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Exam Question 1 What is wealth? - University of Utah

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ECONOMICS 5080 QUESTIONS AND ANSWERS<br />

ALL STUDY QUESTIONS<br />

ECONOMICS DEPARTMENT, UNIVERSITY OF UTAH SPRING QUARTER 1996<br />

<strong>Exam</strong> <strong>Question</strong> 1 <strong>is</strong> 1 in 1995ut:<br />

<strong>Exam</strong> <strong>Question</strong> 1 <strong>What</strong> <strong>is</strong> <strong>wealth</strong>?<br />

[5] Chocolate: Re: WEALTH The question <strong>is</strong> what <strong>is</strong> <strong>wealth</strong>, and it can simply be<br />

defined as some kind <strong>of</strong> material object which someone purchases, inheret, or seek. Th<strong>is</strong><br />

object can and will better that individuals well being. Wheather the object <strong>is</strong> in a form <strong>of</strong><br />

money or a ph<strong>is</strong>ical object like a car. Wealth <strong>is</strong> a beterment, that will help enhance one’s<br />

standard <strong>of</strong> living.<br />

Message [5] referenced by [6]. Next Message by Chocolate <strong>is</strong> [13].<br />

[6] Hans: Please don’t be so cautious I did not answer Chocolate’s [5] right away,<br />

because, to be honest, it made me angry. Just a few minutes earlier I had made subm<strong>is</strong>sion<br />

[4] which contained what I considered to be the right definition <strong>of</strong> <strong>wealth</strong>, as an answer to<br />

<strong>Question</strong> 2. I had the impression that Chocolate just repeated it back to me, with minimal<br />

embell<strong>is</strong>hments, in order to get a good grade with little effort. Even though the <strong>Question</strong><br />

number <strong>is</strong> different, the <strong>Question</strong>s are closely related, and therefore your grade, had th<strong>is</strong><br />

been graded, would have suffered for not saying anything new.<br />

One <strong>of</strong> the purposes <strong>of</strong> th<strong>is</strong> class <strong>is</strong> to encourage you to think independently. I have more<br />

respect for an independent thinker, even if I d<strong>is</strong>agree, than for someone who tries to say<br />

what I want to hear. In the d<strong>is</strong>cussion l<strong>is</strong>t for Econ 509 last Quarter, Chocolate made some<br />

interesting subm<strong>is</strong>sions, which cannot be classified as left or right, but which show that he<br />

or she <strong>is</strong> an independent thinker. I think it will be more fun for all <strong>of</strong> us, and you will benefit<br />

more from th<strong>is</strong> class and probably also get a better grade, if you take on some challenges<br />

and write what you think.<br />

Next Message by Hans <strong>is</strong> [8].<br />

[13] Chocolate: Re: ONE MORE TRY...... Earlier I gave a brief definition <strong>of</strong> what I<br />

thought <strong>wealth</strong> meant to me. Even though it was simply short and straight to the point, I<br />

did not repeat what Hans said earlier nor did say (write) anything that he wanted to hear.<br />

Instead it was a simple answer to the question that was asked. I cannot apolog<strong>is</strong>e for that<br />

first subm<strong>is</strong>sion, because I did not give (as you thought) a reply that you would like, but it<br />

was a reply that I felt was the correct answer. But to make matters clearer I will elaborate<br />

more on the the question. <strong>What</strong> <strong>is</strong> <strong>wealth</strong>?<br />

Wealth, in my opinion <strong>is</strong> what an individual has or owns. For example, an individuals<br />

<strong>wealth</strong> can be monetary as well as material<strong>is</strong>tic. It can also be said, that <strong>wealth</strong> <strong>is</strong> the total<br />

amount that an individual or household have accumulated either from income (past savings)<br />

1<br />

2 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

or inheritance. Wealth <strong>is</strong> really the total <strong>of</strong> an individual’s or household’s savings from the<br />

income one earns. If for example an individual in a given period <strong>of</strong> time (a year), spends<br />

less than h<strong>is</strong>/her income, that individual saves. <strong>What</strong> that individual saves can and will be<br />

added to h<strong>is</strong>/her <strong>wealth</strong>. But, if one spends more than h<strong>is</strong>/her income, than that individual<br />

will have to take borrow from h<strong>is</strong>/her savings and therefore reduces h<strong>is</strong>/her <strong>wealth</strong>.<br />

An individual who has a million dollars in their savings <strong>is</strong> considered to be <strong>wealth</strong>ier than<br />

an individual who only has nine-hundred thousand dollars. Because material<strong>is</strong>tic objects<br />

have a value, an individual who owns more than one luxury automobile <strong>is</strong> considered to be<br />

<strong>wealth</strong>ier that an individual who owns only one luxury automobile. Therefore, <strong>wealth</strong> can<br />

be considered a measurement <strong>of</strong> how much or less an individual or household owns.<br />

Hans: If you make more than one subm<strong>is</strong>sions in the same week, your total grade will be the average.<br />

Message [13] referenced by [15]. Next Message by Chocolate <strong>is</strong> [54].<br />

[15] Hans: No reason to apologize I wrote in [12]: “In the Annotations you will find<br />

the definition: ‘<strong>wealth</strong> <strong>is</strong> anything that enhances human life.’ Therefore it <strong>is</strong> a means, not an<br />

end.” Chocolate wrote in [13]: “Wealth <strong>is</strong> a beterment, that will help enhance one’s standard<br />

<strong>of</strong> living.” And the rest <strong>of</strong> your posting did not add much to th<strong>is</strong>. You repeated something<br />

that had already been said on the net, with only minimal additions, and therefore your grade<br />

would have been penalized. I did not make th<strong>is</strong> dec<strong>is</strong>ion while I was angry, but I let my<br />

anger cool <strong>of</strong>f before making th<strong>is</strong> dec<strong>is</strong>ion.<br />

I am however glad that you elaborated more on th<strong>is</strong> <strong>Question</strong> in [13]. These elaborations<br />

make it clear that you are making two m<strong>is</strong>takes:<br />

(1) you are reducing <strong>wealth</strong> to material things. A rich cultural heritage, cities which are<br />

neither no<strong>is</strong>y nor polluted, a generally high level <strong>of</strong> health and education, are also <strong>wealth</strong>.<br />

Marx said that an abundance <strong>of</strong> free time <strong>is</strong> true <strong>wealth</strong>.<br />

(2) moreover, you are reducing <strong>wealth</strong> to privately owned material things. Public libraries,<br />

a good mass transportation system, etc., are also <strong>wealth</strong>.<br />

Message [15] referenced by [2009fa:403]. Next Message by Hans <strong>is</strong> [16].<br />

[22] Skippy: Wealth? The question <strong>is</strong> “what <strong>is</strong> <strong>wealth</strong>?”<br />

Marx says that <strong>wealth</strong> <strong>is</strong> “a collection <strong>of</strong> commodities.”<br />

Wealth <strong>is</strong> based upon how many and which types <strong>of</strong> material objects are possessed to<br />

benefit an individual.<br />

I can accept th<strong>is</strong>, but why <strong>is</strong> <strong>wealth</strong> important in Marx<strong>is</strong>m?<br />

I believe that Marx wanted to see all people to be equaly “<strong>wealth</strong>y” to eliminate the<br />

different types <strong>of</strong> economic classes.<br />

Wealth has no place in a Marx<strong>is</strong>t society. Wealth <strong>is</strong> for those who want to separate<br />

themselves from society inorder to emphasize what they have instead <strong>of</strong> who they are.<br />

Hans: It <strong>is</strong> my impression that you did not do the readings. Everything I had to answer you in [23] was explained<br />

in the study guide. But I like it that you noticed that the Marx<strong>is</strong>m as you understood it was contradictory, and that<br />

you came forward with your critic<strong>is</strong>m. I gave you credit for that. Your grade would have been at least half a grade<br />

point worse without th<strong>is</strong>.<br />

Message [22] referenced by [23]. Next Message by Skippy <strong>is</strong> [42].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 3<br />

[23] Hans: You mean, if everybody <strong>is</strong> <strong>wealth</strong>y, then nobody <strong>is</strong> <strong>wealth</strong>y? Skippy’s [22]<br />

pointed out a logical contradiction in Marx: why does Marx start with <strong>wealth</strong>, which <strong>is</strong> a<br />

collection <strong>of</strong> commodities, if h<strong>is</strong> goal was supposedly to abol<strong>is</strong>h <strong>wealth</strong> and make everyone<br />

equal? I like th<strong>is</strong> approach. If you think the assigned readings <strong>of</strong> Marx are contradictory or<br />

have any other logical flaws, th<strong>is</strong> <strong>is</strong> the place to d<strong>is</strong>cuss them. And I appreciate the trust you<br />

place in me that I will nevertheless give a fair grade. (Less trusting souls are encourated to<br />

write their objections with the pseudo-header<br />

::Q: 1 dl<br />

then it will count as a subm<strong>is</strong>sion to the d<strong>is</strong>cussion l<strong>is</strong>t and cannot spoil your grade).<br />

As I see it, there are three m<strong>is</strong>understandings in your argument.<br />

(1) Marx does not say that <strong>wealth</strong> <strong>is</strong> “a collection <strong>of</strong> commodities.”<br />

(2) Your definition <strong>of</strong> <strong>wealth</strong> as “the state <strong>of</strong> being a rich man” <strong>is</strong> not the same definition<br />

which Marx <strong>is</strong> using.<br />

(3) In Capital, Marx does not talk about h<strong>is</strong> ideal society.<br />

Now what are the right answers? Material <strong>wealth</strong> (which <strong>is</strong> the only kind <strong>of</strong> <strong>wealth</strong> Marx<br />

<strong>is</strong> speaking <strong>of</strong> here) cons<strong>is</strong>ts <strong>of</strong> things that enhance human life. In the first sentence <strong>of</strong> Das<br />

Kapital Marx says that under capital<strong>is</strong>m <strong>wealth</strong> takes the social form <strong>of</strong> commodities: that<br />

all the things which enhance human life are bought and sold on the market. It <strong>is</strong> important<br />

to understand th<strong>is</strong> social form <strong>of</strong> <strong>wealth</strong> in order to understand the economic mechan<strong>is</strong>ms<br />

which create the inequalities <strong>of</strong> capital<strong>is</strong>t society. Only if we understand how capital<strong>is</strong>m<br />

functions can we hope to overcome it. (Th<strong>is</strong> <strong>is</strong> why Marx wrote Capital).<br />

Message [23] referenced by [22]. Next Message by Hans <strong>is</strong> [26].<br />

<strong>Question</strong> 2 <strong>is</strong> 1 in 1997WI, 1 in 1997sp, 1 in 1997ut, 1 in 1998WI, 1 in 1999SP, 1 in 2002fa,<br />

2 in 2003fa, 4 in 2004fa, 5 in 2005fa, 8 in 2007fa, 8 in 2008SP, 8 in 2008fa, 8 in 2009fa,<br />

9 in 2010fa, 9 in 2011fa, and 1 in Answer:<br />

<strong>Question</strong> 2 Can one say that true <strong>wealth</strong> <strong>is</strong> happiness?<br />

[1] MsMarx: True <strong>wealth</strong> True <strong>wealth</strong> does not necessarily mean happiness. Someone<br />

can have all the material things in the world which he desires and still be unhappy due to<br />

loneliness, lack <strong>of</strong> love, or some other factor other than material possessions.<br />

Hans: You basically m<strong>is</strong>understood the <strong>Question</strong>, and I do not want to penalize you too much for th<strong>is</strong>. It <strong>is</strong> also in<br />

part my fault. I reformulated the <strong>Question</strong> for the next edition <strong>of</strong> the study guide as: Can one say that happiness <strong>is</strong><br />

the only true <strong>wealth</strong>?<br />

Message [1] referenced by [2] and [220]. Next Message by MsMarx <strong>is</strong> [3].<br />

[2] Hans: Relation between Happiness and Wealth MsMarx’s message [1] m<strong>is</strong>understood<br />

the question. She answered the question whether material <strong>wealth</strong> means happiness,<br />

and correctly pointed out that th<strong>is</strong> <strong>is</strong> not the case. <strong>Question</strong> 2 actually takes th<strong>is</strong> as a given<br />

and asks: since <strong>wealth</strong> does not guarantee happiness, should one not conclude that material<br />

things are not really <strong>wealth</strong> but that real <strong>wealth</strong> <strong>is</strong> happiness? Now do you want to try again,<br />

