Jonathan Nitzan
http://en.wikipedia.org/wiki/Jonathan_Nitzan Jonathan Nitzan is a Professor of Political Economy at York University, Toronto, Canada. He is the co-author (with Shimshon Bichler) of Capital As Power: A Study of Order and Creorder,[1] published 2009. Their writings focus of the nature of capital in capitalism and provide an alternative view to that of Marxist and neo-classical economics. In their theory capital is the quantification of power. Central to their theory is the concept of differential accumulation where firms strive to profit more by beating the average profit level. ^^^^^ CB: Marx expresses differential accumulation this way: This expropriation is accomplished by the action of the immanent laws of capitalistic production itself, by the centralization of capital. One capitalist always kills many. Hand in hand with this centralization, or this expropriation of many capitalists by few, http://www.marxists.org/archive/marx/works/1867-c1/ch32.htm and elsewhere. So, it is not true that Marx and Marxists don't already have a concept of differential accumulation. ^^^^^^^ Nitzan and Bichler share an intellectual legacy with institutional political economists such as Thorstein Veblen. In particular, they share Veblen's explanation that business exists with the end of pecuniary (monetary) gain and not the accumulation of goods of consumption or of physical machines. ^^^^^^^ CB: Marx already said this before Veblen. It is expressed in his M-C-M(1) accumulation of capital exchange chains. Capital is accumulated in the monetary form ,thus "M" for money. ^^^^^ Nitzan and Bichler argue that it was never possible to separate economics from politics. This separation is required to allow for neo-classical economics to base their theory on utility value and for Marxists to base the labour theory of value on quantified abstract labour. ^^^^^ CB; However, Marx and Marxists don't separate economics and politics. Hard to see how anyone could read Marx and think he separates them. He is famous for uniting them. All the discussion of the rule of the capitalist class over the working class is patently unified discussion of economics and power. Engels finds the origin of the state based in the rule of exploiting classes over exploited classes. So, evidently basing the labor theory of value on quantified abstract labor_time_ does not require separating economics and politics, 'cause Marxists don't separate them. ^^^^^ Instead of a utility theory of value (like neo-classical economics) or a labour theory of value (as found in Marxist economics), Nitzan and Bichler propose a power theory of value. The structure of prices has little to do with the so-called "material" sphere of production and consumption. The quantification of power in prices is not the consequence of external laws – whether natural or historical – but entirely internal to society. ^^^^ CB: That would be a power theory of _prices_ not value. Also, Marx's laws of capitalist accumulation are not external laws, they are internal laws of society, so once again, these critics of Marx have a patently erroneous version of Marx. ^^^^^ In capitalism, power is the governing principle as rooted in the centrality of private ownership. Private ownership is wholly and only an act of institutionalized exclusion, and institutionalized exclusion is a matter of organized power. And since the power behind private ownership is denominated in prices, Nitzan and Bichler argue, there is a need for a power theory of value. ^^^^^ CB: If power is denominated in prices, wouldn't the need be for a price theory of power ? ^^^^^ Capitalization, in their theory, is a measure of power, as illuminated through the present discounted value of future earnings (while also taking into account hype and risk). This formula is basic to finance which is the overarching logic of capitalism. The logic is also inherently differential as every capitalist strives to accumulate greater earnings than their competitors (but not profit maximization). Nitzan and Bichler label this process differential accumulation. In order to have a power theory of value there needs to be differential accumulation where some owners' rate of growth of capitalization is faster than the average pace of capitalization. [edit] Major works ^^^^^ CB; On differential accumulation in Marxist theory, see Lenin's discussion of monopoly capital in _Imperialism_. It is a central concept in Marxist political economy ( see above quote of Marx)/ Capital as Power: A study of order and creorder. Nitzan, Jonathan and Shimshon Bichler. 2009. Routledge. (Complete book available as free pdf.) The Global Political Economy of Israel. Nitzan, Jonathan and Shimshon Bichler. 2002. Pluto Press. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
