At last a topic I can contribute to. Firstly, briefly answering the third question you pose, I very much doubt that Sraffa saw his POCBMOC as the foundation of an alternative theory. Especially in the light of claims he made in his 1926-30 papers, I think his "positive" agenda would have been much more like Kalecki's. On how you can use his analysis to critique marginalism, essentially I see Sraffa as providing in POCBMOC a means to accurately measure the amount of capital: by firstly devising the standard commodity, and then by expressing the amount of capital as *approximately* (because there is always a non-zero commodity residue) equal to the value of the dated labor time used in its production. The combination of these two components--the wage unit measured in terms of the standard commodity, and capital measured in terms of dated labor input--is a term that accurately measures the amount of capital as (1 -r/R)(1+r)^n where R is the maximum rate of profit of the input-output system, r is the actual rate of profit (in equilibrium), and n is the number of periods ago that the labor input occurred. Thus, rather than the rate of profit depending upon the amount of capital--which is an essential concept in the marginal productivity theory of income distribution--the measured amount of capital depends on the rate of profit (in a highly nonlinear way). Since the marginal productivity theory of income distribution is an essential element in neoclassical theory, it is unsustainable with produced means of production. Cheers, Steve At 09:00 PM 19/04/2002 Friday, you wrote: >What "critique"? > >Let's recall that Sraffa claimed _only_ that the _PCMC_ >represented a "prelude to a critique of economic theory" >(the sub-title of _PCMC_). He was very specific about >this: > >"It is, however, a peculiar feature of the set of propositions >now published that, although they do not enter into any >discussion of the marginal theory of value and distribution, >they have nevertheless been designed to serve as a basis for >a critique of that theory. If the foundation holds, the critique >may be attempted later, either by the writer or by someone >younger and better equipped for the task" (_PCMC_, p vi). > >As far as I know, Sraffa never claimed that he was later able >to attempt that critique nor did he claim that others had >successfully developed a critique of marginalism that was >built on his "foundation". > >This leads to my *first question*: in the 42 years since his >book was published, has anyone built a critique of marginalism >on the foundations of his book? It seems to me that the >re-switching and capital-reversing literature is *not* the critique >that Sraffa had in mind. What then would be? > >The *second question* would be: how did Sraffa understand >the meaning of "critique"? Did he understand it in the same >way as Marx? ... Wittgenstein? ... Hegel? Are these >understandings of critique the same? (I think not.) > >The *third question* might be: in what specific sense was >_PCMC_ a "prelude" to a critique of marginalism? Did Sraffa >believe that a comprehension of capitalism could be built on a >"foundation" that itself only claimed to be a prelude to critique? >Note here that Marx attempted to critique (primarily) classical >political economy whereas Sraffa attempted to lay the basis for >a critique of marginalism. This, then, leads, me to my *last >question*: does the comprehension of capitalism through critique >depend on the engagement of a *particular* economic theory? >For instance, does the critique of marginalism serve the same >purpose as the critique of cpe? (although of course, Marx >subjected other economists to critique as well.) Would we >be equally able to comprehend capitalism through the critique >of (old style) institutionalism, neo-institutionalism, post-Keynesian >theory, monetarism, et al? For that matter, could we develop >an understanding of capitalism and develop the "economic law >of motion of modern society" through a critique of other social >theorists who aren't economists, e.g. Durkheim, Weber, >Rousseau, Sartre? > >In solidarity, Jerry Home Page: http://www.debunking-economics.com http://bus.uws.edu.au/steve-keen/ http://www.stevekeen.net Associate Professor Steve Keen School of Economics and Finance Campbelltown Campus, Building 11 Room 30, UNIVERSITY WESTERN SYDNEY LOCKED BAG 1797 PENRITH SOUTH DC NSW 1797 Australia s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683 Mobile 0409 716 088
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