From: Fred B. Moseley (fmoseley@mtholyoke.edu)
Date: Wed Dec 04 2002 - 22:48:30 EST
On Wed, 4 Dec 2002, Francisco Paulo Cipolla wrote: > Fred wrote: > I argue that Marx took the wage-bill (i.e. variable capital) as given, and > then assumed that the quantity of value added (VA) produced is determined > by the product of the quantity of socially necessary labor-time (L) and > money-value produced per hour (m); i.e. > > VA = m L > > >From this basic assumption, the quantity of surplus-value is explained, as > follows: > > S = VA - V V is variable capital > > = mL - V > > = m (L - Ln) where Ln = V / m > > This theory explains why value added is greater than variable capital - > because in only takes workers a part of the working day to produce > value-added equal to variable capital. But without the assumption that VA > = mL, there would be no explanation. > > Hi Fred and colleagues of OPE-L, > It is not clear to me why your algebra allows you to conclude that "this > explains why value added is greater than variable capital". It explains rather > why a condition for the existence of surplus value is VA>V, or saying the same > differently: a condition for surplus value is that L be greater than Ln. But > none of this algebra explains why in fact it is. This difference between L and > Ln seems to me to be a result of history. It was true in feudalism already! > Capitalism increases the distance between L and Ln. Maybe it was just a matte > of expression. Could you clarify further? I thank you in advance. > Paulo > Hi Paolo, thanks for your questions. My brief responses are: 1. This equation (or rather Marx's theory which the equation summarizes) identifies the determinants of surplus-value: L and Ln, which are quantities of labor-time that exist as separate entities from quantities of money - even though necessarily connected with quantities of money, with the precise relation between them expressed by this equation. I agree that one also had to go further and explain the determination of L and Ln, which Marx's theory also does (see #4 below). 2. This equation also explains more than the "condition of existence" of surplus-value. It also explains the precise magnitude of surplus-value, which is proportional to surplus labor, with m as the factor of proportionality. 3. I also agree (of course) that surplus labor already existed in feudalism. But the unique thing about capitalism is that surplus labor APPEARS TO DISAPPEAR! Because capitalist pay wages to workers, the relation between capitalists appears to be one of an equal exchange, with no surplus labor involved. Mainstream economic theory explains profit (or at least tries to, and fails) by factors other than surplus labor - the marginal productivity of capital, abstinence (!), risk, etc. The main achievement of Marx's theory (in my view) is that it destroys the illusion of an equal exchange between capitalists and workers and clearly demonstrates that surplus-value is the result of surplus labor, i.e. of the exploitation of workers. 4. Capitalism does indeed "increase the distance between L and Ln." Much more so than other mode of production. From this inherent tendency to increase surplus labor, Marx's theory derived in Volume 1 the following important further conclusions: (1) inherent conflict over the length of the working day; (2) inherent conflict over the intensity of labor, and (3) inherent technological change. This impressive explanatory power is unmatched by any other theory of profit. Paolo (and others), any further comments? Thanks again. Comradely, Fred
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