Re: [OPE-L] Why aren't non-labourers sources of value?

From: Ian Wright (iwright@GMAIL.COM)
Date: Fri Apr 22 2005 - 13:58:29 EDT


I am behind with replies to Andy and Ajit in particular. In the meantime ...

> The real problem is explaining how this comes to have a monetary
> representation - where does the money come from.
> 
> If we assume a capitalist economy growing at some fraction
> of its von Neumann growth rate then the aggregate circuit
> 
> m-c-m'-c'-m''-c''-m'''
> 
> implies an exponential growth in m.
> 
> However we know that during the 19th century the average growth
> of world gold stock was under 1% per year - see the accompanying
> table that gives growth of stock in million troy ounces.

There is a big assumption here. You seem to be saying that the extra
money is a representation of the surplus product. So as the net
product grows exponentially then so must the money in lock-step. Why
should it?

-Ian.


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