[OPE-L:1230] Re: A weakness of capitalism

Allin Cottrell (cottrell@wfu.edu)
Mon, 26 Feb 1996 15:30:50 -0800

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I'd agree with Alan that changes in the labour-time commanded in
exchange by the monetary unit are part and parcel of the endogenous
movement of the business cycle; and also that the Keynesian hope of
taming the cycle was in some degree over-optimistic.

> But if the deviations of Value-P from Value-E are not only intrinsic
> to capitalism but self-sustaining, uncontrollable and wild, then some very
> different conclusions arise, since neither banking reform, nor laissez-faire,
> can eliminate their effects; in short, socialism is necessary.

Just two observations here. First, in the modern system we have to
conceptualize what is going on in somewhat different terms, since the
"Value-P" of credit-money is essentially zero. Second (I expect Alan
would agree), it will take more than this to argue for the necessity of
socialism -- the operation of the business cycle, malign as its effects
are on the working classes, shows little sign of bringing capitalism to
its knees.

Allin.