Date: Tue, 01 Aug 1995 07:29:49 -0400 (EDT)
From: Paul Zarembka <ECOPAULZ-AT-ubvms.cc.buffalo.edu>
Subject: Re: The Metaphysics of Value (was The Geography of Class Struggle)


Jerry, asked and answered the following question:

> 
> 1) Does finance capital produce nothing?
> 
> Yes, something is produced and it is called surplus value.  Private banks 
> are after all capitalist firms which employ wage earners to produce a 
> commodity.  They are, like other firms, motivated by a desire to maximize 
> their rates of profit.  Surplus value, however, produced by wage labor 
> can not be realized, and consequently no profit, unless those commodities 
> can be sold on the marketplace.  Those not engaged in production are 
> engaged in management, distribution and advertisement.  Without these 
> services, banks would not, in fact, be able to earn a profit.
> 

To get into the debate over productive versus unproductive labor, labor 
employed in the finance sector is unproductive labor and so does NOT 
produce surplus value (it consumes surplus value produced elsewhere).

Paul


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