Re: [OPE-L] basics vs. non-basics

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Wed Sep 28 2005 - 04:39:56 EDT

Philip Dunn wrote:
> Hi Paul
> Quoting Paul Cockshott <wpc@DCS.GLA.AC.UK>:
>>Surely for this you need to first express things
>>in material terms.
>>Let us take a 2 industry example with negative net product
>>Assume we have units in tons of material and person years
>>INPUTS                  OUTPUTS
>>Corn    Iron     Labour
>>100     10       20       90
>>10      10       5        20
>>110     20       25
>>In this case we have a negative net output of corn of -20
>>and no net output of iron. This would imply that 25
>>person years were embodied in
>>-20 tons of , so the net new value added per ton of
>>corn must be -1.25 person years per ton
>>so at very least value must be negative
>>Solving the full value equations
>>90corn == 100corn + 10iron + 20,
>> 20iron == 10corn + 10iron + 5
>>iron -> -(3/4), corn -> -(5/4)
>>This implies that with a negative net product in the
>>basic sector values in that sector must be negative.
>>This merely expresses the fact that under these
>>circumstances labour is socially unnecessary,
>>and is indeed deleterious.
> That is physical, simultaneous, deterministic value theory.

Yes it is. So what.

> There is no role
> for money.

Introducing money further complicates things considerably,
though it obviously makes things more realistic.
Money implies the state and taxation, and a mechanism by
which the value of money is fixed. Sraffa and Marx attempt
to get round this by assuming that money is a commodity - do you assume this?

> Ex-post value accounting allows unit values of inputs and outputs
> to be different and allows the value of money to change. It also requires
> stocks to be taken into account even in simple circulating capital cases.
> Phil
Ok then Phil, construct an example using the same basic
sector but with a gold sector for the money and then let
us see how you would work out the values using your
system of accounting.

Paul Cockshott
Dept Computing Science
University of Glasgow

0141 330 3125

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