MsMarx?<br />

Message [2] referenced by [152] and [220]. Next Message by Hans <strong>is</strong> [4].<br />

4 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[3] MsMarx: Real <strong>wealth</strong> and happiness I now interpret th<strong>is</strong> to mean that real <strong>wealth</strong> <strong>is</strong><br />

happiness, and material things are not really <strong>wealth</strong>. How am I doing?<br />

Hans: You are making here a basic logical blunder, which I am explaining in message [4]. Again, I will not grade<br />

th<strong>is</strong> very severely, because it <strong>is</strong> one <strong>of</strong> the errors everyone makes. It <strong>is</strong> one <strong>of</strong> a number <strong>of</strong> widespread logical errors<br />

which have the function <strong>of</strong> preventing people from seeing what <strong>is</strong> happening before their eyes every day, namely,<br />

the exploitation under capital<strong>is</strong>m.<br />

Message [3] referenced by [4]. Next Message by MsMarx <strong>is</strong> [33].<br />

[4] Hans: Not very well, I am afraid One <strong>of</strong>ten hears what you wrote in [3], MsMarx.<br />

The d<strong>is</strong>dain <strong>of</strong> material things under the motto: “real <strong>wealth</strong> does not cons<strong>is</strong>t <strong>of</strong> material<br />

things but real <strong>wealth</strong> <strong>is</strong> happiness” <strong>is</strong> one <strong>of</strong> the many ideologies floating around which<br />

prevent people from seeing their exploitation. People cannot fail to notice that their labor<br />

enriches only their bosses and not themselves, but then they tell themselves: th<strong>is</strong> <strong>is</strong> not<br />

important, what matters <strong>is</strong> happiness, and I have a happy family and good friends, therefore<br />

I am <strong>wealth</strong>y.<br />

I assigned question 2 in order to debunk th<strong>is</strong> myth. In the Annotations you will find<br />

the definition: “<strong>wealth</strong> <strong>is</strong> anything that enhances human life.” Therefore <strong>wealth</strong> <strong>is</strong> a means,<br />

not an end. Happiness does not fit under th<strong>is</strong> definition <strong>of</strong> <strong>wealth</strong>. Happiness <strong>is</strong> the result<br />

<strong>of</strong> a fulfilled life, but it <strong>is</strong> not the means to have a fulfilled life. From the fact that some<br />

people manage to be happy without needing much material <strong>wealth</strong> does not follow that the<br />

d<strong>is</strong>tribution <strong>of</strong> material <strong>wealth</strong> <strong>is</strong> irrelevant. Everyone should have equal access to <strong>wealth</strong>,<br />

whether or not they use th<strong>is</strong> <strong>wealth</strong> w<strong>is</strong>ely, and whether or not other avenues to happiness<br />

are open to them.<br />

Message [4] referenced by [3] and [6]. Next Message by Hans <strong>is</strong> [6].<br />

<strong>Exam</strong> <strong>Question</strong> 6 <strong>is</strong> 3 in 1995WI, 6 in 1995ut, 4 in 1997sp, 3 in 1998WI, 3 in 1999SP, 6<br />

in 2004fa, 7 in 2005fa, 12 in 2007SP, 10 in 2007fa, 10 in 2008fa, 10 in 2009fa, 11 in<br />

2010fa, 11 in 2011fa, and 8 in 2012fa:<br />

<strong>Exam</strong> <strong>Question</strong> 6 <strong>What</strong> <strong>is</strong> a commodity? Marx does not give the definition <strong>of</strong> a commodity<br />

but an analys<strong>is</strong>. How would you define the thing he analyzes? (The answer can be given in<br />

one sentence.)<br />

[10] TOAD: “Commodity” A commodity <strong>is</strong> any external object produced with the sat<strong>is</strong>faction<br />

<strong>of</strong> a human need in mind, that <strong>is</strong> exchange for money or exchange for a product that<br />

<strong>is</strong> “mutually replaceable or <strong>of</strong> identical magnitude.”<br />

Message [10] referenced by [12] and [21]. Next Message by TOAD <strong>is</strong> [17].<br />

[12] Hans: Being a Commodity <strong>is</strong> not an afterthought In message [10], TOAD wrote<br />

that a commodity <strong>is</strong> something “produced with the sat<strong>is</strong>faction <strong>of</strong> a human need in mind”<br />

which <strong>is</strong> then sold or exchanged. Th<strong>is</strong> <strong>is</strong> not quite Marx’s definition. Marx stresses that<br />

the commodity <strong>is</strong> produced for the purpose <strong>of</strong> exchange. Since nothing can be exchanged<br />

which does not also sat<strong>is</strong>fy a human need, th<strong>is</strong> means that the commodity must also sat<strong>is</strong>fy<br />

a human need. But the original purpose, that what counts for the producer, <strong>is</strong> the exchange.<br />

Just look around you at the commodities in the store shelves, and you will see what I mean.<br />

Message [12] referenced by [15]. Next Message by Hans <strong>is</strong> [15].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 5<br />

[17] TOAD: Commodity Rev<strong>is</strong>ed A commodity <strong>is</strong> any external object with qualities<br />

to sat<strong>is</strong>ify a human need that <strong>is</strong> produced for money or exchanged for a product that <strong>is</strong><br />

“mutually replaceable or <strong>of</strong> identical magnitude”.<br />

Hans: A correction like th<strong>is</strong> will not give you a grade. I am still wondering what you mean by<br />

exchanged for a product that <strong>is</strong> “mutually replaceable or <strong>of</strong> identical magnitude”.<br />

The products which are exchanged for each other do not have to have any relationship with each other as use values,<br />

the use values need by no means be mutually replaceable, and they also are usually not <strong>of</strong> identical magnitude.<br />

Next Message by TOAD <strong>is</strong> [44].<br />

[21] Wolf: commodities Toad and everyone else out there, referring to message [10]<br />

question 6, I can’t help but wonder if according to Marx, humans are commodities? I believe<br />

that they are. Because according to Dr. Ehrbar’s interpertation <strong>of</strong> Marx, “a commodity <strong>is</strong><br />

everything.” (pg.6) People also exchange themselves for wage, lust, etc. with good or bad<br />

intentions to sat<strong>is</strong>ify a human need, their own or anothers. Just look arround you at all the<br />

people working and shopping in stores, and you’ll see what I mean. A church especially<br />

during a wedding <strong>is</strong> a good place to see what I am saying.<br />

Hans: Th<strong>is</strong> counts as your first subm<strong>is</strong>sion to the open d<strong>is</strong>cussion l<strong>is</strong>t. Please call me Hans instead <strong>of</strong> Dr. Ehrbar.<br />

Next Message by Wolf <strong>is</strong> [98].<br />

<strong>Exam</strong> <strong>Question</strong> 32 <strong>What</strong> <strong>is</strong> the use value <strong>of</strong> a commodity? <strong>What</strong>, by contrast, <strong>is</strong> “a” use<br />

value? (Note that the same word has two different meanings.)<br />

[93] Fritz: “the” vs “a” use-value “a” use value<br />

Either a person <strong>is</strong> alive (yes), or it <strong>is</strong> dead (no). Either Dr. Ehrbar ate breakfast before<br />

coming to school (yes), or he did not (no). Either a thing has use value (yes), or it does not<br />

(no).<br />

Use value <strong>is</strong> a state <strong>of</strong> being. And thus, it <strong>is</strong> inaccurate to measure the amount <strong>of</strong> use<br />

value derived from a thing. One cannot compare a “yes” with a “no.”<br />

A lift ticket to Snowbird <strong>is</strong> a use value.<br />

A lift ticket to Brighton <strong>is</strong> a use value.<br />

If I state that I prefer Snowbird to Brighton, I have compared my desires <strong>of</strong> the properties<br />

I attribute to the Snowbird and Brighton ski experiences. Th<strong>is</strong>, however, <strong>is</strong> not a compar<strong>is</strong>on<br />

<strong>of</strong> use values – it <strong>is</strong> something else.<br />

One cannot compare a use value. It either <strong>is</strong> “a” use value (yes), or it <strong>is</strong> not “a” use value<br />

(no).<br />

“the” use value<br />

<strong>What</strong> causes a person to be alive? Why did Dr. Ehrbar eat breakfast before coming to<br />

school? Why <strong>is</strong> a use value useful?<br />

When speaking <strong>of</strong> “the” use value <strong>of</strong> a thing, one <strong>is</strong> addressing what properties a person<br />

or society attributes to the thing to cause it to be useful.<br />

6 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Dr Ehrbar writes: BB12:col1: “The use value <strong>of</strong> a thing <strong>is</strong> therefore not a property <strong>of</strong> the<br />

thing, but a relationship between the thing and human wants which <strong>is</strong> attributed to the thing<br />

as if it were a property <strong>of</strong> the thing.”<br />

One <strong>of</strong> the strangest examples <strong>of</strong> use value can found in the children’s story <strong>of</strong> the Emperor<br />

who had no clothes. A little boy sold an inv<strong>is</strong>ible suit <strong>of</strong> clothing to the Emperor.<br />

The Emperor believed he was receiving the most beautiful suit <strong>of</strong> clothing ever constructed<br />

(although everybody else knew it was made <strong>of</strong> nothing but air). And yet, th<strong>is</strong> inv<strong>is</strong>ible suit<br />

was a use value to the Emperor.<br />

IMHO, Dr. Ehrbar’s [ID 79] incorrectly accepts one <strong>of</strong> Toad’s points [60].<br />

Things that have different qualities cannot be measured on the same scale.<br />

Th<strong>is</strong> would be comparing apples and oranges. All you can say <strong>is</strong>:<br />

¿ The use value <strong>of</strong> the material <strong>is</strong> DIFFERENT THAN that <strong>of</strong> the coat<br />

because the two kinds <strong>of</strong> labor are <strong>of</strong> different qualities. The quality <strong>of</strong> the<br />

labor in the material <strong>is</strong> DIFFERENT THAN the quality <strong>of</strong> the labor in the<br />

coat.<br />

It <strong>is</strong> not a necessary condition that a thing contain “different qualities” <strong>of</strong> labor to elicit a<br />

different relationship between the thing and the human desire for it, i.e., for “the” use values<br />

to be different.<br />

The strongest pro<strong>of</strong> <strong>of</strong> th<strong>is</strong> can be found in Marx R:131:2 “A thing can be a use-value<br />

without being a value. Th<strong>is</strong> <strong>is</strong> the case whenever its utility to man <strong>is</strong> not mediated through<br />

labour. Air, virgin soil, natural meadows, unplanted forests, etc. fall into th<strong>is</strong> category.”<br />

Neither the untouched forest or meadow contain labor and yet the relationship and desire<br />

we have for the forest and meadow are different. “The” use value we attribute to these<br />

different things are different.<br />

have “a” and “the” nice day. =)<br />

Franz<br />

Message [93] referenced by [99]. First Message by Fritz <strong>is</strong> [50].<br />

[97] Skyler: use-value(32) The physical properties (physical body) or appearance <strong>of</strong> a<br />

commodity <strong>is</strong> its use-value. The use and consumption <strong>of</strong> the commodity shows the usevalue.<br />

Quantity <strong>is</strong> another factor that helps to gauge the usefulness <strong>of</strong> a commodity.<br />

The amount <strong>of</strong> the commodity must beable to meet the needs <strong>of</strong> the individual desiring<br />

the commodity to be useful. Use-value <strong>is</strong> that physical body that becomes available to the<br />

consumer without regard for the labor put into creating it.<br />

Message [97] referenced by [99]. Next Message by Skyler <strong>is</strong> [187.4].<br />

