) can she lower wage, say by importing immigrant workers? (e.g. farms) can they ship out the production to other country? (e.g. mining) can they feasibly induce demand (create societal necessity of something)? (e.g. iphones) can they protect market share by paying off ad agencies? (e.g. coke) (most of the stories of modern daring capitalists are induced demand btw, nobody sings the praises of 3M ceo, before the 70s, it was more about reducing downtime (ford, mcdonalds etc)
but every single one of them wouldn’t get profit if they’ve paid the workers 100% profits back (obviously). after all, capitalist holds some pieces of electronic data that says they are obliged to part of profit and decision making, they can do jack shit all the time and still gets some proceeds from labor of 1000s people employed)
Supply and demand are irrelevant to marxist framing (it’s all hidden in phrase “socially necessary labor time” - aggregate bag of everything society needs) of profit. Capitalist arrives at the scene, looks at the cost of inputs and workers and decides whether its profitable to do stuff. Because the only thing he can vary on production stage is price paid per labor (after all, cnc machine costs more or less the same - it’s fixed expense (constant capital or capex in modern lingo). if he cannot find a way to couple variable expense (price of labor) to the fixed expense to average expected profit rate, he just won’t start producing stuff. N.B. - that they are irrelevant doesn’t mean they aren’t real. Cute curves of demand mean jack shit for price of food, it’s inelastic or whatever. By marxist logic, porkies would produce food until they find acceptable return on investment, not until demand is satiated (which is why in imperial core everyone subsidizes agriculture, but that’s whatever). if the standard of roi was 50% you better believe they would watch you starve instead of expanding (see rents in usa)
Now, modern porky fights a lot of fights: can he remove regulations via lobbying? (e.g. chemical industry) can she lower wage, say by importing immigrant workers? (e.g. farms) can they ship out the production to other country? (e.g. mining) can they feasibly induce demand (create societal necessity of something)? (e.g. iphones) can they protect market share by paying off ad agencies? (e.g. coke) (most of the stories of modern daring capitalists are induced demand btw, nobody sings the praises of 3M ceo, before the 70s, it was more about reducing downtime (ford, mcdonalds etc)
but every single one of them wouldn’t get profit if they’ve paid the workers 100% profits back (obviously). after all, capitalist holds some pieces of electronic data that says they are obliged to part of profit and decision making, they can do jack shit all the time and still gets some proceeds from labor of 1000s people employed)