# Re: [OPE-L] book review of Kliman's book

From: Philip Dunn (hyl0morph@YAHOO.CO.UK)
Date: Thu Nov 22 2007 - 14:41:51 EST

```On Thu, 2007-11-22 at 10:58 +0000, Paul Cockshott wrote:
> Philip
>
> However, the writer gives no indication that he understands the TSSI or
> SSSI or Marx even.
>
> p.10
> "The illogicality of his argument becomes apparent when we look at his
> MELT from the other side. Let us assume with Kliman that \$1 = 1/3 hours
> of labor. Then it must imply that 1 hour of labor = \$3. Let us call it
> labor equivalent of money (LEM). If we apply our LEM to Klimanâ€™s example
> of the two sectors above, the \$ price of commodity 1 must be
> \$200 + (8x3) = \$224 and the \$ price of commodity 2 must be
> \$40 + (16x3) = \$88. But his output prices are different. Therefore, MELT
> is an irrational measure of conversion from labor to \$ or \$ to labor."
>
> The confusion between price and value! Neither TSSI nor SSSI nor Marx
> calculates *prices* as the constant capital transferred in dollars plus
> labour converted to dollars. What is calculated here is the *value* of
> output expressed in dollars.
>
> (I take that the writer is assuming a constant MELT/LEM here.)
> --------------------------------------
> If there are only two sectors then the total value of output expressed
> In dollars will be the same as the total price, so Ajit's assumption
> Seems sound
>
> Cheers

Hi Paul,

I am puzzled. Ajit was calculating sectoral prices, not total price.
Besides, in TSSI, however many sectors there are, the total value of
output expressed in dollars will be the same as the total price, since
the MELT is defined as total price over total value.

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