[99] Hans: Incommensurable use values In [93], Fritz <strong>is</strong> puzzling whether different use<br />

values can be compared. He <strong>is</strong> trying out different arguments. For instance: If a use value <strong>is</strong><br />

a yes-or-no proposition (something <strong>is</strong> either a use value or it <strong>is</strong> not), then use values can not<br />

be compared. But th<strong>is</strong> <strong>is</strong> not what Marx means by “a” use value. “A” use value <strong>is</strong> a useful<br />

thing.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 7<br />

Then, Fritz tries the definition use value <strong>of</strong> a thing = personal gratification or sat<strong>is</strong>faction<br />

derived from the thing.<br />

If I state that I prefer Snowbird to Brighton, I have compared my desires <strong>of</strong><br />

the properties I attribute to the Snowbird and Brighton ski experiences.<br />

Th<strong>is</strong> <strong>is</strong> also not how Marx uses the word use value. Think <strong>of</strong> the use value <strong>of</strong> something<br />

as a bundle <strong>of</strong> useful properties. Brighton <strong>is</strong> not very steep terrain, a high speed chairlift.<br />

Snowbird <strong>is</strong> a tram, large and usually steep terrain, slow chairlifts. Do you like to sit on<br />

a high speed quad or stand in a tram? Some aspect <strong>of</strong> the use values can be compared<br />

(steepness <strong>of</strong> the terrain, speed <strong>of</strong> the lifts), others cannot (the view down regulator Johnson<br />

in the evening light). All these are aspects <strong>of</strong> the use value. Use value cannot be reduced to<br />

a level <strong>of</strong> utility.<br />

Fritz uses the following pasage from the Annotations to back h<strong>is</strong> claim that use value <strong>is</strong><br />

subjective sat<strong>is</strong>faction. But th<strong>is</strong> passage <strong>is</strong> m<strong>is</strong>leading:<br />

The use value <strong>of</strong> a thing <strong>is</strong> therefore not a property <strong>of</strong> the thing, but a relationship<br />

between the thing and human wants which <strong>is</strong> attributed to the thing<br />

as if it were a property <strong>of</strong> the thing.<br />

I have to formulate th<strong>is</strong> better, and I thank Fritz for pointing out the ambiguity. By the<br />

relationship between the thing and human wants I did not mean how much I like a certain<br />

property <strong>of</strong> a thing, but how the physical properties <strong>of</strong> the thing affect humans.<br />

Skyler’s [97] addresses the same question. Skyler writes:<br />

The physical properties (physical body) or appearance <strong>of</strong> a commodity <strong>is</strong><br />

its use-value.<br />

Th<strong>is</strong> first sentence <strong>is</strong> right. But in the following sentences Skyler switches over to Fritz’s<br />

definition <strong>of</strong> use value as a yes-or-no proposition:<br />

The use and consumption <strong>of</strong> the commodity shows the use-value. Quantity<br />

<strong>is</strong> another factor that helps to gauge the usefulness <strong>of</strong> a commodity. The<br />

amount <strong>of</strong> the commodity must beable to meet the needs <strong>of</strong> the individual<br />

desiring the commodity to be useful.<br />

The last sentence does not make much sense to me:<br />

Use-value <strong>is</strong> that physical body that becomes available to the consumer<br />

without regard for the labor put into creating it.<br />

Next Message by Hans <strong>is</strong> [102].<br />

<strong>Exam</strong> <strong>Question</strong> 35 <strong>is</strong> 25 in 1995WI, 33 in 1996ut, 36 in 1997sp, 34 in 1998WI, 38 in<br />

1999SP, 41 in 2004fa, 42 in 2005fa, 48 in 2007SP, 47 in 2008fa, 49 in 2009fa, 50 in<br />

2010fa, 55 in 2011fa, and 54 in 2012fa:<br />

<strong>Exam</strong> <strong>Question</strong> 35 <strong>What</strong> <strong>is</strong> the exchange value <strong>of</strong> a commodity? (Give its definition, not an<br />

analys<strong>is</strong> where it comes from).<br />

8 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[24] Darcy: <strong>What</strong> <strong>is</strong> the exchange value... The exchange value <strong>of</strong> a commodity <strong>is</strong> the<br />

value that one commodity can bring against another at the marketplace. The relation between<br />

a given amount <strong>of</strong> one commodity and a given amount <strong>of</strong> another.<br />

Hans: You chose a very simple <strong>Question</strong>, but you made an error by overlooking the qualitative side <strong>of</strong> it, and then<br />

you are formulating it in a very unclear way. <strong>What</strong> <strong>is</strong> “the value that one commodity can bring against another”?<br />

Message [24] referenced by [26], [153], and [155]. Next Message by Darcy <strong>is</strong> [25].<br />

[153] MUCHO: RE: Your Subm<strong>is</strong>sion Returned When I read [24] Darcy’s answer,<br />

everything she stated actually made sense to me. However, according to Hans’s response<br />

to [24] Darcy, her answer wasn’t on the right track. So I have tried to figure out what<br />

went wrong for her. With Hans’s help (hint), I kind <strong>of</strong> find out what the exchange-value <strong>of</strong><br />

commodity <strong>is</strong>.<br />

Exchange-value <strong>of</strong> commodity <strong>is</strong> something that changes its value depending upon the<br />

place and time. It doesn’t has to be single commodity against another single commodity. It<br />

could be a various types <strong>of</strong> commodities against various types <strong>of</strong> commodities. One commodity<br />

could have many exchange values.<br />

According to Marx, the valid exchange-values <strong>of</strong> a particular commodity express something<br />

equal, and exchange-value cannot be anything other than the mode <strong>of</strong> expression. I<br />

may not answering th<strong>is</strong> right. But th<strong>is</strong> <strong>is</strong> what I have found out.<br />

Message [153] referenced by [155]. Next Message by MUCHO <strong>is</strong> [156].<br />

[155] Hans: MUCHO’s correction <strong>of</strong> Darci’s answer I had two quibbles with Darci’s<br />

definition <strong>of</strong> exchange value in [24]:<br />

(1) The exchange value <strong>of</strong> a commodity <strong>is</strong> not just its exchange proportion with one different<br />

commodity, but a l<strong>is</strong>t <strong>of</strong> all exchange proportions with all possible different commodities.<br />

Or equivalently its exchange proportion with the universal equivalent, i.e., its price. Th<strong>is</strong> was<br />

my main complaint, and MUCHO got th<strong>is</strong> point right.<br />

(2) My second quibble was that I found the formulation: “the value that one commodity<br />

can bring against another at the marketplace” unsat<strong>is</strong>factory. If someone submits an answer<br />

as short as Darci’s, one should be a little more careful with one’s formulations.<br />

MUCHO’s sentence in [153] “Exchange-value <strong>of</strong> commodity <strong>is</strong> something that changes<br />

its value depending upon the place and time” <strong>is</strong> not part <strong>of</strong> the definition <strong>of</strong> the exchange<br />

value, but one <strong>of</strong> its properties, and th<strong>is</strong> property plays a central role in the answer <strong>of</strong> <strong>Question</strong><br />

37. And MUCHO’s other sentence, “According to Marx, the valid exchange-values <strong>of</strong><br />

a particular commodity express something equal, and exchange-value cannot be anything<br />

other than the mode <strong>of</strong> expression” <strong>is</strong> a conclusion which Marx draws about the exchange<br />

value, which <strong>is</strong> relevant for <strong>Question</strong> 40. Since MUCHO broke <strong>of</strong>f the sentence in the middle,<br />

I doubt if he knows what Marx meant with it.<br />

Next Message by Hans <strong>is</strong> [158].<br />

<strong>Question</strong> 36 <strong>is</strong> 34 in 1996ut, 31 in 1997ut, 41 in 2003fa, 43 in 2005fa, and 48 in 2008fa:<br />

<strong>Question</strong> 36 An acquaintance <strong>of</strong> mine regularly swaps h<strong>is</strong> wife with a friend. Does th<strong>is</strong><br />

mean h<strong>is</strong> wife has an exchange value?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 9<br />

[25] Darcy: swapping wives and exchange values Th<strong>is</strong> means that each wife has an<br />

exchange value. If each wife <strong>is</strong> swapped for one another, then it <strong>is</strong> taken that they both have<br />

the same exchange value. If one wife <strong>is</strong> given, and the other wife <strong>is</strong> given along with a sack<br />

<strong>of</strong> potatoes, then the first wife has the higher exchange value because the second guy has<br />

to also exchange another commodity to make the swap equal. But wife for wife <strong>is</strong> an equal<br />

exchange.<br />

Hans: Here <strong>is</strong> a brief addition to my [26]: It seems you halfways thought the right thing when you wrote:<br />

Th<strong>is</strong> means that each wife has an exchange value.<br />

But then you should have noticed that th<strong>is</strong> <strong>is</strong> not the case.<br />

Message [25] referenced by [26]. First Message by Darcy <strong>is</strong> [24].<br />

[26] Hans: Wives do not have exchange value in our society I am glad Darcy took the<br />

bait with <strong>Question</strong> 36. Of course you fell on your nose, but th<strong>is</strong> <strong>is</strong> only a trial <strong>Question</strong> and<br />

I hope not only you but also others will learn from it. Marx’s statement that commodities<br />

have exchange value means that commodities are routinely exchanged. It <strong>is</strong> a social custom,<br />

everybody considers it as natural and fair. People don’t have to have a special relationship<br />

with each other to do it, but it <strong>is</strong> done between strangers.<br />

By contrast, my fictitious acquaintance has a very special relation with h<strong>is</strong> wife, h<strong>is</strong> friend,<br />

and h<strong>is</strong> friend’s wife in order to “exchange wives”. Wives are not routinely exchanged in<br />

our society, they do not have exchange value.<br />

Darci’s answer [24] to <strong>Question</strong> 35 has the flaw which Marx <strong>of</strong>ten criticizes in h<strong>is</strong> writings,<br />

namely, that nowadays people are used to looking only at the quantitative side <strong>of</strong> things,<br />

and overlooking the qualitative side <strong>of</strong> things. Both [24] and [25] suffer under the same error.<br />

Message [26] referenced by [25]. Next Message by Hans <strong>is</strong> [27].<br />

<strong>Question</strong> 37 <strong>is</strong> 26 in 1995WI, 35 in 1996ut, 32 in 1997ut, 39 in 1999SP, 42 in 2001fa, 45<br />

in 2003fa, 49 in 2004fa, 57 in 2007SP, 57 in 2008fa, 60 in 2010fa, 65 in 2011fa, and 63<br />

in 2012fa:<br />

<strong>Question</strong> 37 How can one come to the conclusion that exchange value <strong>is</strong> not something<br />

inherent in the commodity?<br />

[14] Chacci: Inherent Exchange Value A commodity does not have an inherent value<br />

because there are several different variables that may change its exchange value. It <strong>is</strong> dependent<br />

on time, place, and the circumstances <strong>of</strong> exchange. As an example, our book may have<br />

an exchange value for people enrolled in our class, but has little or no value to those enrolled<br />

in a math class. Therefore our book does not hold any kind <strong>of</strong> inherent value, otherw<strong>is</strong>e it<br />

would have the same value to the math student as it does to us enrolled in th<strong>is</strong> class.<br />

Message [14] referenced by [16]. Next Message by Chacci <strong>is</strong> [29].<br />

[16] Hans: And now the rebuttal? Chacci’s [14] <strong>is</strong> an excellent answer to <strong>Question</strong> 37.<br />

I am especially pleased that Chacci <strong>is</strong> answering a <strong>Question</strong> which addresses the intricacies<br />

<strong>of</strong> Marx’s argument in the text, rather than one <strong>of</strong> the more general questions. Does anyone<br />

want to tackle <strong>Question</strong> 40 now in the light <strong>of</strong> Chacci’s answer to 37?<br />

40¿ Reproduce, in your own words, Marx’s rebuttal that, despite the 40¿ arguments asked<br />

for to in <strong>Question</strong> 37, exchange value seems to be 40¿ something inherent to the commodity<br />

after all.<br />

10 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Next Message by Hans <strong>is</strong> [19].<br />

<strong>Question</strong> 40 <strong>is</strong> 38 in 1996ut and 35 in 1997ut:<br />

<strong>Question</strong> 40 Reproduce, in your own words, Marx’s rebuttal that, despite the arguments<br />

asked for to in <strong>Question</strong> 37, exchange value seems to be something inherent to the commodity<br />

after all.<br />

[18] VanHalen: Practice <strong>Question</strong>s I’ll try to answer question 40 even though I thought<br />

