File Name: value price and profit .zip
Although delivered as a speech, this paper remained unpublished until after Marx's death. It reads like a condensed version of Capital Volume 1, and contains Marx's essential arguments about the workings of capital.
The fastest and most effective way for a company to realize its maximum profit is to get its pricing right. The right price can boost profit faster than increasing volume will; the wrong price can shrink it just as quickly. Yet many otherwise tough-minded managers shy away from initiatives to improve price for fear that […].
It is widely believed that Marx adapted the labour theory of value from Ricardo as a founding concept for his studies of capital accumulation.
But nowhere, in fact, did Marx declare his allegiance to the labour theory of value. That theory belonged to Ricardo, who recognized that it was deeply problematic even as he insisted that the question of value was critical to the study of political economy. The answer is as usual complicated in its details but the lineaments of it can be reconstructed from the structure of the first volume of Capital.
Marx begins that work with an examination of the surface appearance of use value and exchange value in the material act of commodity exchange and posits the existence of value an immaterial but objective relation behind the quantitative aspect of exchange value. This value is initially taken to be a reflection of the social abstract labour congealed in commodities chapter 1. Such a market can only work with the rise of monetary forms chapter 3 that facilitate and lubricate exchange relations in efficient ways while providing a convenient vehicle for storing value.
Money thus enters the picture as a material representation of value. Value cannot exist without its representation. In chapters 4 through 6, Marx shows that it is only in a system where the aim and object of economic activity is commodity production that exchange becomes a necessary as well as a normal social act.
But the circulation of capital presupposes the prior existence of wage labour as a commodity that can be bought and sold in the market chapter 6.
How labour became such a commodity before the rise of capitalism is the subject of Part 8 of Capital, which deals with primitive or original accumulation. The concept of capital as a process — as value in motion — based on the purchase of labour power and means of production is inextricably interwoven with the emergence of the value form. The two phenomena are mutually constitutive of each other. Value formation likewise cannot be understood outside of the circulation process that houses it.
The mutual interdependency within the totality of capital circulation is what matters. This is so because the search for profit and surplus value propel the commodity exchanges, which in turn promote and sustain the value form.
Value thereby becomes an embedded regulatory norm in the sphere of exchange only under conditions of capital accumulation. But this is not the end. It is in fact the beginning. It is this hope that subsequent analysis has so ruthlessly and properly crushed. Marx early on understood that this was an impossible hope even as he frequently slipped I suspects for tactical reasons from values to prices in his presentations as if they were roughly the same thing.
In other instances he studied systematic divergences. In Volume 1 Marx recognizes that things like conscience, honour and uncultivated land can have a price but no value. But Marx was not primarily interested in price formation. He has a different agenda.
Chapters 7 through 25 of Volume 1 describe in intricate detail the consequences for the labourer of living and working in a world where the law of value, as constituted through the generalization and normalization of exchange in the market place, rules. The coercive laws of competition in the market force individual capitalists to extend the working day to the utmost, threatening the life and well-being of the labourer in the absence of any restraining force such as legislation to limit the length of the working day chapter The aggregate effect chapter 25 is to diminish the status of the labourer, to create an industrial reserve army, to enforce working conditions of abject misery and desperation among the working classes and to condemn much of labour to living under conditions of social reproduction that are miserable in the extreme.
But the productivity and intensity of labour are perpetually changing under pressures of competition in the market as described in the later chapters of Capital. This means that the formulation of value in the first chapter of Capital is revolutionized by what comes later.
Value becomes an unstable and perpetually evolving inner connectivity an internal or dialectical relation between value as defined in the realm of circulation in the market and value as constantly being re-defined through revolutions in the realm of production. Earlier in the Grundrisse pp.
The changing productivity of labour is, of course, a key feature in all forms of economic analysis. It is labour productivity with respect to surplus value production that matters.
But the materials presented in chapter 25 of Capital suggest that it is not only the experience in the labour process that is at stake in the value theory. Marx describes the conditions of social reproduction of all those demoted into the industrial reserve army by the operation of the general law of capital accumulation the subject of chapter The consensus of all these reports was that conditions of social reproduction for this segment of the working class were worse than anything ever heard of under feudalism.
The distressing fact that nutrition among prisoners in jail was superior to that of the impoverished on the outside is noted alas, this is still the case in the United States.
The consequences of an intensification of capitalist competition in the market including the search for relative surplus value through technological changes produce deteriorating conditions of social reproduction for the working classes or significant segments thereof if no compensating forces or public policies are put in place to counteract such effects. This is the prospect that Marx opens up in the last sections of chapter 25 of volume 1 of Capital. This is the focus of those Marxist feminists who have worked assiduously over the past forty years to construct an adequate theory of social reproduction.
Marx Capital , Volume 1, p. As Marx notes in Volume 2 of Capital , the real root of capitalist crises lies in the suppression of wages and the reduction of the mass of the population to the status of penniless paupers.
