From: Tom Walker

I gave it a quick scan. It is interesting but fundamentally flawed. I say
this as the one person I know of who has studied the "Luddite" myth to
death. Sachs and Kotlikoff make the assumption that just about everyone
makes: that machines are "labor saving". This is wrong. Machines do not *
save* labor, they *displace* it.

^^^^
CB: Yes, theoretically machines are not instituted unless they reduce
the number of 'man" hours per unit commodity, or replace them.

^^^^^

The substitution of fuel for labor is cost effective only to the extent
that fuel is cheaper than labor. Currently, the relative cheapness of fuel
results from the shifting of the social and environmental costs of
extracting and burning the shit. Sachs and Kotilikoff discuss the machines
as if they run on some mysterious unknown substance. Clue: 85% fossil fuels
at present. Among the words that do not appear in their paper: energy,
climate, emissions.

I repeat machines DO NOT *save* labor. Nor do they *substitute* for labor.
The consumption of fuel does that. The machine merely facilitates the
substitution of (massive amounts of cheap) fuel for labor. And the fuel is
cheap because it's full cost is not incorporated into its price.

^^^^^^\

CB: Even fuel cannot add new value to commodities. Only human labor can do that.

Machines produce use-value,not exchange-value.

Even fuel cannot fully substitute for human labor in operating the
machines. As you say, there is no such thing as a perpetual motion
machine.



No matter how "smart" a machine is, it cannot transcend the laws of
thermodynamics. Economists, however, believe that they can evade those laws
by substituting "math" for the mechanical analogies that the math
represents  I won't go into a great deal of detail, having already
mentioned the word that don't appear in the paper, but note the "model"
employed by Sachs and Kotlikoff:

The model is a variant of the standard two?period overlapping generation
> (OLG) model. The production function depends on three inputs: machines M,
> unskilled labor L, and skilled labor S.


Note that the machines in this "production function" do not require inputs
of energy! They are perpetual motion machines! Who knew? It's a good thing
that the machines run on mathematical notation because if they ran on
electricity or gasoline and employed transmission gears and all that shit
then there would be the mathematically embarrassing fact of mechanical
efficiency to cope with. Mechanical efficiency? What's that? Exactly.

^^^^^
CB: Also, importantly for capitalism, machines don't buy commodities
-can't. As Walter Reuther is said to have said. "Robots don't buy
cars". Human wage-laborers have two necessary functions in the
capitalist mode ; producers of new exchange-value AND mass consumers
of commodities without whose spending profits cannot be realized.

Importantly for Marxist theory , machines don't add any new exchange-
value to commodities. Human labor is the only source of _new_ value
(exchange-value). Machines do produce use-value. But machines and
their fuel can only add as much exchange-value as human labor put into
them in making them.

^^^^^^

Here's the embarrassing part: S & K's "mathematical model" is, essentially,
a mechanical analogy that "abstracts from" (ignores) basic mechanical
principles. A complex machine is a combination of simple machines. The
mechanical efficiency of the complex machine is calculated by multiplying
together the mechanical efficiency of the parts. Mechanical efficiency is *
always* less than 1. Therefore, ceteris paribus, the more complex the
machine the less efficient it becomes mechanically -- that is to say the
more waste heat and wear it generates.

The bottom line is that S & K's paper is ecologically vacant.
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