I was just understanding the reasoning behind question 37. Thinking about question 40 for<br />

a while, I think an answer may lie in the definition <strong>of</strong> what a commodity <strong>is</strong>: something<br />

which <strong>is</strong> produced for sale or exchange. In order to qualify as a commodity, the item must<br />

be produced for sale or exchange. I don’t know why a person would go to the trouble <strong>of</strong><br />

producing anything if they didn’t think that they could fetch some sort <strong>of</strong> a return in the<br />

market for the product whether it was sold or exchanged. Th<strong>is</strong> <strong>is</strong> where I think the inherent<br />

value comes in; the person may not know what their product will be exchanged for or what<br />

price it may get, but they do feel that it will get SOMETHING even if it <strong>is</strong> a very small<br />

amount <strong>of</strong> exchanged good or monetary return. There has to be some sort <strong>of</strong> inherent value<br />

just because <strong>of</strong> the fact that it qualifies to be a commodity and can be bought or sold. If for<br />

some reason the product <strong>is</strong> so worthless that it can’t be exchanged or sold then I don’t think<br />

it qualifies to be a commodity. As for question 37, Chacci answered well, and it builds on<br />

th<strong>is</strong> answer. Just the fact that it <strong>is</strong> a commodity, and can be exchanged or sold, means that it<br />

has some value. <strong>What</strong> value it fetches in the market can change due to tastes, technology or<br />

percieved use. big or small.<br />

Hans: Don’t make the paragraphs so long.<br />

Message [18] referenced by [19]. Next Message by VanHalen <strong>is</strong> [46].<br />

[19] Hans: Read the <strong>Question</strong>! VanHalen’s [18] <strong>is</strong> a valiant attempt to give some logical<br />

arguments why value <strong>is</strong> something inherent in commodities, i.e., in favor <strong>of</strong> an objective<br />

rather than subjective value theory. H<strong>is</strong> answer <strong>is</strong>, briefly: it seems commodities have a<br />

value, otherw<strong>is</strong>e people would not bother producing them.<br />

Th<strong>is</strong> was not at all what was asked in <strong>Question</strong> 40. The <strong>Question</strong> was to reproduce Marx’s<br />

argument with your own words, i.e., to read and try to understand what Marx had written,<br />

and explain it in a language that <strong>is</strong> more accessible than Marx’s. I do want you to read the<br />

text in th<strong>is</strong> class!<br />

Now since VanHalen tried to do it from scratch, without consulting Marx, the question<br />

ar<strong>is</strong>es how h<strong>is</strong> results compare with Marx’s. And there <strong>is</strong> one interesting similarity in Van-<br />

Halen’s method and Marx’s method. Right now I will not say more about it, but will leave<br />

it up to you if you see what I mean. It may be helpful to go to class tonight because I will<br />

describe Marx’s method in class. <strong>Question</strong> 40 <strong>is</strong> from now on no longer a trial <strong>Question</strong><br />

but <strong>is</strong> added to the assigned <strong>Question</strong>s for the upcoming week. I.e., if you want to try to<br />

answer my <strong>Question</strong> what the similarities with Marx are, th<strong>is</strong> counts as your assignment for<br />

the second week, together with <strong>Question</strong>s 51-77.<br />

VanHalen: Pr<strong>of</strong>. Ehrbar - Just for your information, I did read the text, two times in fact and tried to consult<br />

Marx for my interpretation. In your analys<strong>is</strong> you said that my answer was “doing it from scratch.” That seems a<br />

pretty quick judgement for someone who <strong>is</strong> entirely new to Marx, who tried their best to interpret the question and<br />

interpret the text from which the answer was to come from. I put a lot <strong>of</strong> though into the question. To say that


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 11<br />

my answer was doing it from scratch was almost an insult. I didn’t write to complain like a baby but just for your<br />

information I tried the best I could and thought I was answering the question. pseudonym VanHalen - Derek Ward<br />

Message [19] referenced by [28]. Next Message by Hans <strong>is</strong> [23].<br />

[28] Hans: Quick judgement? In response to [19], VanHalen sent me th<strong>is</strong> to my private<br />

email address (please use in future the address Hans.Ehrbar@m.cc.utah.edu for any<br />

messages related to the class):<br />

Pr<strong>of</strong>. Ehrbar - Just for your information, I did read the text, two times in<br />

fact and tried to consult Marx for my interpretation. In your analys<strong>is</strong> you<br />

said that my answer was “doing it from scratch.” That seems a pretty quick<br />

judgement for someone who <strong>is</strong> entirely new to Marx, who tried their best to<br />

interpret the question and interpret the text from which the answer was to<br />

come from. I put a lot <strong>of</strong> though into the question. To say that my answer<br />

was doing it from scratch was almost an insult. I didn’t write to complain<br />

like a baby but just for your information I tried the best I could and thought<br />

I was answering the question.<br />

Reading the assigned few pages two times was obviously not enough. Th<strong>is</strong> <strong>is</strong> like reading<br />

the textbook for your Math class two times. You have to work through Marx step by step.<br />

And if you say that you “tried” to interpret the text, you indicate yourself that you know that<br />

you failed. You did use some <strong>of</strong> Marx’s categories, scientific work <strong>is</strong> never entirely from<br />

scratch, but I did not see an inch <strong>of</strong> Marx’s argumentation regarding th<strong>is</strong> specific question in<br />

your subm<strong>is</strong>sion.<br />

I also believe that you put a lot <strong>of</strong> thought into the question. Your answer was quite good.<br />

You are not aware how good it <strong>is</strong>, but I can see it because you came to use an approach which<br />

<strong>is</strong> in some specific way similar to Marx’s own, and which Bhaskar, a modern philosopher,<br />

argued, based on soph<strong>is</strong>ticated reasoning, <strong>is</strong> necessary in social sciences. Th<strong>is</strong> <strong>is</strong> why you<br />

got a fairly good grade (which I gave you before I saw th<strong>is</strong> complaint <strong>of</strong> yours). And what<br />

did you say about a baby?<br />

Next Message by Hans <strong>is</strong> [30].<br />

<strong>Question</strong> 49 <strong>is</strong> 38 in 1995WI, 47 in 1995ut, 47 in 1996ut, 46 in 1997ut, 58 in 1999SP, 60<br />

in 2001fa, 73 in 2004fa, 72 in 2005fa, 85 in 2007SP, 85 in 2007fa, 86 in 2008fa, 93 in<br />

2010fa, 110 in 2011fa, and 108 in 2012fa:<br />

<strong>Question</strong> 49 <strong>What</strong> <strong>is</strong> value (according to Marx)?<br />

[7] Peaches: Value according to Marx Value as defined by Marx <strong>is</strong> that social property<br />

which makes things exchangeable in a commodity society. Value does not describe the<br />

“worth” <strong>of</strong> a thing, but that <strong>of</strong> its need in a society. For example, money <strong>is</strong> not worth<br />

anything unless it can be exchanged for something else.<br />

Message [7] referenced by [8] and [92]. Next Message by Peaches <strong>is</strong> [246].<br />

[8] Hans: Value <strong>is</strong> not determined by social need I agree with Peaches’s first sentence<br />

in [7]. Value <strong>is</strong> that property <strong>of</strong> things which gives them weight on the market. If a thing has<br />

high value, then it can be exchanged for large quantities <strong>of</strong> other things.<br />

12 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Now which property <strong>of</strong> things <strong>is</strong> being rewarded by the market in th<strong>is</strong> way? In the second<br />

sentence, Peaches says it <strong>is</strong> social need. Th<strong>is</strong> <strong>is</strong> wrong. Th<strong>is</strong> <strong>is</strong> not Marx’s position on value.<br />

Peaches says something else in the second sentence: that value <strong>is</strong> not based on worth, i.e.,<br />

use value. Th<strong>is</strong> <strong>is</strong> in agreement with Marx.<br />

The last sentence <strong>is</strong>, if I understand it right, an illustration <strong>of</strong> the fact that value <strong>is</strong> not<br />

based on use value: money has lots <strong>of</strong> value but it does not have use value. If th<strong>is</strong> reading <strong>of</strong><br />

the sentence <strong>is</strong> correct (and please correct me if I am wrong, Peaches), then it should read:<br />

“Money <strong>is</strong> not worth anything unless it <strong>is</strong> exchanged for something else” instead <strong>of</strong> “unless<br />

it can be exchanged for something else.”<br />

As you notice, I said that a part <strong>of</strong> Peaches’s answer <strong>is</strong> wrong, but I did not supply the<br />

right answer, and I did also not give arguments why it <strong>is</strong> wrong. I want to leave th<strong>is</strong> to<br />

others. Perhaps someone wants to jump in and say what the right answer <strong>is</strong>, and give as<br />

many arguments as possible why Peaches’s answer cannot be right.<br />

Message [8] referenced by [92] and [179.1]. Next Message by Hans <strong>is</strong> [11].<br />

[9] Dragonfly: The use-value <strong>of</strong> money Hans, I am confused by your statement that<br />

money has no use-value. It would seem to me that many people consider money to be<br />

worthwhile outside <strong>of</strong> it’s value-based considerations. As a working definition <strong>of</strong> the value<br />

<strong>of</strong> money I submit the face value denomination <strong>of</strong> any given currency. The value <strong>of</strong> a hundred<br />

dollar bill <strong>is</strong> $100. The use-value <strong>of</strong> that dollar bill would then correspond to the idea<br />

<strong>of</strong> what that dollar bill represents, the that it feels to hold that hundred dollar bill, memories<br />

<strong>of</strong> childhood that involve being impressed by a hundred dollar bill, and how important it<br />

made you feel when your parent let you handle that hundred dollar. Granted these impressions<br />

have been desensitized as money has passed through your hands over the years, but<br />

the thought-streams remain related.Many people have more money than they can spend. It<br />

would seem they view money as an end in it’s self, i.e. it has a use-value. Granted the money<br />

can be collapsed into an exchange <strong>of</strong> commodities, but large sums <strong>of</strong> money represent potential<br />

commodities, which you seemed to reject as value-based in your response to Peaches.<br />

To use Barthes’ analys<strong>is</strong> <strong>of</strong> steak or wine, from “Mythologies”, the value <strong>of</strong> these items <strong>is</strong><br />

a direct result <strong>of</strong> cultural held mythologies about what it means to eat steak, what kind <strong>of</strong><br />

people eat steak, and one’s perceptions <strong>of</strong> how one appears to the others surrounding one’s<br />

self while eating steak. Thus the values <strong>of</strong> commodities are determined by culturally held<br />

use-values. While use-value will certainly vary for individual to individual, some varying<br />

more widely than another, there may be said to be certain generalities about the way a culture<br />

identifies the use-values <strong>of</strong> commodities. While th<strong>is</strong> agreement may not be complete,<br />

it may at least be referred to as a standard. Th<strong>is</strong> <strong>is</strong> not to say that value <strong>is</strong> determined by<br />

use-value, but that they are interdependent. I think I have failed to see the mutual autonomy<br />

<strong>of</strong> value and use-value. Set me straight, Hans!<br />

Hans: In my response [11] to you, I concentrated only on one aspect <strong>of</strong> what you said. Here are some more<br />

comments. You are right that use values have a social dimension, but Marx seems to say that th<strong>is</strong> does not have<br />

economic significance. In a Marxian approach, these cultural things can be understood only after one understands<br />

the economic base. The concept <strong>of</strong> “value” Marx uses <strong>is</strong> a social reality which can be understood without reference<br />

to cultural values.<br />

Message [9] referenced by [11]. Next Message by Dragonfly <strong>is</strong> [53].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 13<br />

[11] Hans: Use value <strong>of</strong> money In message [9], Dragonfly argued that money has a use<br />

value. I.e., that people desire money not only in order to buy things with it, but also for its<br />

own sake. Marx agrees that people want money for its own sake, but what drives them <strong>is</strong><br />

not the use value <strong>of</strong> money, but they are, so to say, under the spell <strong>of</strong> value itself. Here <strong>is</strong>, in<br />

rough outlines, how th<strong>is</strong> goes, but we will d<strong>is</strong>cuss these things later in more detail:<br />

(1) Marx says that every commodity has two sides, it <strong>is</strong> value and use value. Money <strong>is</strong><br />

the value side <strong>of</strong> the commodity that has shaken <strong>of</strong>f the cumbersome use value side <strong>of</strong> it.<br />

(2) Under capital<strong>is</strong>m, th<strong>is</strong> independent value, which originally developed in order to facilitate<br />

the exchange (that <strong>is</strong> not quite right but good enough for now), has developed from a<br />

servant to a king, from a means to an end. It has acquired the blind purpose <strong>of</strong> turning itself<br />

into more and more money. Th<strong>is</strong> <strong>is</strong> what Marx calls capital.<br />

(3) Marx argues that capital’s drive for self-expansion does not come from the greed <strong>of</strong><br />

its owner but it <strong>is</strong> a necessity anchored in the structure <strong>of</strong> the capital<strong>is</strong>t economy. Case in<br />

point: a capital<strong>is</strong>t who does not actively and aggressively pursue pr<strong>of</strong>its and expand, will go<br />

under in competition. If he wants to remain a capital<strong>is</strong>t, he has no choice. He <strong>is</strong> the slave <strong>of</strong><br />

self-expanding value.<br />

Message [11] referenced by [9]. Next Message by Hans <strong>is</strong> [12].<br />

[20] KALISPEL: Use value <strong>of</strong> money <strong>What</strong> <strong>is</strong> value (according to Marx)? In my opinion<br />

I will share what I believe the bas<strong>is</strong> <strong>of</strong> Marx’s value system <strong>is</strong>. Marx <strong>is</strong> focused on the idea<br />

<strong>of</strong> a community that <strong>is</strong> <strong>wealth</strong>y. H<strong>is</strong> version <strong>of</strong> <strong>wealth</strong> <strong>is</strong> not material goods, but as what<br />

philosphers call “the good life.” As was stated previously, to have free time and pursue as<br />

Abraham Maslow said the b values. These values, love, freedom, kindness, compassion, etc.<br />

are perceived to produce greater happiness than a thick wallet. Marx, I believe <strong>is</strong> pointing<br />

out the obvious counter-melodies to bringing out these intrinsic values <strong>of</strong> the human species.<br />

With the idea in mind <strong>of</strong> “pursuing true <strong>wealth</strong>,” Marx points out what value <strong>is</strong>. Th<strong>is</strong> value<br />

<strong>is</strong> important because it will throw a “monkey wrench” into mainstream economics. Why?<br />

Th<strong>is</strong> <strong>is</strong> because mainstream economics focuses primarily on productivity and pr<strong>of</strong>its. These<br />

other intrinsic values are important in mainstream economics, but they certainly are not<br />

favored to pr<strong>of</strong>its and productivity. Marx looks at economics from the point <strong>of</strong> view <strong>of</strong> what<br />

produces the greatest happiness for everyone. Marx believes intrinsic value and equality are<br />

essential to a “happy” community. Why these values are necessary for happiness I believe <strong>is</strong><br />

obvious, so I will not argue th<strong>is</strong> further.<br />

To me, the difference between value and use-value <strong>is</strong> confusing and seems not terribly<br />

important, at first. Th<strong>is</strong> <strong>is</strong> what it means to me, correct me if I am wrong. In capital<strong>is</strong>m,<br />

the value <strong>of</strong> a product <strong>is</strong> its money value. The use-value <strong>is</strong> what it <strong>is</strong> worth intrinsically.<br />

Capital<strong>is</strong>m d<strong>is</strong>torts th<strong>is</strong> as the annotation says. For example, food <strong>is</strong> worth a lot intrinsically,<br />

but has a very low price. We could say food has a high use value and a low value. In<br />

capital<strong>is</strong>m, the price <strong>of</strong> a good <strong>is</strong> <strong>of</strong>ten not the true value <strong>of</strong> the good. For example, if there<br />

<strong>is</strong> little competition in an industry then the price will be high and so will be the pr<strong>of</strong>its.<br />

In effect, society suffers at the hands <strong>of</strong> the rich capital<strong>is</strong>t. We might say other firms will<br />

eventually enter the industry and drive pr<strong>of</strong>its down, but think <strong>of</strong> the unneccessary things<br />

that go on continually in society. There will always be a few Bill Gates types. How much<br />

14 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

money can several billion dollars do in the way <strong>of</strong> eliminating poverty? Th<strong>is</strong> leads society<br />

on wild goose chases. Pr<strong>of</strong>its are sought after, yet the good may have given little value<br />

to anyone. It <strong>is</strong> a capital<strong>is</strong>t establ<strong>is</strong>hment parameter that the pursuit <strong>of</strong> pr<strong>of</strong>its serves the<br />

needs <strong>of</strong> the people. Marx <strong>is</strong> subtly pointing out that th<strong>is</strong> <strong>is</strong> not the case. Society should<br />

decide what to produce in the name <strong>of</strong> true intrinsic value for everyone, not for the notion<br />

<strong>of</strong> pr<strong>of</strong>its. Additionally, there are inherent problems in the motivation in capital<strong>is</strong>m. The<br />

motto <strong>is</strong> always to cut costs and many times the quality <strong>is</strong> eliminated. If you produce food<br />

that looks good with no nutritional value, but tastes the same, Go For It. Marx’s idea <strong>of</strong><br />

value screams another motivation and h<strong>is</strong> belief <strong>is</strong> that th<strong>is</strong> new motivation will much more<br />

accurately serve the happiness or <strong>wealth</strong> <strong>of</strong> society (i.e. prices and pr<strong>of</strong>its do not reveal<br />

needs. Th<strong>is</strong> <strong>is</strong> a myth).<br />

Hans: I sympathize with the values you are expressing here, but you can only understand the text if you understand<br />

that the word “value” designated a very specific economic relation in commodity societies.<br />

Message [20] referenced by [27]. Next Message by KALISPEL <strong>is</strong> [52].<br />

[27] Hans: Social<strong>is</strong>t versus capital<strong>is</strong>t values KALISPEL’s [20] does not explain what<br />

Marx means by the word “value” but describes Marx’s values, which he also characterizes<br />

as “intrinsic values <strong>of</strong> the human species” (and I agree with th<strong>is</strong> characterization).<br />

Then KALISPEL describes the non-achievement <strong>of</strong> these values under capital<strong>is</strong>m, which<br />

values “productivity and pr<strong>of</strong>its.”<br />

According to Marx, capital<strong>is</strong>m cannot be explained by people’s m<strong>is</strong>directed aspirations.<br />

In order to understand capital<strong>is</strong>m, you need something which Marx calls “value”, but it <strong>is</strong><br />

not the kind <strong>of</strong> value KALISPEL <strong>is</strong> talking about here.<br />

Next Message by Hans <strong>is</strong> [28].<br />

[75] Caren: Rewrite the first assignment Value <strong>is</strong> the general social form taken by all<br />

the products <strong>of</strong> alienated labor. Marx said that the commodity represents the labor and the<br />

labor <strong>is</strong> accumulated in the product. But value does not refer to a “worth” or “relevance”<br />

in any society. The value must be put on something to get the use value. Now, I hope my<br />

subm<strong>is</strong>sion <strong>is</strong> right. Please let me know if I have done any m<strong>is</strong>take again. I rewrite the<br />

answer th<strong>is</strong> time not reply them!<br />

Message [75] referenced by [76]. Next Message by Caren <strong>is</strong> [114].<br />

[76] Hans: Rewrite <strong>Question</strong> 49 Just a brief point, Caren, about your [75]: You wrote<br />

that “the value must be put on something to get the use value”. It <strong>is</strong> generally right that labor<br />

must be expended to get use values, although some use values can be obtained without labor.<br />

But th<strong>is</strong> labor does not need to have the social form <strong>of</strong> value-creating labor.<br />

However, in capital<strong>is</strong>m your sentence becomes correct if one reverses it to read “use value<br />

must be put on something to get value”. The accumulation <strong>of</strong> value, i.e., congealed abstract<br />

labor, <strong>is</strong> the purpose, and use values are only produced because a “carrier” <strong>is</strong> needed for<br />

these values.<br />

Next Message by Hans <strong>is</strong> [79].<br />

<strong>Question</strong> 51 <strong>is</strong> 40 in 1995WI, 49 in 1995ut, 49 in 1996ut, 54 in 1998WI, 63 in 2000fa, 63<br />

in 2001fa, 113 in 2011fa, and 111 in 2012fa:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 15<br />

<strong>Question</strong> 51 Is the magnitude <strong>of</strong> value <strong>of</strong> a commodity determined by the quantity <strong>of</strong> abstract<br />

labor necessary to produce it, or by the quantity <strong>of</strong> other commodities against which<br />

it can be exchanged?<br />

[33] MsMarx: Magnitude <strong>of</strong> Value, Labor (fwd) The value <strong>of</strong> the labor power and<br />

the value which that labor power creates in the labor process are two different magnitudes.<br />

The bas<strong>is</strong> for pr<strong>of</strong>it lies in the difference between. Marx <strong>is</strong> totaling up on the one hand the<br />

exchange-values <strong>of</strong> the commodities needed to maintain the mass <strong>of</strong> workers and on the<br />

other the exchange-values <strong>of</strong> the commodities produced by them.<br />

If a quarter <strong>of</strong> wheat exchanges with iron in a certain proportion, or the value <strong>of</strong> a quarter<br />

<strong>of</strong> wheat <strong>is</strong> expressed in a certain amount <strong>of</strong> iron, the value <strong>of</strong> wheat and its equivalent in<br />

iron are equal to some third thing, and they have the same magnitude in two different shapes.<br />

Either <strong>of</strong> them, independently <strong>of</strong> the other, can be reduced to a third common measure. Th<strong>is</strong><br />

third thing determines the exchange-value <strong>of</strong> the goods being sold. Labor <strong>is</strong> th<strong>is</strong> common<br />

social substance for all commodities. The value <strong>of</strong> laboring power <strong>is</strong> determined by the<br />

quantity <strong>of</strong> labor used to produce it, both directly and indirectly. As exchange-values, all<br />

commodities are merely definite quantities <strong>of</strong> congealed labor time. In other words, the<br />

magnitude <strong>of</strong> value <strong>of</strong> a commodity becomes the amount <strong>of</strong> labor congealed in it. Th<strong>is</strong><br />

quantity <strong>of</strong> labor itself <strong>is</strong> measured by the duration <strong>of</strong> time as defined by hours, days, weeks,<br />

etc. If we consider commodities as values, we consider them under the aspect <strong>of</strong> social labor.<br />

Social labor <strong>is</strong> the common social substance <strong>of</strong> all commodities. They differ by representing<br />

a greater or smaller quantity <strong>of</strong> labor.<br />

Time <strong>is</strong> important in <strong>is</strong>olation <strong>of</strong> the labor process because it represents the opportunity<br />

cost or the time which the worker could have spent doing something else. In essence, the<br />

worker <strong>is</strong> also a commodity on the market, like wheat or iron. He <strong>of</strong>fers h<strong>is</strong> labor power for<br />

sale. H<strong>is</strong> exchange value <strong>is</strong> ultimately the amount <strong>of</strong> labor provided by himself and other<br />

workers needed to produce and maintain him and h<strong>is</strong> family, or the labor embodied in him.<br />

It <strong>is</strong> the exchange-value which determines the general price category. The exchange <strong>of</strong><br />

goods for each other <strong>is</strong> determined fundamentally by the amount <strong>of</strong> labor embodied in it. So<br />

if goods are ultimately sold at their exchange values and these values embody labor, pr<strong>of</strong>it <strong>is</strong><br />

surplus labor.<br />

The form aspect <strong>of</strong> value <strong>is</strong> value as exchange-value, which <strong>is</strong> independent from use<br />

value. If one abstracts from the use value <strong>of</strong> the product <strong>of</strong> labor, one obtains the value.<br />

