1. I have presented considerable textual evidence that (1) Marx's prices
of production are "CENTER OF GRAVITY" prices for actual market prices (2)
that change if and ONLY IF productivity or the real wage changes. There
seems to be general agreement on these two points. This means that prices
of production ARE NOT THE ACTUAL PRICES in any given period. They are
instead the "center" price toward which actual market prices gravitate as
a result of the equalization of profit rates. They do not exist as
actual observable prices in any given period, but they NONETHELESS EXIST,
and exist in every period, as the hidden unobservable "center of gravity"
of actual market prices.
A change of productivity or the real wage will change this "center of
gravity" price. Although the new center of gravity price is not
immediately observable in the market prices of the next period (just like
prices of production are in general not observable in actual market
prices), it nonetheless exists as the new "center" price toward which the
market prices will gravitate in future periods.
2. I think John would agree that prices of production are NOT ACTUAL
market prices (John, please correct me if I am wrong). But then, John, in
what sense do your prices of production "EXIST", in a way that my prices
of production do not exist?
3. And how do your prices of production function as "centers of gravity"
of market prices, since they themselves are changing every period, even
though productivity and the real wage remain constant?
Are there more than one "center of gravity" price for each commodity?
(1) one which is more "long-run" in the sense that it changes if and
only if productivity or the real changes, and hence does not change
every period;
(2) and a second one which is more "short-run" in the sense that it
changes every period, even if productivity and the real wage remain
constant.
Which of these concepts of "center of gravity" price makes the most sense?
Which of these concepts was Marx talking about? Marx was certainly
talking about (1). I don't think there can be any doubt about that. So
the only question is: did Marx also define and employ a second concept of
"center of gravity", like (2) above? I do not know of any explicit
textual evidence to support this interpretation. Marx's discussions are
all about THE - singular - center of gravity price for each commodity at
any one period of time. THE center of gravity price changes if and only
if productivity or the real wage changes. There is never a hint that
there could be a second center of gravity price for each commodity in each
period like (2) above.
Thanks for the clarification and the stimulating discussion.
I will return to Chapter 11 and other issues, as time permits.
Comradely,
Fred