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Rakesh wrote
> I have flooded the list with criticisms of Fred's assumption that constant
> capital or the value of the means of production is determined by the cost
> price of the commodity
My understanding of Fred's position is this:
He claims that the average rate of profit is calculated on the value
advanced (in the form of money) to procure constant (and variable) capital
-- a sum of money which *may* be different from the value contained in the
commodities forming part of constant capital (or consumed by the workers)
Fred does NOT say anything to the effect that this money capital
outlay "determines" the value of the commodities in question (which I think
is what Rakesh means by "constant capital...is determined by the cost price
of the commodity").
His point is simply that the value laid out by the capitalist may be
different from the value of the commodities received -- and if there is any
difference then this represents a *transfer* of value.
Julian
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