[OPE-L:5121] Re: Re: waste, value, and potential

From: Rakesh Narpat Bhandari (rakeshb@Stanford.EDU)
Date: Thu Mar 08 2001 - 14:26:08 EST


Well, we've been having the debate whether surplus value spent by the 
state is wasted, or serves as capital. Paul B has made the argument 
that state spending can be a public form of constant capital. Jerry 
has said that because the infrastructure built for the state that 
will not take the commodity form the surplus value incurred in its 
construction have been wasted. Is this simply a version of Shane Mage 
vs.. Shaikh/Tonak?

Seemingly like Mage, Paul B has said however that those costs are 
recovered like building costs in the realization of the commodity 
output. So state spending need not constitute the destruction or 
waste of capital. I have noted that much state spending in Japan 
today however cannot be reasonably taken to contribute to the 
realization of commodity capital. I don't think Paul B would take 
Keynes' famous example of treasury bill burying to be a case of a 
public form of constant capital. And he has argued that whether state 
spending forms a (public) part of constant capital or the waste or 
pulverization of surplus value has to be decided on case by case 
basis.

Yours, Rakesh



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