Jurriaan,

This is response to Carrol's typical-anti-Marxist
nonsense-pretending-to-be-Marxist is spot on.

I would suggest that here -  " The 20th century history of Marxist
economics offers us a sad spectacle.
First, Marxists volunteered for an intellectual lobotomy by epistemologist
Werner Sombart, apologist Nikolai Bukharin and accountant Ladislaus von
Bortciewicz. Then, after a long and largely pointless mathematical
detour..." - you substitute "some Marxist economics in the 20th
Century"  . I mean Lenin and a lot of other important Marxist
economists of the 20th Century did nothing of the kind.

Charles





From: "Jurriaan Bendien"

Carrol, just a brief comment:

Marx himself never argued that commodity values have to be "converted" into
prices. This would be meaningless nonsense, since a commodity always has
both a price and a value at the same time, and the critical factor in
competition is precisely - as Marx indicated at the very beginning of
Capital Vol. 3 - whether in fact the commodity can sell below its value or
above its value, and realise a good profit at the same time.

The "transformation of commodity values into prices of production" just
means, that the regulation of the exchange of commodities directly according
to product-values (quantities of labour-time) changes into the regulation of
the exchange of commodities according to their prices of production.

This theoretical transformation mirrors the historical transition from
simple commodity production - where the producer compares how much he can
get in return for his own product and his own labour time - to capitalist
production, where what counts is comparative capital yields, i.e. the price
at which products would have to sell, in order to obtain a normal profit
rate on the capital invested in their production - assuming given cost
prices for output, ruling market prices and ruling profit margins (for some
useful historical insights, see Robert Lopez, "The trade of medieval
Europe", Cambridge Economic History of Europe Vol. 2, 1952, pp. 334f.).

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