Michael, Why defend the labor theory of value with a flat supply 'curve'? That makes no sense to me. Marx is not a theorist of flatness but jumps. That is, the responses to disequilibrium do not ever get us to equilibrium but make the supply curve jump right , which in turn establishes a new equilibrium deviation from which again calls forth responses that make the supply curve jump right. And every time the supply curve jumps right the suppliers have to propagandize consumers into wanting the greater equilibrium quantity--they don't simply demand more just because the price is now lower. That expanded demand has to be created; there are in fact capitalist businesses that specialize in that. So the supply and demand analysis gives the misleading impression that demand is determined independently of supply but that is patently false. I saw that in his old lecture notes on Political Economy Duncan Foley interprets Marx in terms of a flat supply curve. But that does not capture the fundamentally dynamic nature of Marx's law of value and fundamentally manipulated nature of demand. As I said, I am really frustrated with how Econ I is taught. The most basic concept of supply and demand needs to be rethought. I am going to order that book by Neva Goodwin. Yours, Lakshmi
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