>>> Jim heartfield <[EMAIL PROTECTED]> 07/25/99 12:31PM >>>
I can't agree with Chris, here. There is an underconsumptionist strand
in reformist Marxism, but the revolutionary strand always criticised it
pretty mercilessly: Firstly in Marx's critique of Sisimondi (Theories of
Surplus Value); then in Lenin's critique of the Narodniks (Development
of Capitalism in Russia); and finally in Mattick's critique of Luxemburg
(Economic Crisis and Crisis Theory).
So for eg, Chris' point that
>marxist theory of value predicts that the total social value in a
>society is finite and therefore as capitalism locks more of it up as
>privately owned capital there are bound to be periodic antagonistic
>contradictions in the form of crises
Was answered years ago by Lenin in his debate with the Narodniks. They
argued that Capitalism would never get off the ground in Russia because
there was no internal market for capitalist goods. Lenin pointed out
that the incomes of capitalists were not hoarded but spent purchasing
capital goods, so that capital creates its own internal market.
Superficial reading would suggest that Lenin was merely an optimistic
pro-capitalist, like Tugan-Baranovsky. But Lenin's purpose was to show
that the barrier to capital accumulation was not on the market, but
rather in the relative displacement of variable capital by constant,
leading to a falling rate of profit.
(((((((((((((((((((((((
Charles: I don't agree. As I discovered the last time we argued this, Lenin's full
statement referred to above by affirms Marx's fundamental statement regarding the role
of the "restricted consumption of the masses" in periodic crises. The below is quoted
from the last debate on Thaxis on this issue.
>>> "Charles Brown" <[EMAIL PROTECTED]> 09/30/98
James H.
'On the problem of interest to us, that the home market, the main
conclusion from Marx's theory of realisation is the following:
capitalist production, and consequently, the home market, grow not so
much on account of articles of consumption as on account of means of
prouction. In other words, the increasse inmeans of produciton outstrips
the increase in articles of consumption.'
Lenin, Development of Capitalism in Russia, p 54
_____________
Charles :
But in the same passage Lenin went on to say:
"For capitalism, therefore, the growth of the home
market is to a certain extent "independent" of the
growth of personal consumption, and takes place
mostly on account of productive consumption.
BUT IT WOULD BE A MISTAKE TO UNDERSTAND
THIS "INDEPENDENCE" AS MEANING THAT
PRODUCTIVE CONSUMPTION IS ENTIRELY
DIVORCED FROM PERSONAL CONSUMPTION:
THE FORMER CAN AND MUST INCREASE
FASTER THAN THE LATTER (AND THERE
ITS "INDEPENDENCE" ENDS), BUT IT GOES
WITHOUT SAYING THAT, IN THE LAST
ANALYSIS, PRDUCTIVE CONSUMPTION IS
ALWAYS BOUND UP WITH PERSONAL
CONSUMPTION. MARX SAYS IN THIS
CONNECTION: "...WE HAVE SEEN
(BOOK II, PART III) THAT CONTINUOUS
CIRCULATION TAKES PLACE BETWEEN
CONSTANT CAPITAL AND CONSTANT
CAPITAL..."(MARX HAS IN MIND
CONSTANT CAPITAL IN MEANS
OF PRODUCTION , WHICH IS REALISED
BY EXCHANGE AMONG CAPITALISTS
IN THE SAME DEPARTMENT). "IT IS AT
FIRST INDEPENDENT OF INDIVIDUAL
CONSUMPTION BECAUSE IT NEVER
ENTERS THE LATTER. BUT THIS
CONSUMPTION DEFINITELY LIMITS IT
NEVERTHELESS, SINCE CONSTANT
CAPITAL IS NEVER PRODUCED FOR ITS
OWN SAKE BUT SOLELY BECAUSE MORE OF
IT IS NEEDED IN SPHERES OF PRODUCTION
WHOSE PRODUCTS GO INTO INDIVIDUAL
CONSUMPTION " (DAS KAPITAL, III,
1, 289, RUSS. TRANS., P242; OR MOSCOW
1959 P.299-300)
emphasis added by Charles.
So, when we read the whole passage
we see that Lenin and Marx agree with us
not James H. in this thread.
Also, on the cause of crises, later
on in this section on Marx's theory
of realisation, Lenin quotes Marx:
"The ultimate reason for all
real crises always remains the
poverty and restricted consumption
of the masses as opposed to the
drive of captialist production to develop
the productive forces as though only
the absolute consuming power of
society constituted their outer limit "
(Capital vol. III, Moscow, 1959, pp.
472-73) ; quoted in The Development
of Capitalism in Russia.
Charles Brown
Detroit
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