Could you be a bit clearer on who is saying what? At least hit the return
twice between one speaker and another.

Carrol

-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Paul Cockshott
Sent: Tuesday, August 07, 2012 2:24 PM
To: Progressive Economics
Subject: Re: [Pen-l] FW: Determinaton of the value of state token money




Paul Cockshott wrote:
> ... Marx was analysing a purely capitalist economy before there was an
effective
> social democratic movement able to organise the production and delivery of
> free social services. One should not assume that the concept of socially
necessary
> labour as it was applied to Victorian England 150 years ago can be applied
to
> modern Europe with partially changed social relations of reproduction.
Jim
Actually, I don't think that Marx's value theory applies to non-market
(non-commodity-producing) economic relationships. There are other
theories for that task, I'm sure. We need to understand democracy and
bureaucracy, not just markets.
Paul
> I think you have to go beyond the particular details of the concept as
applied
> then to the deeper layers of its meaning, which come out I think in his
famous
> letter to Kugelmann and also by implication when he distinguishes between
productive
> work and the unproductive faux frais of captalist marketing. There is a
deeper concept
> of the necessity for society to divide up its labour time between
different activities
> in order to ensure its reproduction. To the independent agents in
capitalist society this necessity
> becomes apparent in terms of the need to at least break even in commodity
trading. But this
> is a projection down onto the individual agents of a bigger overriding
social necessity.
Jim
That is different from Baran, who seemed to use the term "waste" to
refer to spending that didn't make rational sense to _him_. (So I'll
drop the guilt by association. ;-))  In contrast, it makes sense to me
that there exist certain conditions necessary for any given society to
reproduce itself over time, in parallel to Marx's volume II
reproduction schemes for a commodity-producing society. (I interpret
those schemes as describing a possible state of economic harmony
rather than actual economic behavior.) But those conditions would
likely not be stated in Marxian value terms. A country needs a public
health system, for example. That's different from saying that a
certain fraction of total labor-time must be spent on public health in
order to reproduce the society over time.
---------------------------------
Paul
Yes Marx's exchange value theory only applies to commodity production, but
that does not imply that the law of necessary distribution of labour between
activities can be abolished along with commodity production.

"Every child knows a nation which ceased to work, I will not say for a year,
but even for a few weeks, would perish. Every child knows, too, that the
masses of products corresponding to the different needs required different
and quantitatively determined masses of the total labor of society. That
this necessity of the distribution of social labor in definite proportions
cannot possibly be done away with by a particular form of social production
but can only change the mode of its appearance , is self-evident. No natural
laws can be done away with. What can change in historically different
circumstances is only the form in which these laws assert themselves. And
the form in which this proportional distribution of labor asserts itself, in
the state of society where the interconnection of social labor is manifested
in the private exchange of the individual products of labor, is precisely
the exchange value of these products.

Science consists precisely in demonstrating how the law of value asserts
itself. So that if one wanted at the very beginning to "explain" all the
phenomenon which seemingly contradict that law, one would have to present
science before science. It is precisely Ricardo's mistake that in his first
chapter on value [ On the Principles of Political Economy, and Taxation ,
Page 479] he takes as given all possible and still to be developed
categories in order to prove their conformity with the law of value.

On the other hand, as you correctly assumed, the history of the theory
certainly shows that the concept of the value relation has always been the
same - more or less clear, hedged more or less with illusions or
scientifically more or less definite. Since the thought process itself grows
out of conditions, is itself a natural process, thinking that really
comprehends must always be the same, and can vary only gradually, according
to maturity of development, including the development of the organ by which
the thinking is done. Everything else is drivel.

The vulgar economist has not the faintest idea that the actual everyday
exchange relations can not be directly identical with the magnitudes of
value. The essence of bourgeois society consists precisely in this, that a
priori there is no conscious social regulation of production. The rational
and naturally necessary asserts itself only as a blindly working average.
And then the vulgar economist thinks he has made a great discovery when, as
against the revelation of the inner interconnection, he proudly claims that
in appearance things look different. In fact, he boasts that he holds fast
to appearance, and takes it for the ultimate. Why, then, have any science at
all?"( Marx to Kugelman Jully 11 1868)

What I take him to be saying here is that the 'law of value' is the law of
the proportionate distribution of social labour, that this is a natural law
which can not be done away with. Only the form of its appearance can change.

In a society like Sweden this distribution of labour occurs primarily
through the state and secondarily through private commodity production. In
Soviet Russia it occured even more predominantly vial the state, though
private and semi private production still existed in agriculture.





> As the socialisation of production and reproduction advances, this partial
perspective becomes
> historically superceded by the direct planning of social needs. This
reached a much more advanced
> stage say in Social Democratic [??] Russia than in Social Democratic
Sweden or Britain, but the some of
> the same issues are at stake there.

Again, I don't think that Marx's value theory applies to non-commodity
relations. Though I haven't read the literature on this subject, I'm
pretty sure that Stalin thought that the "law of value" applied under
what he called "socialism," but he's not an authority that I would
appeal to. I'd say that if an economy becomes totally socialized,
Marx's law of value becomes totally irrelevant.

======================
Stalin did say that the law of value applied under socialism but it is not
clear to me whether by this he meant the same sense of the law of value as
in Marx's Letter to Kugelmann. He may have meant simply the regulation of
production by exchange values. It would take some historical work to see
what impact the Letter had on Soviet Political Economy and whether this was
the meaning commonly attached to the phrase. I dont get that impression
myself.



--
Jim Devine / If you're going to support the lesser of two evils, you
should at least know the nature of that evil.
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