[OPE-L:5614] Marx's theory as a quantitative theory

From: Fred B. Moseley (fmoseley@mtholyoke.edu)
Date: Thu May 17 2001 - 23:45:45 EDT


This is a response to Nicky and Geert.

I want to begin with an explanation of why I think Marx's theory is a
quantitative theory (as well as a qualitative theory).  To begin with, I
am not trying to make any comparisons of Marx's theory with than other
theories.  I am just trying to explain in what sense I think Marx's theory
is a quantitative theory.  Then, the next question will be whether or not
the value-form interpretation (VFI) of Marx's theory retains this
quantitative dimension of Marx's theory (that Marx himself considered so
important).  


1.  The main question of Marx's theory is to explain how a given quantity
of money (M) is converted into a greater quantity of money (M'), i.e. to
explain how an increment of money (dM) is produced.  The whole of Volume 1
is structured around this central question. The general analytical
framework of all three volumes is M - C - M'. 


2.  This question of how M becomes M' is a purely quantitative
question.  The M' is qualitatively the same as the M; both are quantities
of money.  The only difference between M and M' is a quantitative
difference (dM).   

Marx made this point in Chapter 4 of Volume 1, in which Marx first
introduced this all-important question:

"It is otherwise in the cycle M-C-M.  At first sight, this appears to lack
any content, because it is tautological.  Both extremes have the same
economic form.  They are both money, and therefore are not qualitatively
different use-values, for money is precisely the converted form of
commodities, in which their particular use-values have been
extinguished.  To exchange $100 for cotton, and then to exchange this same
cotton again for $100, is merely a roundabout way of exchanging money for
money, the same for the same, and appears to be an operation as
purposeless as it is absurd.  ONE SUM OF MONEY IS DISTINGUISHABLE FROM
ANOTHER ONLY BY ITS AMOUNT.  The process M-C-M does not therefore owe its
content to any qualitative differences between the extremes, for they are
both money, but SOLELY TO QUANTITATIVE CHANGES.  More money is finally
withdrawn from circulation than was thrown into it at the beginning.  The
cotton originally purchased for $100 is for example resold for $100 + $10,
i.e. $110.  The complete form of the process is therefore M-C-M', where M'
= M + dM, i.e. the original sum advanced plus an increment.  This
increment or excess over the original value I call `surplus-value'."  
(C.I: 250-51; emphasis added).  

We can see from this last sentence that "surplus-value" is defined by
Marx as the increment of money that must be explained.  


3.  Marx presented his theory of the magnitude of surplus-value in Chapter
7 of Volume 1.  In this chapter, Marx implicitly derived, through
numerical examples, the following equation for the determination of the
magnitude of surplus-value (S):

(1)	S = m (L - Ln) = m Ls

where L is the quantity of current labor, Ln is the quantity of necessary
labor, Ls = (L - Ln), and m is the money value added per hour of labor.

In Marx's numerical illustration of his theory in Chapter 7, m = 0.5
shillings / hr and Ln = 6 hrs.  As is well known, Marx assumes two
different values for L (in dramatic fashion): first L = 6 hrs, in which
case S = 0; and then L = 12 hrs, in which case S = 3 shillings.  

Therefore, we can see that according to Marx's theory, the magnitude of S
is proportional to the magnitude of Ls:  
	if Ls = 0 hrs, then S = 0 shillings
	if Ls = 6 hrs, then S = 3 shillings
	if Ls = 8 hrs, then S = 4 shillings
	etc.

As Andy put it in (5591), Marx's theory explains why S is one magnitude
and not another magnitude.  The magnitude of S is proportional to the
magnitude of Ls.  The labor-time quantities on the RHS of equation (1) are
the independent variables which exist independently of money, and the
magnitude of surplus-value on the LHS is the dependent variable, which is
determined by the independent variables on the RHS.

Most of the rest of Volume 1 is about absolute and relative surplus-value,
i.e. about changes in the magnitudes of L and Ln, which in turn determine
changes in the magnitude of S.

I am not arguing that this is the ONLY WAY that one could determine the
magnitude of surplus-value.  But I am arguing that this is the way MARX
determined the magnitude of surplus-value in Chapter 7 and elsewhere.


4.  Geert and Nicky (and others), do you think that the above is a correct
interpretation of Marx's theory of the magnitude of surplus-value, as
presented in Chapter 7?  If not, then please explain why not.

On the other hand, if you agree that the above is at least a plausible
interpretation of Marx's theory of the magnitude of surplus-value, do you
think there is also another plausible interpretation of Marx's theory of
the magnitude of surplus-value as presented in Chapter 7, or
elsewhere?  Is so, please explain this alternative interpretation.  
I myself do not see any other possible interpretation.  

Finally, if you agree that the above interpretation is the correct
interpretation of Marx, then how do you incorporate this quantitative
dimension into the VFI of Marx's theory?  As I understand it, the VFI
rejects the labor-time quantities on the RHS of equation (1) as
independent variables which exist independently of money and which
determine money magnitudes.  Therefore, the VFI appears to reject Marx's
theory of the magnitude of surplus-value.  Please correct me if I am
wrong.  I would love to be wrong.  


Geert, when you say in (5577) that "labor is the source of
surplus-value," do you mean the same thing as equation (1) above, 
or something different?  If different, please explain.


Nicky, when you suggest in (5585) that there is more than one way to
determine the magnitude of surplus-value, do you mean that there is more
than one possible interpretation of Marx's theory, or that VF theory
provides a different theory of the magnitude of surplus-value than Marx's
theory.  In either case, would you please explain either the alternative
interpretation of Marx's theory or the alternative VF theory of the
magnitude of surplus-value.  


Thanks very much for this very stimulating discussion.

Comradely,
Fred



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