16, జనవరి 2012, సోమవారం

An Introduction To Marx’s Capital—Part-6


(This is based on and mostly from “Marx’s Capital” written by Ben Fine and Alfredo Saad-Filho)

                            (For Part-5, please see the blog entry dated 15-1-2012)

Chapter-2—Commodity production


Labour Theory of Value

a)      Labour Theory Of Value and How It Has To Be Judged


1.      Marx is renowned for his commitment to the labour theory of value which says that the value of a commodity is equal to the labour time socially required to produce it.

2.      Two main issues debated over this labour theory of value are (a) whether Marx has unduly privileged labour in some way by adopting this labour theory of value, and, (b) how well this this labour theory of value serves as a theory of prices.


3.      Marx’s value theory should be judged on thee basis whether the economic relations, processes and structures that prevail in capitalist society are properly reflected by it in thought.


b)      Different views  on the economic organisation


4.      The division of labour and production of use values (useful things like food, clothing, houses etc and immaterial products like educational, health and other personal services) are the enduring features of any human society except the simple primitive societies.

5.      But who produces what and how, and with what implications for society are crucial questions across the social sciences.

6.      Different answers are given by different ideologies, ranging from self interest to the idea of necessity as the mother of invention.

c)      The view of the mainstream economics


7.      The mainstream economics has taken the need for consumption justifying a universal method in which economics is a science concerned with the allocation of scarce resources to meet insatiable needs.

8.      Mainstream economics holds the view that the organisation of economy through market, state, household, slavery, capitalism etc is only a matter of detail with the fundamental principle being the duality of scarcity and need.

9.      The yardstick of the efficiency of any economic organisation is how best it solves this problem of scarcity and need.

d)      The view of Marx


10.  In contrast to this view of the mainstream economics, for Marx, social, especially class relations (slave owner and slave, feudal lord and peasant, capitalist and wage labourer) are essential in distinguishing one economy from another economy as well as differences with in the economy.

11.  Class relations are based on property relations (capitalist owns means of production whereas wage labourer owns nothing except his labour power) and distributional relations (capitalist gets profit, wage labourer gets wage. Wages are advanced as a pre-condition of production and profits are the result of production) and how the ownership gives rise to forms of control over labour and production (Since capitalist owns means of production, he is able to employ the wage labourer who has no such means of production and utilises the labour power of the labourer for producing commodities).

12.  A crucial feature of capitalism is that it is a highly developed system of commodity production. What is its significance?

We will discuss about the commodities in our further study.


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