Re: [OPE-L] workers' consumption and capitalists' consumption

From: Ian Wright (wrighti@ACM.ORG)
Date: Thu Jun 15 2006 - 12:35:24 EDT

Hi Allin & Paul

A quick reply, before I get the chance to reply in detail regarding
labour-commanded and exploitation.

> Now in Ian's Sraffian system you don't need prior price data to
> calculate the LC coefficients for the goods, but you do need to
> know the rate of profit.  This means that Ian's coefficients can't
> function as the sort of independent explantory factor needed by an
> LTV.

A sufficient condition to calculate real-cost labour values is
knowledge of the real wage, the technical coefficients and the direct
labour coefficients. (Whether these are necessary conditions, I am not
so sure, but this is an aside). The value rate of profit S/(C+V),
identical to the price rate of profit,  can be calculated from the
real wage and technical coefficients.

Hence, real-cost labour values are independent of any nominal price
magnitudes, and can function as an independent explanatory factor for
prices, unlike Sraffian labour values that cannot (e.g., Samuelson's
eraser critique, Steedman's two prongs etc.).

Best wishes,

This archive was generated by hypermail 2.1.5 : Fri Jun 30 2006 - 00:00:03 EDT