Daktoria wrote:Why would you ever operate something without receiving a profit?
There's a difference between capital returns and rent. I'm similarly talking about the excess return from owning the land. To the extent that there is a capital surplus, that will go away more slowly as capital becomes more widely available. Then the socialist dream of workers owning the means of production will be achieved, but no through coercive confiscation of private property, but simply through the market adapting to a situation in which the free lunch is taken away from the rentiers.
TropicalK wrote:What is "surplus value?" and how is it calculated?
The surplus value in this case would be rent, i.e. the surplus received by applying labor and capital to one location versus the same application of labor and capital at the margin of production.
The way to calculate rent is: R = GR - Kn * IPF - e
Where R = rent, GR = Gross Revenue, Kn = capital at time n, IPF = Installment Plan Factor, and e = expenses
IPF = i + 1/n + t
Where i is interest and t is time(I think. I'll have to scrounge through my notes a little more).
For land, the equation may be simplified as R = CF - Kn
Where CF = cash flow = GR - e