[Marxism] Fwd: Ed George's Question

Louis Proyect lnp3 at panix.com
Tue Feb 5 15:14:38 MST 2013


 From S.Artesian

Lou,
Yes, it is competition—remember the law of value is mediated through the 
markets. The capitalist thinks he or she is obtaining the “profit”
engendered in his or her individual production. In reality, the
capitalist claims a portion of the total social profit, the total
surplus value thrown into the markets for realization and reproduction.
The commodities exchange at their values, only be exchanging at their
prices of production. Thus increases in the productivity lower the value 
of the product, increase the surplus value pushed into the markets, but 
reduce the rate of profit for both the individual producers, deploying 
more technically valuable, expensive means of production. By producing 
at less than the socially necessary labor time, or the time of current 
reproduction, the capitalist can claim a portion of the total surplus 
value that can offset that reduced rate of profit and allow him or her 
to approach, achieve an average rate of profit.
SA






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