Re: [OPE] Reply to critics

Gerry in the equations

C stands for payments by firms to other firms to buy inputs

V stands for payments by firms to workers to buy labour power

S stands for payments by firms to the owners of capital

There is no question that firms producing luxuries do make payments to the
owners of capital, the question is whether these payments can be accumulated
as productive capital. Our contention is that they can not, the profit
payments to the owners of firms in dept 3 must sum to the expenditure on
luxuries by the owners of firms in dept III, and can not be accumulated. The
whole of the newly added value in dept 3 has to exchange against capitalist
revenue and thus the workers in dept III are collectively in the same
position as menial servants working in the houses of the capitalist class -
their labour is all being exchanged against revenue.

Now there is no doubt that both menial servants and workers in dept III can
be exploited. They may work 8 or 10 hours a day and receive a wage that
exchanges against goods that require only 3 or 4 hours work to produce, but
being exploited is not the same as being productive.

From: ope-bounces@lists.csuchico.edu [mailto:ope-bounces@lists.csuchico.edu]
On Behalf Of GERALD LEVY
Sent: 20 October 2010 15:21
To: Outline on Political Economy mailing list
Subject: Re: [OPE] Reply to critics

> I =C1+v1+s1
> II =C2+v2 +s2
> III =c3 +v3 + s3
 
Hi Paul C:
 
Here you have conceded that workers are productive of s in III.

In solidarity, Jerry

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Received on Wed Oct 20 11:21:23 2010