From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Fri Apr 13 2007 - 04:31:16 EDT
--- Ian Wright <wrighti@ACM.ORG> wrote: > > Imagine that products are marked with their labour > content (again, > > assessed purely on the production side). But if > people "don't > > much want" a particular good in a given period, > its price, in > > labour tokens, is set at a discount relative to > the actual labour > > content. (We'd rather sell these goods and not > waste them.) On > > the other hand, if a good is unexpectedly popular, > its price in > > labour tokens is set at a premium relative to the > actual labour > > content. > > > > Now we have two independent pieces of information: > the labour > > content as such, and the price in labour tokens > that (roughly) > > "clears the market" for the good. The key point > is that we can > > use the _divergence_ between these two magnitudes > to guide a > > reallocation of resources. > > Allin, I agree with all that you say here. Allow me > to add: > > The labour-content is the "labour embodied" in the > commodity. The > price divided by the real wage is the "labour > commanded" by the > commodity. A mismatch between them means that 1 > hour of labour is > either punished or rewarded with command over less > or more than 1 hour > of labour. Given that social labour is reallocated > in response to > these signals then there is a tendency toward the > equalisation of > labour-embodied with labour-commanded. This dynamic > is the law of > value. In the hypothetical equilibrium state there > is no wasted or > socially unncessary labour, the allocation of labour > is efficient, and > prices are proportional to labour-values. _____________________________ That's right. If all income goes to labor then prices are proportional to labor-values and labor commanded is equal to labor-embodied. Cheers, ajit sinha > __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com
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