# [OPE-L:3617] Re: Re: Re: Re: Re: Re: constant capital and variable capital

From: Ajit Sinha (ajitsinha@lbsnaa.ernet.in)
Date: Tue Aug 08 2000 - 09:07:24 EDT

Rakesh Bhandari wrote:

> One more clarification:
>
> >Rakesh Bhandari wrote:
>
> >>
> >> \$MP C V SV costprice value pp
> >> 80 70 20 20 100 110 124
> >> 60 70 30 30 90 130 112
> >> 90 85 15 15 105 115 131
> >> 50 55 25 25 75 105 93
> >> _______________________________________
> >> 280 280 90 90 370 460 460
> >>
> >> Rate of profit is 24%.
>
> You then asked me the excellent question:
>
> "How did you calculate your c and v and what are their units?"
>
> _____________
>
> How did I calculate c? Remember I claim that while price is the necessary
> form of appearance of value, price magnitudes do not allow us to get at the
> values.
>
> My point then is we don't really know what to put in the c column.

_______________

Then those numbers are simply gibberish. Remember, our problem was how to
calculate the value of constant capital.
___________

Rakesh:

> We do
> know however that
>
> 1. the value of the means of production will tend to differ from the value
> of the money needed to purchase them; that is, that there is price value
> divergence.

___________________

But how do you calculate the value of the means of production and the value of
money. Above you say that you don't know how to calculate the value of the
means of production. Then how do you know that the value of the means of
production differ from the value of the money needed to purchase them?
_________________

Rakesh

> 2. the price-value divergences should cancel themselves out; that is, some
> mp should sell above their value to the degree that others sell below
> value.

_________________

But how do you know this? You don't even know how to calculate these values. So
your statement that, "however we know ..." is simply baseless. We, actually
don't know.
_________________

> Rakesh:
>
> So I could have put any set of numbers in the c column that meets these two
> conditions.

_______________

Not if you are serious about the problem. According to your conditions I could
put four zeros ar even negative or imaginary numbers under the c column. But
they would be patently nonsensical numbers.
_______________

> Rakesh:
>
> The point of the example is not what c exactly is; the point is that value
> of the means of the production consumed in a commodity should not be
> equated with the cost price of a commodity.

_____________________

Of course not! The point is that you are extremely confused. The reason is that
you have been lost in the woods for quite some time. And I'm showing you light,
but you refuse to see it.
___________

>
>
> Marx is arguing that we need to make a transformation of the inputs from
> the prices at which they were bought to their value--though the profit
> appropriated will be determined by cost price.

_________________

What do you mean by cost price? Cost price should include profits, shouldn't
it? Cheers, ajit sinha

>
>
> How do you read the passage on pg. 264-65?
>
> Yours, Rakesh

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