,SAMUELSON'S 0,TRANS=MATION0 ( ,M>XISM 9TO ,B\RGEOIS ,ECONOMICS ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,S\RCE3 ,SCI5CE & ,SOCIETY1 ,FALL #a#i#g#b1 ,VOL4 #c#f1 NO4 #c1 PP4 #b#e#h-#b#g#c4 ,TRANSCRIB$3 BY ,?OMAS ,S*MIDT2 ,S,O,M,E,H,[1 ,& ,= ,R,E,A,S,O,N,S KN[N ONLY TO HIMSELF1 ,PAUL ,A4 ,SAMUELSON CANNOT LEAVE ,M>X ALONE4 ,HIS LATE/ CONC]N.<#a.> 9 ?IS RESPECT IS AN ATTEMPT TO HAVE ! LA/ WORD 9 A LONG-DRAWN CONTROV]SY REG>D+ ! RELATION BETWE5 VALUE & PRICE 9 ! ,M>XIAN SY/EM4 ,HE ACKN[L$GES RIT ?AT ! CRITICISM MADE BY ,BOHMM-,BAW]K & O!RS1 NAMELY ?AT ,M>X WAS NOT ABLE TO SU/A9 ! !ORY ( VALUE AS PRES5T$ 9 ,VOLUME ,I ( ,CAPITAL & AB&ON$ IT 9 FAVOR ( A PRICE !ORY 9 ,VOLUME ,I,I,I1 CANNOT BE MADE BECAUSE ( ! FACT ?AT ! ?IRD VOLUME WAS COMPLET$ PRIOR TO ! PUBLICATION ( ! FIR/4 ,SAMUELSON 9SI/S1 NONE!LESS1 ?AT ,M>X DEVELOP$ TWO SEP>ATE !ORIES1 :I* CANNOT BE RECONCIL$ BY WAY ( A VALUE-PRICE TRANS=MATION PROCESS SU* AS ,M>X 5VISION$4 ,P>ADOXICAL AS IT MAY S\ND1 ?IS POSITION ON ! P>T ( ,SAMUELSON COMES1 9 A WAY1 CLOS] TO ,M>X'S !ORY ?AN ALL ! PREVI\S ATTEMPTS EI!R TO PROVE OR DISPROVE ! POSSIBILITY ( TRANS=M+ VALUES 9TO M>KET PRICES4 ,BECAUSE ,SAMUELSON PROVIDES US ) A CRITICAL EVALUATION ( ! RELEVANT LIT]ATURE1 9VOLV+ BO? ,M>XI/ & B\RGEOIS ECONOMI/S1 !RE IS NO NE$ TO DRAG ANY ( !SE 9TO ! DISCUSSION1 ! LESS SO BECAUSE WE %>E ,SAMUELSON'S BELIEF 9 ! FUTILITY ( ANY ATTEMPT ACTUALLY TO TRANS=M VALUES 9TO PRICES4 ,& YET1 FROM A ,M>XIAN PO9T ( VIEW1 !RE IS NO WAY ( UND]/&+ PRICE =MATIONS EXCEPT BY WAY ( ! VALUE CONCEPT4 ,BUT ?IS HAS LITTLE TO DO ) ! VALUE-PRICE TRANS=MATION PROBLEM AS POS$ BY ,SAMUELSON & HIS APPO9T$ ADV]S>IES1 BECAUSE ! POSITIONS ( BO? >E BAS$ ON A COMMON MISUND]/&+ ( ,M>X'S !ORY ( VALUE & SURPLUS VALUE4 ,ACCORD+ TO ,SAMUELSON1 ,M>X & ! ,M>XI/S BELIEV$ 0?AT ! PR(IT RATES & PRICES ( ,VOLUME ,I,I,I 444 MU/ BE AN*OR$ ON ! TOTAL SURPLUS D$UCIBLE FROM ,VOLUME ,I'S VALUE ANALYSIS10 & !Y %[$ 0H[ ,VOLUME ,I VALUES ) !IR MICROECONOMIC DISCREPANCIES >E 'TRANS=M$' 9TO REAL WORLD PRICES & PR(ITS40 ,= ,SAMUELSON1 H[EV]1 VALUES & PRICES >E 0MUTUALLY-EXCLUSIVE ALT]NATIVES10 PRECLUD+ !IR RECIPROCAL TRANS=MATION4 ,ONE CAN HAVE EI!R ! ONE OR ! O!R1 BUT NOT BO? SIMULTANE\SLY4 ,HE TURNS FIR/ TO ! LABOR !ORY ( VALUE1 TO %[ ITS 9COMPATIBILITY ) B\RGEOIS PRICE !ORY &1 ( C\RSE1 ALL PRICE !ORIES = ,SAMUELSON >E B\RGEOIS !ORIES4 ,= HIM1 MOREOV]1 !RE ALSO EXI/S NO DIFF]5CE BETWE5 ! VALUE !ORIES ( ,SMI? & ,RIC>DO & ! LABOR !ORY ( VALUE & SURPLUS VALUE AS DEVELOP$ BY ,M>X 9 CRITICISM ( ! CLASSICAL !ORIES4 ,EXAM9+ ! LABOR !ORY ( ,ADAM ,SMI?'S 0E>LY & RUDE /ATE10 9 :I* BEAV] EX*ANGES = DE] ACCORD+ TO ! LABOR TIME REQUIR$ 9 !IR *ASE1 HE CONCLUDES ?AT UND] !SE PRIMITIVE CONDITIONS AN 0UNDILUT$ LABOR !ORY ( VALUE0 W\LD EXPLA9 ! EX*ANGE1 BUT IT W\LD ALSO BE 0! CORRECT G5]AL EQUILIBRIUM \TCOME ACCORD+ TO ,WALRAS & ,BOHMM-,BAW]K40 ,! EXPLANATION 0ALSO AGREES BO? ) ,VOLUME ,I'S ANALYSIS ( ,M>XIAN VALUES & ,M>X'S ,VOLUME ,I,I,I ANALYSIS ( PRICES40 ,!RE IS NO EXPLOITATION 9 ?IS EX*ANGE4 ,BUT ,SAMUELSON 0COMPLICATES ! SC5>IO0 BY 9TRODUC+ ! DI/9CTION BETWE5 0DIRECT0 & 09DIRECT0 LABOR & BY ASSUM+ CONDITIONS :]E9 PRICES >E DET]M9$ BY ! TOTAL EMBODI$ LABOR1 ?AT IS1 BO? DIRECT & 9DIRECT1 ?US BR++ ! EX*ANGE RELATIONS ( ,ADAM ,SMI?'S E>LY & RUDE /ATE TO AN 5D4 ,HE COMP\NDS ! SC5>IO /ILL FUR!R BY IMAG9+ A TAX+ GOV]NM5T1 :I* 0LEVELS A #a P] C5T TURNOV] TAX ON ALL EX*ANGE TRANSACTIONS40 ,! UP%OT ( !SE EX]CISES1 AID$ BY 0HI<-S*OOL ALGEBRA10 IS ?IS /ATEM5T3 0,BECAUSE 9DU/RIES >E UNEQUAL 9 RELATIVE-DIRECT-LABOR 9T5SITIES 7ORGANIC COMPOSITION ( CAPITAL7 A TURNOV] TAX PYRAMIDS OR COMP\NDS DIFF]5TLY 9 ! V>I\S 9DU/RIES1 LEAD+ TO EX*ANGE RATIOS ?AT DEVIATE FROM ?OSE GIV5 BY EMBODI$ LABOR H\RS4 ,?OSE ) RELATIVELY MO/ LABOR 'DAT$ F> BACK' RISE MO/ 9 RELATIVE PRICE40 ,9 O!R WORDS1 ! PRES5CE ( 09DIRECT10 0DEAD10 OR 0PA/0 LABOR1 ASSUM+ ! =M ( CAPITAL & PRODUC+ UNLIKE ORGANIC COMPOSITIONS ( DIFF]5T CAPITAL 5TITIES1 TOGE!R ) ! UNEQUAL EFFECTS ( A TURNOV] TAX UPON ! DIV]SE CAPITAL UNITS1 PRECLUDES EX*ANGE RELATIONS ACCORD+ TO LABOR-TIME VALUES4 ,?US F>1 WE HAVE ONLY AN AWKW>D RE/ATEM5T ( ! ,M>XIAN !ORY ?AT V>Y+ RATES ( PR(IT = DIFF]5T CAPITAL ( DIV]G5T ORGANIC COMPOSITIONS PRECLUDE AN EX*ANGE ( COMMODITIES ACCORD+ TO LABOR-TIME VALUES-)\T1 9 ,M>X'S VIEW1 VIOLAT+ ! LABOR !ORY ( VALUE4 ,SAMUELSON IS1 ( C\RSE1 AN OPPON5T ( ?IS !ORY4 ,ADAM ,SMI?1 HE WRITES1 0L+]$ 9 HIS 'E>LY & RUDE' /ATE ) ITS UNDILUT$ LABOR !ORY = ONLY A PAGE4 ,TURN ! PAGE & ,$5 IS LEFT BEH9D4 ,N[ L& IS SC>CE2 R5T IS *>G$ = IT2 DE] & BEAV] N[ HAVE EX*ANGE PRICES ?AT 9CLUDE L&-R5T1 & EXCEPT 9 ! S+UL> CASE ( GOODS ?AT HAPP5 TO HAVE EXACTLY ! SAME LABOR-L& 9T5SITIES1 PRICE RATIOS =EV] DEP>T FROM ! EMBODI$ LABOR CONT5T40 ,H[1 ,SAMUELSON WOND]S1 0DID ! ,RIC>DIANS MISS ?IS ELEM5T>Y FACT80 ,& H[ C\LD !Y MISS1 HE KEEPS ON WOND]+1 ! O!R FACT ?AT PEOPLE >E NOT ALL ALIKE8 0,RIC>DO & ,M>X10 HE WRITES1 0HOP$ TO EVADE ?IS DIFFICULTY BY R$EF9+ NEW UNITS ( LABOR P[]4 ,IF M5 >E ONE-?IRD AS PRODUCTIVE AS WOM51 USE AN H\R ( MALE LABOR AS ! L[E/ D5OM9ATOR & !N DUB EA* FEMALE LABOR AS BE+ ?REE HONOR>Y MALE UNITS40 ,& SO HE GOES ON1 9DULG+ 9 HIS CELEBRAT$ WIT1 TO %[ ?AT NO PR$ICTIONS AB\T EX*ANGE RATIOS CAN BE OBTA9$ FROM ! LABOR !ORY ( VALUE4 ,BUT ?IS HAS ALSO BE5 SAID BY ,M>X4 ,AL?\< ,SAMUELSON FEELS ?AT 0AN EX]CISE 9 OV]KILL ( ! LABOR !ORY ( VALUE HAS LITTLE PO9T AT ?IS DATE10 HE CANNOT RESI/ PO9T+ TO ! MO/ 0COMMON OBJECTION TO IT10 NAMELY 0! CONSID]ATION ( TIME0 AS ! FACTOR EXPLA9+ 9T]E/S & PR(ITS1 AS WAS >GU$ BY ,BOHMM-,BAW]K & HIS FOLL[]S4 ,HE NOTICES ) SATISFACTION ?AT ,ADAM ,SMI? F\ND HIMSELF OBLIG$ TO 09CLUDE 9T]E/ & PR(IT 9 COMPETITIVE PRICES ALONG ) LABOR WAGES & R5T10 & HE IS HAPPY ?AT ,RIC>DO 0ADMITT$ ?AT %RIMP PICK$ UP ON ! %ORE1 9 COMP>ISON ) ANCI5T OAKS OR AG$ W9E1 W\LD NOT EX*ANGE 9 ACCORDANCE ) RESPECTIVE EMBODI$ LABOR CONT5TS40 ,9 ! REAL WORLD ( #a#g#g#f1 #a#h#a#g1 OR #a#i#g1 HE SAYS1 0TIME WAS MONEY & 9T]E/S W]E NOT Z]O40 ,AL?\< HE >RIV$ BY A DEVI\S R\TE1 ,M>X TOO1 HE CLAIMS1 F9ALLY ACCEPT$ !SE FACTS4 ,! R\TE ,M>X TOOK1 ,SAMUELSON PO9TS \T1 MAY BE UND]/OOD BY NOT+ ! CLASSICAL ECONOMI/S' VIEW ?AT LABOR1 ALONG ) O!R COMMODITIES1 IS A CO/ ( PRODUCTION4 ,BUT :]EAS ! CO/-(-PRODUCTION OR SUBSI/5CE-WAGE !ORY ( ,MAL?US & ,RIC>DO WAS BAS$ ON A !ORY ( POPULATION CONNECT$ ) A !ORY ( DIM9I%+ RETURNS 9 AGRICULTURAL PRODUCTION1 ,M>X'S SUBSI/5CE !ORY DID NOT HAVE SU* AN UND]P9N+4 ,SAMUELSON ?US F9DS IT NECESS>Y 0TO ELUCIDATE ! LOGIC ( ,M>X'S MODEL ON ! BASIS ( ACCEPTANCE ( ITS BASIC PO/ULATES & AXIOMS40 ,BUT S9CE ,SAMUELSON DOES NOT KN[ ,M>X'S 0BASIC PO/ULATES10 HE HAS A DIFFICULT TIME 0ELUCIDAT+ ,M>X'S MODEL40 ,HE />TS1 !RE=E1 ONCE AGA9 ) ! MORE FAMILI> ,ADAM ,SMI?4 ,9 ! BEAV]-DE] EQUATION1 HE F9DS1 0NO?+ IS LEFT OV] = A POSSIBLE PR(IT RATE OR = ANY TAXATION 444 ACTUALLY1 IF A TAX W]E IMPOS$ ! POPULATION W\LD DIE \T4 ,BUT SUPPOSE DUE TO SOME 9V5TION MORE ?AN IS NECESS>Y = %E] EXI/5CE W\LD BE PRODUC$1 IT W\LD ALL[ = ! APPROPRIATION ( ! SURPLUS BY ,M>X'S ACQUISITIVE CAPITALI/40 ,HE W\LD ABSORB ! PR(IT BY LEAV+ ! REAL WAGE AT ! SUBSI/5CE LEVEL4 ,) AN 5TIRELY SUP]FLU\S IMAG9>Y MODEL ( HIS [N1 ,SAMUELSON PROCE$S TO %[ ?AT AN EXPLOITATION MODEL CAN BE C\*$ 9 B\RGEOIS T]MS FREE ( ! T]M9OLOGICAL 9NOVATIONS ( ,M>X'S ,VOLUME ,I1 EV5 ?\< 0! SPIRIT ( ! MODEL CAN ALSO BE ATTA9$ 9 ,M>XIAN CONCEPTS ( SURPLUS VALUE40 ,ONE CAN DO EV5 BETT] & >RIVE AT ! FACT ( EXPLOITATION BY DIRECT EXP]I5CE )\T ! AID ( ANY !ORY :ATEV]4 ,BE ?IS AS IT MAY1 9 ,SAMUELSON'S VIEW EXPLOITATION RESULTS FROM ! NECESS>Y COMB9ATION ( DIRECT ) PA/ LABOR1 ! LATT] APPE>+ 9 HIS MODEL AS CAPITAL GOODS 9 ! %APE ( RAW MAT]IALS4 ,& 0IF WORK]S DO NOT SAVE-DO NOT 'AB/A91' DO NOT 'WAIT'-!Y WILL BE UNABLE TO PROVIDE RAW MAT]IALS NE$$ = !IR LABOR TO WORK )40 ,IF CAPITALI/S HAVE !SE RAW MAT]IALS1 0!Y CAN N[ /RIKE A B>GA9 ) ! WORK]S & CAPTURE SOME ( ! PRODUCIBLE SURPLUS40 ,SOME1 NOT ALL ( IT1 BECAUSE ?IS IS A COMPETITIVE WORLD & ACCORD+ TO B\RGEOIS EQUILIBRIUM !ORY !RE WILL BE AN EQUILIBRIUM RATE ( PR(IT ADJU/+ CAPITAL =MATION TO ! GR[+ LABOR =CE4 ,! GR[+ LABOR =CE ALREADY IMPLIES ?AT REAL WAGES EXCE$ ! M9IMUM CO/ ( SUBSI/5CE & ( REPRODUCTION ( LABOR P[]4 0,ANY 9CREASE 9 CAPITALI/S' PROP5SITY TO SAVE \T ( EA* PR(IT RATE10 ,SAMUELSON WRITES1 0WILL RAISE ! REAL WAGE & ! SY/EM'S NATURAL RATE ( GR[?1 & WILL L[] ! EQUILIBRIUM PR(IT RATE4 ,IF WE SUP]IMPOSE CONT9U+ TE*NOLOGICAL *ANGE ON ! SY/EM1 REAL WAGES UND] DEVELOP+ CAPITALISM CAN BE PRESUM$ TO RISE - SL[LY OR RAPIDLY DEP5D+ UPON ! NATURE ( ! 9NOVATIONS & ! UND]LY+ BIOLOGICAL & ?RIFT PROP5SITIES40 ,?IS MODEL1 ACCORD+ TO ,SAMUELSON1 0C\LD AS LEGITIMATELY BE CLAIM$ BY ,NASSAU ,S5IOR AS BY ,K>L ,M>X OR ,JOAN ,ROB9SON0 AS SATISFY+ ! REQUIREM5TS ( AN EXPLOITATION !ORY ( PR(ITS & WAGES4 ,HAV+ SETTL$ ?IS TO HIS [N SATISFACTION1 ,SAMUELSON TURNS DIRECTLY TO ,M>X'S TRANS=MATION PROCESS1 ?AT IS1 TO ! TABLES ILLU/RAT+ ! =MATION ( AN AV]AGE RATE ( PR(IT AS PRES5T$ 9 ,VOLUME ,I,I,I ( ,CAPITAL4.<#b.> ,!SE TABLES DO NOT EXHAU/ ! PROCESS DEPICT$ BY !M1 BUT M]ELY S]VE TO MAKE !M MORE COMPREH5SIBLE4 ,!Y %[ ?AT A NUMB] ( DIFF]5T CAPITALS 7FIVE 9 ?IS CASE7 ( EQUAL MAGNITUDE BUT ) DIFF]5T ORGANIC COMPOSITIONS1 &1 IT IS ASSUM$1 EQUAL RATES ( EXPLOITATION1 YIELD DIFF]5T AM\NTS ( SURPLUS VALUE & DIFF]5T RATES ( PR(IT4 ,CONSID]+ ! FIVE CAPITALS AS SO MANY BRAN*ES ( ONE S+LE CAPITAL1 ! 9DIVIDUAL PR(IT RATES 9 EA* BRAN* MAY BE TURN$ 9TO AN AV]AGE RATE ( PR(IT = ! CAPITAL AS A :OLE4 ,?IS CAN ALSO BE BR\KET COMPETITION4 ,! COMPETITIVE PRICES DO NOT ALT] ! FACT ?AT = SOCIETY AS A :OLE ! SUM ( ALL PRICES1 :ATEV] !IR 9DIVIDUAL DEVIATIONS FROM !IR VALUES1 IS EQUAL TO ! TOTAL PRODUC$4 ,9 ?IS PRES5TATION ( ! VALUE-PRICE TRANS=MATION PROCESS1 IT HAS BE5 *>G$ - & ,SAMUELSON AGREES ) ! *>GE - ?AT ,M>X WAS 9CONSI/5T BECAUSE HE KEPT ! SAME CON/ANT CAPITALS 9 BO? HIS VALUE & HIS PRICE CALCULATIONS1 :]EAS ! LOGIC :I* DICTATES ?AT VALUES BE *ANG$ 9TO PRICES REQUIRES ?AT ! CON/ANT CAPITAL MU/ ALSO BE CONV]T$ 9TO PRICES4 ,IT %\LD BE OBVI\S1 H[EV]1 ?AT 9 REALITY ONLY PRICE RELATIONS EXI/4 ,! VALUE-PRICE TRANS=MATION1 ( :I* ,M>X SPEAKS1 DOES NOT REF] TO OBS]VABLE CONCRETE FACTS1 BUT IS A !ORETICAL DEVICE = CL>IFY+ ! *ANGES BR\X1 >E 5TIRELY SUFFICI5T & IT MAKES NO S5SE TO DEM& MORE FROM !M ?AN !Y W]E DESIGN$ TO CONVEY4 ,AL?\< ,SAMUELSON AGREES ) ! *>GE ( 9CONSI/5CY 9 ,M>X'S H&L+ ( ! VALUE-PRICE TRANS=MATION PROBLEM1 HIS SUP]IOR ]UDITION DETECTS NONE!LESS 0?AT !RE IS A S+UL> CASE 9 :I* ,M>X'S ALGORI?M HAPP5S TO BE RIGOR\SLY CORRECT40 ,( C\RSE1 ?IS IS A M]E ''CURIOSUM0 BUT IT MAY NONE!LESS S]VE 0TO DEMON/RATE ?AT ANYONE :O BELIEVES 9 ! RELEVANCE ( A M9IMUM-SUBSI/5CE WAGE WILL UND]/& HIS [N !ORY BETT] IF HE PRES]VES FROM ,VOLUME ,I ONLY ! SPIRIT ( ! 9SIY & OBFUSCAT+ TO HIS [N !ORY ! LETT] ( ,VOLUME ,I'S ANALYSIS ( 9T]-9DU/RY VALUES40 ,! S+UL> CASE1 (F]$ BY ,SAMUELSON1 9 :I* ,M>X'S PROC$URE BECOMES 0EXACT10 IS AN IMPOSSIBLE ONE1 NAMELY1 ! CASE :]E 0EV]Y ONE ( ! DEP>TM5TS .<( ,M>X'S TRANS=MATION TABLE.> HAPP5S TO USE ! V>I\S RAW MAT]IALS & MA*9E S]VICES 9 ! SAME PROPORTIONS ?AT SOCIETY PRODUCES !M 9 TOTO10 & :]E 0! M9IMUM-SUBSI/5CE BUDGET IS A M>KET BASKET ( GOODS ?AT COMES 9 ?OSE RELATIVE PROPORTIONS AS ! GOODS >E US$ AS 9PUTS 9 PRODUCTION40 ,IT IS ?IS K9D ( HIITIES FROM REALISM10 ?AT IS SUPPOS$ 0TO ELUCIDATE ! OBJECTIONS TO ,M>X'S PROC$URES MORE COG5TLY40 ,)\T ?IS CONCOCTION ( HIS1 ,SAMUELSON SAYS1 ,M>X'S PROC$URES C\LD NOT BE DEF5D$1 = AL?\< ,M>X TELLS US 0?AT ! WORK]S WORK HALF ! DAY = !MSELVES & HALF ! DAY = ! EXPLOIT+ CAPITALI/S1 HE DOES NOT 9DICATE 9 HIS V>I\S TABLES :AT FRACTION ( ! GOODS 9 ! DIFF]5T DEP>TM5TS MAKE UP !IR IRON RATIONS40 ,H[EV]1 ?IS PLAYFUL EX]CISE S]VES ONLY TO REPEAT ONCE MORE ?AT IT IS NOT POSSIBLE TO D]IVE PRICES FROM VALUES1 OR VICE V]SA4 ,! ASSUM$ DI*OTOMY ( VALUE & PRICE COMMITS ,SAMUELSON TO OBJECT TO ! >GUM5TS MADE BY ,BOHMM-,BAW]K & ,JOAN ,ROB9SON 0?AT ONLY PR(ITS & PRICES HAVE A REALITY & ?AT ,M>X 9 BEG9N+ ) VALUE & RATES ( SURPLUS VALUE HAS ALREADY P]=M$ ! 9V]SE TRANS=MATION2 ?US ! DIRECT TRANS=MATION M]ELY BR+S HIM BACK TO HIS />T+ PO9T40 ,SAMUELSON F9DS ?IS 9CORRECT1 = IT HAS BE5 %[N BY ,SRAFFA & ,LEONTIEF ?AT 0ONE CAN GO FROM AN UNDILUT$ LABOR !ORY ( VALUE1 9 :I* ! DIRECT LABOR-H\R REQUIREM5TS ( EA* GOOD & ! SUBSI/5CE CAN BE RECKON$ UP 9 PHYSICAL T]MS1 TO ,M>X'S TABLE ( VALUES40 ,BUT ?IS HOLDS ONLY = A LABOR !ORY ( VALUE 9 ITS 0UNDILUT$1 TE*NOCRATIC S5SE1 NAMELY AS AN ALGEBRAIC PROC$URE ?AT TELLS Y\ :AT CAN BE PRODUC$ ) A GIV5 TOTAL ( LABOR 9 ! /EADY /ATE :5 ALL CAPITAL GOODS HAVE BECOME ADJU/$40 ,ON ! O!R H&1 ,SAMUELSON REM>KS1 0A !ORY ( ! EXPLOITATION WAGE CAN BE BAS$ SOLELY UPON ! ANALYSIS ( PR(ITS & PRICES10 = :I* REASON HE EXPECTS ?AT SOME DAY 0,M>XIANS WILL PROBABLY WI% TO =MULATE IT 9 ?OSE T]MS40 ,IT WAS P]HAPS1 HE MUSES1 0,M>X'S 9CAPACITY 9 ALGEBRA & ! ABS5CE ( ! COMPUT] ?AT CAUS$ HIM TO =MULATE HIS EXPLOITATION !ORY 9 ,VOLUME ,I T]MS :I* >E UNREALI/IC BUT :I* HAPP5 TO BE SIMPL] TO H&LE ALGEBRAICALLY ?AN ,VOLUME ,I,I,I'S ,WALRASIAN RELATIONS40 ,! DIFF]5CE BETWE5 ,SAMUELSON'S POSITION ON ! VALUE-PRICE QUE/ION & ! POSITIONS ( ,BOHMM-,BAW]K & ,JOAN ,ROB9SON IS1 ( C\RSE1 ( A PURELY S*OLA/IC NATURE1 TAK5 9 ITS D]OGATORY S5SE4 ,:ILE IT IS TRUE ?AT ONE CANNOT D]IVE ACTUAL COMMODITY PRICES FROM !IR LABOR-TIME VALUES1 IT IS EQUALLY TRUE ?AT 9 REALITY !RE >E ONLY PR(ITS & PRICES4 ,BUT AS ,SAMUELSON W9DS UP RECOMM5D+ ?AT ONLY ! LATT] PH5OM5A %\LD BE CONSID]$1 HE F9DS HIMSELF %>+ ! POSITIONS ( ,BOHMM-,BAW]K & ,JOAN ,ROB9SON4 ,H[EV]1 ! CRUCIAL ISSUE IS NO LONG]1 HE WRITES1 0:E!R ,VOLUME ,I,I,I'S PRICES >E MORE REALI/IC UND] COMPETITION10 BUT :E!R1 0AS ,M>X & HIS MOD]N DEF5D]S HAVE CLAIM$1 ! PR(IT RATE UPON :I* ,VOLUME ,I,I,I'S ,WALRASIAN EQUILIBRIUM DEP5DS IS ITSELF CRUCIALLY DET]M9$ BY ,VOLUME ,I'S ANALYSIS ( SURPLUS VALUE1 OR CRUCIALLY DEP5D5T ON ! TOTALS ( !SE MAGNITUDES 79 ! S5SE ?AT ! PR(IT RATE CAN ONLY BE CALCULAT$ AFT] !SE HAVE BE5 SUMM$ UP & AV]AG$ \T740 ,SAMUELSON PROCE$S !N TO DEMON/RATE ?AT ,M>X & ,5GELS W]E 0SIMPLY WRONG 9 !IR ID5TIFICATION ( :AT ASPECT ( ! LABOR !ORY ( VALUE IS 9TR9SICALLY 9VOLV$ 9 WORK+ \T A PRICE-PR(IT CONFIGURATION ?AT CORRESPONDS TO ! M9IMUM-WAGE !ORY ( EXPLOITATION40 ,= ?IS1 ,SAMUELSON (F]S A 0CLE>-CUT MA!MATICAL PRO(40 ,BUT BE+ AW>E ?AT NOT EV]YBODY IS A 0VIRTUOSO 9 MATRIX ALGEBRA10 HE CONS5TS TO (F] A SECOND DEMON/RATION BY 0MEANS ( A SIMPLIFI$ TWO DEP>TM5T NUM]ICAL EXAMPLE10 TO BE TOPP$ (F BY A GRAPHICAL ANALYSIS SUPPOS$ TO 0CL9* ! PO9T ?AT PR(IT-PRICE EQUILIBRIUM IS DET]M9ABLE SOLELY FROM ! PRODUCTION COEFFICI5TS SPECIFY+ ! REQUIR$ LABOR EMBODIM5TS ( ! 9DU/RIES & FROM ! M9IMUM SUBSI/5CE WAGE-GOOD REQUIREM5TS40 ,WE CAN1 H[EV]1 DISREG>D ! MA!MATICAL1 NUM]ICAL & GRAPHICAL DEMON/RATIONS1 = !Y M]ELY /ATE AGA9 :AT WE HAVE ALREADY LE>N$1 NAMELY1 ?AT !RE IS NO NE$ = A TRANS=MATION PROBLEM1 EI!R DIRECT OR 9V]SE4 ,SAMUELSON FLATT]S HIMSELF 9 ?9K+ 0?AT ,M>X1 W]E HE ALIVE TODAY10 W\LD AGREE ) HIM & ?AT1 9 ANY CASE1 0,M>XIANS 9 ! FUTURE CAN BE EXPECT$ TO AGREE ) !SE PROSAIC & UNCONTROV]SIAL FACTS ( >I?METIC & LOGIC40 ,WE CAN DISREG>D !SE >I?METIC & LOGICAL TRU?S BECAUSE !Y HAVE NO CONNECTION ) ! PROBLEM ( VALUE & PRICE AS SE5 BY ,M>X4 ,TO E/ABLI% ?IS1 WE WILL HAVE TO LEAVE ,SAMUELSON & TURN TO ,M>X HIMSELF4 ,9 ORD] TO CL>IFY ! VALUE CONCEPT1 ,M>X BEGAN HIS ,CAPITAL ) AN UNREALI/IC VALUE-EX*ANGE1 FULLY AW>E ?AT SU* AN EX*ANGE DOES NOT1 & CANNOT1 TAKE PLACE 9 CAPITALISM4 ,HE DID SO1 NOT BECAUSE ! CLASSICI/S HAD FAIL$ TO APPLY !IR LABOR !ORY ( VALUE CONSI/5TLY & W]E ?US NOT ABLE FULLY TO COMPREH5D !IR [N ECONOMY4 ,IT WAS !ORETICAL WEAKNESS1 NOT A S5SE ( REALITY1 AS ,SAMUELSON ASSUMES1 ?AT EXPLA9S ,ADAM ,SMI?'S FAILURE TO ACC\NT = COMPETITIVE PRICES ON ! BASIS ( ! LABOR !ORY ( VALUE4 ,!ORETICAL WEAKNESS1 AS ,M>X OBS]V$1 ALSO ACC\NTS = ,RIC>DO'S LEAV+ ECONOMICS ALTOGE!R 9 FAVOR ( *EMI/RY2 HIS DIFFICULTY WAS ?AT HE C\LD NOT RECONCILE ! LABOR !ORY ( VALUE ) ! FACTOR ( R5T4 ,IT WAS BY WAY ( CRITICISM ( ! CLASSICAL !ORY ?AT ,M>X DEVELOP$ HIS [N !ORY ( VALUE & SURPLUS VALUE1 & !RE IS NO PO9T 9 APPROA*+ ,M>XISM VIA ! 9CONSI/5CIES & WEAKNESSES ( CLASSICAL ECONOMY4 ,:]EAS 9 ! FIR/ VOLUME ( ,CAPITAL ,M>X 0ANALYZ$ ! PH5OM5A PRES5T$ BY ! PROCESS ( CAPITALI/ PRODUCTION1 CONSID]$ BY ITSELF AS A M]E PRODUCTIVE PROCESS )\T REG>D TO ANY SECOND>Y 9FLU5CE ( CONDITIONS \TSIDE ( IT10 HE TURNS 9 ! ?IRD VOLUME TO A CONSID]ATION ( ! 0CONCRETE =MS GR[+ \T ( ! MOVEM5TS ( CAPITALI/ PRODUCTION AS A :OLE444 4 ,! CON=MATIONS ( ! CAPITALS EVOLV$ 9 ?IS ?IRD VOLUME APPROA* /EP BY /EP ?AT =M :I* !Y ASSUME ON ! SURFACE ( SOCIETY1 9 !IR MUTUAL 9T]ACTIONS1 9 COMPETITION1 & 9 ! ORD9>Y CONSCI\SNESS ( ! HUMAN AG5CIES ( ?IS PROCESS40.<#c.> ,! GOAL ,M>X SET = HIMSELF WAS ! DISCOV]Y & ELUCIDATION ( ! DEVELOPM5TAL LAWS ( CAPITAL PRODUCTION4 ,= ?IS1 ! M>KET ALONE (F]S NO CLUES2 ONE MU/ ALSO DEAL ) ITS UND]LY+ PRODUCTION RELATIONS4 ,BY DISREG>D+1 AT FIR/1 ! CONT9UALLY *ANG+ M>KET RELATIONS1 ! SOCIAL PRODUCT1 :ATEV] IT MIKET CAN DI/RIBUTE 9 ITS [N FA%ION DEP5DS ON !SE TWO AGGREGATES4 ,?IS DIVISION ( ! SOCIAL PRODUCT1 EXPRESS+ ! CAPITALI/ PRODUCTION RELATIONS1 AL?\< A FACT1 IS NEI!R REGI/]$ NOR DOES IT COME DIRECTLY TO LIKET PH5OM5A4 ,IT HAS TO BE DETECT$ BY A M5TAL EF=T :I* TRIES TO F9D \T :Y ! M>KET BEHAVES AS IT DOES4 ,! PRODUCTION & CIRCULATION PROCESSES >E1 ( C\RSE1 AN 9DIVISIBLE 5TITY & TO IGNORE ! LATT] YIELDS ONLY AN AB/RACT !ORY ( VALUE & SURPLUS VALUE4 ,IT IS AB/RACT ) RESPECT TO ! M>KET RELATIONS1 ?\< QUITE CONCRETE AS REG>DS ! BASIC PRODUCTION RELATIONS :5 CONSID]$ 9 ISOLATION4 ,BY DISREG>D+ PRODUCTION RELATIONS1 ! B\RGEOIS M>KET !ORY IS ( C\RSE ALSO AN AB/RACTION4 ,BUT :]EAS ! B\RGEOIS !ORY REMA9S 9 ?AT AB/RACT SPH]E1 ,M>XIAN !ORY ALL[S = A RETURN FROM ! AB/RACT CONSID]ATION ( ! BASIC CAPITALI/ PRODUCTION RELATIONS TO ! OBS]VATION & COMPREH5SION ( ! CONCRETELY GIV5 TOTALITY ( ! CAPITALI/ ECONOMY4 ,9 CONSID]+ PRICES & PR(ITS1 AS =M$ BY ! M>KET1 ,M>X IS CONC]N$ ONLY TO ! EXT5T ?AT !Y REQUIRE AN EXPLANATION 9 VALUE T]MS4 ,! VALUE RELATIONS1 ?AT IS1 LABOR-TIME RELATIONS1 >E AN OBVI\S REALITY4 ,NO ONE1 NOT EV5 A B\RGEOIS ECONOMI/1 W\LD D5Y ?AT !RE W\LD BE NO PRODUCTION & NO M>KET )\T LABOR4 ,NEI!R W\LD !Y D5Y ?AT P>TICUL> COMMODITIES DEM& P>TICUL> QUANTITIES ( LABOR TIME1 & ?AT !RE MU/ BE A DEF9ITE ALLOCATION ( ! AVAILABLE SOCIAL LABOR TIME TO PRODUCE ! V>I\S GOODS ?AT SOCIETY NE$S TO EXI/4 ,EV5 ?\< ?IS FACT APPE>S 9 B\RGEOIS !ORY 9 ! 9NOC5T =M ( PRODUCTION COEFFICI5TS1 IT IS !RE NONE!LESS1 AL?\< TREAT$ M]ELY AS AN ASPECT ( ! PRICE ME*ANISM4 ,H[EV]1 ! OBVI\S FACT ?AT EV]Y?+ IS BAS$ ON LABOR IS ALSO ( NO 9T]E/ TO ,M>X4 ,:AT CONC]NS HIM IS :Y ! SOCIAL LABOR RELATIONS APPE> AS VALUE RELATIONS4 ,:]EAS CLASSICAL ECONOMY RECOGNIZ$ TWO VALUE =MS-EX*ANGE & USE VALUE-,M>X ASK$ H[ ! CONCEPT ( VALUE C\LD >ISE ALTOGE!R1 & HE F\ND ! ANSW] 9 ! SPECIFIC CLASS RELATIONS ( ! CAPITALI/ MODE ( PRODUCTION4 ,SAMUELSON MA9TA9S1 9 HIS NON-,M>XIAN EXPLOITATION !ORY1 ?AT BECAUSE ! WORK]S FAIL TO AB/A9 & ?US SAVE ! NECESS>Y CAPITAL REQUIR$ = PRODUCTION1 IT BECOMES NECESS>Y = ! CAPITALI/S1 :O DO POSSESS CAPITAL1 TO PLAY AN ESS5TIAL ROLE 9 ! PRODUCTIVE PROCESS4 ,ACTUALLY1 = ! WORK]S AS A CLASS1 !RE IS NO WAY TO AB/A9 & TO SAVE BECAUSE ! CONDITIONS ( PRODUCTION >E MONOPOLIZ$ BY ! CAPITALI/ CLASS1 :I* IS ?US MA/] ( ! DI/RIBUTION ( ! SOCIAL PRODUCT4 ,IT APPROPRIATES P>T ( IT1 BUT IT IS =C$ TO LEAVE 5\< = ! WORK]S TO 5ABLE !M TO WORK & TO REPRODUCE BO? !MSELVES & ! PREVAIL+ CONDITION ( PRODUCTION4 ,IT IS ?IS DEF9ITE CLASS RELATION%IP ?AT TAKES ON ! *>ACT] ( A VALUE RELATION%IP BECAUSE IT ASS]TS ITSELF UND] CAPITALI/IC PROP]TY & M>KET RELATIONS4 ,BECAUSE ! CONDITIONS ( PRODUCTION >E UND] ! PRIVATE CONTROL ( AS MANY CAPITALI/S AS EXI/ AT ANY GIV5 TIME1 !RE IS NO CONSCI\S REGULATION ( ! SOCIAL PRODUCTION REQUIREM5TS1 NOR ANY CONSCI\S >RANGEM5T ( ! DI/RIBUTION PROCESS4 ,BUT ALL CAPITALI/S1 AT ANY P>TICUL> TIME & 9 ! LONG RUN1 DISPOSE ( ! PRODUCTION ( DEF9ITE QUANTITIES ( COMMODITIES ?AT REQUIRE SPECIFIC AM\NTS ( LABOR TIME4 ,! WORK]S SELL !IR LABOR P[] TO ! CAPITALI/S AT A PRICE ?AT 5ABLES !M TO EXI/4 ,?IS NECESS>Y M9IMUM1 OR ,SAMUELSON'S SUBSI/5CE WAGE1 HAS BE5 A FACT = MANY WORK]S ?R\<\T CAPITALI/ HI/ORY1 ESPECIALLY 9 ITS E>LY /AGES4 ,H[EV]1 ! 0SUBSI/5CE WAGE0 NE$ NOT BE A FACT-?AT IS1 IT NE$ NOT APPLY TO L>GE NUMB]S ( WORK]S4 ,NEV]!LESS1 IT CAN /ILL BE ASSUM$ TO DET]M9E 9 A G5]AL WAY ! CAPITALI/S' %>E ( TOTAL SOCIAL PRODUCTION4 ,EV]Y?+ BEYOND :AT ! WORK]S RECEIVE IS ! PRODUCT ( ! SURPLUS LABOR TIME FALL+ TO ! CAPITALI/S4 ,BECAUSE ! SOCIAL RELATIONS BETWE5 EXPLOIT$ & EXPLOIT]S HAVE TAK5 ON ! NATURE ( EX*ANGE RELATIONS1 ! DIVISION BETWE5 LABOR & SURPLUS LABOR HAS ! *>ACT] ( VALUE RELATIONS4 ,IF SOCIETY W]E NOT BASICALLY DIVID$ 9TO TWO SOCIAL CLASSES1 !RE W\LD BE NO EX*ANGE BETWE5 ! [N]S ( ! MEANS ( PRODUCTION & ! WORK]S1 & ! SOCIAL PRODUCTION RELATIONS W\LD NOT SIGNIFY VALUE RELATIONS4 ,= ,M>X1 VALUE & PRICE RELATIONS >E NOT 0ECONOMIC0 RELATIONS 9 ! S5SE ( B\RGEOIS ECONOMIC !ORY1 BUT SOCIAL CLASS RELATIONS :I* APPE> AS 0ECONOMIC0 RELATIONS UND] ! CONDITIONS ( CAPITALI/ COMMODITY PRODUCTION4 ,AL?\< !Y CANNOT APPE> O!RWISE1 !Y >E NONE!LESS ONLY A HI/ORICAL =M ( SOCIAL CLASS RELATIONS4 ,FROM ?IS PO9T ( VIEW1 VALUE & PRICE >E EQUALLY FETI%I/IC CATEGORIES = ! UND]LY+ CAPITAL-LABOR RELATIONS & HAVE MEAN+ ONLY SO LONG AS !SE RELATIONS EXI/4 ,:ILE !Y EXI/1 H[EV]1 IT IS NECESS>Y TO TREAT ! SOCIAL PRODUCTION RELATIONS AS VALUE & PRICE RELATIONS4 ,M>X'S AB/RACT VALUE MODEL ( CAPITAL PRODUCTION S]VES TO %[ ?AT EV5 UND] CAPITALI/ICALLY MO/ FAVORABLE CIRCUM/ANCES1 ! APPE>ANCE ( CLASS RELATIONS AS VALUE RELATIONS IMPLIES AN IMMAN5T CONTRADICTION1 :I* COMES 9CREAS+LY TO ! =E AS ! PRODUCTIVITY ( LABOR & ! ACCUMULATION ( CAPITAL 9CREASE4 ,H[EV]1 S9CE ,SAMUELSON DOES NOT DEAL ) ! QUE/ION ( :E!R OR NOT 0! EXPLOITATION MODEL ?R[S LIX'S WORK-WE MU/ D5Y \RSELVES ! DEMON/RATION ?AT IT WAS ! !ORY ( VALUE & SURPLUS VALUE ?AT 5ABL$ ,M>X TO APPREH5D1 9 A G5]AL WAY1 ! DEVELOPM5TAL T5D5CIES ( CAPITALISM & TO PR$ICT ITS F9AL DEMISE4 ,AL?\< IT IS NOT POSSIBLE TO =CE ! DYNAMICS ( ,M>XIAN !ORY 9TO ! /ATIC CONCEPTS ( B\RGEOIS PRICE !ORY1 & AL?\< ! LATT] IS ITSELF A PO9TLESS ASSUMPTION 9 A DYNAMIC WORLD1 WE WILL1 = ! SAKE ( >GUM5T1 ACCEPT ,SAMUELSON'S UNREALI/IC SUPPOSITIONS BECAUSE !Y EXHIBIT HIS 9ABILITY TO COMPREH5D ! VALUE-PRICE PROBLEM AS PRES5T$ BY ,M>X4 ,! DYNAMICS ( CAPITALISM >E NOT DISC]NIBLE FROM A /ATIC EQUILIBRIUM !ORY1 :I*1 EV5 9 ! APP>5TLY SOPHI/ICAT$ MA!MATICAL ,WALRASIAN =M1 IS F9ALLY NO?+ MORE ?AN ,SAY'S OLD EQUILIBRIUM ( SUPPLY & DEM&4 ,! ASSUMPTION ( ?AT EQUILIBRIUM DELIB]ATELY EXCLUD$ ! BASIC DISEQUILIBRIUM :I* EXPLA9S BO? CAPITALI/ DEVELOPM5T & ITS DECAY4 ,?IS BASIC DISEQUILIBRIUM1 NAMELY1 ! CONTRADICTORY DEVELOPM5T BETWE5 EX*ANGE VALUE & USE VALUE1 REMA9S UNRECOGNIZABLE 9 ! PRICE SY/EM4 ,:5 ,M>X CONSID]S PRICES1 HE DOES SO NOT BECAUSE HE HAS A REAL 9T]E/ 9 RELATIVE PRICES & !IR EV]*ANG+ 9T]DEP5D5CIES1 BUT BECAUSE 9 REALITY !RE >E ONLY PRICES & PR(ITS1 :I* NE$ TO BE EXPLA9$ 9 ORD] TO %[ ?AT !IR EXI/5CE DOES NOT 9VALIDATE A VALUE ANALYSIS ( CAPITALISM4 ,?IS LATT] ANALYSIS CAN ONLY BE UND]TAK5 BY WAY ( A M5TAL CON/RUCT4 ,BUT ?IS IS A 0%ORTCOM+0 ?AT IT %>ES ) ! EQUILIBRIUM MODELS ( B\RGEOIS PRICE !ORY4 ,IF ,SAMUELSON TRIES TO SUGGE/ ! SUP]FLUITY ( ,M>X'S VALUE ANALYSIS1 HE IS UND] ! ILLUSION ?AT B\RGEOIS PRICE !ORY ACC\NTS = ALL ! RELEVANT ECONOMIC PH5OM5A1 :]EAS 9 FACT IT M]ELY DEALS ) ! SUP]FICIAL *ANGES BR\XI/S1 :OSE 9T]E/ IS NOT 9 COMPETITIVE PRICE CON/ELLATIONS BUT 9 ! ABOLITION ( ! PRICE SY/EM ITSELF4 ,M>X'S PRIM>Y 9T]E/ WAS NOT 9 ! M]E FACT ( EXPLOITATION1 RECOGNIZ$ LONG BE=E HIM1 BUT 9 ! QUE/ION ( ! HI/ORICAL VIABILITY ( ! SPECIFIC =M ( CAPITALI/ EXPLOITATION4 ,?IS REQUIR$ AN ANALYSIS ( ! SOCIAL AGGREGATES ( LABOR & SURPLUS LABOR-VALUE & SURPLUS VALUE-& !IR RESPECTIVE MOVEM5TS 9 ! C\RSE ( CAPITALI/IC DEVELOPM5T4 ,?US ! NECESSITY >OSE TO DEMON/RATE ?AT ! ACTUALLY EXI/+ PRICE & PR(IT RELATIONS >E D]IV$ FROM VALUE RELATIONS1 EV5 ?\< !IR DEVIATIONS FROM ! LATT] >E NOT SUSCEPTIBLE TO DIRECT OBS]VATION4 ,ACCORD+ TO ,M>X1 ! SUB/ANTIATION ( ! D]IVATION ( PRICE FROM VALUE DOES NOT COME FROM A /UDY ( ! DEVIATIONS ( ! PRICES ( COMMODITIES FROM !IR LABOR-TIME CONT5T1 AS ,SAMUELSON ASSUMES4 ,RA!R1 IT REQUIRES AN EXAM9ATION ( ! ACTUAL *ANGES ( ! G5]AL PRICE LEVEL 9 ! C\RSE ( ! GR[+ PRODUCTIVITY ( LABOR4 ,VALUE & SURPLUS VALUE HAVE NO MEAN+ = ! CAPITALI/S4 ,!IR ONLY CONC]N IS ) ! PRODUCTION CO/S & PR(ITS 9 T]MS ( PRICES4 ,COMPETITION HAS ! T5D5CY TO AV]AGE \T ! RATE ( PR(IT ON CAPITAL4 ,SU* A PROCESS ASSUMES ! EXI/5CE ( DIFF]5T RATES ( PR(IT AS WELL AS A DEF9ITE TOTAL QUANTITY ( SOCIAL PR(IT4 ,:ILE ! EXI/5CE ( AN AV]AGE RATE ( PR(IT CAN BE EXPLA9$ BY COMPETITION1 ITS P>TICUL> SIZE CANNOT BE SO EXPLA9$4 ,ITS SIZE IS DET]M9$ BY ! UNKN[N BUT NONE!LESS EXI/+ TOTAL PR(IT RELATIVE TO ! TOTAL SOCIAL CAPITAL4 ,! AV]AGE RATE ( PR(IT IS NOT A 0PO/ULATE0 ( ,M>X'S1 AS ,SAMUELSON /ATES1 BUT AN EMPIRICAL OBS]VATION SEEM+LY CONTRADICT+ ! LABOR !ORY ( VALUE4 ,IT PO9TS TO A DIFF]5CE BETWE5 ! PRODUCTION ( SURPLUS VALUE & ITS DI/RIBUTION1 BR\KET OCCURR5CES ?AT REFLECT REAL SOCIAL NE$S )9 ! FRAME ( CAPITALI/ PRODUCTION4 ,9T]E/$ ONLY 9 PR(ITS1 ! CAPITALI/S MU/ GA9 !M VIA ! PRODUCTION ( COMMODITIES ?AT CAT] TO ! M>KET DEM&4 ,! GR[+ & *ANG+ DEM& = COMMODITIES MOVES CAPITAL FROM ONE SPH]E ( PRODUCTION 9TO ANO!R1 FROM ONE 9DU/RY TO ! NEXT1 AWAY FROM L[ PR(ITS T[>DS HI< PR(ITS2 IT IS ?IS PROCESS ?AT AV]AGES ! PR(IT RATES VIA *ANG+ PRICE & M>KET RELATIONS4 ,BUT1 :AT TAKES PLACE H]E CAN *ANGE ONLY ! DI/RIBUTION ( ! SOCIALLY PRODUC$ TOTAL PR(IT AMONG ! COMPET+ CAPITALI/S4 ,BY AV]AG+ ! RATE ( PR(IT1 CAPITALI/ PRODUCTION IS ALLOCAT$ 9 ACCORDANCE ) ITS SOCIAL REQUIREM5TS AS EXPRESS$ BY ! M>KET DEM&4 ,?IS IS ONLY ANO!R WAY ( SAY+ ?AT DEM& & ! COMPETITIVE PRICE ME*ANISM REGULATE ! CAPITALI/ ECONOMY4 ,& IT IS H]E ?AT B\RGEOIS PRICE !ORY /OPS1 & H]E ,M>XI/ !ORY ONLY BEG9S4 ,?\< NEV] A FACT1 IT IS CONCEIVABLE ?AT SUPPLY & DEM& C\LD BE 9 EQUILIBRIUM & ?AT ALL PRICES1 :ATEV] !Y MAY DESIGNATE1 C\LD CONSEQU5TLY BE EQUILIBRIUM PRICES4 ,BUT ?IS HAS NO IMPORTANCE = ,M>XI/S4 ,M>X1 AT ANY RATE1 ASSUM$ AN EQUILIBRIUM ( SUPPLY & DEM& 9 ORD] TO DEVELOP HIS !ORY FREE FROM ALL DI/URBANCES CAUS$ BY COMPETITION & M>KET IMBALANCES4 ,ONLY ?US WAS IT POSSIBLE TO LAY B>E ! BASIC /RUCTURE ( CAPITAL PRODUCTION & ?R\< IT COMPREH5D ! V>I\S M>KET PH5OM5A4 ,= AL?\< IT IS TRUE ?AT COMPETITION & ! PRICE SY/EM REGULATE ! M>KET1 ?IS REGULATION IS ITSELF DET]M9$ BY ! REGULATORY =CE ( VALUE RELATIONS1 ?AT IS TO SAY1 BY ! POSSIBILITIES & LIMITATIONS ( ! PRODUCTION ( SURPLUS VALUE 9 ! C\RSE ( CAPITALI/ ACCUMULATION4 ,H[EV]1 ?IS AGA9 LEADS TO ! 0LAWS ( MOTION0 ( CAPITALISM1 :I* >E NOT ,SAMUELSON'S PRES5T CONC]NS4 ,IT FOLL[S FROM ?IS LACK ( 9T]E/ ?AT HE REALLY BELIEVES ?AT ,M>X WAS SE>*+ = A WAY TO TRANSLATE ! D$UCTIVELY DISCOV]$ VALUE RELATIONS 9TO ! ACTUALLY GIV5 PRICE RELATIONS4 ,AL?\< ,M>X AT ONE TIME FLIRT$ ) ! IDEA1 IT WAS ONLY TO DISC>D IT AT ONCE AS PRACTICALLY IMPOSSIBLE & !ORETICALLY UNNECESS>Y4 ,AL?\< 0FROM ! PO9T ( VIEW ( ! TOTAL SOCIAL CAPITAL1 ! VALUE ( COMMODITIES PRODUC$ BY IT 7OR1 EXPRESS$ 9 MONEY1 !IR PRICE7 IS EQUAL TO ! VALUE ( ! CON/ANT CAPITAL PLUS ! VALUE ( ! V>IABLE CAPITAL PLUS ! SURPLUS VALUE10.<#d.> ?IS TOTAL VALUE DIVIDES ITSELF ?R\< ! COMPETITIVE M>KET RELATIONS & ! NONPRODUCTIVE CIRCULATION PROCESS 9 SU* A MANN] AS TO EXCLUDE ?IS POSSIBILITY ( RECOGNIZ+ SPECIFIC VALUE CONT5TS 9 ! COMMODITY PRICES4 ,! MAT]IAL NECESSITY ( ! NONPRODUCTIVE CIRCULATION PROCESS - NONPRODUCTIVE BECAUSE IT CONSUMES BUT DOES NOT PRODUCE SURPLUS VALUE - & ! ALLOCATION ( ! SOCIAL LABOR1 AS DET]M9$ BY ! PHYSICAL NECESSITIES ( CAPITAL PRODUCTION1 DI/RIBUTE ! TOTAL SURPLUS VALUE VIA ! AV]AG+ ( PR(IT RATES 9 SU* A WAY ?AT ! VALUE RELATIONS ( ! PRODUCTION PROCESS CANNOT APPE> AS SU*1 BUT MU/ MANIFE/ !MSELVES AS SEEM+LY 9DEP5D5T PRICE RELATIONS4 ,! 