From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Wed Mar 21 2007 - 06:54:10 EDT
The problems are terminological. There is a confusion possible between 'money constant capital' and 'money capital'. I have no problem with your measuring constant capital in money terms, since as Sraffa, Shaikh and Machover all point out, a large collection of disparate commodities that make up constant capital are unlikely to have a price of production significantly different from their values, as such it is fairly valid to translate these to values just using a MELT. The point is that at time Ian seems to be talking as if he means money capital in the discussion where you mean the money value of constant capital. -----Original Message----- From: OPE-L [mailto:OPE-L@SUS.CSUCHICO.EDU] On Behalf Of Pen-L Fred Moseley Sent: 21 March 2007 03:37 To: OPE-L@SUS.CSUCHICO.EDU Subject: Re: [OPE-L] questions on the interpretation of labour values Hi Allin and Paul C., Thanks for your comments. Let me try to clarify. 1. M = C + V. Let's just consider C, which seems to be the more controversial. 2. C can be considered either as a flow or as a stock. As a flow, it is the first component of the price of the output. And as a stock, it is in the denominator of the rate of profit (along with the stock of variable capital, which is generally negligible). 3. Consider first the stock of constant capital. Capitalist firms invest a certain quantity of money constant capital to purchase means of production (both machinery, etc. and raw materials). These quantities of money capital invested are recorded on the balance sheets of the firms. At a given point in time, these quantities of money constant capital on the balance sheets of individual firms could be added up to obtain the total stock of money constant capital for the economy as a whole. My interpretation is that this total stock of money constant capital for the economy as a whole is taken as given in the determination of the rate of profit in Marx's theory. 4. Similarly, the flow of constant capital is the price of the raw materials consumed in this period's production plus the periodic depreciation cost of the machines, etc. These quantities of money constant capital are recorded on the income statements of firms. These quantities of money constant capital on the income statements of individual firms over a certain period of time could be added up to obtain the total flow of money constant capital for the economy as a whole for this period. Again, my interpretation is that this total flow of money constant capital for the economy as a whole is taken as given in Marx's theory, and becomes the first component of the total price of commodities in the economy as a whole. Do you still think that there are problems with this? Comradely, Fred ---------------------------------------------------------------- This message was sent using IMP, the Internet Messaging Program.
This archive was generated by hypermail 2.1.5 : Sat Mar 31 2007 - 01:00:12 EDT