I will also ignore it.

On Sun, May 5, 2013 at 4:11 PM, Jim Devine <[email protected]> wrote:

> [Robert, ignore the following.]
>
> me:
> >> GDP is basically a  measure of what Marx called "exchange value" or
> value in exchange, while the GPI is an effort to measure use value.
> Strictly speaking, it's impossible to measure use value, but it's okay to
> try as long as you know the limitations. ...<<
>
> Julio writes:> This treats "use value" and "exchange value" as if they
> were two extraneous, disconnected categories.  <
>
> This isn't true. All I did was separate the concepts for the
> discussion of what GDP and GPI mean. That does not separate the
> concepts forever. Marx didn't always use the two phrases in the same
> sentence and it's hard to see him as seeing the two as "extraneous,
> disconnected categories."
>
> > However, _exchange value_ is a *form* of _value_, which in turn is the
> *form* of _use value_ in certain contexts, namely societies where use
> values are produced by independent private producers, who must therefore
> trade these goods as commodities for their social arrangement to reproduce
> itself.<
>
> As far as I can tell, Marx's "value" (socially-necessary abstract
> labor-time or SNALT) is not a "form" of use-value (which interpret as
> being like "utility" but not the same as it). Rather, I see him as
> saying that to have value, a commodity must also be a use-value. (Of
> course, not all use-values have value, since some of them are not sold
> on the market. Not all use-values are commodities.) As Marx saw it, by
> the standards of a commodity-producing society, it's not the use-value
> that counts. Non-market benefits (such as those of positive
> externalities) do not count to the market system.
>
> What is  "use-value," anyway (or what is it from Marx's point of
> view)? on the first page of CAPITAL, vol. I, Marx writes:
> >>>Every useful thing, as iron, paper, &c., may be looked at from the two
> points of view of quality and quantity. It is an assemblage of many
> properties, and may therefore be of use in various ways. To discover the
> various uses of things is the work of history. So also is the establishment
> of socially-recognized standards of measure for the quantities of these
> useful objects. The diversity of these measures has its origin partly in
> the diverse nature of the objects to be measured, partly in convention.
>
> >>>The utility of a thing makes it a use value. But this utility is not a
> thing of air. Being limited by the physical properties of the commodity, it
> has no existence apart from that commodity. A commodity, such as iron,
> corn, or a diamond, is therefore, so far as it is a material thing, a use
> value, something useful. This property of a commodity is independent of the
> amount of labor required to appropriate its useful qualities [in simple
> terms, its value]. When treating of use value, we always assume to be
> dealing with definite quantities, such as dozens of watches, yards of
> linen, or tons of iron. The use values of commodities furnish the material
> for a special study, that of the commercial knowledge of commodities. Use
> values become a reality only by use or consumption: they also constitute
> the substance of all wealth, whatever may be the social form of that
> wealth. In the form of society we are about to consider, they are, in
> addition, the material depositories of exchan!
>  ge value.<<<
>
> I don't see Marx as saying here that use-value can be aggregated into
> a single number (which is what I meant when I said that it's
> "impossible to measure use value" as the GPI purports to do). If
> anything, "use-value" would be a vector, consisting of "dozens of
> watches, yards of linen, [and] tons of iron" (among other things). As
> far as I know, Marx never tried to add up use-values.
>
> The GPI accountants use prices and shadow prices to add up those
> dozens, yards, and tons. It may be a useful exercise for some
> purposes, but in the end it can't be done.
>
> > ... you can measure use value. ...  <
>
> I don't read German so I don't know for sure, but I see Marx as using
> the phrase "use-value" as either a noun as Marx did in the quote above
> (a commodity must _be_ a use-value) -- or an item's characteristic
> (its utility: a commodity must have use-value to its buyer). In the
> first interpretation, aggregating use-value would add up all the
> dozens, yards, and tons, somehow translating them all into a common
> metric. That doesn't seem legitimate (except as a first approximation
> the way that the GPI accountants do).
>
> If use-value is a characteristic of an item (the second
> interpretation), it's not like its weight or size. It involves a
> relationship with its owner or its user. That doesn't seem to be
> something that can be measured and then added up.
>
> Julio, what are the _units_ of the common measure used to measure
> use-value so that use-values can be added up?
>
> > How will we ever be able to measure exchange value if we cannot measure
> use value...?  How can we ever measure exchange value (and value) without
> measuring use value?<
>
> Value: If you can measure the number of apples, you can say how much
> socially-necessary abstract labor-time (SNALT or value) is required to
> produce each one. Or if they're not homogeneous, you can calculate the
> total amount of SNALT it is required to produce a collection of apples
> instead (and then calculate an average value for the collection).
> Thus, at least in theory, it's possible to measure value even if
> use-value (the service provided by the apples to humans?) cannot be
> measured.
>
> Exchange-value: I know that this is controversial, but Marx's
> discussion in CAPITAL makes the most sense to me if I interpret
> "exchange value" as the amount of SNALT the sale of a commodity can
