[OPE-L:8380] Re: Re: Re: Electronics and Value

From: rakeshb@stanford.edu
Date: Thu Jan 23 2003 - 13:23:41 EST

Paul A wrote:

> My starting point is the Grundrisse:
> "As soon as labour in the direct form has ceased to be the great 
> well-spring on wealth, labour time ceases and must cease to be 
> measure, and hence exchange value [must cease to be the 
measure] of 
> use value." (705)

Ajit Sinha, sometimes OPE-L contributor, argues that Marx had to 
use the LTV to determine or render determinate prices of 
production only because he did not understand that with the use of 
simultaneous equations prices could be solved on the basis of 
technical conditions as long as distribution was exogeneously 

 That is, the LTV is not so much a historical anachronism but an 
analytical anachronism.  

> That is: Science becomes increasingly central to productivity 
> improvement, but that makes the market system of coordination 
> increasing ineffectual.
> My hunch is that because of the public-goods nature of 
knowledge, the
> pricing of knowledge intensive goods/services/assets cannot be 
> determined "economically" (classically, by socially-necessary 
> time requirements, or even neoclassically, by supply and 
demand) -- 
> because these requirements are essentially indeterminate.

One interesting aspect here is the intl division of labor. As James 
Galbraith points out, the advanced countries tend to export 
knowledge intensive capital goods such as aeroplanes, medical 
equipment, speciality chips, software and import non R&D 
intensive goods such as clothes, toys, shoes, non speciality steel. 

Galbraith  argues that the knowledge-intensive capital goods 
industry is marked by a lottery like competition for transient 
Schumpeterian monopoly profits. He makes this argument on the 
basis of the supply and demand schedules he specifies for these 
kind of goods, but I don't have my books with me--his most 
important piece on this in Phil Arestis The Relevance of Keynesian 
Economic Policy Today.  He also argues that to the extent that the 
industrial profile of the advanced economies become more 
weighted with knowledge intensive capital goods, they are more 
likely to be subject to violent cycles. 

Paul, thank you very much for an extremely stimulating post.

Yours, Rakesh

This archive was generated by hypermail 2.1.5 : Sat Jan 25 2003 - 00:00:01 EST