shorten turn over time
moral depreciation of fixed capital
credit system . a credit pool. pivot of this is central bank/FED. that pivots gold as a commodity. in money form.
-> the money goes out as 1, loan capital. that then goes to production. ie, M-C-M circuit.
realization capital 5% flow into credit pool
this is always speculative flow
discount. bill of exchange
Marx said the car is sold twice.
dead capital, farow, idle, or devalued capital
-> some of the money is lent to state. state has to pay back 5% to pool.
[10:00]
state fights wars. military apparatus. its not productive at all. no surplus value is produced
but state has to pay back 5%.
state get money by taxation. taxation of bourgeois consumption. by taxing surplus value.
this is fictitious capital. its an investment does not produce anything, but gives returns.
-> Lend to consumption. for housing mortgage.
for marx house does not produce surplus value. its source of return is marx calls circulation of revenue. labour power etc.
-> invest in assets. Land. things has price but dont have value. [eg, it company project manager.-my comment]
5% flows back.
these are the forms of fictitious capital for marx.
portugese pays 8%, germanay and US pays 3%
you can get crisis in all of the above.
Marx did not addressed whether fictitious capital can be productive. its possible. state can build roads. its productive. collective means of production.
lot of means of production circulates through interests only. it lowers the cost of constant capital.
[20:00]
In Paris building of new Bouldivars state considered these are productive state expenditure.
in vol 1 – all the cost of social reproduction is done by labour. we pay you wage. taking care of grandma is your issue. capital externalize all costs. treat them it has nothing to do with value creation.
when marx says that housing is not productive. ie thats what capital thinks. not his personal opinion.
DH – housing does not produce value, but it produce surplus value. like fixed capital.
[29:00]
The technical stuff is in vol 2. vol 3 systematically explains these explosions. theys why vol 3 is studied in the middle of vol 2.
1847-48 and 1857-58
now back to vol2.
CH 12
working day. working period
[40:00]
before 19th century houses are built by builders. after that speculative building comes in. large areas people built holy state. 500 houses larger scale. it was not built for anybody. but it was built for the market.
Marx tells about speculative building in London at that time. Belgravia, Tyburnia etc.
credit system is other people’s capital.
reduction of working period
intensity of labourer
24 hr shift labour
[50:00]
working period
why this speeding up? from where this coming from.
CH 14 of Vol2
communication and transportation
Marx says these adds value. but retailing not producing value
Commodity is not complete until it reaches market.
production time longer than working period
seasonal labour.
[1:00:00]
Marx talk about forestry and wood supply p321
inventory control. just in time
all the technological innovations are about trying to save the amount of capital need to produce surplus value.
eg: reduce stock, keep production system running smoothly, capital and worked employed for full year,
CH: circulation time. DH’s favorite chapter.
communist manifesto passage, “The need for constantly expanding market for its product chases the bourgeoisie over the entire surface of the glob. It must wrestle everywhere, settle everywhere, establishes connections everywhere”
Marx said “proletarians have no interests in nations. because we have no country.” DH said its wrong.
Marx and Engels talk about world market.
Grundrisse, “Whether I extract materials from mines, or take commodities to the site of their consumption, both moments are equally spacial”
productive forces – include transport and communication also.
.
[1:10:00]
Capital by its nature drives beyond every spacial barrier.
communication and transport – the annihilation of space by time.
value is socially necessary labour time. so capital measure space in terms of time it take to move across it. and cost.
absolute space and relative space. absolute space is the physical distance. it not changes
relative space changing all the time. depends on the revolutions occurring in the productive forces which is attached to transport and communication.
proximity
spacial magnitude into termporality.
space become topological also. its faster to reach London than to Long Island.
[1:20:00]
conglomeration economy – industry located somewhere. because of it there is a means of transport. because of it you locate your industry there. more system. etc
early 19th century, Briton bear is consumed on the day it is produced. it was sweet. or next day. it wont last. so large number of breweries. then they started using preservatives in bear. hops? a natural preservative. but it has bitter taste. then people used to that. they want bitter bear. DH’s childhood mild and bitter bear. mild was sweeter.
hops cultivation increased.
concentration of industry
now they use chemical preservatives. but for giving the taste they uses hops.
“Major metropolis”
monopolistic competition – coercive laws of competition dont work.
local monopolies are spacial. in 19th century
[1:30:00]
transportation cost flatten out.
annihilation of space by time as marx talks
Tariff barrier is removed by IMF. again cost flatten out.
How many innovations in capitalism is about acceleration and turn over time, reducing the friction.
not only the innovation of market, but perpetual innovation in productive forces which over whelm space time relations.
cosmopolitan culture, world literature etc. popular response is a different thing. Capital impulse behind it which may not be the same as the popular response. It is time space compression, collapsing turn over time, working period, make things easier to ship around. sor that innovations are terribly important.
one is containerization. incredibly efficient form of movement.
continuous expansion of system in space. 1. capture a space, freeze it and use it as a captive market. But it does not add much dynamism to the economy. 2. export capital for production to grow. that happened in US. UK exported capital to US. very big dynamism in UK.
In competition US defeated UK in 1920s and 30s. now China is defeating US.
the export of productive capacity is very important.
its not a magical thing that creates world market. that is tangible activities.
Geography is not fixed. its changing. the rail road allowed briton to extract raw material from very far away places.