> _claim_. That is, if I sell my apples, how much value will I be paid?
> or if I buy apples, how much SNALT must I pay? With a constant value
> of the money unit, i.e., SNALT/unit of money, the exchange-value of a
> commodity would be calculated as its price*(value of money) = (pesos
> per apple)*(SNALT per peso) = SNALT required to buy an apple. At least
> in theory, this can be measured even if use-value cannot be measured.
>
> BTW, in volume I of CAPITAL, Marx generally assumed that commodities
> "sold at value." To me, this means that for each commodity, the amount
> of value (the SNALT needed to produce it) equals the exchange-value
> (the amount of SNALT that is earned by selling it). But in the real
> world, the two often differ (for example, because surplus-value is
> produced, the organic composition of capital differs between sectors,
> etc.) Therein lies a tale, only partly told by three volumes.
>
> > But, how do we measure use value then?  Well, use value is not a
> physical measure of things in themselves. It's a measure of *wealth*,  i.e.
> of things for our selves.  So how do we measure what something  is,
> represents, or "means" to us or for us?  We are the measure of things!  Our
> lives, our powers, which is to say our ability to spend our lives
> consciously (productive power of labor or, for short, labor  power, what
> other power is there?), are the measure of things.  So, in brief: Our
> wealth is our measure, the measure of our conscious lives.  And we, our
> conscious lives, are the measure of our wealth. <
>
> Okay, then how do we measure "our conscious lives" or the contribution
> of (say) an apple to our conscious lives? using marginal utility?
> consumer surplus? if you're measuring use-value, doesn't it depend on
> which individual you're talking about? I see grated coconut innards as
> being the opposite of a use-value (or as having negative use-value to
> me), but my wife likes them.
>
> But maybe this makes sense. The use-value of an apple could be
> measured by the amount of SNALT that I would have to spend if I grew
> and harvested the apple myself (a shadow price, measured in value
> terms).  Is this what you're talking about, Julio?
>
> In any event, how would _you_ measure the use-value of a collection of
> apples?  Be concrete, please.
>
> > When we determine the value of any piece of wealth, we are measuring our
> productive power, the productive force of our labor.  As Marx showed, the
> value of wealth (in a commodity-producing society) is the reciprocal of the
> productive force of labor.  The greater the force of labor productive of a
> given amount of wealth..., the lower its value, and vice versa.<
>
> Usually, "labor productivity" (the usual measure of the productive
> force of labor) is the number of units of a certain item that an hour
> of labor-time produces (e.g., apples harvested per hour). By the way,
> real-world measures of labor productivity use inflation-corrected
> market prices to add up the numerator, so the "labor productivity"
> depends on the relative prices of various items. (The denominator adds
> up all sorts of heterogeneous labor time, assuming that each hour is
> equivalent to all the rest, but let's ignore that.)
>
> If prices are taken as a proxy for values (as makes sense for society
> as a whole), then as usually measured, "labor productivity" is (total
> societal value) per hour of labor-time. Thus, if a certain vector of
> use-values (the "given amount of wealth") can be produced with less
> labor (because each hour has "greater force"), its value is lower. I
> think that's what you're saying. If so, I agree.
>
> > Saying that value is a measure of the productive force of labor (stock)
> is not different from saying that value is a measure of social  labor time
> (flow).  <
>
> Still assuming that labor productivity is the same as "the productive
> power of labor," labor productivity is not a stock magnitude. Instead,
> it's a ratio of two flows (the amount of apples produced during a week
> (say) divided by the amount of labor done during that week).
>
> Value is not a measure of labor productivity. Anyway, didn't you say
> above that value is the _reciprocal_ of the productive force of labor?
> However, it is true (for Marx) that "value is a measure of social
> labor time," though only for commodity-producing labor time.
>
> > The productive force of labor (or labor power, for short) is the *stock*
> of the *flow* we call labor, the activity.  <
>
> Labor-power is not the "productive force of labor." It refers to the
> "aggregate of those mental and physical capabilities existing in a
> human being" (Marx). But that refers to the ability to do labor (and
> the potential quality of that labor), which is something that cannot
> be measured (except as approximations used by personnel managers)
> rather than to the results of labor being done.
>
> Labor-power is measured by the amount of hours (or minutes or
> whatever) of time that a worker agrees to submit to the capitalist's
> authority in return for pay (in effect, _renting_ out labor-power to
> the boss). That's not the same as the productive force of labor.
>
> However, it is true  that labor-power is a stock variable: the ability
> to work can be seen as an asset. Also, labor is a flow, an exertion of
> the aforementioned mental and physical capabilities existing in the
> human being. (Of course, in a commodity-producing society, the only
> labor that is counted is commodity-producing labor.)
>
> I have to stop there.
> --
> Jim Devine /  "Segui il tuo corso, e lascia dir le genti." (Go your
> own way and let people talk.) -- Karl, paraphrasing Dante.
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-- 
Cheers,

Tom Walker (Sandwichman)
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