Gerald Levy wrote:
> According to that principle, the magnitude of value is
> "given" following production and can not be "lost" , "spoiled" or
> "destroyed." Rather, if one accepts that principle, then value and surplus
> value can *only* be re-distributed among capitalists. Thus, in considering
> the affect of technical change, the magnitude of value and s "lost" by
> some capitalists is _exactly_ equal to the magnitude of value and s
> "gained" by other capitalists. The result is then like a "zero-sum game".
> >From my perspective, this theorem has the very real disadvantage that
> it denies the possibility of the *destruction* of capital values such that
> the aggregate magnitude of value can be *diminished* rather than *only*
> transferred. This *destruction _and_ redistribution* of value is
> precisely what I believe occurs in a crisis.
The zero sum game is not inconsistent with crises. At times, Marx gives
a reading of Minsky-like crises. The claims of capitalists are
redistributed toward finance, which lowers the rate of profit. In
effect, surplus value is transferred to the creditors away from
industry.
-- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu