മൂലധന പഠനം 23

Class 10 Reading Marx’s Capital Vol 2 with David Harvey

Social reproduction and nature – not much covered in capital.
Capital gives money to worker, so the worker decides how to live. How to take care grandma or how to raise kids.
But he does not say that these issues are irrelevant.

Part 3 Vol 2

Simple reproduction
ch 23 of vol 1 also same heading. Reproduction of class relation between capital and labour.
But in Simple reproduction in vol 2

French economist Kanei ?

Here eventhough he is critiquing capital accumulation, he is also setting up models of centralized planing. Result of theat soviet union formed how to plan rationally. Polish economist manquel Fellman ? 1920S experimenting these. His frame work used in 5 year plans etc. another polish economist Kalaki?
2 people gave rise to Keynesianism, 1 is Keynes another is Kalaki.
Macor economic theory

[10:00]
Hirit doma model? Built in 1940s. One of the first macro economic model.
Some people says marx is a macro economic theorist. And equilibrium growth theorist. They use this area of copital.

[20:00]
Monetary limit to capital
money is a form of social power which is appropriated by private persons. As per private persons it has no limit. But if it is based on gold then there is a limit of gold existing. There are lot of ways to get around that. Increase velocity of circulation etc.

you should never approach an economic system and imagine somehow there is a monetary limit to its expansion. Gone off gold std. No metallic base to money in 1970.

you can accumulate even without spending any money. Free goods – Nature, environment, science and technology, knowledge, reorganization and cooperation,

he is saying, “money market is all over the place. It gets disturbances. If you want to go harmonious you have to go to rational planing.” this kind of idea makes people to think that marx is for centralized planning.

Keyne’s tablo economics
Keyne was a surgeon.
William Harvey in 17th century found out blood circulation. Before that Galen’s theory was there.

Heart (produces blood) → distributed organs . There its consumed.

Harvey
heart ↔ organs.

[30:00]
Keney was 60 year ols. He got interested in economics. Since he was a surgeon, he saw economics like blood circulation.
For him agriculture was source of all wealth. So agriculture took the position of heart.

Physiograph economics. Industry is unproductive. At that time all industry was artisan type of industry. Making jewelry for the rich etc.

agriculture produces the wealth, industry is using and returning back to agriculture like blood flow.

Marx removed the agriculture from the center and replace it with ‘production of surplus value’, and revenue circulates all over from that.

Flow model.
Adam smith follows Galen model.
Factory production – Land, labour, Capital → rent, wage, profit → Commodity → Consumption
this is different from Kaney – marx model.

Contemporary economics is like the Galen model. Value is the mix of Land, labour, Capital.

Sraffa – book 1960 – production of commodities by means of commodities.
Classica economists dont like his idea.
Mathematical economist John Hopkins spent 2 years on him to prove he is wrong. And find out Sraffa’s proof is right.

[40:00]
When blood circulation stops person dies. Same do economics.
Galen’s solution for a sick person is bleed him. Republicans solution.

Kanei said the economic trouble was because of blockage of flow. In 18th century. Because of tax, tolls, rules and regulations. He said lesafare? Adam smith took that idea from him.

[50:00]
Value is a social relation, not a concrete metrics. But to understand some dynamics you have treat it as metrics.
Leontief russian
all sectors of economy and materials matrix. They both come in x and y axis.
Eg: iput side steel. Output total steel. In transportation, construction etc. one of it is Steel itself. How much steel required to produce steel.

Steel
Transport
Construction

S T C
S………………..Total
T………………..Total
C………………..Total

Input out put table.

You want to expand output of steel

Used centralized planning
this is used still in national accounting.

In 1960s people used this for planing. What is the effect if we cut defence budget by half. Like than. But after 1970s nobody has to plan anything.

Individual capital and aggregated capital are different
Individual capitalist operating by their own self interests produce result collectively which is consistent with the requirement for the reproduction of the system as a whole. They can’t. So they produce crisis. End of vol 2. eg working class consumption. It has to be a certain level so those who producing it can market. It has to be exact same. Individual capitalist dont do that. Why top pay workers more so that they can buy more to make the market stable. They cant see that.
What has to happen in aggregate for capital to reproduce – means of production has to be produced in sufficient quantity to allow means of production and wage growth …..
when system expands it become more complicated.

[1:00:00]
[VERY IMPORTANT]
What must happen to aggregate consumption and production in society in order to have balance growth ? Does individual capitalists do it? No.
if they are missing a little or lot. Any way we have to correct them. What it does is that it suggests the role of public policy. macro economic theory is built upon this kind of analysis of marx. State intervene to guide to get balanced growth.
1945-60s they did like that.

Department 1 – 4000c + 1000v + 1000s = 6000
Department 2 – 2000c + 500v + 500s = 3000

rate of surplus value is same in both cases. S/v is same.

[1:10:00]

C1 + V1 + S1 = W1
C2 + V2 + S2 = W2

Total individual consumption goes on this system has to be equal to the total output of consumer goods industry(Dpt 2). Means of production is Dpt 1.

So Dpt 2: C2 + V2 + S2 = W2 = V1 + S1 + V2 + S2.
(V1 + S1 + V2 + S2) This all is the consumer demand.
(C2 + V2 + S2) this is the supply.
Eliminate items in both sides. V2 and S2

then Dpt 2: C2 = W2 = V1 + S1 . This is the equilibrium position. That is the exchange happen between 2 departments.
Ie, 2000 = 1000 + 1000

demand for constant capital from department 2 has to be equal to demand for the consumer goods from department 1.

does this is in value term or in material term.

The assumptions here is that there are only 2 classes. Capitalists and workers. Closed economy. 2. everything turns over in manual basis. Turn over time disappears. 3. capitalist consumes all of their surplus value. Same do the workers.

[1:20:00]
Crisis of dispropotionality.
Crisis put things in equilibrium in capitalistic society.
Keynesian macro economic planing is to avoid crisis.
IMF and others said there is an imbalance in those countries who are producing things and those who consuming things.

Expanding reproduction
Dept 1 : C1 + dC1 + V1 + dV1 + So1
Dept 2 : C2 + dC2 + V2 + dV2 + So2

So1 for bourgeois consumption.

C2 + dC2 must me equal to V1 + dV1 + So1
necessity and luxury
demand for necessity is the total demand of the working class + necessity and luxury of the capitalistic class.

[1:30:00]
Every crisis temporally decreases luxury consumption.

This causes loss of job people who working in those sectors, it then cause ripple effect. Feedback effect.

Capitalistic system does not recognize any form of consumer other than those who can pay.

As per marx effect demand comes from production.
How value has been transferred from dept 1 to dept 2. they move by monetary flow. Workers are paid by week.
There should be more money in the system than the value in the system.

[1:40:00]

Capitalists throws money into circulation in order to consume. in doing so realizes the surplus value being produced. Capitalists has to advance money to realize the surplus value that is produced. Ie, they have to lay out money on production and then consumption also. From where surplus value coming from – vol 2. increasingly it comes from capitalists consuming things. Weird system

working class which only disposes of its labour power, capitalistic class which has monopoly of means of social production and of money.

Marx said that capitalism is a closed system and only 2 classes are acting. DH not agreeing. Rosa lexemberg
the 2 class system dont allows to see other dynamics of the system. He externalize the question of effective demand.

Demand is coming from creation of credit. So the spiral indebtedness is embedded in capitalism. Its main form is national debt. So state has an effect role in where the effective demand come from.

He dont put credit system here.

മൂലധന പഠനം 22

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