Bichler, Shimshon, and Jonathan Nitzan. 2006. "Elementary Particles of
the Capitalist Mode of Power." Transcript of a paper presented at the
Sixth International Conference of Rethinking Marxism, October 26-28,
University of Massachusetts, Amherst, pp. 1-20.
ABSTRACT
Theories of society, as of nature, are characterized by their elementary
particles. The elementary particle of neoclassical economics is the
util. The elementary particle of classical Marxism is abstract labour.
These elementary particles represent material quanta. They are deemed
useful because both neoclassical economics and classical Marxism analyze
capitalism as a mode of production and consumption. In this paper we
offer a different approach. We argue that, most broadly, capitalism
should be seen not as a mode of production, but a mode of power. From a
viewpoint of power, utils and abstract labour are useless. They
represent absolute magnitudes, whereas power is inherently relative. To
understand the capitalist mode of power we need new elementary
particles. The basic unit of analysis we begin with is differential
capitalization. Capitalization represents the present value of expected
future earnings (ex-post future earnings modified by investors’ hype),
which in turn are corrected for risk perceptions and discounted by the
normal rate of return. Differential capitalization benchmarks the
capitalization of any owner or group of owners against the average
owner. The paper begins by exploring the four elementary particles that
comprise differential accumulation – future earnings, hype, risk and the
normal rate of return. It concludes by assessing the implications of
this new framework of differential capitalization for understanding the
capitalist mode of power.
FULL TEXT
http://bnarchives.yorku.ca/215/
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Jonathan Nitzan
Political Science, York University
4700 Keele St., Toronto, Ontario, M3J-1P3, Canada
Voice: (416) 736-2100, ext. 88822
Fax: (416) 736-5686
E-mail: nitzan at yorku.ca
Website: http://www.bnarchives.net
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