[OPE-L:4422] cost price again

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Fri Nov 03 2000 - 07:18:18 EST


At some point in our exchange Andrew K wrote to me:


>  "since you agree that the value of a commodity is k
>+ s, and that k doesn't equal the value of the means of production and
>subsistence, you *must* agree that the sum of value transferred diverges
>from the value of the means of production.  Well, not "must," but it's
>illogical if you don't."

Andrew, here is the essence of our difference. I do not think that 
Marx is saying that one *determines* the value of a commodity by 
*adding up* cost price and surplus value.

  Marx is saying that a value of a commodity can be resolved into its 
cost price + surplus value. What determines the value of a commodity 
is simply labor time, the indirect and direct labor time which a 
commodity embodies or represents. It is perfectly obvious that the 
value of the wage goods or the value of the money needed to purchase 
wage goods does not in fact enter the value of the commodity at all. 
But this would be implied if we understood commodity value to be 
determined by the addition of surplus value and cost price.

That commodity value however is then represented by Marx as cost 
price + surplus value. One should not mistake the + sign for Marx's 
determination of commodity value as cost price added to surplus value.

This implies exactly what I have been saying: surplus value is the 
excess of commodity value over its cost price (or the total capital 
advanced or the money paid for the direct and indirect labor which 
has been used). Surplus value for Marx is never defined as the excess 
of commodity value over the value of so called inputs, viz. the value 
of the means of production, plus the value of the wage goods needed 
to buy the direct working hours which a commodity embodies. Surplus 
value is rather expressed as the excess value over the money which 
has been PAID for that indirect and direct labor embodied in the 
commodity. At no point does Marx not define surplus value as the 
excess of commodity value over its cost price (or one of its 
synonyms: total capital advanced, PAID labour).

One simply cannot find in Marx's Capital 3 a single reference to 
Allin's "value of the inputs" as the subtrahend in Marx's definition 
of surplus value with total value as the minuend.

The reason for this is simple: of the total value produced, what 
remains as surplus value both for the assessment of successful 
valorization and redistribution according to a uniform profit rate is 
the excess value over the cost price (M'>M) , not the excess value 
over Allin's "value of the inputs" an expression which in any form 
one simply does not find in Marx.

Once one accepts Marx's definition of surplus value as total value 
minus cost price, the system of transformation equations is no longer 
overdetermined by the  two equalities. It also means that is 
impossible to postulate the invariance of the mass of surplus value 
as the cost prices are modified.

Yours, Rakesh



This archive was generated by hypermail 2b29 : Thu Nov 30 2000 - 00:00:04 EST