econ 80a lecture 3

econ 80a lecture 3 - MARX: THE CREATION OF SURPLUS VALUE...

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Unformatted text preview: MARX: THE CREATION OF SURPLUS VALUE i.e., the production process 1. C >>>>>>>>>>> C, a system of barter, where trade takes place essentially for use value 2. C >>>>>> M >>>>>>>> C, a system of trade where money facilitates exchange (for use value) [one of the basic "functions" of money in standard text books today] ENTER THE ACCUMULATION OF CAPITAL (Smith s "stock") 3. M >>>>>> C >>>>>>> M, where you start via the process of production, produce a commodity, and then sell it, but such a process would be pointless if the M you wound up with equaled what you started with, i.e., the system must be characterized as: 4. M >>>>>>> C >>>>>>> M*, where M* = M + dM which is the essence of capitalism ..accumulation, via 5. M >>> C >>> M* >>> C* >>>> M** ..etc 151 >>>>> Marx calls "dM" surplus value, and then asks "What is the source of this surplus value????? The answer lies in an understanding of the production process itself, i.e., above characterization as given in 4 and 5 incomplete. Correct characterization is: 6. M >>>>> C C >>>>> M* page 163, but even this is incorrect, since the two Cs can t be equal and at the same time have different money values ..i.e., playing by Smith s rules regarding the nature of competition, where the same commodity has only one market price .. the key to understanding the fact that M is less than M*, lies in the special commodity, LABOR, which is on the one hand purchased at its VALUE, and in its use, produces VALUE page 164 and the value of labor = "the socially necessary time for its production" (for Marx, not that different from Smith, this implies the subsistence wage .note that Marx like Smith will allow for a bit higher wage in the early stages of capitalism .discussed in next section) page 168 ENTER A CRITIQUE OF CLASSICAL THOUGHT (regarding the unwillingness to explore the nature of profit) page 172 *********************************************************...
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This note was uploaded on 09/18/2011 for the course ECON 80a taught by Professor Kaun,d during the Spring '08 term at UCSC.

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econ 80a lecture 3 - MARX: THE CREATION OF SURPLUS VALUE...

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