I love it!  And, btw, the illustration is clearly DeLong.  Saw him once.

On Apr 3, 2014, at 1:02 PM, Tom Walker <[email protected]> wrote:

> Professor Brad DeLong: 
> I have long thought that Marx's fixation on the labor theory of value made 
> his technical economic analyses of little worth. Marx was dead certain for 
> ontological reasons that exchange-value was created by human 
> socially-necessary labor time and by that alone, and that after its creation 
> exchange-value could be transferred and redistributed but never enlarged or 
> diminished. Thus he vanished into the swamp, the dark waters closed over his 
> head, and was never seen again.
> Brad forgot to add that Karl Hussein Marx was born in KENYA! 
> 
> 
> Brad DeLong or Karl Marx?
> Just a few pages from Marx's A Contribution to the Critique of Political 
> Economy are enough to show that DeLong's "long thoughts" about Marx must have 
> emerged from a swamp with waters darker than anything even the creature from 
> the black lagoon would deign to wallow in. In a section titled "Historical 
> Notes on the Analysis of Commodities" Marx surveyed a century and a half of 
> thought in classical political economy "beginning with William Petty in 
> Britain and Boisguillebert in France, and ending with Ricardo in Britain and 
> Sismondi in France" that dealt with the concepts of labor time and exchange 
> value and their relationship. Of particular pertinence to refuting DeLong's 
> ontological fantasy is Marx's discussion of the contributions of James 
> Steuart and David Ricardo. 
> 
> In Marx's account, Steuart was the first to make a "clear differentiation 
> between specifically social labour which manifests itself in exchange value 
> and concrete labour which yields use values..."  Furthermore, Steuart was 
> "interested in the difference between bourgeois labour and feudal labour," 
> and consequently shows "that the commodity as the elementary and primary unit 
> of wealth and alienation as the predominant form of appropriation are 
> characteristic only of the bourgeois period of production and that 
> accordingly labour which creates exchange-value is a specifically bourgeois 
> feature [emphasis added]." In other words, the relationship between labour 
> time and exchange value was viewed by Steuart (to Marx's approbation) as 
> historically contingent, not as some ontological certainty, as Delong claims.
> 
> Ricardo, according to Marx, "neatly sets forth the determination of the value 
> of commodities by labour time, and demonstrates that this law governs even 
> those bourgeois relations of production which apparently contradict it most 
> decisively." Does this imply that after its creation this exchange value is 
> "never enlarged or diminished," as DeLong asserts? Marx notes the following 
> qualification by Ricardo: "the determination of value by labour-time applies 
> to 'such commodities only as can be increased in quantity by the exertion of 
> human industry, and on the production of which competition operates without 
> restraint.'"
> 
> Whatever one thinks of the labour theory of value, DeLong's claims about 
> "Marx's 'fixation'" are so utterly groundless and fantastic as to make one 
> suspect that perhaps Brad mistakenly thought his commentary was scheduled to 
> be published on April 1st. Especially foolish is his account of Marx's 
> alleged beliefs about the impossibility of re-employment of workers displaced 
> by machinery:
> Karl Marx in his day could not believe the volume of production could 
> possibly expand enough to re-employ those who lost their jobs as handloom 
> weavers as well-paid machine-minders or carpet-sellers. He was wrong.
> Obviously DeLong is not aware that Marx devoted a section in Capital to 
> precisely this question, "The theory of compensation as regards the 
> workpeople displaced by machinery," the conclusions of which are more in 
> accord with Keynes's 1934 radio address, "Is the Economic System 
> Self-Adjusting?" than with DeLong's foolish caricature:
> The labourers that are thrown out of work in any branch of industry, can no 
> doubt seek for employment in some other branch. If they find it, and thus 
> renew the bond between them and the means of subsistence, this takes place 
> only by the intermediary of a new and additional capital that is seeking 
> investment; not at all by the intermediary of the capital that formerly 
> employed them and was afterwards converted into machinery.
> Marx reserves his most caustic retort to "the theory of compensation," 
> however, for the first paragraph of the succeeding section:
> All political economists of any standing admit that the introduction of new 
> machinery has a baneful effect on the workmen in the old handicrafts and 
> manufactures with which this machinery at first competes. Almost all of them 
> bemoan the slavery of the factory operative. And what is the great trump-card 
> that they play? That machinery, after the horrors of the period of 
> introduction and development have subsided, instead of diminishing, in the 
> long run increases the number of the slaves of labour!
> Was Marx wrong, yet again? I leave the last word to DeLong who smugly, albeit 
> inadvertently, confirms Marx's prediction to the letter by playing what he 
> imagines is the great trump-card of the worst-case scenario:
> The pessimistic view is that some pieces of (3) will be (a) mind-numbingly 
> boring while (b) stubbornly impervious to artificial intelligence, while (4) 
> will remain limited and for the most part poorly paid. In that case, our 
> future is one of human beings chained to desks and screens acting as 
> numbed-mind cogs for Amazon Mechanical Turk, forever.
> http://econospeak.blogspot.com/2014/04/the-creature-from-delong-lagoon.html
> -- 
> Cheers,
> 
> Tom Walker (Sandwichman)
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