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A reply to Fred's OPE-L 3530.
Fred writes:
: Andrew seems to be saying the following (please of course correct me if
I
: am wrong):
:
: 1. If the value of the means of production (e.g. cotton) falls while a
: given batch of cotton is in the process of production into yarn, then
the
: value transferred from the cotton to the yarn WILL NOT CHANGE, because
the
: value transferred in this case is determined by the value of the cotton
: WHEN IT ENTERS PRODUCTION.
This is right.
Fred:
: 2. On the other hand, if another batch of yarn is already on the
market
: (not yet sold) at the time when value of cotton falls, then the value
: transferred from the cotton to the yarn WILL CHANGE, because the value
: transferred in this case is determined by the CURRENT ("reproduction")
: value of cotton.
No. What I'm saying is this:
The value of already existing yarn will fall when the value of newly
produced yarn falls, and because the value of newly produced yarn falls.
The "value transferred component" of the value of already existing yarn
will fall when the "value transferred component" of the value of newly
produced yarn falls, and because the latter falls.
So when the value of cotton falls, the value of yarn -- old yarn and new
yarn -- is not altered until there is yarn that has been produced with
the cheaper cotton. Once yarn is produced with the cheaper cotton, the
value of yarn falls. The most recently produced yarn, the yarn that was
produced using the cheaper cotton, has a lower value, and therefore so
does the previously produced yarn.
I hope this clarifies matters, Fred.
Ciao,
Andrew
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