Re: (OPE-L) Re: tendencies for equalization

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Mon Sep 27 2004 - 18:19:26 EDT


I note that the original propositions here have got
at bit derailed.
There were two issues originally
1. Whether in a pre-capitalist society there would
   be enough long term mobility of social labour between
   trades to enforce the law of value. The equalisation here
   is not of wages but of returns to labour. Equalisation of
   wages in a capitalist economy is obviously a different 
   issue, as these relate to labour power not labour.

2. The proposition of Farjoun and Machover on the narrow
   spread of profit shares ( ratio of profit to wages in a
   firm or sector ) has also been at issue. Note that this
   does not suppose an equalisation of wages but an equalisation
   of the share of wages in net value added between sectors.

   This related indirectly to the point raised by Dave Z about
   narrower dispersions of the profit share being correlated
   at least in the Swedish case to closer approximations to
   a 50 50 split of net value added between wages and profits.

-----Original Message-----
From: OPE-L on behalf of Gerald A. Levy
Sent: Sat 9/25/2004 2:25 PM
To: OPE-L@SUS.CSUCHICO.EDU
Subject: (OPE-L) Re: tendencies for equalization
 
Hi Paolo.

> Curiously enough I think competition among workers does not lead to
> equalization tendencies, on the contrary.
> In fact I think this equalization story runs against just about everything
> that springs out of Marx´s analysis:
> 1. different techniques within an industry leads to the exploitation of
> different strata of the working class; the least productive capitals use
> the  lower strata of the working class, pay a lot less and sacrifice
> a bit of the surplus value so extracted in order to be able to compete
> with the most  advanced capitals;
> 2. the analysis under 1 is supported by the stratification of the
> industrial  reserve army into several different levels of despair and
> holplessness so that competion among workers can easily be used
> by capitals of different  efficiencies;
> 3. the heterogeneous nature of the industrial reserve army puts different
> pressures on different segments of the labor market so that depression of
> wages is not necessarily homogeneous all across industries and firms.

As you've seen, I've also challenged the belief that there is a long-term
tendency for wage equalization under capitalism.  While I agree with much
of what you write,  I think the above is the case:

a) at a level of abstraction where there is foreign trade and world
markets and/or;

b) for an individual capitalist social formation where/if the market for
labour power is spatially divided and when/if  labour mobility between
sectors/segments is inhibited (as, for example, in the case of a 'dual
economy' with segmented labour markets).

I think, though, that one should *first* analyze this question at
a level of abstraction where neither a) or b) are considered
and *then* ask how a) and b) modify the abstract tendencies
assumed at an earlier stage in the reconstruction of the subject in
thought.

As I've suggested earlier, all that is required to show the fallacy
of the tendency for wage rate equalization is to assume that:

a)  there are separate markets for unskilled labour power and skilled
labour power;

b) while mobility by unskilled workers is not (assumed to
be) inhibited in the market for unskilled labour-power,
mobility from the unskilled to the skilled labour-market
is assumed to either not exist or be negligible. And, it is
further assumed that skilled workers only have mobility within
their particular trade.

c) there is an industrial reserve army;

d) the IRA and the demand for labour-power (both skilled and
unskilled) are variables that are subject to change over the
course of the trade cycle.

However,  what you write above would be a logical next step:
i.e. to ask whether wage disparities increase where
technological change and competition among firms are more
explicitly taken into consideration.   That analysis also,
though, should initially be conducted at the level of abstraction
of 'capital in general' (and hence international and
regional trade and markets are initially not considered).

In solidarity, Jerry


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