Marx implies that th<strong>is</strong> abstract takes place in the mind, as opposed to reality. As use-values,<br />

commodities differ in quality, and as exchange-values they can only differ in quantity and do<br />

not contain an atom <strong>of</strong> use-value. If the use-value <strong>of</strong> commodities <strong>is</strong> d<strong>is</strong>regarded, only one<br />

property remains, products <strong>of</strong> labor. If we made abstraction from its use-value, the useful<br />

character <strong>of</strong> the kinds <strong>of</strong> labor embodied in it d<strong>is</strong>appears. Th<strong>is</strong> entails the d<strong>is</strong>appearance <strong>of</strong><br />

the different concrete forms <strong>of</strong> labor. These forms are all reduced to the same kind <strong>of</strong> labor,<br />

human labor in the abstract.<br />

Message [33] referenced by [34]. Next Message by MsMarx <strong>is</strong> [65].<br />

[34] Hans: Someone who <strong>is</strong> trying to understand it all at once MsMarx’s [33] gives<br />

not only an answer to <strong>Question</strong> 51, but also d<strong>is</strong>cusses several other <strong>is</strong>sues from the assigned<br />

16 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

readings. With the exception <strong>of</strong> one sentence which I will point out below, nothing <strong>is</strong> really<br />

wrong, but it <strong>is</strong> not presented in a very coherent way. Perhaps you are too impatient to<br />

go through it step by step? I will reproduce it with my comments, which try to put your<br />

development in perspective.<br />

The value <strong>of</strong> the labor power and the value which that labor power creates<br />

in the labor process are two different magnitudes. The bas<strong>is</strong> for pr<strong>of</strong>it lies in<br />

the difference between. Marx <strong>is</strong> totaling up on the one hand the exchangevalues<br />

<strong>of</strong> the commodities needed to maintain the mass <strong>of</strong> workers and on<br />

the other the exchange-values <strong>of</strong> the commodities produced by them.<br />

Th<strong>is</strong> <strong>is</strong> a good opener, showing how relevant the Marxian theory <strong>of</strong> value <strong>is</strong>. It uses<br />

several undefined terms, which need now to be defined to make th<strong>is</strong> more prec<strong>is</strong>e. One <strong>of</strong><br />

them <strong>is</strong> “value”. <strong>What</strong> <strong>is</strong> value? The next paragraph gives an answer:<br />

If a quarter <strong>of</strong> wheat exchanges with iron in a certain proportion, or the<br />

value <strong>of</strong> a quarter <strong>of</strong> wheat <strong>is</strong> expressed in a certain amount <strong>of</strong> iron, the<br />

value <strong>of</strong> wheat and its equivalent in iron are equal to some third thing,<br />

and they have the same magnitude in two different shapes. Either <strong>of</strong> them,<br />

independently <strong>of</strong> the other, can be reduced to a third common measure. Th<strong>is</strong><br />

third thing determines the exchange-value <strong>of</strong> the goods being sold. Labor<br />

<strong>is</strong> th<strong>is</strong> common social substance for all commodities.<br />

<strong>What</strong> comes now <strong>is</strong> not only true for labor power but for all commodities:<br />

The value <strong>of</strong> laboring power <strong>is</strong> determined by the quantity <strong>of</strong> labor used to<br />

produce it, both directly and indirectly. As exchange-values, all commodities<br />

are merely definite quantities <strong>of</strong> congealed labor time. In other words,<br />

the magnitude <strong>of</strong> value <strong>of</strong> a commodity becomes the amount <strong>of</strong> labor congealed<br />

in it. Th<strong>is</strong> quantity <strong>of</strong> labor itself <strong>is</strong> measured by the duration <strong>of</strong> time<br />

as defined by hours, days, weeks, etc. If we consider commodities as values,<br />

we consider them under the aspect <strong>of</strong> social labor. Social labor <strong>is</strong> the<br />

common social substance <strong>of</strong> all commodities. They differ by representing<br />

a greater or smaller quantity <strong>of</strong> labor. Time <strong>is</strong> important in <strong>is</strong>olation <strong>of</strong> the<br />

labor process because it represents the opportunity cost or the time which<br />

the worker could have spent doing something else.<br />

Now you are saying some specfic things about labor power:<br />

In essence, the worker <strong>is</strong> also a commodity on the market, like wheat or<br />

iron. He <strong>of</strong>fers h<strong>is</strong> labor power for sale. H<strong>is</strong> exchange value <strong>is</strong> ultimately<br />

the amount <strong>of</strong> labor provided by himself and other workers needed to produce<br />

and maintain him and h<strong>is</strong> family, or the labor embodied in him.<br />

Here you are giving th answer to the <strong>Question</strong>, which <strong>is</strong> correct.<br />

It <strong>is</strong> the exchange-value which determines the general price category. The<br />

exchange <strong>of</strong> goods for each other <strong>is</strong> determined fundamentally by the amount


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 17<br />

<strong>of</strong> labor embodied in it. So if goods are ultimately sold at their exchange<br />

values and these values embody labor, pr<strong>of</strong>it <strong>is</strong> surplus labor.<br />

Now you suddently start talking about use value.<br />

The form aspect <strong>of</strong> value <strong>is</strong> value as exchange-value, which <strong>is</strong> independent<br />

from use value. If one abstracts from the use value <strong>of</strong> the product <strong>of</strong> labor,<br />

one obtains the value.<br />

Here <strong>is</strong> the one sentence I do not agree with:<br />

Marx implies that th<strong>is</strong> abstract takes place in the mind, as opposed to reality.<br />

As use-values, commodities differ in quality, and as exchange-values they<br />

can only differ in quantity and do not contain an atom <strong>of</strong> use-value. If<br />

the use-value <strong>of</strong> commodities <strong>is</strong> d<strong>is</strong>regarded, only one property remains,<br />

products <strong>of</strong> labor. If we made abstraction from its use-value, the useful<br />

character <strong>of</strong> the kinds <strong>of</strong> labor embodied in it d<strong>is</strong>appears. Th<strong>is</strong> entails the<br />

d<strong>is</strong>appearance <strong>of</strong> the different concrete forms <strong>of</strong> labor. These forms are all<br />

reduced to the same kind <strong>of</strong> labor, human labor in the abstract.<br />

Next Message by Hans <strong>is</strong> [59].<br />

[46] VanHalen: MsMarx gave a good answer to question 51 and I don’t mean to criticize<br />

because I don’t think I can do much better. However, when I read the answer given by<br />

MsMarx, I don’t think it ever came out and plainly said what the answer to the question<br />

really was. MsMarx said “the form aspect <strong>of</strong> value <strong>is</strong> value as exchange-value, which <strong>is</strong><br />

independent from use value. If one abstracts from the use value <strong>of</strong> the product <strong>of</strong> labor one<br />

obtains the value”<br />

The question asks about the magnitude OF the value that MsMarx did a good job <strong>of</strong><br />

uncovering in the above excerpt. I would add to the above answer <strong>of</strong> MsMarx that the<br />

Magnitude Of The Value <strong>is</strong> determined by the the amount <strong>of</strong> labor socially necessary for the<br />

production <strong>of</strong> the item.<br />

The bottom <strong>of</strong> page 129 in Capital says ,“<strong>What</strong> exclusively determines the magnitude <strong>of</strong><br />

the value <strong>of</strong> any article <strong>is</strong> therefore the amount <strong>of</strong> labour socially necessary, or the labourtime<br />

socially necessary for its production.”<br />

I interpret th<strong>is</strong> sentence to answer the question 51 by setting up what determines the<br />

magnitude <strong>of</strong> the value once it has been uncovered from its expressive form; exchange value.<br />

Hans: Thanks for taking the trouble <strong>of</strong> putting MsMarx’s answer more in focus. I think th<strong>is</strong> <strong>is</strong> helpful for the<br />

readers <strong>of</strong> th<strong>is</strong> l<strong>is</strong>t. I also like that you pointed out what role the exchange relation with the other commodities plays<br />

in th<strong>is</strong> answer: You say that in your last sentence, it <strong>is</strong> the expressive form <strong>of</strong> the inherent value.<br />

Message [46] referenced by [47]. Next Message by VanHalen <strong>is</strong> [47].<br />

[47] VanHalen: MsMarx did a pretty good job <strong>of</strong> answering the question and my answer<br />

<strong>is</strong> in no means a put down <strong>of</strong> the answer. However I don’t think that the answer MsMarx<br />

gave directly came out and answered the question.<br />

18 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Ms Marx makes the correct point that use value <strong>is</strong> different than exchange value and that<br />

exchange value <strong>is</strong> the expression <strong>of</strong> value. but the question asks as to what determines the<br />

Magnitude Of Value.<br />

From the paragraph at the bottom <strong>of</strong> page 129 <strong>of</strong> Capital, it says,“what exclusively determines<br />

the magnitude <strong>of</strong> the value <strong>of</strong> any article <strong>is</strong> therefore the amount <strong>of</strong> labor socially<br />

necessary or the labor-time socially necessary for its production.”<br />

Using the logic <strong>of</strong> Ms Marx and the paragraph at the bottom <strong>of</strong> pg. 129, I would say<br />

that what determines the magnitude value <strong>of</strong> a commodity <strong>is</strong> the quantity <strong>of</strong> abstract labor<br />

necessary to produce the product, if it <strong>is</strong> assumed that abstract labor <strong>is</strong> the amount <strong>of</strong> labor<br />

socially necessary to produce the item.<br />

Hans: Why did you get doubts about your [46] and felt you had to re-do it? I already found [46] pretty good. I<br />

will not give you a grade for th<strong>is</strong> one.<br />

Next Message by VanHalen <strong>is</strong> [142].<br />

<strong>Question</strong> 52 <strong>is</strong> 41 in 1995WI, 50 in 1995ut, 54 in 1997ut, and 81 in 2004fa:<br />

<strong>Question</strong> 52 In [mecw29] 274 Marx writes “It <strong>is</strong> as if the different individuals had thrown<br />

their labor time together and allocated different portions <strong>of</strong> the labor time at their joint<br />

d<strong>is</strong>posal to the various use values.” Why the formulation “It <strong>is</strong> as if?” Have they done it or<br />

haven’t they?<br />

[55] Wight: The formulation “It <strong>is</strong> as if” <strong>is</strong> used by Marx to illustrate the sweeping generality<br />

<strong>of</strong> the entire statement. Marx <strong>is</strong> aggregating all <strong>of</strong> the labor <strong>of</strong> the entire population.<br />

There are a few incorrect assumptions in th<strong>is</strong> view <strong>of</strong> labor. First, it assumes that all laborers<br />

are willing participants, which we know they are not in the capital<strong>is</strong>t system. Secondly,<br />

the underlying assumption that all people perform the same amount <strong>of</strong> labor i.e. equal in<br />

efficiency, time, and quality <strong>of</strong> tasks completed <strong>is</strong> incorrect. I think Marx <strong>is</strong> trying to point<br />

out these d<strong>is</strong>crepencies and incons<strong>is</strong>tencies, hence the formulation at the beginning <strong>of</strong> the<br />

statement. In response to wether or not people have behaved th<strong>is</strong> way, I would say that they<br />

have in a sense. Basically, you can aggregate anything in the economy and generalize for<br />

all involved parties. But, where th<strong>is</strong> theory falls short <strong>is</strong> in not taking account for individual<br />

contributions. Every person works differently and no credit <strong>is</strong> given for good workers vs.<br />

poor workers. Marx’s statement just views labor as one huge, entire aggregated concept. It<br />

<strong>is</strong> my proposition that th<strong>is</strong> <strong>is</strong> why Marx begins th<strong>is</strong> passage “It <strong>is</strong> as if,” because it can appear<br />

to be so and still not be accurate.<br />

Message [55] referenced by [59], [69], [206.1], and [335.5]. Next Message by Wight <strong>is</strong> [132].<br />

[59] Hans: Incorrect assumptions In [55], answering 52, Wight wrote<br />

The formulation “It <strong>is</strong> as if” <strong>is</strong> used by Marx to illustrate the sweeping<br />

generality <strong>of</strong> the entire statement.<br />

Th<strong>is</strong> <strong>is</strong> a plausible interpretation, but in the present case the statement <strong>is</strong> not only too<br />

general but also in a very specific way incorrect. You write that too, two sentences later:<br />

There are a few incorrect assumptions in th<strong>is</strong> view <strong>of</strong> labor. First, it assumes<br />

that all laborers are willing participants, which we know they are not in the<br />

capital<strong>is</strong>t system.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 19<br />

