From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Sun Jul 23 2006 - 07:39:10 EDT
David Yaffe asked: How does the term valorisation vaguely help? How would a person reading Capital for the first time understand that concept without explanation? Please address the problem raised - is not 'reproduction and expansion' of capital etc far more helpful in understanding what Marx was talking about? Why was Engels satisfied with this translation? reply: I don't mind if you translate it as "reproduction and expansion", insofar as it is clear from the context what's intended anyway (presumably that was Engels's judgement), but technically my answer would be as follows: (1) the reproduction and increase in the value of a capital asset, in Marx's theory, does not necessarily involve production directly, whereas "Verwertung" refers specifically to the process whereby a sum of capital gains in value through its application in the production process, with the aid of living, value-forming labour. (2) The corollary of this particular gain in capital value, is a net addition to wealth, rather than an accumulation of capital which occurs merely through a redistribution of existing wealth. (3) The concept of "Verwertung" thus refers specifically to *production capital* that yields new surplus-value, which is the objective foundation for the expanded reproduction of total social capital. But production capital is only one form of capital. (4) The concept of "Verwertung" implies a "reproduction of capital" exclusively, and only insofar, as an "expansion of capital" occurs, i.e. the fact that capital is "valorised" means precisely that a capital value is replaced through production in such a way that its value is larger than at the outset. So "Verwertung" at best refers *only* to expanded reproduction, even so it refers to only *one specific facet* of expanded reproduction, namely the augmentation of capital value within the direct production process, prior to exchange. (5) "Entwertung" (devalorisation) which is the opposite of "Verwertung" is really just as important, it implies a loss of capital value specifically due to the lack of application of labour, or an insufficient productivity of labour. But it is not accurate to express that opposite as "the failure to reproduce and expand", because we are talking specifically about a *negative* reproduction, i.e. a loss of capital value. (6) Marx uses the Verwertung/Entwertung polarity both at the micro and macro levels - i.e. capital enters the sphere of production, if it can valorise itself there, and exits from that sphere if it cannot, and once it is tied up in that sphere it seeks the highest yields. The possibility of valorisation depends specifically on the exploitability of labour, the question is, how can labour be organised so that capital value increases in value, rather than reduces in value, how big is the yield from the employment of labour. I agree, the term "valorisation" does not sound like good English (and it seems to refer to "valor"), nevertheless valorisation of capital in Marx's theory is not the same as: - (self-)expansion of capital - reproduction of capital - realisation of capital - creation of surplus value - accumulation of capital In some fundamentalist Marxist theories, such as Paul Mattick's, these concepts are unfortunately badly confused, suggesting that a closer specification of what they mean could be helpful for a better analysis. Since Mattick could read German fluently, I suppose you could also partly blame Marx for vagueness, but actually with regard to Verwertung Marx is pretty clear throughout. regards Jurriaan
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