Date: Fri, 28 Oct 1994 11:54:21 -0400 From: cottrell-AT-wfu.edu (Allin Cottrell) Subject: Re: Justin and the LTV >> There is now a growing body of empirical work by Shaik, Petrovic, >> Ochoa, Valle, Cottrell et al to indicate that the simple form >> of the labour theory of value as given by Ricardo in the Principles >> and by Marx in Vol 1 of capital or in Wages Prices and Profits > >Aaak. Marx's theory in C1 is not the same as Ricardo's. So which is it? > The two theories (if they really are two) are the same in this respect: both assert that relative prices reflect, or are governed by, the relative amounts of labor time socially necessary for the production of the various commodities, in a market economy. This is a testable proposition, and it checks out. >The reason it cannot be the case that it does is that the theory in Marx >at any rate is logically inconsistent, given a handful of additional true >premises about the economy. The key additional 'true premise' is that the rate of profit is equalized, or in some real sense 'tends to be equalized' across different branches of the economy, with differing organic compositions of capital. This is far from an a priori truth. The 'tendency' claim can perhaps be expressed in such a way as to be irrefutable -- but that is hardly a scientific merit. The investigations referred to be Paul Cockshott (although I would perhaps express this a bit more tentatively than he) provide evidence that the equalization assumption is empirically false. >So it's a Ricardan theory.... And a simple Ricardan >theory at that: forget your Sraffan sophistications, let's go back to the >labor value embodied in each individual commodity--not each kind, but each >particular one. Pardon me if I remain skeptical. Yes, indeed, forget the Sraffian sophistications. But why 'each particular one'? Ricardo repeatedly talks of 'required' or 'necessary' labor content. He was not an idiot. ======================Allin Cottrell Department of Economics Wake Forest University Winston-Salem, NC 27109 (910) 759-5762 cottrell-AT-wfu.edu ====================== ------------------
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