Th<strong>is</strong> <strong>is</strong> tantalizingly close to the way I interpret th<strong>is</strong> sentence, but it <strong>is</strong> not quite the<br />

same. You seem to say that Marx stated a “stylized fact” which made some simplifying<br />

assumptions about the world. One <strong>of</strong> them <strong>is</strong> that not everyone <strong>is</strong> a willing participant in the<br />

system. I think Marx wrote “it <strong>is</strong> as if” they had done it, because they did it but it was not<br />

their intention to do it. They did it so-to-say unconsciously. Whether willing or not, none <strong>of</strong><br />

them was a conscious participant in th<strong>is</strong> deed. Do you see the difference?<br />

They interact on the market in order to get the best outcome for themselves. Th<strong>is</strong> competition<br />

has the same effect as if it had been their intention to do what Marx describes here.<br />

Message [59] referenced by [206.1], [219.1], [318.2], [335.5], and [2004fa:642]. Next Message by Hans <strong>is</strong> [62].<br />

[69] Fritz: why ask why? Wight wrote in [55]:<br />

But, where th<strong>is</strong> theory falls short <strong>is</strong> in not taking account for individual<br />

contributions. Every person works differently and no credit <strong>is</strong> given for<br />

good workers vs. poor workers. Marx’s statement just views labor as one<br />

huge, entire aggregated concept.<br />

<strong>What</strong> <strong>of</strong> the human behaviorial assumptions you studied in microecon 201? Does microecon<br />

201 theory “fall short” because every person <strong>is</strong> not a 100% self-interested, pleasure<br />

maximizing agent?<br />

why do economic theories make assumptions and break things down into smaller pieces?<br />

why ask why?<br />

Cheers. Fritz<br />

Next Message by Fritz <strong>is</strong> [70].<br />

[173.1] Wight: Marx uses the formulation “It <strong>is</strong> as if” to illustrate that the individuals had<br />

in fact done it, but it was not their intention to do it. They did it in sense unconsciously.<br />

Whether willing or not, none <strong>of</strong> them was a conscious participant in the deed. The individuals<br />

described here are interacting on the market in order to get the best outcome for<br />

themselves. Th<strong>is</strong> sort <strong>of</strong> competition has the same effect as what Marx describes here as all<br />

individuals throwing their labor time togerther and allocating at their joint d<strong>is</strong>posal to various<br />

use values. In essence, the participants are perpetuating their own exploitation under the<br />

capital<strong>is</strong>t system, but don’t even realize it. Th<strong>is</strong> competition created between the individuals<br />

drives the system and fools the participants into thinking they are acting in their own best<br />

interest and benefiting themselves.<br />

Hans: Very well formulated, clear and cr<strong>is</strong>p, and literally the same as you wrote in class. I especially like the<br />

implications for capital<strong>is</strong>t exploitation, which <strong>is</strong> a new element which was not d<strong>is</strong>cussed previously.<br />

Next Message by Wight <strong>is</strong> [173.2].<br />

[189] Wight: Econ 201 vs. reality In response to Fritz’s critique <strong>of</strong> my answer to question<br />

52, I thought I should clarify my answer and stance. In microecon 201, we learned nothing<br />

about the behaviors <strong>of</strong> individuals as they relate to economic life. The theories are structured<br />

and conc<strong>is</strong>e and businesses and individuals are seen as pr<strong>of</strong>it and utility maximizing agents.<br />

Th<strong>is</strong> <strong>is</strong> not how life really <strong>is</strong>. Businesses and people have may other objective and motivations<br />

aside from self-fulfilling utility maximizing. If in fact we really lived in the kind <strong>of</strong><br />

world described, it would be very inhumane. It <strong>is</strong> unfortunate that many times in economics<br />

we lose the human perspective. In Marx’s quote that questions 52 addresses, the appearance<br />

20 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> all individuals all pleasure maximizing agents and criticizes th<strong>is</strong> result. The end result <strong>is</strong><br />

the driving force behind capital<strong>is</strong>m and perpetuates the oppression <strong>of</strong> the common worker.<br />

Message [189] referenced by [339]. Next Message by Wight <strong>is</strong> [190].<br />

[206.1] Gilligan: It <strong>is</strong> as if Well we need to remember that not everyone <strong>is</strong> a willing<br />

participant inside the system. Many times we are forced to do things that we don’t want to<br />

do, but we are obligated by the system to do so. Think about yourself Hans and the fact<br />

that you would rather not given out grades because you feel there unfair, but because the<br />

system says you have to then you are forced to do so. I know at my work there are a lot<br />

<strong>of</strong> things that I would like to change but I don’t have the power to state my opinion, and<br />

how I think we could better the production process. Its as if we just do them unconsciously<br />

without really thinking about it because we are so used to following what the system says<br />

<strong>is</strong> best. We may not even be a willing participant but we find ourselves right there obeying<br />

what guidelines are set for us. In the workplace there are many different type <strong>of</strong> workers,<br />

some good and some bad but they contiue to do the job not because the product they are<br />

producing creates utility for them but because its a job and thats what the system thinks <strong>is</strong><br />

socially acceptable. therefore I do think they have thrown their labor together but it doesn’t<br />

create any type <strong>of</strong> utility because they have no voice in what the outcome will be, they are<br />

subjects <strong>of</strong> the system.<br />

Hans: You are elaborating well on one aspect <strong>of</strong> it, which Wight brought out in [55], but you m<strong>is</strong>sed the main<br />

aspect, which I tried to describe in [59].<br />

Next Message by Gilligan <strong>is</strong> [258].<br />

[207.1] Femme: One assumption <strong>is</strong> that not everyone <strong>is</strong> a willing participant in the system.<br />

I think “it <strong>is</strong> as if” they had done it, because they did it but it was not their intention to do<br />

it. They did it unconsciously or subconsciously. Whether willing or not, no one party was<br />

a consciouse participant in th<strong>is</strong> deed. They interact on the market in order to get the best<br />

outcome for themselves, the highest value for their commodity. Th<strong>is</strong> competition has the<br />

same effect as if they had done what Marx described as a “stylized fact”; by th<strong>is</strong> I mean going<br />

back to the assumption that everyone <strong>is</strong> a willing participant in the system. Th<strong>is</strong> competition<br />

<strong>is</strong> driven subconciously and has the same effect as if they had done th<strong>is</strong> consciously; which<br />

<strong>is</strong> the highest exchange for their commodity on the market.<br />

Hans: You have all the relevant quotes from the class materials, but you are putting them together in such a way<br />

that I doubt whether you understood what you were writing.<br />

Next Message by Femme <strong>is</strong> [210.1].<br />

[219.1] Punani: Why the formulation“it <strong>is</strong> as if?” Have they done it or haven’t they?, th<strong>is</strong><br />

<strong>is</strong> because they did it but it was not their intention to do it. They did it so-to-say unconsciously.<br />

Whether willing or not, none <strong>of</strong> them was conscious participant in th<strong>is</strong> deed. They<br />

interact on the market in order to get the best outcome for themselves.<br />

Hans: Your whole answer cons<strong>is</strong>ts <strong>of</strong> some sentences copied literally from my [59]. I cannot tell from th<strong>is</strong> whether<br />

you really understood it. Th<strong>is</strong> hurt your grade.<br />

Next Message by Punani <strong>is</strong> [245].<br />

[318.2] Brumbys: One <strong>of</strong> them <strong>is</strong> that not everyone <strong>is</strong> a willing participant in the system.<br />

I think Marx wrote “it <strong>is</strong> as if” they had done it, because they did it but it was not their<br />

intention to do it. They did it so-to-say unconsiously. Whether willing or not, none <strong>of</strong> them<br />

was a consious participant in th<strong>is</strong> deed.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 21<br />

They interact on the market in order to get the best outcome for themselves. Th<strong>is</strong> competition<br />

has the same effect as if they had done what Marx describes here.<br />

Hans: Your answer <strong>is</strong> a literal copy from my [59]. I have no idea if you understood what I wrote. I had a “do<br />

you see the difference?” in my text, which you left out, instead <strong>of</strong> taking a few words to explain to me that you<br />

do see the difference. And you started abruptly in the middle <strong>of</strong> my subm<strong>is</strong>sion (“one <strong>of</strong> them”, who <strong>is</strong> “them”?),<br />

therefore it seems that you do not know what I was talking about. Also your resubm<strong>is</strong>sion was late and was in the<br />

wrong format (you had both answers in the same message, and I had to re-do it by hand).<br />

Next Message by Brumbys <strong>is</strong> [318.3].<br />

[335.5] Dunny: Dunny did not resubmit h<strong>is</strong> exam. He thinks that Marx’s formulation<br />

shows uncertainty that it <strong>is</strong> true what he says. <strong>What</strong>ever one may think <strong>of</strong> Marx, Marx was<br />

not a sloppy writer.<br />

Otherw<strong>is</strong>e, Dunny says things similar to [55], and apparently he m<strong>is</strong>understood Hans’s<br />

[59], where Hans tried to critize [55].<br />

Next Message by Dunny <strong>is</strong> [335.15].<br />

[339] Franz: why ask why? Wight and inhumanity Wight wrote in [189]<br />

In microecon 201, we learned nothing about the behaviors <strong>of</strong> individuals as<br />

they relate to economic life.<br />

. . . businesses and individuals are seen as pr<strong>of</strong>it and utility maximizing<br />

agents. Th<strong>is</strong> <strong>is</strong> not how life really <strong>is</strong>.<br />

<strong>What</strong>? utility maximization <strong>is</strong> behavior.<br />

your 2nd sentence contradicts the 1st<br />

Businesses and people have may other objective and motivations aside From<br />

self-fulfilling utility maximizing. If in fact we really lived in the kind <strong>of</strong><br />

world described, it would be very inhumane.<br />

Why? I will build my economy according to a Micro 201 textbook. Where <strong>is</strong> the inhumanity?<br />

Please explain.<br />

Next Message by Franz <strong>is</strong> [340].<br />

<strong>Question</strong> 53 <strong>is</strong> 42 in 1995WI, 51 in 1995ut, 51 in 1996ut, 60 in 1998WI, 66 in 1999SP, 70<br />

in 2001fa, 84 in 2005fa, 97 in 2007SP, 97 in 2008fa, 100 in 2009fa, 104 in 2010fa, and<br />

123 in 2011fa:<br />

<strong>Question</strong> 53 The value <strong>of</strong> a commodity does not increase if it <strong>is</strong> made by a slow or inept<br />

laborer. Explain carefully why not. Whose dec<strong>is</strong>ion <strong>is</strong> it to do things th<strong>is</strong> way? How <strong>is</strong> it<br />

enforced?<br />

[29] Chacci: Value <strong>of</strong> Labor The value <strong>of</strong> a commodity does not increase because <strong>of</strong><br />

a slow or inept laborer because the labor time required to produce the commodity <strong>is</strong> taken<br />

under socially normal conditions <strong>of</strong> productions. Th<strong>is</strong> means that the slower or more inept<br />

worker does not produce commodity with higher value because we are considering identical<br />

human labor power, we look at “the labor time which <strong>is</strong> necessary on an average”, not<br />

individual labor times. In a capital<strong>is</strong>tic society the dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> made<br />

22 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

collectively by all commodity producing laborers. It <strong>is</strong> enforced by social mores and norms<br />

that serve to ostracize the slow and inept by not employing them.<br />

Message [29] referenced by [30] and [212.1]. Next Message by Chacci <strong>is</strong> [147].<br />

[30] Hans: Nature <strong>of</strong> collective dec<strong>is</strong>ions under capital<strong>is</strong>m In [29], answering <strong>Question</strong><br />

53, Chacci wrote that workers who are slower than the norm are not employed in capital<strong>is</strong>m.<br />

Th<strong>is</strong> <strong>is</strong> indeed Marx’s point <strong>of</strong> view; a reference <strong>is</strong> in the Annotations soon after <strong>Question</strong> 55.<br />

