Well, two simple points: 1st there are two perspectives to consider: the seller of arms and the purchaser of arms. Paul C argues that the private production and sale of arms is not productive of value while (I believe) the orthodox Marxist would instead underline (and it seems to me that Paul C's own example of a private arms dealer can be read this way) that with the purchase of arms, the buyer is not thereby equipped to transmit the value of the arms to future commodity output in which surplus labor would have been absorbed. The arms, like luxury goods, are unreproductive goods in terms of the further accumulation of capital from the perspective of the purchaser and total capital. Arms are thus unreproductive goods, according to then orthodox Marxist Mario Cogoy. So if the state has borrowed to buy arms, it cannot as a result thereof produce the additional value with which to retire the debt (principal and interest). It will have to print money, tax or borrow again. Paul C wants to make the additional argument that the arms producer has not produced value. And I don't believe this gets to the heart of the matter. What is more important is that the purchaser--the state or even a private buyer--has expended (instead of accumulated) value, even though the level of production in society as a whole--and here is the basis of the more important illusion which Paul C misses-- would not immediately reflect the destruction of value since as a result of the arms dealer having realized value there is additional income via the multiplier to realize commodity values. Second--and here Paul C and Allin did not reply to me--the expenditure of surplus value on arms does not slow down the accumulation process if that surplus value would have lain (sp?) idle anyways. So such expenditure can help to maintain higher production levels in the short term than would have otherwise obtained (I don't think this is an idle point). hence, the temptation of the capitalist state to embark on programs of militarization. Yours, Rakesh
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