Re: [OPE-L] "Truthiness" and the TSSI

From: Anders Ekeland (anders.ekeland@ONLINE.NO)
Date: Wed Oct 24 2007 - 14:17:40 EDT


Hi Jerry,

as I have said before, just now I do not have time to follow up this
properly, so again very briefly:
   Do you think there is a "Whiggish
>foundation" to basically all non-TSSI radical perspectives in political
>economy?

Yes, in the sense that gen.eq - uniform profit rates, M-prices must
be equal to M'-prices, is seen as the only rigorous framework, the
only one that can produce analytical (interesting results).

To take a parallel - there is in my opinion an unresolved
contradiction in Schumpeter's works between an admiration of Walras -
and all the insights Schumpeter has regarding competition, creative
destruction, innovation etc. If you judge Schumpeter with GE as the
theoretical standard - he is not only a minor neo-Ricardian, he is
just verbal and non-rigorous.

>Do you think that it is a foundational question for Marxian and
>Sraffian economics to (your words) "judge him (Marx) from a gen eq. point
>of view"?

Yes.

>Since all but a handful of Marxians (in the Analytical and
>Rational Choice Marxism traditions) explicitly reject general equilibrium
>theory, this is a bit far-fetched, imo.

Why far fetched? The whole Bortkiewicz, Sweezy, Sraffa inspired
linear algebra is simultaneous, GE modelling, so if these people as a
credo reject GE - all their models and thinking and what they regard
as "results" are from GE models. Deeds count - not words.

One litmus test on this is their view on monopoly (in reality a
dominant position) - do they buy the neo-classical result that
monopoly means "less produced to a higher price" - then their
rejection of GE is of very little value. In reality the opposite is
the truth - IKEA gives you more furniture to a much lower price, IBM
give you more computing to a lower price.

Se my paper to the 2006 AHE conference: "The text-book myth of the
monopoly case" for a more detailed discussion of this neo-classical myth.

Regards
Anders


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