From: Allin Cottrell (cottrell@wfu.edu)
Date: Fri Sep 17 2004 - 20:00:22 EDT
On Thu, 16 Sep 2004, ajit sinha wrote (in response to Paul C on price equilibration in pre-capitalist societies) > But Paul, my point was that the income differentials may become > customary, so the customary prices may not reflect labor-values. In > my opinion, before the advent of classical economics, and in this > context Ricardo rather than Smith, the fair price was calculated > by,more or less, adding up established customary returns. This seems to me an egregious confusion of the thought object with the real object. Ricardo articulated a theory of the effects of market competition: he did not invent such competition. I would require a lot of historical evidence before I concluded that people prior to the 19th century were perfectly happy with "customary" returns and did not seek out opportunities for betterment, at least over the long periods that Paul was talking about. Allin Cottrell
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