Subject: [OPE-L:1764] Re: determination of constant capital
From: Ajit Sinha (ajitsinha@lbsnaa.ernet.in)
Date: Mon Nov 29 1999 - 07:48:44 EST
Fred B. Moseley wrote:
> 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).
___________________
Fred, you are absolutely right about it. But I hope you are measuring constant
capital in labor-time unit. As I would point out below somewhere you are
confusing labor-values with money prices.
> 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
________________
You could get into serious theoretical problems if you do not keep the two
units of accounts separate. Though you can objectively talk about rises and
falls in labor-value of a commodity, you cannot talk about a rise or fall in
price without specifying the unit of measure of price and how that measure is
not affected by the change in the variable that has caused the change in the
price of the commodity in the first place. Price of a commodity could fall
even if the value of that commodity is rising. Cheers, ajit sinha
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