From: Rakesh Bhandari (rakeshb@stanford.edu)
Date: Thu Nov 07 2002 - 12:34:44 EST
Since Marx meant to study the impact of the development of the forces of production on the relations of production, he needed a measure of the VCC which would only allow for the effects of rising labor productivity induced by techno-organization change. Just as Marx assumes a constant monetary expression of labor time so that he can isolate the effects of rising productivity on the commodity side of the exchange equation, he invented a measure of the VCC which would allow him to isolate the effects of rising labor productivity. In my reading, the OCC is thus meant to measure only those changes in the VCC that result from rising labor productivity effected by techo-organizational change, i.e., the development of the productive forces. Marx gives the example of a rising VCC in agriculture though there has been no change in the TCC or the OCC or labor productivity as a result of the increasing value of ever-scarcer fertilizer. Marx somewhere gives another example (Capital, vol 2?). If the machinery used per worker were the same in a copper-using and iron-using industry but copper had less value than iron as a result of the recent discovery, say, of a very rich copper mine, then the TCC and the OCC in both industries would be the same while the VCC of the iron-using industry would be higher. Moreover, let us assume that the technical configuration in copper mining has not changed upon discovery of this new mine. Copper now has a cheaper unit value not because of the development of the productive forces or techno-organizational change but because of the good will of nature. I think Marx meant to abstract from such effects--fortuitously cheaper copper or scarcer fertilizer--on the VCC through the invention of the OCC. However, in examination of total capital, rising labor productivity has a contradictory effect on the VCC as it purchased by a rising TCC but results in declining unit values. More capital is used per worker but capital is cheapened in the course of accumulation. Marx thought that as a result the OCC would rise more slowly than the TCC, but many empirical analysts seem to have found that relatively stable output-capital ratios, used as a proxy for the OCC, shows that the contradiction need not be resolved as Marx thought. If capital is being cheapened as a result of rising labor productivity more than it is being substituted for labor, the OCC need not rise. I don't think the contrast between VCC and OCC hinges on use of constant as opposed to current prices but on the difference between those changes in the value composition that are attributable to rising labor productivity which results from the real development of the productive forces and those changes in the VCC that are not so attributable. And the OCC may or may not rise as a result of the science-based development of the productive forces. It seems to me that Marx's concepts (OCC) and methodological assumptions (constant value of money) arise out of his theory of historical materialism, in which the contradiction betweenn the forces of production and relations of production is thought to be central. Yours, Rakesh >Jerry, > >On my view 'organic' refers to the bringing to together of the two >elements of capital, the mp and LP. > >You refer to the bringing together of use value and value. But Marx >doesn't refer to the 'organic composition of the commodity' in order >to refer to the unity of value and use value. Rather, he simply refers >to the commodity. Thus I am questioning why, in further >developments, he suddenly has to use the term 'organic' to refer to >the unity of value and use value whereas previously he didn't. > >Many thanks, > >Andy > >> Andy asked in [7955]: >> >> > My question is, then, why >> > not simply call the 'OCC' the 'CC'? The term 'CC' would then refer >> > to the unity. The terms 'TCC' and 'VCC' would refer to the two poles >> > of the unity. >> >> Why not ask first: what meaning did Marx attach to the word "organic" > > in this context? >> >> In solidarity, Jerry >>
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