Reclaiming Marx's 'Capital': A Refutation of the Myth of Inconsistency (The Raya Dunayevskaya Series in Marxism and Humanism)
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This book seeks to reclaim Capital from the myth of internal inconsistency, a myth that serves to justify the censorship of Marx's critique of political economy and present-day research based upon it. Andrew Kliman shows that the alleged inconsistencies are actually caused by misinterpretation. By modifying the standard interpretation of Marx's value theory in two simple ways, the recent "temporal single-system interpretation" eliminates all of the alleged inconsistencies. Written especially for the non-specialist reader, in a clear, accessible style and with the bare minimum of mathematics, Reclaiming Marx's "Capital" introduces readers to Marx's value theory and contrasting interpretations of it, the history of the internal inconsistency controversy, and interpretive standards and methods. Kliman then surveys Marx's falling-rate-of-profit theory, the relationship of prices to values (the "transformation problem"), Marx's exploitation theory of profit, and other topics. The book ends with a discussion of why the myth of inconsistency persists, and a call to set the record straight.
adopt the new technology. 7.2.2 The Okishio Theorem’s Equilibrium Rate of Profit Okishio’s (1961) original theorem, as well as Roemer’s later extension of the theorem to allow for the presence of fixed capital, are based on the passage quoted above (see esp. Roemer 1981: 108—109). For the most part, they replicate its premises tolerably well. The rate of profit is initially equalized throughout the economy. A new technology then appears in some industry. Firms in the industry adopt the new
Nakatani (1979) assume the opposite. Innovation in their models is a defensive response to cutthroat competition. The technologies that firms adopt are not those which yield the highest rate of profit, given current prices and wages, but those which will best allow them to survive when cutthroat competition in the industry forces down the price of the product. Adoption of such technologies can cause the physical rate of profit to fall. But since it falls because the new technologies are less, not
corn during Year 3, the capital advanced in Year 4 will be smaller than otherwise and, all else being equal, Year 4’s rate of profit will consequently be greater than otherwise. But the fall in the value of corn during the course of Year 3 cannot retroactively reduce the capital value that was advanced at the start of Year 3; what’s done is done. The same thing holds true in the case of fixed capital. When declining prices cause the value of fixed assets to fall, a company cannot simply declare
“period” or “periods,” and three of “year,” plus “produced in a given time.” 12 This practice may have begun as a way of justifying the dual-system conception of values and prices. Chapter 9 The “Transformation Problem” (2): If It Ain’t Broke, Don’t Correct It 9.1 Bortkiewicz’s “Correction” In the fourth of his 1906-1907 essays, Bortkiewicz (1984) put forth what he called a “correction” of Marx’s solution. Yet since his attempted proof of internal contradiction is invalid, the term
According to the NI, the variable-capital value is not the value of workers’ means of subsistence, but the sum of value that workers actually receive as wages. Thus if workers are paid the value of their labor-power, their wages depend upon the prices, not the values, of the means of subsistence they need in order to reproduce their labor-power. Proponents of the NI did not, however, rethink the dual-system notion that the “price” and “value” of constant capital differ. They justified their