If there is no market there is no value. The contradictions posed from the standpoint of social reproduction theory for values as realized in the market are multiple. If, for example, there are no healthy, educated, disciplined and skilled labourers in the reserve army then it can no longer perform its role. The dialectical relations between competitive market processes, surplus value production and social reproduction emerge as mutually constitutive but deeply contradictory elements of value formation.
Such a framework for analysis offers an intriguing way to preserve specificities and differences at the theoretical level of value theory without abandoning the concept of the totality that capital perpetually re-constructs through its practices. Other modifications, extensions and elaborations of the value theory need to be considered. The fraught and contradictory relation between production and realization rests on the fact that value depends on the existence of wants, needs and desires backed by ability to pay in a population of consumers.
Such wants, needs and desires are deeply embedded in the world of social reproduction. Without them, as Marx notes in the first chapter of Capital , there is no value. It also means that the diminution of wages to almost nothing will be counterproductive to the realization of value and surplus value in the market. What happens, furthermore, when the presumption of perfect competition gives way to monopoly in general and to the monopolistic competition inherent in the spatial organization of capital circulation poses another set of problems to be resolved within the value framework.
I have recently suggested, following on some relevant formulations by Marx, that the usual acceptance of the idea of a single expression of value be replaced by recognizing a variety of distinctive regional value regimes within the global economy.
This is far beyond what Ricardo had in mind and equally far away from that conception of value usually attributed to Marx.
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You've discovered a title that's missing from our library. Can you help donate a copy? When you buy books using these links the Internet Archive may earn a small commission. Open Library is a project of the Internet Archive , a c 3 non-profit. Previews available in: English Yiddish. Add another edition? Value, price and profit Karl Marx.
His argument was both strengthened and simplified by the assumption that commodities exchange at value. In Volume Three Marx turned to the more detailed question of how the profit rate and prices are determined when the organic composition of capital differs between industries and consequently commodities do not exchange at value. Marx normally described the economy in terms of value quantities, such as C constant capital , V variable capital , S surplus value and W total value of gross output. These value quantities, however, were determined by two different things which Marx assumed to be given, in a given capitalist economy at a given point in time. On the one hand they depended on the existing conditions of production, both technical and social, which defined the relations between inputs and outputs in the productive process. On the other hand they depended on the division of the net product between workers and capitalists in that society. We shall turn to the value quantity representation of the economy below but, for reasons which will emerge later, we start by describing the economy in physical terms.
Why should we fight for higher wages? On one level, the answer is obvious to every working person. But as socialists, we need to know that wage struggle is an essential part of the class struggle that can build the kind of movement we need to transform capitalism. In one debate in the s, a man named John Weston argued that wage increases would lead to price increases. He believed that these price increases would outstrip wage increases, meaning there would be no advantage for workers to the higher wage. Weston, as a follower of the progressive British industrialist Robert Owen, opposed trade union struggles, arguing employers could simply be convinced to treat workers better. In response, Marx wrote the pamphlet Wages, price and profit.
Source: Marx, Karl. Value, Price and Profit. New York: International Co., Inc, ;. Written: between end of May and June 27,
The text was written between the end of May and June 27 in , while Capital, Volume I was in preparation and one year before it was published. In this polemic , Marx sought to refute the theoretical basis for the economic policy of Ricardian socialist John Weston. Weston said that " 1 that a general rise in the rate of wages would be of no use to the workers; 2 that therefore, etc.
It is widely believed that Marx adapted the labour theory of value from Ricardo as a founding concept for his studies of capital accumulation. But nowhere, in fact, did Marx declare his allegiance to the labour theory of value. That theory belonged to Ricardo, who recognized that it was deeply problematic even as he insisted that the question of value was critical to the study of political economy.
As values, all commodities are only definite masses of congealed labour time. One of the enduring questions of economics is "Where do profits come from? At the center of most economic paradigms is a Theory of Value. The classical political economists found value to be determined in production ; since most of the cost of production could be reduced to labor, this approach was refined into the Labor Theory of Value. Neoclassical economists looked for value in the market act of exchange and developed the Marginal Theory of Value. Both of these theories are currently under challenge by the post-Keynesians with their Sraffian Theory of Value [1: Note] , which, like the labor theory of value, is based on production rather than exchange. Any theory of value in economics is an extremely abstract formulation: in fact, value theory is the major intersection between economics and philosophy.
На экране Танкадо рухнул на колени, по-прежнему прижимая руку к груди и так ни разу и не подняв глаз. Он был совсем один и умирал естественной смертью. - Странно, - удивленно заметил Смит. - Обычно травматическая капсула не убивает так .
Он отбросил бесполезный мотоцикл и пустился бежать со всех ног. К несчастью для Беккера, вместо неуклюжего такси Халохот обрел под ногами твердую почву.
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