Re: [OPE-L] basics vs. non-basics

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Wed Sep 28 2005 - 02:02:46 EDT


Hi Paul

Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>:

> Surely for this you need to first express things
> in material terms.
> Let us take a 2 industry example with negative net product
> Assume we have units in tons of material and person years
> 
> INPUTS                  OUTPUTS
> Corn    Iron     Labour
> 100     10       20       90
> 10      10       5        20
> -----------------------
> 110     20       25
> 
> In this case we have a negative net output of corn of -20
> and no net output of iron. This would imply that 25 
> person years were embodied in
> -20 tons of , so the net new value added per ton of
> corn must be -1.25 person years per ton
> so at very least value must be negative
> 
> Solving the full value equations
> 90corn == 100corn + 10iron + 20,
>  20iron == 10corn + 10iron + 5
> .
> iron -> -(3/4), corn -> -(5/4)
> 
> This implies that with a negative net product in the
> basic sector values in that sector must be negative.
> This merely expresses the fact that under these
> circumstances labour is socially unnecessary,
> and is indeed deleterious.
> 

That is physical, simultaneous, deterministic value theory.  There is no role
for money.  Ex-post value accounting allows unit values of inputs and outputs
to be different and allows the value of money to change. It also requires
stocks to be taken into account even in simple circulating capital cases.

Phil


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