9DIVIDUAL CAPITALI/ DOES NOT DEAL ) VALUE BUT ) PRICES ( PRODUCTION1 ?AT IS1 HIS CO/ PRICE PLUS ! AV]AGE RATE ( PR(IT4 ,BECAUSE HIS PRODUCTION PRICE MAY BE ANO!R CAPITALI/'S CO/ PRICE & AS SU* 5T] HIS PRICE ( PRODUCTION1 IT BECOMES PRACTICALLY IMPOSSIBLE TO DIS5TANGLE ! ELEM5T ( VALUE FROM ?AT ( PRICE1 & ?IS ! MORE SO BECAUSE ! ACTUAL M>KET PRICES DO NOT EQUATE ) ! PRICES ( PRODUCTION BUT OSCILLATE >\ND !M4 ,MOREOV]1 BECAUSE ! CON/ANT CAPITAL US$ 9 PRODUCTION1 AS WELL AS ! V>IABLE CAPITAL1 5T] ! CIRCULATION PROCESS TOGE!R ) ! PRODUCTS REPRES5T+ ! SURPLUS VALUE1 !IR 5TANGLEM5T ALL[S TO SOME EXT5T = A FUR!R R$I/RIBUTION ( ! TOTAL VALUE & SURPLUS VALUE 9 AN EV]*ANG+ PATT]N ULTIMATELY DET]M9$ BY ! DYNAMICS ( CAPITAL PRODUCTION4 ,9 BRIEF1 IT IS PO9TLESS TO SE>* = ! VALUE CONT5T 9 ! COMMODITY PRICE4 ,/ILL1 0NO MATT] :AT MAY BE ! WAY 9 :I* PRICES >E REGULAT$ 444 ! LAW ( VALUE DET]M9ES ! MOVEM5T ( PRICES1 S9CE ! R$UCTION OR 9CREASE ( ! LABOR-TIME REQUIR$ = PRODUCTION CAUSES PRICES ( PRODUCTION TO FALL OR RISE40.<#e.> ,= ,M>X1 !N1 ! LAW ( VALUE F9DS ITS EMPIRICAL V]IFICATION NOT 9 EV]YDAY PRICE RELATIONS BUT 9 ! OV]ALL FALL OR RISE ( ! PRICES ( PRODUCTION4 0,S9CE ! TOTAL VALUE ( ! COMMODITIES REGULATES ! SURPLUS VALUE & ?IS ! LEVEL ( ! AV]AGE RATE ( PR(IT 444 IT FOLL[S ?AT ! LAW ( VALUE REGULATES ! PRICES ( PRODUCTION40.<#f.> ,! AV]AGE RATE ( PR(IT 9DICATES ?AT PRICES >E DET] M9$ BY ! SY/EM AS A :OLE4 ,! SY/EM AS A :OLE IS SUSCEPTIBLE TO VALUE ANALYSIS4 ,BO? ,M>X'S VALUE !ORY & ITS 0TRANS=MATION0 9TO PRICES CANNOT BE COMPREH5D$ )9 A /ATIC MODEL ( PRICE RELATIONS1 BUT ONLY )9 ! FRAMEWORK ( HIS DYNAMIC !ORY ( CAPITAL ACCUMULATION4 ,9 ?IS S5SE1 AS ,SAMUELSON SURMISES1 !RE IS NO DIRECT CONNECTION BETWE5 ,M>X'S VALUE !ORY & HIS PRICE !ORY ?AT JU/IFIES ! ATTEMPTS TO TRANS=M ! ONE 9TO ! O!R1 BUT SIMPLY AN EXPLANATION ( ! PH5OM5ON ( PRICE 9 A VALUE- & SURPLUS-VALUE-PRODUC+ SOCIETY :I* F9DS ITS DET]M9ATION NOT 9 PRICE BUT 9 VALUE RELATIONS4 ,:AT ,SAMUELSON ASKS ( HIS READ]S1 BY HIS SUGGE/ION TO DROP ! LABOR !ORY ( VALUE1 IS TO BE CONT5T ) A !ORY :I* CONC]NS ITSELF SOLELY ) ! /ATUS QUO ( B\RGEOIS COMMODITY PRODUCTION1 APOLOGETICALLY P]CEIV$ AS ! ECONOMIC !ORY P] SE4 ,BUT G5]\SLY1 AS BEHOOVES A ,NOBEL LAUREATE1 HE (F]S 0A CONCILIATORY =MULATION ?AT PRES]VES HONOR ALL >\ND10 BY ADMITT+ AN 0ESS5TIAL 9SIX'S 0,VOLUME ,I'S DIGRESSION 9TO SURPLUS VALUE10 :I*1 9 HIS VIEW1 CAN BE EXPRESS$ SO MU* BETT] ) 0! TOOLS ( B\RGEOIS ANALYSIS40 ,BUT1 ( C\RSE1 0?IS NOTION ( EXPLOITATION0 IS SU* ONLY 09 ! REALM ( PURE SCI5CE10 &1 AT ! SAME TIME1 M]ELY A MANN] ( SPEE*1 TO EXPRESS A 0COMP>ISON ( ! SUBSI/5CE GOODS NE$$ TO PRODUCE & REPRODUCE LABOR ) :AT ! UNDILUT$ LABOR !ORY ( VALUE CALCULATES TO BE ! AM\NT ( GOODS PRODUCIBLE = ALL CLASSES 9 VIEW ( ! EMBODI$ LABOR REQUIREM5TS ( ! GOODS40 ,SAMUELSON IS WILL+ TO ADMIT1 MOREOV]1 0?AT ,VOLUME ,I1 EV5 IF SE5 TO BE UNNECESS>Y 9 ! PRES5T AGE1 DID HAVE ! ADVANTAGE ( BE+ EASI] TO EXP\ND LOGICALLY40 ,EV5 TODAY1 HE SAYS1 0! MO/ PURI/IC S*OL> & TEA*] CAN FALL BACK UPON ,VOLUME ,I T]M9OLOGIES ) ! BE/ ( CONSCI5CE0 PROVID$ ONLY ?AT HE PREFACES HIS EXPOSITION ) ! OBS]VATION ?AT ! CASE ( ! EQUAL ORGANIC COMPOSITION ( CAPITAL & LABOR 9T5SITIES1 AL?\< NOT P>TICUL>LY REALI/IC1 DOES PROVIDE A CLE> SE>*LID & 9ACCURATE WAY ( DEAL+ ) PRICE & PR(IT RELATIONS4 ,IT WAS EXACTLY ! O!R WAY >\ND = ,M>X1 = :OM PRICE & PR(IT RELATIONS W]E JU/ ! SURFACE APPE>ANCES ( ! 9T]NAL & ALL-IMPORTANT CLASS RELATIONS EXPRESS$ AS VALUE RELATIONS4 ,SAMUELSON1 9 ATTEMPT+ TO DEMON/RATE ?AT !RE IS NO WAY LEAD+ FROM VALUE TO PRICE !ORY1 M]ELY EXHIBITS HIS [N 9ABILITY TO 9T]PRET ,M>X CORRECTLY4 ,AS F> AS ?IS P>TICUL> PIECE ( WRIT+ IS CONC]N$1 ,SAMUELSON C]TA9LY WA/$ HIS TIME & ! ,NATIONAL ,SCI5CE ,F\NDATION'S MONEY4 ,FOOTNOTES #a4 ,PAUL ,A4 ,SAMUELSON1 0,UND]/&+ ! ,M>XIAN ,NOTION ( ,EXPLOITATION3 ,A ,SUMM>Y ( ! ,SO-CALL$ ,TRANS=MATION ,PROBLEM BETWE5 ,M>XIAN ,VALUES & ,COMPETITIVE ,PRICES40 ,J\RNAL ( ,ECONOMIC ,LIT]ATURE1 ,JUNE #a#i#g#a1 VOL4 ,I,X1 NO4 #b1 PP4 #c#i-#d#c#a4 #b4 ,K]R $41 PP4 #a#h#c-#a#h#e4 #c4 ,IBID41 PP4#c#g-#c#h4 #d4 ,IBID41 P4 #a#i#f4 #e4 ,IBID41 P4 #b#a#a4 #f4 ,IBID41 P4 #b#a#b4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #c1 #bba 3 ,SAMUELSON'S 0,TRANS=MATION0 ( ,M>XISM 9TO ,B\RGEOIS ,ECONOMICS -- ,ADD$4 ,JANU>Y #h1 #bbb 3 ,SAMUELSON'S 0,TRANS=MATION0 ( ,M>XISM 9TO ,B\RGEOIS ,ECONOMICS -- ,UPDAT$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/