Re: [OPE-L] Queries about Karl Marx vs Adolph Wagner on value, exchange value and price formation

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Fri Sep 21 2007 - 15:11:11 EDT

Gerry wrote:
Paul C and Ian W (and Jurriaan):

Means of production and labour power must be *purchased* before they can
become inputs in the capitalist production process.  This requires that
they take the form of constant and variable capital, and that means that
they take the *commodity-form* and thereby also must have use-value and
exchange-value and that EV must be represented by a certain amount of

How can it be otherwise?  How, under capitalism, can the value input
_not_ be related to money spent?

Paul Says
Sure the inputs are typically purchased as commodities, but they may
be purchased at prices above or below their values.

Value input is related to money spent in the following way. The law of
value establishes a strong correlation, but not an identity between value and price.
The causal relationship goes from value to market price, but, since correlation is
a symetric measure, the correlation of price to value = the correlation of value to price.
Thus using market prices and using the economy wide MELT one can estimate values with some 90% accuracy.

This archive was generated by hypermail 2.1.5 : Sun Sep 30 2007 - 00:00:05 EDT