Re: measurement of abstract labor

From: Paul C (clyder@GN.APC.ORG)
Date: Fri Jun 04 2004 - 17:44:06 EDT

Rakesh Bhandari wrote:

>  Given the techniques available it will take 10,000 hours of social
> labor to produce 1000 suits. The social value of each suit is thus 10
> hours. If it turns out that exactly 1000 suits are produced, each
> suit will command 10 hours on the market and thus market value will
> be identical with the value in production (though of course more
> efficient producers will be rewarded and vice versa). If however 1100
> suits are produced, then market value of each suit  will fall
> approximately 10 percent since on the market the entire 1100 suits
> will be exchangeable for only 10,000 hours of labor--the amount of
> labor time that was allotted for the production of these particular
> goods. If 900 suits are produced, the market value on each suit will
> be ten percent higher than the value in production because on the
> market the same 10,000 hours will be given, as was assigned,
> regardless of the fact that the total amount of suits produced in
> fufillment of the social requirement is but 900.
> I don't think that for Marx value is determined by the conditions of
> production alone. Perhaps the value of each individual commodity, by
> and for itself, is determined by the conditions of production alone
> (so if 1100 suits are produced the extra 100 suits may have had a
> production value of 10 hours each, but knowing this won't be helpful
> for determining market value); the Marxian value of a commodity, as a
> part of the aggregate number of like commodities that have been
> produced, is determined to some extent on the market. If 1100 suits
> are produced when there had only been effective demand for 1000
> suits, the market value of each suit is 9.09 hours, not the 10 hours
> if supply had equalled demand.

 One needs both a concept of value, and of deviation of price from value.
If too many suits are produced, the price falls below value. The deviation
of price from value is the control signal that regulates social production.
This seems to be what Ian is arguing.

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