Date: Thu, 30 Mar 1995 12:31:29 -0800 From: jones/bhandari <djones-AT-uclink.berkeley.edu> Subject: dynamics I need help understanding an argument by Riccardo Bellofiore who argues here that both Classical and neo-Classical economics has no real theory of endogeneous structural development (Schumpeter is the lone successful bourgeois success who for Bellofiore even outdoes most Marxists). Is this true? What real developments cannot be explained by classical and neo-classical theory? What constitutes "endogeneous structural development"? What is the difference between a theory of adjustments and endogeneous structural development? What exactly is it that is static about bourgeois economics? Is it true that bourgeois economics can only explain disruptions of equilibrium as externally produced, i.e. by changes in what is economically given? What does it mean to say that equilibrium has been disrupted? What are examples of these economic givens--population growth and savings? Is it possible to see the change in these givens as internally produced? I would appreciate any help with these questions, including any suggested readings. Here is the passage from Bellofiore: "Schumpeter's theory can be seen as a coherent bourgeois answer to Marxian theory: intra-capitalist competition entirely explains structural change, whereas for Marx innovation has its roots in capital-labor struggle in the immediate process of production. Both Marx and Schumpeter depict competition as a dynamic process of differentiation and struggle among firms rather the static competition of Classical and neo-Classical theory (adjustment and tendency to equal profit rates), although for Marx intra-capitalist competition (among and within sectors) can theoretically be traced back to capital's hunger for surplus labor. "This brief comparison between Schumpeter and Marx can support three arguments useful for a reconstruction of Marxian critique of political economy [only two follow--rnb]: (i)development according to Schumpeter is different from mere quantitative growth, likewise Marxian accumulation is not reducible to extended reproduction. In both cases this is so because of the central role in the two theoretical frameworks of disequilibrium and dynamic competition; (ii)for Marx the labor theory of value is not only a theory of relative prices in given conditions, but also and foremost a theory of how conditions change. In a similar way, in Schumpeter's model the role of prices as optimal resource allocators is drastically reduced, and capitalism is seen as an evolutionary process." I would love to hear any elaborations of these two points. Thank you Rakesh Bhandari R Bellofiore, Marx after Schumpeter, Capital and Class, no 24 Winter 1985 --- from list marxism-AT-lists.village.virginia.edu --- ------------------
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