Laws of Motion: The tendency of the rate of profit to fall. The rate of profit is computed in prices. The reasons for the tendency derive from values. The tendency of capitalism to generate repeated profitability crises. Profitability is measured in prices. The crises are explained in terms of values (or deviations from values). The immiseration thesis. Workers wages are measured in prices. The reasons for the immeseration of workers are articulated in value relations. Why are you saying that Marx did not try to explain prices by values?
Devine, James wrote:
Jonathan says:> to observe prices and to conclude from these observations about theoretical values and theoretical utility/productivity is to go in the wrong direction. I always thought that theory should explain the world, not the other way around. <
Gosh, I should have made this clear: I think that the (Ricardian) view that the purpose of "values" is to calculate or predict prices is not central to Marx's theory. Marx's theory in CAPITAL is about the laws of motion of capital as a society.
Ahmet cites Ed Ochoa's excellent work, which in a crude summary, indicates a very strong empirical correlation of estimated (vertically integrated) values and estimated prices of production. While I think this is quite useful and scientific research, it's gravy, i.e., an extra benefit of value theory one that's not central to Marx. It's also more of in the Ricardian than the Marxian tradition.
To my mind, the deviation between prices and values on the micro-level is just as important as the unity of prices and values on the macro-level. The former reflects the fetishism of commodities -- which is a real phenomenon, not "false consciousness" -- while the latter reflects the class society which is obscured by commodity exchange.
Jim
