From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Thu Nov 22 2007 - 05:58:43 EST
Philip However, the writer gives no indication that he understands the TSSI or SSSI or Marx even. p.10 "The illogicality of his argument becomes apparent when we look at his MELT from the other side. Let us assume with Kliman that $1 = 1/3 hours of labor. Then it must imply that 1 hour of labor = $3. Let us call it labor equivalent of money (LEM). If we apply our LEM to Kliman’s example of the two sectors above, the $ price of commodity 1 must be $200 + (8x3) = $224 and the $ price of commodity 2 must be $40 + (16x3) = $88. But his output prices are different. Therefore, MELT is an irrational measure of conversion from labor to $ or $ to labor." The confusion between price and value! Neither TSSI nor SSSI nor Marx calculates *prices* as the constant capital transferred in dollars plus labour converted to dollars. What is calculated here is the *value* of output expressed in dollars. (I take that the writer is assuming a constant MELT/LEM here.) -------------------------------------- If there are only two sectors then the total value of output expressed In dollars will be the same as the total price, so Ajit's assumption Seems sound Cheers ___________________________________________________________ All new Yahoo! Mail "The new Interface is stunning in its simplicity and ease of use." - PC Magazine http://uk.docs.yahoo.com/nowyoucan.html
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