Re: (OPE-L) recent references on 'problem' of money commodity?

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Fri Nov 19 2004 - 10:04:07 EST


On Mon, 15 Nov 2004, Allin Cottrell wrote:

> On Sun, 14 Nov 2004, Rakesh Bhandari wrote:
>
> > If $1000 is set equal to x barrels of oil, y oz of gold, and z
> > bushels of grain...
>
> "is set equal to": do you mean, if we suppose $1000 to be the actual
> price of the basket in some base period?  (Otherwise I can't attach
> any meaning to the proposition: you can't just stipulate that $1000
> is the value of any basket of commodities, since the dollar is a
> real thing in its own right and what it exchanges for is not a
> matter of stipulation -- unless unless we're talking about an
> imaginary accounting price for gold, that is not actually
> exchangeable at the notional price.)
>
> > and the socially necessary abstract labor time required to produce
> > that basket then decreases--say it took 1000 hours and now only
> > takes 500 hours--then the MELT changes correspondingly, no?
>
> The price/value ratio for that particular basket changes (unless the
> price changes in the same direction and proportion as the labor
> content -- that has not been specified).  But do we have grounds for
> supposing that the overall MELT has changed in the same direction
> and proportion?


I have the same  question:  what grounds do we have for supposing that
the price/labor-time ratio for that particular basket of commodities
determines the MELT?


Comradely,
Fred


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