Joan Robinson is terrific.  I was thinking about quitting my
dissertation when I met her, but she is not a Marxist.  She was
sympathetic to Marx but she thought that anything useful in Marx can
be found in Keynes.

On Tue, May 15, 2012 at 9:17 AM, Jim Devine <[email protected]> wrote:
> I've decided that it's a mistake to quote Joan Robinson saying when
> she says that “the misery of being exploited by capitalists is nothing
> compared to the misery of not being exploited at all” (ECONOMIC
> PHILOSOPHY, Doubleday: 1962, p. 45) to explain Marx's theory of
> exploitation. (If Marx had something like that, it would not be a
> mistake.)
>
> In context, she finds that "to call investable resources
> 'exploitation' or 'unpaid labor'" is "somewhat embarrassing." Then,
> she gives the well-known quote, followed immediately by "Here the _law
> of value_ develops a kind of squint that leaves one deeply confused"
> [her emphasis]. Her point is that she rejects Marx's law of value (as
> in her ESSAY ON MARXIAN ECONOMICS) -- and that the fact that workers
> "nowadays in South-East Asia or the Caribbean" volunteer to be
> exploited is an empirical strike against that "law."  If people are
> happier (less miserable) being exploited than not being exploited,
> then it really isn't exploitation.  Or rather that's it's deeply
> confusing to think of it as exploitation.
>
> Unlike Marx, her viewpoint is quite microeconomic. In her book on
> imperfect competition, she used the following definition: “a group of
> workers are being exploited when their wage is less than the marginal
> physical product that they are producing, valued at the price at which
> it is being sold.” That is, a worker is exploited only if a worker is
> paid less than the wage that would prevail with perfect labor-power
> markets (in the capitalist utopia). Barriers to worker mobility
> between jobs which cause monopsony (a single buyer, the buyer's
> equivalent of monopoly) and Robinson's exploitation.
>
> In contrast, Marx's theory of exploitation is macroeconomic: under
> capitalism, workers (as a class) have no way to support themselves and
> their dependents without selling their labor-power to the capitalists
> (as a class), so they end up doing more labor than is required to pay
> for the cost of the provision of that labor-power (the cost of its
> reproduction over time). Mobility between specific jobs and problems
> of imperfect competition in labor-power markets are the problem,
> except that the normal existence of the reserve army of labor creates
> a _general_ barrier to mobility. Monopsony does exist, but it isn't
> necessary to Marx's theory.
> --
> Jim Devine / "When truth is nothing but the truth, it's unnatural,
> it's an abstraction that resembles nothing in the real world. In
> nature there are always so many other irrelevant things mixed up with
> the essential truth." -- Aldous Huxley
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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