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

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Mon Jan 05 2004 - 07:02:57 EST


I have not been able to follow ope-l for a couple of
weeks, but I find this post by Ian very interesting.
Ian! you write, "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." But don't you think that "across
countries and across time" those relations of
productions themselves will not be the same? Cheers,
ajit sinha

--- Ian Wright <ian_paul_wright@HOTMAIL.COM> wrote:
> 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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