There is data that expresses the interaction of the socio-economic relationships. The rate of extraction of surplus value, the tendency of the rate of profit to fall as production increases. There are absolute mathematical progressions that have been identified and proven accurate by application.
On Oct 10, 6:58 pm, Gaar <[EMAIL PROTECTED]> wrote: > So you believe there are Mathematical equations which explain the > Markets? > > On Oct 9, 11:42 pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > > > > > Again no data, no emperical evidence. Marx provided mathematical data > > for every single one of his theroies so they could be tested and > > questioned. He attempts no such thing. > > > On Oct 10, 1:46 pm, "M.A. Johnson" <[EMAIL PROTECTED]> wrote: > > > > Adam Smith and Karl Marx's basic and monumental (in consequences) > > > errorSeptember 5, 2007 9:28 PM by Juan Fernando Carpio > > > What could these two thinkers, considered to be opposites, have in > > > common? It turns out that Karl Marx inherits from Adam Smith a very basic > > > error, one which has monumental consequences and has changed the world > > > forever. > > > Adam Smith tells us in his famous treatise on the wealth of nations that > > > in primitive conditions or small towns, those who would go to the market > > > to sell their produce, cattle or manufacturing obtained salaries (wages) > > > from their neighbors in the process. Salaries? Grave error. > > > What is obtained by someone who moves from agricultural self-sufficiency > > > to the market is not a salary but rather a gain or a loss. Gains and > > > losses are obtained by entrepreneurs. By definition, then, this could be > > > a farmer or any independent professional in a city. > > > A salary does not make an appearance until the role of the capitalist > > > also appears. The capitalist is the person which takes previously > > > produced resources and risks them. He is the one who buys or pays for a > > > good or service to later sell something that is greater than the sum of > > > the parts. And this can only be determined if the product is sold: this > > > is the only signal, a signal that is lacking in totalitarian countries, > > > that society is creating aggregate value. Smith errs greatly when he > > > calls salaries that which entrepreneurs obtain when they trade in the > > > city plaza. It is not until one person hires another, at a fixed, regular > > > rate, that a salary exists. We can call this the pact of capitalism > > > because it implies that the employee is now part of the capitalist's > > > entrepreneurial risk. In exchange, the employee receives a fixed income > > > (daily, monthly, etc.), a salary. > > > Salaried employees have no possibility of gains, but --most importantly-- > > > are free from losses. Indeed, they have a better chance of receiving > > > income than the capitalist. The farmer, for example, must pay the > > > salaries of his workers even if there has been a frost the day before > > > harvest. He cannot burden them with a loss. Nor can he, to be fair, share > > > with them the gains. A pharmaceutical company will sell its products four > > > or five years after the initial idea of creating a new product. In the > > > meantime, it will have to pay salaries to hundreds, even thousands, of > > > people. That the salary is payed now is not contingent on future sales. > > > Thus, the problem, brilliantly taught to us by Prof. George Reisman, is > > > that the error shared by Smith and Marx permitted the idea that to obtain > > > gains --the famous exploitative "surplus"-- capitalists had to keep a bit > > > of each employee's salary. In reality, value is created by whomever > > > imparts vision, risks resources and recognizes opportunities, all while > > > creating regular income to others in the process. Capitalism creates a > > > worldwide middle class. Before capitalists, everyone had to fully assume > > > all of the risk of a given activity. Now, however, we can delegate risk > > > to those who are more ambitious and capable in the entrepreneurial game > > > and at the end of the month, we all receive a paycheck. This is > > > infinitely more productive and effective and, ultimately, eliminates > > > poverty.- Hide quoted text - > > > - Show quoted text -- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. -~----------~----~----~----~------~----~------~--~---
