Subject: [OPE-L:1760] determination of constant capital
From: Fred B. Moseley (fmoseley@mtholyoke.edu)
Date: Sun Nov 28 1999 - 20:24:46 EST
This is a reply to Andrew K's latest. Thanks again to Andrew for this
helpful discussion.
1. As we all know, Marx's analytical framework is the CIRCULATION OF
CAPITAL, represented symbolically by:
M - C ... P ... C' - M'
2. The circulation of capital can be divided into THREE PHASES or
consecutive stages (e.g. Chapter 1 of Volume 2):
Phase 1: M - C
Phase 2: P
Phase 3: C' - M'
3. The question at issue in the current discussion between Andrew and
myself is the following: if there is a change in the value of the means
of production at any time between the purchase of the means of production
at the beginning of Phase 1 and the sale of the commodities produced at
the end of Phase 3, will the constant capital transferred to the
commodities that are sold at the end of Phase 3 also change?
4. I have argued in many posts and several papers that Marx stated in
many passages that, if there is a change in the value of the means of
production in ANY ONE OF THESE THREE PHASES between the purchase of the
means of production and the sale of the commodities, then the constant
capital transferred to the commodities sold at the end of Phase 3 will
also change accordingly (because Marx assumed that the constant capital
transferred is determined by the CURRENT value of the means of
production).
5. To the best I can tell, Andrew seems to be arguing the following:
a. if the value of the means of production changes while a given capital
is in Phase 1 or Phase 3, then Marx assumed that the constant capital
transferred to the commodities produced will change accordingly, as in my
interpretation.
b. however, if the value of the means of production changes while a given
capital is in Phase 2, then Marx assumed that the constant capital
transferred to the commodities produced will NOT change, but will remain
equal to the value of the means of production when these means of
production entered production.
6. I argue that there is no textual evidence to support this
interpretation. Marx never qualified any of the many passages in which he
discussed the effect of a change in the value of the means of production
on the constant capital transferred. Marx never said anything like " a
change in the value of the means of production while a given capital is in
Phases 1 or 3 will change the constant capital transferred to the
commodities produced, but this is not true for a capital in Phase 2 (i.e.
during the process of production): in this case, the constant capital
transferred will not change." And yet this is what Andrew is implicitly
suggesting that Marx assumed. But Marx never said anything like this and
instead said the opposite. The constant capital transferred to the
commodities produced is determined by the CURRENT price of the means of
production, and this is true IN ALL THREE PHASES of the circulation of
capital ("at whatever stage of completion"), not just in Phases 2 and 3
and not in Phase 2, as Andrew suggests.
6. Andrew has responded in recent posts with examples (usually a
corn-corn model) that assumes: (1) that all commodities "currently
produced" are sold more or less immediately, or at least that there is NO
CHANGE in the price of the means of production consumed in these
"currently produced" commodities while they are in Phase 3 (the phrase
"assume commodities produced and sold" occurs frequently and often "assume
commodities produced and sold TODAY"); and (2) that the only commodities
in Phase 3 that are affected by a change in the price of the means of
production are "PREVIOUSLY PRODUCED" commodities (i.e. commodities
produced in previous periods) that still haven't been sold and hence are
still circulating on the market. The constant capital transferred to
these "old" commodities will change to reflect the current value of the
means of production. This is how Andrew manages to maintain both that the
constant capital transferred to currently produced commodities is
determined when they production enter production and also that the
constant capital transferred to commodities in Phase 3 may change
as a result of a change in the value of the means of production.
7. However, Andrew never considers the case in which "currently produced"
commodities move out onto the market (i.e. move into Phase 3) and while
they are circulating on the market (i.e. while they are in Phase 3), there
is a change in the value of the means of production consumed in their
production. I argue that Marx clearly considered this case and that he
clearly stated that, in this case, the constant capital transferred to
these commodities in Phase 3 WILL CHANGE, to reflect the current value of
the means of production. (Please see for example the passages from
throughout Marx's manuscripts quoted in my recent post in response to
Alejandro R. ) In this case, the constant capital transferred to
"currently produced" commodities is NOT determined once and for all when
the means of production consumed in these commodities enter production.
Andrew, please consider this case, and please tell us what you think Marx
assumed in this case.
Also, Alejandro, John, and Alan: what do you think Marx assumed in this
case?
Thanks in advance.
Comradely,
Fred
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