This guy is getting lots of play in debate on LBO-talk

CB

^^^^^

I. I. Rubin's
Essays on Marx's Theory of Value
Introduction

http://www.marxists.org/archive/rubin/value/ch00.htm

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There is a tight conceptual relationship between Marx's economic
theory and his sociological theory, the theory of historical
materialism. Years ago Hilferding pointed out that the theory of
historical materialism and the labor theory of value have the same
starting point, specifically labor as the basic element of human
society, an element whose development ultimately determines the entire
development of society.[1]

The working activity of people is constantly in a process of change,
sometimes faster, sometimes slower, and in different historical
periods it has a different character. The process of change and
development of the working activity of people involves changes of two
types: first, there are changes in means of production and technical
methods by which man affects nature, in other words, there are changes
in society's productive forces; secondly, corresponding to these
changes there are changes in the entire pattern of production
relations among people, the participants in the social process of
production. Economic formations or types of economy (for example,
ancient slave economy, feudal, or capitalist economy) differ according
to the character of the production relations among people. Theoretical
political economy deals with a definite social-economic formation,
specifically with commodity-capitalist economy.

The capitalist economy represents a union of the
material-technological process and its social forms, i.e. the totality
of production relations among people. The concrete activities of
people in the material-technical production process presuppose
concrete production relations among them, and vice versa. The ultimate
goal of science is to understand the capitalist economy as a whole, as
a specific system of productive forces and production relations among
people. But to approach this ultimate goal, science must first of all
separate, by means of abstraction, two different aspects of the
capitalist economy: the technical and the social-economic, the
material-technical process of production and its social form, the
material productive forces and the social production relations. Each
of these two aspects of the economic process is the subject of a
separate science. The science of social engineering - still in
embryonic state - must make the subject of its analysis the productive
forces of society as they interact with the production relations. On
the other hand, theoretical political economy deals with production
relations specific to the capitalist economy as they interact with the
productive forces of society. Each of these two sciences, dealing only
with one aspect of the whole process of production, presupposes the
presence of the other aspect of the production process in the form of
an assumption which underlies its research. In other words, even
though political economy deals with production relations, it always
presupposes their unbreakable connection with the material-technical
process of production, and in its research assumes a concrete stage
and process of change of the material-productive forces.

Marx's theory of historical materialism and his economic theory
revolve around one and the same basic problem: the relationship
between productive forces and production relations. The subject of
both sciences is the same: the changes of production relations which
depend on the development of productive forces. The adjustment of
production relations to changes of productive forces - a process which
takes the form of increasing contradictions between the production
relations and the productive forces, and the form of social cataclysms
caused by these contradictions - is the basic theme of the theory of
historical materialism.[2] By applying this general methodological
approach to commodity-capitalist society we obtain Marx's economic
theory. This theory analyzes the production relations of capitalist
society, the process of their change as caused by changes of
productive forces, and the growth of contradictions which are
generally expressed in crises.

Political economy does not analyze the material-technical aspect of
the capitalist process of production, but its social form, i.e., the
totality of production relations which make up the "economic
structure" of capitalism. Production technology (or productive forces)
is included in the field of research of Marx's economic theory only as
an assumption, as a starting point, which is taken into consideration
only in so far as it is indispensable for the explanation of the
genuine subject of our analysis, namely production relations. Marx's
consistently applied distinction between the material-technical
process of production and its social forms puts in our hands the key
for understanding his economic system. This distinction at the same
time defines the method of political economy as a social and
historical science. In the variegated and diversified chaos of
economic life which represents a combination of social relations and
technical methods, this distinction also directs our attention
precisely to those social relations among people in the process of
production, to those production relations, for which the production
technology serves as an assumption or basis. Political economy is not
a science of the relations of things to things, as was thought by
vulgar economists, nor of the relations of people to things, as was
asserted by the theory of marginal utility, but of the relations of
people to people in the process of production.

^^^^^
CB: More fully, relationships between people with respect to things.
That is, property relations or property forms. Or as Marx put it

"...capital is not a thing, but a social relation between persons,
established by the instrumentality of things"

http://www.marxists.org/archive/marx/works/1867-c1/ch33.htm

^^^^^


Political economy, which deals with the production relations among
people in the commodity-capitalist society, presupposes a concrete
social form of economy, a concrete economic formation of society. We
cannot correctly understand a single statement in Marx's Capital if we
overlook the fact that we are dealing with events which take place in
a particular society. "In the study of economic categories, as in the
case of every historical and social science, it must be borne in mind
that as in reality so in our mind the subject, in this case modern
bourgeois society, is given and that the categories are therefore but
forms of expression, manifestations of existence, and frequently but
one-sided aspects of this subject, this definite society." ". . .In
the employment of the theoretical method [of Political Economy], the
subject, society, must constantly be kept in mind as the premise from
which we start." [3] Starting from a concrete sociological assumption,
namely from the concrete social structure of an economy, Political
Economy must first of all give us the characteristics of this social
form of economy and the production relations which are specific to it.
Marx gives us these general characteristics in his "theory of
commodity fetishism," which could more accurately be called a general
theory of production relations of the commodity capitalist economy.


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Footnotes
[1] 1 Hilferding, R. "Böhm-Bawerks Marx-Kritik," Marx-Studien, Wien, 1904.

[2] 2 Here we leave aside that part of the theory of historical
materialism which deals with the laws of development of ideology.

[3] 3 Marx, K., "Introduction to the Critique of Political Economy,"
in K. Marx, A Contribution to the Critique of Political Economy,
Chicago,.Charles Kerr & Co., 1904, pp. 302 and 295.

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