[OPE-L:5021] Re: Re: double divrgence

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Wed Feb 21 2001 - 18:08:31 EST


re 5019:

>
>>  If I'm not mistaken, you read that passage as saying that Marx defines
>>  respectively the value and production price of commodity j in the following
>>  way:
>>
>>  Wj = Kvj + svj
>>  Pj = Kpj + prj
>>
>>  Wj: value
>>  Pj: production price
>>  Kv: "cost price in value terms"
>>  Kp: "cost price in price term"
>>  sv: surplus value
>>  pr: profit
>
>Yes, that's my view.

But Allin that's not correct since it implies

(1) Kvj + svj => Wj


With this formula for value determination there is no way to fend off 
an adding up theory of price (you have heard me say before): that is, 
your formula won't allow for the possibility that in a multisector 
economy  the value of wage goods could rise and  Kv thereby 
increase--say greater outlays of labor are needed for agricultural 
produce with the increasing cultivation of inferior lands--without a 
commensurate increase in the value of the output.

The formula has to be

(2) Lmp + Lc => Wj

Yours, Rakesh



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