Date: Mon, 01 Aug 1994 21:49:15 -0400 (EDT) From: SCIABRRC-AT-ACFcluster.NYU.EDU Subject: LTV: An encore Paul writes of my most recent criticism of the labor theory of value: "I don't know where you get the idea that any theorist of the LTV has claimed an ability to dictate which labour shall or shall not create value." Actually, Paul himself gave me this idea. Throughout this entire debate, he has been passing judgment not only on WHO creates value, but also on who does NOT create value. (Recall our discussion of quantity and quality, innovation and invention). Paul also remarks: "The assertion that a process occurs, independently of the ability of the theorist to fully specify the process is an everyday part of the practice of science." He employs examples exclusively from natural science (Darwin, physics) to rebut my claim that a theorist would have to have knowledge of many complex, interrelated factors in order to evaluate PRECISELY what is the `BEST' or even, the `AVERAGE' practice within a given branch of production. It is not enough for Paul to claim that good practices exist objectively. Of course they do. But there is a real question with regard to how one MEASURES such `good' practices. It is also not enough to claim that Marx relegates to the competitive process the determination of that which is "socially necessary." What is at issue here, is not MERELY the assertion that a process determines the "socially necessary." What is at issue is the assertion that a process determines SPECIFIC prices that are proportional to SPECIFIC values, which derive from a SPECIFIC notion of what is "socially necessary." To posit relative price differentials, the LTV theorist is doing a lot more than merely asserting the existence of that process. Since a grasp of "socially-necessary labor- time" is crucial to the quanitification of value, and since value is, according to the LTV, in some sense, proportional to price, no comprehension of relative price differentials is possible without an understanding of WHAT IS "socially necessary." To say that competition determines the "socially necessary" is to presume, at least partially, that which you seek to explain. It is also to presume the one-dimensional, quantitative approach of neo-classical, static, equilibrium analysis. I have already offered several significant objections to this approach. Finally, Paul asserts: "I have the impression that Chris may be misapplying the Austrian argument when using the notion of the synoptic fallacy as a critique of the LTV. If not, the Austrians are even more banal than I took them to be. I had previously seen it used in the context of the von Mises argument against the possibility of socialist planning." Paul is correct to note that the argument was used in connection with the calculation debate. I won't begin to discuss this debate here. But it should be noted that since the collapse of central planning, even Robert Heilbronner has recognized that "Mises was right." The Austrian, epistemic critique of socialist calculation is extremely sophisticated, certainly not "banal." If my passing use of the synoptic argument in the current context, was not as persuasive for Paul, it is certainly not the ONLY objection which I've made. As I have indicated, the objections to the LTV involve wide- ranging issues that go FAR BEYOND the synoptic fallacy. I appreciate Paul's passion with regard to this subject, but I hesitate to continue this thread much longer, for fear of boring the rest of the participants who have "heard that song before." Perhaps we should just agree to disagree. As for the calculation debate.... <smile>.... - Chris ============================================================Dr. Chris M. Sciabarra Visiting Scholar, N.Y.U. Department of Politics INTERNET: sciabrrc-AT-acfcluster.nyu.edu BITNET: sciabrrc-AT-nyuacf =============================================================
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