[OPE-L:5041] Re: RE: numerical example!!!

From: Fred B. Moseley (fmoseley@mtholyoke.edu)
Date: Thu Feb 22 2001 - 21:22:56 EST

Thanks very much to Andrew and Allin for their helpful posts.  

I stand corrected about the real wage.  I can see now that a given real
wage, along with the given technical conditions, uniquely determine the
rate of profit.  So whether or not technical conditions uniquely determine
the rate of profit depends on whether the real wage or the money wage is
taken as given along with the technical conditions.  I didn't realize that
before.  I will certainly think about this some more.  

I think I understand better now what the problem is: the assumption of a
given real wage.  According to my interpretation of Marx's theory, the
MONEY wage is taken as given, not the real wage.  The given money wage is
then used (along with other variables) to determine individual prices,
including the price of wage-goods.  From the given money wage and the
individual prices thus determined, one could derive the implicit real

Andrew, in your original arguments years ago, you decomposed my aggregate
monetary variables into unit prices and quantities by assuming (among
other things) a GIVEN REAL WAGE.  This given real wage is then used (along
with the technical conditions of production) to determine unit prices and
the rate of profit.  From the given real wage and the unit prices thus
determined, one could derive the implicit money wage.  

Therefore, when you assume a given real wage in converting my equations
into the Sraffian equations, you are using a different method of
determining the real wage than in my interpretation of Marx's theory.  You
are assuming essentially the opposite method of determination.  You
thereby converted my interpretation into the Sraffian interpretation.  It
is not surprising that you end up with results that are the same as the
Sraffian results.  They are the Sraffian results.  But they are no longer
my results.  They do not prove that my results are the same as the
Sraffian results.  Because they are derived by assuming a given real wage,
rather than a given money wage.  

I look forward to continuing this discussion in detail next week - and at
the IWGVT this weekend.  See you there.


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