Re: [OPE-L] a paper on Marx's transformation problem and Ricardo's problem of an invariable measure of value

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sat Aug 04 2007 - 17:22:39 EDT


Ian
---
But this is also a side issue. I am not attacking standard
labour-values for supporting a counterfactual process of replacement
that involves growth. Nonstandard labour-values also have this
property. And there is a very good reason why any labour-value formula
must support such an interpretation, namely the irreducibility of the
standard unit of measure.
-----------

Can you explain what you mean here


Paul Cockshott

www.dcs.gla.ac.uk/~wpc



-----Original Message-----
From: OPE-L on behalf of Ian Wright
Sent: Wed 7/25/2007 5:16 PM
To: OPE-L@SUS.CSUCHICO.EDU
Subject: Re: [OPE-L] a paper on Marx's transformation problem and Ricardo's problem of an invariable measure of value
 
> I think that this is just wrong. This is not what Sraffa means by the dated labour interpretation, though it is an accurate account of von Neumanns growth model.

I do not claim that Sraffa interprets equation (5) in this way. I make
reference to Sraffa's phrase "reduction to dated quantities of labour"
but in fact Sraffa never writes down equation (5) in PCMC. His dated
labour formula includes a non-zero compound profit mark-up. He only
implicitly uses equation (5) when he remarks that prices are
proportional to (standard) labour-values only when profits are zero.

But all this remains a side issue. My interpretation of equation (5)
is in terms of a process of replacement that involves growth. This is
one way of helping readers understand the difference between standard
and nonstandard labour-values.

> There is no growth assumed in the Sraffian dated labour interpretation, and you have not
> demonstrated that it must involve such growth. Merely showing that at each cycle of
> production fewer means of production are required to be used than are produced, which is
> all your equation 6 rests on, does not amount to such a demonstration

Here I simply disagree. Not only can equation (6) be interpreted in
this manner, but the interpretation also explains the net value
equality of standard labour-values, and the wage value equality of
nonstandard labour-values.

But this is also a side issue. I am not attacking standard
labour-values for supporting a counterfactual process of replacement
that involves growth. Nonstandard labour-values also have this
property. And there is a very good reason why any labour-value formula
must support such an interpretation, namely the irreducibility of the
standard unit of measure.


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