# [OPE-L:5360] Re: Re: Re: Re: double divergence

From: Fred B. Moseley (fmoseley@mtholyoke.edu)
Date: Thu Apr 19 2001 - 09:24:30 EDT

```On Mon, 16 Apr 2001, Paul wrote:

> Date: Mon, 16 Apr 2001 21:13:36 +0100
> From: Paul <clyder@gn.apc.org>
> Reply-To: ope-l@galaxy.csuchico.edu
> To: ope-l@galaxy.csuchico.edu
> Subject: [OPE-L:5350] Re: Re: Re: double divergence
>
> On Sat, 07 Apr 2001, you wrote:
>
> >
> > (1)	W = C + N
> > 	  = C + mL
> >
> > (2)  	S = N - V
> >  	  = m (L - Ln)
> >
> > where W is value, C is constant capital, V is variable capital, N is
> > new-value, L is total current labor, m is money-value-added per hour, Ln
> > is necessary (= V/m), and S is surplus-value.
> >
> There is surely a dimensional inconsistency here.
> if m is as you say money-value per hour, say \$ per hour,
> then the dimension of the whole equation is in money not
> in value.
>
> I would say that the fundamental equation for the value of the product
> is
> W = C+V+S = C+ L
>
> and the exchange value of the product measured in money would be
> P=mW
>
> --
> Paul Cockshott

Hi Paul, thanks for your comment.

We have different interpretations of value, which we have discussed
before.  You argue that value means labor-time.  I argue that value means
both labor-time and money.  Labor-time is the substance of value and money
is the necessary form of appearance of value.  After developing this
necessary relationship between the substance and form of appearance of
value, when Marx used the term "value" in Capital, he was usually
referring to quantities of money, or the form appearance of value.  Volume
1 is mainly about the determination of surplus-value, which is defined as
dM, or the excess of M' over M.  I have presented many passages to support
this interpretation (e.g. Chapter 7 of Volume 1 in which Marx's theory of
surplus-value is presented; surplus-value is 3 shillings, a quantity of
money).

So in my recent post, I also meant value in this sense, as quantities of
money, the form of appearance of value.  There is no dimensional
inconsistency in my equations.  The value of commodities (W) is equal to
the sum of the constant capital consumed in the production of the
commodities (C ) plus the money new-value added by the current labor
required to produce these commodities (N) (i.e. W = C + N).  All these
terms are quantities of money.

Paul, do you see what I mean?

Comradely,
Fred
```

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