From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Wed Mar 07 2007 - 15:22:34 EST
I have no problem. You can go ahead and simplify your accounting by further assuming that there is no fixed capital, so you do not have the problem of how to measure depreciation. Your turn! Cheers, ajit sinha --- glevy@PRATT.EDU wrote: > Hi again Ajit: > > Thank you for your patience. I'm still in the > preliminary > stage where I'm presenting basic ideas in such a way > that > there is unlikely to be disagreement from your > perspective. > > In a previous post I said that the subject was > capitalism and > that there are two *classes* in the abstract model > of that > subject that I will be presenting. Yet, the concept > of class > presupposes certain ideas which it is now time to > make explicit: > > Define the *total product* as the total amount of > goods and > services produced in an economy in a certain period > of time. > > Define the *necessary product* as that portion of > the total > product which is needed to maintain the inputs in > the labor > process -- means of production and the direct > producers > -- at their current level or in their current > condition for the > next round of production. Thus, the necessary > product > equals the consumption of the producers at their > customary > standard of living plus the depreciation of means of > production > plus the replacement of other [non-labor] materials > used up. > > The *surplus product* is what remains out of the > total product > after the necessary product has been deleted. In > other words, > > The total product = 1 + 2 +3 > > where 1 = replacement of means of production used; > > 2 = necessary consumption > > 3 = surplus product > > Thus, 1 + 2 = necessary product; and > 2 + 3 = net product > > 1 + 2 + 3 are all a consequence of a production > process and hence > requires the expenditure of *labor time* by the > direct producers. > This labor time is expended by producers using means > of production > and hence involves both direct and indirect labor > time. > > *Note that in the above there was no mention of > value, commodities, > wage-labor, capital, capitalists, or markets. > Hence, other modes of > production could be thought of in terms of the above > concepts.* > > Consider two other such modes of production: > slavery and feudalism. > > In a simple slave society in which there are only > two classes -- slaves > (the direct producers) and slaveowners -- the total, > net, and surplus > products are created by slaves who utilize means of > production which > are themselves produced by slaves who utilized means > of production. > > Hence, it is crystal clear that in such a slave > society the wealth of the > slaveowners is created by the labor of slaves. > > In an abstract feudal society where there are two > classes -- serfs (the > direct producers) and lords -- the total, net, and > surplus products > are created entirely by the serfs (the direct > producers). Like > slaveowners, the lords live off of the surplus > product created by the > direct producers. I.e. the surplus product is > expropriated by the lords. > > It is just as clear here also that the wealth of the > feudal lords > (recalling the assumption of a closed economy and > hence an inability to > expropriate wealth from other societies) was created > by the labor of > serfs. > > If there is agreement on the above, in the next > installment I will return > to the subject of the commodity. > > In solidarity, Jerry > ____________________________________________________________________________________ Food fight? Enjoy some healthy debate in the Yahoo! Answers Food & Drink Q&A. http://answers.yahoo.com/dir/?link=list&sid=396545367
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