Re: [OPE-L] faux frais and the armaments industry

From: Diego Guerrero (diego.guerrero@CPS.UCM.ES)
Date: Tue Oct 04 2005 - 03:19:18 EDT

----- Original Message -----
From: "Rakesh Bhandari" <bhandari@BERKELEY.EDU>
Sent: Tuesday, October 04, 2005 1:07 AM
Subject: Re: [OPE-L] faux frais and the armaments industry

 Is Diego's point that the
> important difference is between surplus value and revenue, so that an
> arms mfg who sells to the state has marketed a value while if the
> state had built the weapon itself, it would have only expended
> revenue? Though end product is same, the laborers in the first
> instance productive but unproductive in the latter case.

My point is that it must be distinguished between two parts of public
sector: firms and administrations. The former have to be treated as private
firms; they create commodities, value and surpus value and receive money in
exchange, all this even if their production is "contingent". The latter
produce just services and do not receive money from buyers, that do not
exist, but from taxes extracted from the poroductive sector. This money is
of course revenue, not new value.


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