The discussion about the labor theory of value misses one important point, which I have been trying to push for years. Suppose you want to calculate the value of a commodity according to the simple algebraic formula
C+V+S Held the calculate C? Marx describes a simple method: the suppose you have a machine that last 10 years, take the C and apply 1/10 of it to the value of the final product for each year. If, however -- and Marx pushes this quite a bit -- new technology destroys the value of the remaining C before the 10 years is up, how the calculate the amount of value embodied in the constant capital consumed? Of course, such calculations are impossible. Marx's value theory is very important for showing, as Jim emphasized, how the capitalist system works, but the simple algebraic description neglects the dynamic nature of capitalism. Marx's goes much farther in his description of the dynamic nature of capitalism, but nobody seems to have incorporated that part of his work into value theory, as such. In effect, those who talk about the dynamic nature of capitalism seem to ignore value theory and those who emphasize value theory seem to ignore dynamics -- the partial exception of Alan Freeman, Andrew Kleiman, .... and myself. None of us has done a satisfactory job. -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901
