Re: [OPE-L] questions on the interpretation of labour values

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Mon Mar 26 2007 - 09:07:54 EDT

--- Diego Guerrero <diego.guerrero@CPS.UCM.ES> wrote:

> Hi, Ajit:
> You wrote commenting on Fred:
> "If this is crucial, then you should know that you
> have
> been making a crucial mistake all along. How does a
> firm gets its revenue? By selling the goods it has
> produced. When it sells a good, it sells it at a
> price. Only AFTER selling its goods it receives a
> sum
> of money that is its revenue. So revenue by
> definition
> is quantity sold multiplied by its price. There is
> only one way arrow of determination in the equation
> PxQ = M. You cannot know M unless you know both P
> and
> Q. In other words, if P is unknown, then M is
> unknown.
> In your equation P = M/Q (assuming Q is known), you
> have one equation in two unknowns, P and M, and so
> it
> determines nothing."
> 1. This debate reminds me of the forest/tree
> question. You think we must
> study the tree before looking at the forest. By
> contrast, I think Fred,
> others and also I follow Marx in thinking that the
> correct procedure is
> studying the forest before analysing the tree. In my
> opinion, it is not
> mainly a question of sequential versus simultaneous.
> It goes beyond: it is
> the question of the necessary rejection of
> methodological individualism.
> Those who believe necessary to start from the
> individual behaviour in order
> to understand the system seem to forget that the
> individuals are socially or
> globally determined. Micro-agents must be understood
> in their macroeconomic
> circumstance. This is for instance why for Marx
> classes come before
> individuals.
My Dear Diego, You have absolutely no idea how I
think. On this list I don't reveal how I think. I oly
expose illogical mumbo-jumbo parading as Marx's
theory. But to let you know a "secrete": I'm the
forest guy! And to shock you even further, Sraffa was
the one genuine forest guy economic professon has
known! If you were in Paris and could come to College
de France on the 4th, you will get to hear that. Any
way, these findings will be revealed in papers and not
over exchanges on ope-l. You have no idea how
difficult it is to think of economics in terms of
forest--it's like quantum mechanics, which is not so
easy as to take aggregate money as given etc. Cheers,
ajit sinha

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