[Marxism] 'What to do with the Labor Theory of Value'

Shane Mage shmage at pipeline.com
Sun May 12 13:17:12 MDT 2013


On May 12, 2013, at 2:08 PM, Daniel Rocha wrote:
>
> There is no answer to that. No mathematical demonstration. The labor
> content of a monetary unity in prices is a hypothesis that can only be
> confirmed by statistical analysis of real world data. Market prices  
> do not
> imply sum of values, not even in long term, or vice versa.

The price of every final-product commodity produced in the course of a  
year is resolved by Marx as c+v+s: money cost of dead-labor  
transferred from the previously-existing value of constant capital  
plus the cost of hours of compensated living labor plus the money  
incomes derived from uncompensated labor appropriated by capital as  
surplus value in its various forms (rent, interest, profit-of- 
enterprise and executive salaries).  The capitalist sector GDP (gross  
domestic product) is valued as the summation of the prices of all  
those commodities: Σc+Σv+ Σs. It is identical to the sum of incomes  
of workers and capitalists plus capital consumption, GDI (gross  
domestic income). The value of total final-product commodity  
production in the course of a year is resolved by Marx as hours of  
dead-labor transferred from the previously-existing value of constant  
capital plus hours of compensated living labor plus hours of  
uncompensated labor appropriated by capital as surplus value. These  
are both entirely empirical sums--alternative measurements of the same  
aggregate, one in terms of money the other in terms of hours of  
socially necessary labor time. The valuation of GDI in monetary  terms  
divided by the valuation of GDI in hours of socially necessary labor  
time defines the labor-content of the price unit.  This is no  
hypothesis--it is determined precisely by the foregoing statistical  
analysis of real-world data.




Shane Mage

"Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64








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