Re: Re: 'Labor Market Dynamics Within Rival Macroeconomic Frameworks'

From: Ian Wright (ian_paul_wright@HOTMAIL.COM)
Date: Fri Jan 02 2004 - 14:28:49 EST


Hello Michael,

Thanks for taking an interest.

>I don't understand how income distribution can be separated from
>class struggle. Is the suggestion that workers' wages are independent of
>their struggles (eg., the formation of trade unions)? What exactly do you
>mean by 'the objective relations of production' that generate income
>distribution?

Empirically, in advanced capitalist countries, there are universal
functional
forms that describe income distribution of individuals. For example, the
distribution
of the majority of incomes is well described by an exponential or lognormal
distribution, whereas the higher property-incomes are characterised
by a Pareto (power) law. These features are common across countries and
across time.

These functional forms are not the result of class struggle, but are
unintended
consequences of the social relations of production, that is capitalists that
pay
wages and earn profits, and workers that perform work and earn wages,
coupled
with buying and selling in competitive marketplaces mediated by money.
My claim is that these features of the economy are a sufficient explanation
of
the observed functional forms of income distribution. In other words, causal
factors deriving from psychology, whether modelled as individual
neoclassical
rationality or collected under the rubric of collective class struggle, are
not the
determinant factors in the generation of these income phenomena. They are
very much consequences of enduring social relations, which are of course
implemented in the psychology and actions of economic actors, but are not
reducible to such things. In my view, the social relations of production
constitute an
abstract, but nonetheless real, enduring social architecture that constrains
the
possibilities that economic actors may choose between, whether rationally or
otherwise.

This underlies my methodological prejudice in favour of structural
explanations
rooted in the totality of social relations, prior to consideration of
conscious reactions
to the social environment, such as the formation of defensive coalitions,
such
as trade unions. In general, the former explain the necessity of the latter.

But to emphasise again, I have an open mind regarding the role of class
struggle
in the determination of wage and profit shares in national income, except
for
the prejudice just outlined. My guess is however, that similarly to the case
of
individual income distributions, the aggregate shares of national income
received
by the various classes will also largely be determined by structural,
objective features
of capitalist organisation.

>And, can you find a basis in Marx or Engels for this separation?

The causal priority of the social relations of production and the forces of
production
compared to individual and collective rationality is in Marx and Engels. But
they
don't provide a deduction from the social relations to the functional form
of income
distributions, and I wouldn't expect them to. That's a non-obvious
deduction, which
I've only asserted rather than demonstrated.

-Ian.

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