On Tue, 28 May 2002, gerald_a_levy wrote: > Re Fred's [7266]: > > > What is the general theory of profit that you > > present to workers and/or students? > > I don't think I can answer that question succinctly since a "general theory > of profit" has many components which are developed and explained at > various points in the classroom. In a sense, indeed, a "general theory of > profit" can only be fully comprehended within the *totality* of a theory and > critique. > > > What is meant by a > > "qualitative" theory of surplus-value? Surplus-value is a quantity (Marx > > called it a "pure quantity"). Therefore, the explanation of surplus-value > > requires a quantitive theory. > > >From my perspective, surplus value is expressive of a specific social > relationship which comes to be expressed as quantity. Thus, most > fundamentally, s itself is not quantity but is a relation that because of > the value-form takes the necessary form of appearance of exchange value > and money and thereby quantity and magnitude. It is precisely one of > the confusions of Ricardo -- highlighted by Marx -- that he understood > value _only_ as quantitative. Jerry, I don't see what is so difficult about a brief summary of Marx's theory of surplus-value. I would say: Profit (or surplus-value) is the excess of money (dM) that emerges at the end of the circulation of capital. According to Marx's theory, the magnitude of surplus-value depends on the quantity of surplus labor, which is the excess of the working day over necessary labor-time. Necessary labor-time is the time necessary for workers to produce a value equivalent to the wages they are paid. It is in this sense that workers are exploited: they produce more value than they are paid, and therefore a part of their working day produces surplus-value for capitalists, for which workers receive no equivalent. It follows from this theory that there are inherent conflicts in capitalism over the length of the working day and over the intensity of labor, and that there is an inherent tendency toward technological change that reduces necessary labor-time. Jerry, would you agree or disagree with this brief summary? What of significance would you say is left out? As I have argued before, I think an understanding of this theory of profit by workers and students would contribute in a fundamental way to the development of an anti-capitalist consciousness. However, critics argue that this theory is contradicted by the tendency of profit rates to equalize across industries. That is why I think a strong response to this criticism is necessary and worthwhile. Comradely, Fred
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