From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Mon Apr 11 2005 - 03:47:52 EDT
Quoting "michael a. lebowitz" <mlebowit@SFU.CA>: > At 05:00 10/04/2005, Phil cited Ricardo: > > >Having fully acknowledged the temporary effects which, in particular > >employments > >of capital, may be produced on the prices of commodities, as well as on the > >wages of labour, and the profits of stock, by accidental causes, without > >influencing the general price of commodities, wages, or profits, since > these > >effects are equally operative in all stages of society, we will leave them > >entirely out of our consideration, whilst we are treating of the laws which > >regulate natural prices, natural wages and natural profits, effects totally > >independent of these accidental causes. In speaking then of the > exchangeable > >value of commodities, or the power of purchasing possessed by any one > >commodity, I mean always that power which it would possess, if not > >disturbed by > >any temporary or accidental cause, and which is its natural price. > > to support his argument that 'Differences in technology are temporary and > changes soon > spread throughout an industry.' > > I think the passage refers to supply shocks and demand shifts--- > ie., before market forces remove temporary or accidental deviations of > market price from natural price. > michael > I agree that the passage is referring to such temporary effects. But Ricardo's general approch would, I think, treat technological differences as tenporary or accidental. From chapter 31: "He, indeed, who made the discovery of the machine, or who first usefully applied it, would enjoy an additional advantage, by making great profits for a time; but, in proportion as the machine came into general use, the price of the commodity produced, would, from the effects of competition, sink to its cost of production, when the capitalist would get the same money profits as before, and he would only participate in the general advantage, as a consumer, by being enabled, with the same money revenue, to command an additional quantity of comforts and enjoyments." I originally used Ricardo's theory to illustrate that differential rent could seen as the wages of non-human labour-power. This means that the landlord is selling a commodity but not, qua landlord, producing one capitalistically. This idea is not tied to Ricardo. From a value accounting perspective, taking the world as it is with all its accidents, we need to measure the money paid as pure differential rent and the labour time of the virtual workers. There would be empirial problems doing this and some theoretical guide would be necessary. In Ricardo's theory at least it is clear how much labour time is involved. Things can easily get more complicated. What if infra-marginal land needed less fertillizer rather than less labour? Is the landlord then selling a virtual product? Philip Dunn
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