From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sat Sep 01 2007 - 21:16:09 EDT
Quoting Michael Perelman <michael@ECST.CSUCHICO.EDU>: >> > The punchline is that the value remaining in capital goods that have >> > already gone through a production cycle is indeterminate, especially >> > because of changes in reproduction costs of the capital. As a result, >> > one cannot know how much value will be transferred to the final product >> > from the constant capital because of this indeterminacy. >> > Hi Michael, thanks for your reply. I was aware of this punchline, but I donít see what it has to do with the issue of sequential vs. simultaneous determination. Would you please explain? In any case, I donít see how this is a problem in Marxís theory. You are right that we often donít know in advance what constant capital is, because of technological change, and capitalists donít know either. But in the real world, there is a definite amount of constant capital that is transferred to the long-run equilibrium prices of the output, as enforced by competition. This quantity of constant capital is an objective fact, even if we donít know what the quantity is. And whatever this actual constant capital is, that is what is taken as given in Marxís theory, and transferred to the value and price of production of the output, and becomes one component of the long-run equilibrium price of the output. One doesnít have to know what the magnitude of constant capital is, either ex-ante or ex-post, in order to assume that it exists and take it as given in the determination of the value of the output (sequential determination). Furthermore, the precise magnitude of constant capital doesnít matter much anyway, because whatever it is, it is simply transferred to the value of the output, and thus has no effect on the magnitude of surplus-value, which is the main variable explained by the theory. So I donít see why the empirical uncertainty of constant capital is a problem in Marxís theory. Comradely, Fred ---------------------------------------------------------------- This message was sent using IMP, the Internet Messaging Program.
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