Class 11 Reading Marx’s Capital Vol 2 with David Harvey
this system may come to an equilibrium. If so, it is purely by accident.
Crisis free world.
economy 2 department model.
Means of production for the Means of production. Corn production. Means of production is corn seed. Corn seed is the constant capital.
Means of production for other categories. Machinery production needs steel.
Horde? the money 2, 3 years to buy a machine. During this time you are producing, but not consuming. That result in imbalance.
I: 4000 C + [1000 V + 1000 S] = 6000
II : [2000 C] + 500 V + 500 S = 3000
I : C1 + V1 + S1 = W
II: C1 + V1 + S1 = W
Equilibrium position is C2 = V1 + S1
I: 4000 C + 1000 V + [1000 S] = 6000
II : [1500 C] + 750 V + 750 S = 3000
What we going to do with the surplus value. Take a part of it and reinvest. Extra means of production
I: 4000C + 1000V + [1000S] = 6000 => 4000C + 400 dC + 1000V+ 100 dV + 500S => 4400C + [1100V + 500S]
500S is bourgeois consumption
II : [1500 C] + 750 V + 750 S = 3000 => 1500 C + 100C + 750V + 50V + 600S => [1600C] 500V+600S
I: 4400C+1100V+1100S =>6600. ← Total output here is 9000
II: 1600C+800V+800S => 3200 ← Total output here is 9800
C2 + dC2 = V1 +dV1 + So
Raising animals, if its for rafting its means of production. But if it is for eating then its consumption.
Even though marx says that there are only 2 classes, he mentions other types such as bankers, land lords etc. but at some point they have to derive their revenue from the production of surplus value.
Behavior of the 2 classes. Assumptions – Workers consumes. It matches what is being produced. Capitalist’s reinvestment. Because of competition. Aggregate reinvestment.
all commodities are sold at their values. But in vol 3 he says opposite. On price of production.
Technology is stable and productive.
Value of labour power is fixed (wage).
Hegel said, wealthy people can redistribute their wealth to poor to solve the problem. But they dont have enough to satisfy all. So solution is colonialism.
Marx end of vol 1 answer that, foreign trade dont solve the problem. It actually moves around. Spread it to a wider orbit.
Malthus said there is an effective demand problem. 2 solution. A class of people who just consumes. Or by foreign trade.
Market signals are not guiding to take correct investments decision to make system to equilibrium.
Credit system works as a common capital of the class.
Mathematical economist – michio maroshima – Max’s Economics. 1970s.
If production is social instead of capitalist
how coordination is done?
Cooperation not based on equality, but a cooperation based on command and control structure in capitalism.
Orders to subsidiaries
just in time flow
in vol 2 – joint stock companies seems like the beginning of socialization process.
South east england. Thatcher abolished london .. county council. Greater London council, because it was socialist. Than ended central planing. Transport system became chaos. Business hit. Because people cant get on time
department 2 is always adapting to department 1. there is no rationale given in capital for this. It can be reverse also. But the result is that, after stalin, all socialist planing is pushed by the idea that actually production and means of production is the first place to start and every thing follows it. Industrialization projects all are based on heavy industry. Building factories,
in us consumerism accounts for 70% of the gdp. China its 35%.
it did not work.
It is not Marx’s fault, its the way in which it is read.
Individual decision making system also need to think macro economic level.
Human capital theory – ridiculous. human capital investments
why they cant get interest on that capital? But capitalists has that choice, invest or get interest on capital.
adam smith has this theory. Labourer by training and learning skills can build capital inside themselves and can return on that when they go into the marker.
In artisan kind of society that may work. I learn things and then become a capitalist. 19Th century artisan class very less.
Marx – labour power is his capacity, ever renewing and reproducing itself. He sells it for living. But it operates as capital (variable capital) only in the hands of buyer, the capitalist.
Labour cannot make use of his skills. The capitalists make use of it.
Mr Capitalist as well as his press …
in order to the worker become a rational consumer, his labour power be consumed irrationally, contrary to his health …
Ford gave $5 dollar 8hr working day. And send lot of social workers to houses to make sure to consume properly. He didnt want them gambling. Thats not rational consumption.
Thats why Races Foundation.
Montragan is a success. They have their own credit system too.
Worker control is successful in a bit.
Lot more attention has to be paid in the theory of the transition on what has to be built to form an alternative production or consumption system.
There are lot of pre conditions.
Walmart – technical coordination of production and consumption.
Marx saying money will disappear and therefore the value form will disappear. Ie, coordination has to be done in the use value. Has to be done in physical.
When you talking about value flow, you have to think about material coordination.
material coordination disappeared in current system. They actually present here in terms of the distinction between means of production and wage goods. Material defined category. For the rest of us use value disappear.
Productive consumption and individual consumption
Marx says we dont need money doing all these coordination. Then the value theory will disappear.
value theory is distinct to capital. This is capitals way of valuing things, socially necessary labour time.
You are simply perpetuating capitals theory of value in an another form. So if you model in value term you are actually using capitals valuation system to do it.
What is a decent life style for mass of people.