Nicky, thanks very much again for your helpful posts. Thanks especially for reminding me of Geert and Michael's "ideal precommensuration". In thinking more about "ideal precommensuration", I think I realize more similarities between VF theory and my interpretation of Marx's theory than I previously thought, and I think I also discovered what seems to a somewhat surprising (to me) underlying source of our differences. See what you think. 1. Nicky says (and Geert and Michael say) that, according to VFT, labor potentially creates value-added, but value-added is not proportional to labor. We need to distinguish here between IDEAL value-added (as in "ideal precommensuration") and ACTUAL value-added, right? As I understand it, IDEAL value-added (y) IS proportional to labor-time; i.e. y = mi li Is this correct? If so, then the VF determination of IDEAL value-added has the same logical structure and the same functional form as my interpretation of Marxs' determination of value-added - both are proportional to labor. In both theories, labor is assumed to be determined independently of value-added, and then to determine value-added (in part). For example, an increase of labor causes value-added to increase proportionally. Significant differences remain, especially over the precise definition and determination of "labor" (and also of mi, the monetary expression of labor). But there does not appear to be any deeper methodological difference here regarding the method of determination of IDEAL value-added. In the case of IDEAL value-added, systematic dialectics does not appear to be incompatible with this type of determination. There is a "causal link" between labor and IDEAL value-added. 2. ACTUAL value-added is different. ACTUAL value-added is in general not equal to IDEAL value-added. Therefore, ACTUAL value-added, unlike IDEAL value-added, is in general not proportional to labor. As I understand it, the reason why ACTUAL value-added is not equal to IDEAL value-added is that supply is in general not equal to demand, i.e. the actual demand has not been correctly anticipated, right? But what if supply = demand? In this case, ACTUAL value-added = IDEAL value-added, right? If so, then in this case ACTUAL value-added IS proportional to labor-time. So in the case of S = D, even the determination of ACTUAL value-added has the same logical structure and functional form as my interpretation of Marx's determination of value-added. In VF theory, "actual value-added" appears to be a component of actual MARKET PRICES, as affected by S not = D, and unequal rates of profit. In other words, not a component of long-run AVERAGE PRICES, with S = D and equal rates of profit. "Actual value-added" is related to DISEQUILIBRIUM prices, not to EQUILIBRIUM prices. Please correct me if I am wrong on this important point. 3. I argue that Marx abstracted from market prices in all three volume of Capital. Or, expressed differently, Marx assumed S = D in all three volumes of Capital. In other words, Marx's theory in Capital is not intended to explain actual market prices (although it can easily be extended to explain market prices), but rather to explain long-run average prices, which are the "centers of gravity" around which actual market prices fluctuate. Abstract labor is assumed to determine these long-run center-of-gravity prices, not the actual market prices. Marx's theory is at a very high level of abstraction in all three volumes, even in volume 3. Volume 3 continues to assume S = D, in the more precise sense of equal rates of profit. Volume 3 is about the determination of the general rate of profit and prices of production, and the further division of the total surplus-value into merchant profit, interest, and rent. Divergences of S and D are of minor importance compared to these bigger and broader questions. According to Marx's theory, divergences of supply and demand do not affect the magnitude of the total surplus-value, but only affect the distribution of this total amount among individual capitals. I would be happy to review the extensive textual evidence to support this interpretation (please see my paper "Marx's Concept of Prices of Production as Long-Run Center of Gravity Prices" on my website: www.mtholyoke.edu/~fmoseley). 4. Would not VF theory agree that the long-run average value-added (with S = D) is equal to the ideal value-added, and hence is proportional to labor? 5. If this is correct, then the differences between my abstract labor interpretation of Marx's theory and value-form theory seems to depend to a large extent on what the theory is supposed to explain: long-run average prices or actual market prices, equilibrium prices or disequilibrium prices. I hadn't realized this before. Nicky and Geert and Michael and others, am I right about this - that the VF concept of "actual prices" are market prices, with S not = D and unequal rates of profit? Thanks in advance for your replies. I look forward to further discussion. Comradely, Fred
This archive was generated by hypermail 2b30 : Sat Jun 02 2001 - 00:00:08 EDT