From: LeoCasey-AT-aol.com
Date: Wed, 30 Jul 1997 09:13:01 -0400 (EDT)
Subject: M-TH: Labor Theory of Value and Keynesianism


I have been away for a few days, and I have returned to find some very
interesting concepts from Rakesh.

I think it is most interesting that he raises the question of whether or not
the value of the Marxian labor theory of value is essentially heuristic,
since that has always been my understanding. That is, to put the question in
it simplest form, the labor theory of value allows one to see how
exploitation can take place within the labor process, but it has little or no
utility in terms of economic analysis. I think Rakesh puts it well: <<That
is, by providing us with the metaphysical concept of abstract labor time,
value theory allows us to compare the abstract labor time contents and talk
about, as one example, the unfair aspects of exchange between imperialist and
dominated countries. Is then value theory basically normative?>> To which I
would answer yes.

I find very interesting the question Rakesh raises of the collapse of
Keynesian economics, since I see this as directly related to the 'pullback'
of liberal Democrats and certain European Social Democrats (ie, Labor) from
more progressive, redistributive policies, and the increasing abandonment of
key features of the welfare state. I am skeptical that the labor theory of
value will tell us much about that, but I am willing to be convinced, since I
see this matter as a live, important issue. Here, are the questions I have:
To what extent is the collapse of Keynesianism a function of its (and
capitalism's) intrinsic contradictions, and to what extent is it the result
of a shift in the balance of forces, such that working class and progressive
forces are on the defensive? Was Keynesianism a policy of an industrial phase
of capitalism which could not survive in a post-Fordist capitalism, or will
it be possible to recreate some new form of Keynesianism in the knowledge
based economy which is now emerging?

Leo Casey


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