On Mon, 16 Apr 2001, Paul wrote: > Date: Mon, 16 Apr 2001 21:13:36 +0100 > From: Paul <clyder@gn.apc.org> > Reply-To: ope-l@galaxy.csuchico.edu > To: ope-l@galaxy.csuchico.edu > Subject: [OPE-L:5350] Re: Re: Re: double divergence > > On Sat, 07 Apr 2001, you wrote: > > > > > (1) W = C + N > > = C + mL > > > > (2) S = N - V > > = m (L - Ln) > > > > where W is value, C is constant capital, V is variable capital, N is > > new-value, L is total current labor, m is money-value-added per hour, Ln > > is necessary (= V/m), and S is surplus-value. > > > There is surely a dimensional inconsistency here. > if m is as you say money-value per hour, say $ per hour, > then the dimension of the whole equation is in money not > in value. > > I would say that the fundamental equation for the value of the product > is > W = C+V+S = C+ L > > and the exchange value of the product measured in money would be > P=mW > > -- > Paul Cockshott Hi Paul, thanks for your comment. We have different interpretations of value, which we have discussed before. You argue that value means labor-time. I argue that value means both labor-time and money. Labor-time is the substance of value and money is the necessary form of appearance of value. After developing this necessary relationship between the substance and form of appearance of value, when Marx used the term "value" in Capital, he was usually referring to quantities of money, or the form appearance of value. Volume 1 is mainly about the determination of surplus-value, which is defined as dM, or the excess of M' over M. I have presented many passages to support this interpretation (e.g. Chapter 7 of Volume 1 in which Marx's theory of surplus-value is presented; surplus-value is 3 shillings, a quantity of money). So in my recent post, I also meant value in this sense, as quantities of money, the form of appearance of value. There is no dimensional inconsistency in my equations. The value of commodities (W) is equal to the sum of the constant capital consumed in the production of the commodities (C ) plus the money new-value added by the current labor required to produce these commodities (N) (i.e. W = C + N). All these terms are quantities of money. Paul, do you see what I mean? Comradely, Fred
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