> Crudely, the difference between LTV and LOV is the difference between a
> simple equation, which may indeed be weak nourishment, and a dynamic
system.
>
> IMHO
>
> Chris Burford
I agree with the authenticity of LOV rather than LTV. Nevertheless, a
"simple equation" may match a model of a "dynamic system", as follows.
In 1911, F. W. Taylor observed that "the history of the development of each
trade shows that each improvement, whether it be the invention of a new
machine or the introduction of a better method, which results in increasing
the productive capacity of the men in the trade and cheapening the costs,
instead of throwing men out of work make in the end work for more men" ("The
Principles of Scientific Management").
This empirical observation may be done further, up to nowadays. And it may
be explained by having in mind a theoretical assessment of Marx, on the
unequal distribution of organic composition of capital, that is of
productivity, along the economic chain (B.3, Ch.45; Dietz: pp.767-768). By
putting n productive sectors in a growing-productivities order between
ecosystem and final product, as an abstract model of economic chain, and by
assuming that the very upstream productivity gains are insignificant with
respect to the ones of the very downstream activities, we obtain such an
equation at the limit of flows adaptation ("just-in-time") :
Rate of increase in global employed workforce = Rate of increase in mean
productivity of economic chain
That is to say, along economic chain, capital valorizes its productivity
gains ("relative surplus value") by exchanging them against labour activity.
And we retrieve LOV.
From the point of vue of downstream dominance (USA, Western Europe and
Japan), this law is blured by relocations outside, but from the point of vue
of Third-World countries, providing cheap work force and raw material, it
works as it always worked, driving populations from their traditional
economy towards industrializing centers (cf. Rosa Luxemburg).
Such a model of mine is published at this address:
http://www.edu-irep-org/ romain.htm
under the title: "World-System's Entropy".
It is a dynamic model that notably matches asymmetric exchanges, exogenous
accumulation, expansionnism, inflation by growth and the trending profit
rate to fall. It demands to be harshly criticized.
Regards,
Romain Kroês
