Re: [OPE-L] questions on the interpretation of labour values

From: Pen-L Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Fri Mar 09 2007 - 09:14:03 EST 

Quoting ajit sinha <sinha_a99@YAHOO.COM>:

> --- Pen-L Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote:
>
> The theory of the distribution of
>> surplus-value at the level of
>> abstraction of competition is based on the premise
>> that the total
>> surplus-value is taken as given, as already
>> determined by the prior
>> theory of the production of surplus-value, at the
>> level of abstraction
>> of capital in general.  Thus there is a clear
>> logical progression in
>> Marx’s theory from the determination of the total
>> surplus-value at the
>> level of abstraction of capital in general to the
>> determination of the
>> individual parts at the level of abstraction of
>> competition.  To take
>> the most important example, in the theory of the
>> general rate of profit
>> and average profit and prices of production, the
>> total surplus-value is
>> taken as given, as already determined.
> __________________________
> But Fred, who has denied that the surplus value (total
> or individual) is not taken as given or rather already
> determined in the process of production? The question
> is: on what basis one could claim that this *given*
> total surplus value is *equal* to the total profits of
> the system. There is no methodological point involved
> here (Marx's or anybody else's), surplus value, by
> definition, can only be determined in the process of
> production and therefore, not at the level of the
> determination of prices of production, which involves
> rate of profits and not surplus value. Cheers, ajit
> sinha


Hi Ajit,

It is not just that the total surplus-value it determined prior to the
rate of profit and prices of production, but also that the
predetermined total surplus-value (S) is taken as given in the
determination of the rate of profit, according to:

	R  =  S / C

And then the rate of  profit so determined is taken as given in the
determination of prices of production, according to:

	Pi  =  Ki (1 + R)

In other words, the rate of profit in Marx’s theory is NOT determined
simultaneously with prices of production, as in Sraffa’s theory.

You may disagree with Marx’s logical method (as summarized above), but
I don’t think it can be denied that this is a very important
methodological issue.  Marx’s logical method is different from
Sraffa’s, and an evaluation of the logical consistency of Marx’s theory
should be keenly aware of these differences.

Comradely,
Fred



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