(OPE-L) RE: 'simple commodity production'

From: Gerald A. Levy (Gerald_A_Levy@MSN.COM)
Date: Fri Sep 10 2004 - 09:42:00 EDT


Re: [OPE-L] (OPE-L) RE: the intellectual origins of 'sHi Paul C.

I asked Rakesh:

>  What
> do you think about the argument advanced by Chris  in The New Dialectic 
> and Marx's Capital, p. 19-21 (beginning with the questions near the
> bottom  of  p. 19: "Does the model work conceptually?  Could the
> law of value really obtain its 'classical form' at such a postulated stage
> of development of commodity exchange?") ?    

To which you asked: 

> Does not Ian Wrights work indicate that this is possible? 

I'll reproduce part of this reference below and Ian, you and others 
on the list can determine for yourselves whether Ian's work 
represents a response to that perspective.  Fair enough?

In solidarity, Jerry

"In truth, it does not make sense to speak of value, and of exchange
governed by a law of labour value, in a pre-capitalist society, because
in such an imagined society there could be no mechanism to enforce
such a law; price in such a case would simply be a formal mediation, 
allowing exchange to take place, but without any determinate value 
substance being present.  According to Marx the law of value is based 
on exchange in accordance with socially necessary labour times,
but in the case of simple commodity production there is no mechanism
that would *force* a given producer to meet such a target or be driven 
out of business. When all inputs, including labour-power itself,
have both a value form and production is subordinated to valorisation,
then an objective comparison of rates of return on capital is
possible and competition between capitals allows for the enforcement
of the law of value.  The point of simple commodity production and
exchange is to produce a good in the hope of exchanging it for a different
one. While there are constraints, consequent on limit conditions, to
such exchanges, there is no possibility of precise determination
of the ratios of exchange concerned. Capitalist commodity production is 
the production of a value in the hope of exchanging it for the purpose 
of acquiring more value; therefore capital is forced to pay close
attention to all the value determinations such as socially necessary
labour times. 'The product wholly assumes the form of a commodity
only as a result of the fact that the entire product has to be transformed 
into exchange value and that also all of the ingredients necessary for
its production enter it as commodities  -- in other words it wholly 
becomes a commodity only with the development and on the basis of
capitalist production.' (Marx)

   Any attempt to ground value in 'simple commodity production'
must covertly rely on Adam Smith's original argument that the 
only consideration affecting the choices of individuals is avoidance
of 'toil and trouble': equal quantities of labour are always 'of equal
value to the labourer' he claimed,  This *subjective* hypothesis has 
little to do with Marx's argument that there exists in capitalism an 
*objective* law which makes exchange at value necessary.  'If the 
value of commodities is determined by the necessary labour-time
contained in them', said Marx, 'it is capital that first makes a 
reality of this mode of determination and continually reduces the 
labour socially necessary for the production of a commodity.'
Thus starting *historically* with the commodity would *not* mean
starting historically with value in Marx's sense, because under
the contingencies operative in underdeveloped forms of
commodity exchange we would have price, to be sure, but not
yet labour values (unless one means something relatively
indeterminate by value) for, as Marx says, 'the full development
of the law of value presupposes a society in which large-scale
industrial production and free competition obtain, in other
words, modern bourgeois society.'" (emphasis in original, JL)


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