But it requires an additional step which <strong>is</strong> too complicated right now. We have to understand<br />

one thing at a time. Let us stick with “simple commodity production”, in which each worker<br />

owns h<strong>is</strong> own means <strong>of</strong> production and <strong>is</strong> not hired by a capital<strong>is</strong>t. In th<strong>is</strong> situation, Marx<br />

claims that a worker who works at half the pace <strong>of</strong> the average will produce half as much<br />

value per hour. Th<strong>is</strong> seems only just to us, but I tried to argue in the Annotations that it <strong>is</strong> a<br />

more repressive and less innocuous rule than it may first seem.<br />

Since it seems so just, one <strong>is</strong> tempted to think it has somehow been collectively decided<br />

and <strong>is</strong> enforced by social mores and norms, as Chacci writes. I d<strong>is</strong>agree. The mechan<strong>is</strong>m by<br />

which th<strong>is</strong> <strong>is</strong> enforced <strong>is</strong> a different one. Does anyone see what th<strong>is</strong> mechan<strong>is</strong>m <strong>is</strong>?<br />

Message [30] referenced by [212.1] and [318.3]. Next Message by Hans <strong>is</strong> [34].<br />

[32] Gottlieb: The value <strong>of</strong> labor Marx makes the argument that the value <strong>of</strong> a commodity<br />

relates directly to the amount <strong>of</strong> labor it takes to create the commodity. He makes a point<br />

to show, however, that a lazy or inept worker does not make h<strong>is</strong> or her commodity more<br />

valuable simply because it takes more <strong>of</strong> their labor time. Marx says that the worker must<br />

be held to a standard, a minimum standard, which <strong>is</strong> the average <strong>of</strong> the society. Th<strong>is</strong> would<br />

cause those below average to “hurry up” to meet the minimum requirements. He does not<br />

follow the thought further as he should. If those below the average are constantly forcing<br />

themselves to work faster, then the average would continuously r<strong>is</strong>e, ra<strong>is</strong>ing the minimum<br />

standards for production and ra<strong>is</strong>ing the output for all <strong>of</strong> the workers because they all want<br />

to “meet the minimum requirements.” The only other option in keeping with th<strong>is</strong> “average<br />

labor time” rule <strong>is</strong> that instead <strong>of</strong> the slower workers having to “hurry up,” the faster workers<br />

must slow down lowering the minimum standard.<br />

It <strong>is</strong> the society as a whole who decides how much value a commodity holds due to the<br />

amount <strong>of</strong> time it allocates to produce the commodity. Marx should have pointed out in<br />

more detail the “theoretical” problem <strong>of</strong> capital<strong>is</strong>tic societies <strong>of</strong> m<strong>is</strong>matching labor to different<br />

types <strong>of</strong> production. He says that in a capital<strong>is</strong>tic society, “Wasted labor will then be a<br />

labor in which the producer <strong>is</strong> not matched to the production in order to make h<strong>is</strong> or her best<br />

contribution.” The CEO will produce no more valuable commodities than the car salesman<br />

in a perfect society if they are 1) Producing commodities with the same labor time, and 2)<br />

are both matched with the production <strong>of</strong> a commodity in which they make their best contribution.<br />

I am confused however which society decides the value <strong>of</strong> the commodity. Would<br />

th<strong>is</strong> be on a local, national, or world level. Surely I cannot type as fast as most secretaries,<br />

but I can type faster than most aboriginies. Who constitues the average? Adherance to th<strong>is</strong><br />

rule <strong>is</strong> not enforced in a capital<strong>is</strong>tic society.<br />

Message [32] referenced by [62] and [201.1]. Next Message by Gottlieb <strong>is</strong> [200.6].<br />

[53] Dragonfly: mechan<strong>is</strong>m <strong>of</strong> production THe mechan<strong>is</strong>m described by Hans <strong>is</strong> complex<br />

and multi-faceted but as I understand it , Capital <strong>is</strong> at the very heart <strong>of</strong> it. In a capital<strong>is</strong>t<br />

market, the worker, by and large, does not own her/h<strong>is</strong> mode <strong>of</strong> production. THe mode


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 23<br />

<strong>of</strong> production <strong>is</strong> owned by the capital<strong>is</strong>t. The capital<strong>is</strong>t <strong>is</strong> a capital<strong>is</strong>t by virtue <strong>of</strong> having<br />

amassed enough capital to employ a more cost-effective mode <strong>of</strong> production: i.e. build a<br />

factory, use assembly-line techniques, purchase better machinery and/or tools. With these<br />

more effective( from the standpoint <strong>of</strong> labor) modes <strong>of</strong> production, the labor investment in<br />

each commodity produced <strong>is</strong> less and consequently can be sold for a lower price. THe independent<br />

worker producing the same commodity as the capital<strong>is</strong>t will be unable to <strong>of</strong>fer<br />

their commodity at the price <strong>of</strong> the capital<strong>is</strong>t and still have the exchange value <strong>of</strong> their commodity<br />

commeasurate with the labor they have invested in it. The capital<strong>is</strong>t will continually<br />

undersell the independent worker, eventually driving them out <strong>of</strong> business, eliminating the<br />

competition. With no competition (and assuming a la<strong>is</strong>sez-fair government), the capital<strong>is</strong>t<br />

would be free to price their commodity at whatever price the market will bear, depending<br />

on the use-value <strong>of</strong> the commodity. Not only <strong>is</strong> the worker now expected to pay whatever<br />

the capital<strong>is</strong>t wants, but her/h<strong>is</strong> own mode <strong>of</strong> production has been eliminated. THe only<br />

commodity the worker has left to sell <strong>is</strong> her/h<strong>is</strong> labor and raw materials like labor are less<br />

valuable than other commodities. THe producer becomes the consumer and the capital<strong>is</strong>t<br />

owns the mode <strong>of</strong> production. Why? Because they had the capital in the first place.<br />

Hans: Although you did not answer the <strong>Question</strong> which was asked, you are getting a good grade, for two reasons:<br />

(1) the mechan<strong>is</strong>m which you describe <strong>is</strong> a very important one. It <strong>is</strong> really much more important to understand th<strong>is</strong><br />

mechan<strong>is</strong>m than the answer to <strong>Question</strong> 53. (2) Your description <strong>of</strong> th<strong>is</strong> mechan<strong>is</strong>m <strong>is</strong> a little different than what<br />

one usually reads, which shows me that you came to it through independent thinking. I think your description <strong>is</strong><br />

quite accurate.<br />

Message [53] referenced by [64], [70], [166.2], and [335.9]. Next Message by Dragonfly <strong>is</strong> [242.2].<br />

[61] Emma: Commodity, Labor and Value Following the model set by Hans in class for<br />

interpreting passages <strong>of</strong> Capital, I will take the question apart and answer it in pieces first, in<br />

part by defiing some terms. Then I intend to put the pieces together and answer the question<br />

in whole. Hopefully by making some <strong>of</strong> my assumptions overt through definitions the many<br />

errors in my thinking will be more easily spotted and corrected.<br />

For Marx a commodity <strong>is</strong> a use value which <strong>is</strong> produced for sale in the market and thus<br />

has an exchange value. The “value” referred to in the question <strong>is</strong> the exchange value. It <strong>is</strong><br />

primarily a social relation and may have a dollar amount ascribed to it. Unlike a use value<br />

which <strong>is</strong> a carrier <strong>of</strong> exchange value and represents utility possibilities not measured per se,<br />

the value mentioned in the question has an explicit exchange value, or price, that may or<br />

may not change over time.<br />

Exchange value <strong>is</strong> set in a capital<strong>is</strong>t society through a market where bartering and negotiating<br />

work to set a price. In th<strong>is</strong> process, the capital<strong>is</strong>t observes the needs <strong>of</strong> the market<br />

to determine which commodities are in demand. He then adjusts h<strong>is</strong> production to meet the<br />

demands he observes. Th<strong>is</strong> <strong>is</strong> a process grounded on the self-interest <strong>of</strong> the producer <strong>of</strong> the<br />

commodity who intends to meet a market need and thereby maximize h<strong>is</strong> own benefit. The<br />

commodity in question <strong>is</strong> produced strictly for the market. The exchange value <strong>of</strong> a commodity<br />

in a capital<strong>is</strong>t society <strong>is</strong> exactly equal to what someone <strong>is</strong> willingto pay or trade for<br />

it.<br />

Marx believes that a better and more equitable way to establ<strong>is</strong>h the exchange value <strong>of</strong><br />

a commodity <strong>is</strong> through the quantification <strong>of</strong> the labor required to produce the commodity,<br />

but not just any labor. For Marx the substance <strong>of</strong> value <strong>is</strong> labor and the magnitude <strong>of</strong> value<br />

24 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>is</strong> measured by the amount <strong>of</strong> labor. And it <strong>is</strong> the duration <strong>of</strong> time that measures labor,<br />

time being defined in typical terms. There are a number <strong>of</strong> peculiar assumptions posited by<br />

Marx and upon which Marx bases h<strong>is</strong> value theory that should be understood when trying to<br />

grasp h<strong>is</strong> meanings <strong>of</strong> labor and value. Specifically, the notions <strong>of</strong> “concrete” and “abstract”<br />

labor should be considered, with the latter being the real bas<strong>is</strong> for the measure <strong>of</strong> exchange<br />

value, though it <strong>is</strong> also an incomplete idea on its own. As I understand it, concrete labor <strong>is</strong><br />

the labor act that results in a particular commodity. Abstract labor <strong>is</strong> characterized as the<br />

general expenditure <strong>of</strong> human energy.<br />

From th<strong>is</strong> model it would be tempting to assume that the longer it takes to produce a<br />

commodity the greater its value would be. That <strong>is</strong>, time spent relatively unproductively on<br />

the job would count equally toward creating value as time spent actively and skillfully engaged.<br />

Now, intuitively most people, including Marx, would conclude that such an approach<br />

<strong>is</strong> absurd since qualitatively there would be an obvious difference between the results <strong>of</strong> the<br />

two uses <strong>of</strong> time. Therefore, Marx was compelled to include in h<strong>is</strong> theory <strong>of</strong> concret and<br />

abstract labor as the fundamentals <strong>of</strong> value the idea <strong>of</strong> “average human labor power” which<br />

<strong>is</strong> a social interpretation and measurement <strong>of</strong> the abstract labor time necessary to produce a<br />

commodity. It <strong>is</strong> an attempt at establ<strong>is</strong>hing a norm against which to measure the productivity<br />

and value <strong>of</strong> other labor. For Marx, the socially necessary labor time required to produce a<br />

commodity must take into consideration the fact that the abstract labor expended to create<br />

exchange value in one commodity <strong>is</strong> equal to any other abstract labor because special consideration<br />

must be given to the “prevailing socially normal conditions <strong>of</strong> production and with<br />

the socially average degree <strong>of</strong> skill and intensity,” the idea being that although some labor<br />

may be aided by higher levels <strong>of</strong> technology and produce more <strong>of</strong> a commodity than labor<br />

without such advantages for example, the abstract labor in both cases <strong>is</strong> still <strong>of</strong> equal intrinsic<br />

value. Therefore, while the results <strong>of</strong> various abstract labors may be different and equate<br />

to different exchange values in the production <strong>of</strong> a commodity, the intrinsic value <strong>of</strong> the abstract<br />

labors required to produce the commodity are equal; and given the idea <strong>of</strong> “average” in<br />

th<strong>is</strong> context one would expect that the laborer favored with the means for greater productivity<br />

would produce absolutely more product while the average product <strong>of</strong> th<strong>is</strong> laborer would<br />

still equal that <strong>of</strong> the laborer not so favored. Th<strong>is</strong> theory holds so long as the differences<br />

in abstract labor are as described in the question, that <strong>is</strong>, slow and inept in the benign sense<br />

<strong>of</strong> not being as skilled or procicient as someone else, and not something purposeful such as<br />

lazy. Marx seems to d<strong>is</strong>count the possibility <strong>of</strong> lazy or willfully inept workers (something<br />

most people who work in the real world would have difficulty accepting) except to say that<br />

society might sanction someone who <strong>is</strong>n’t measuring up.<br />

For Marx, labor <strong>is</strong> the key to the problem <strong>of</strong> value, and the amount <strong>of</strong> socially necessary<br />

abstract labor determines exchange value. The assumption again <strong>is</strong> that workers are working<br />

diligently, and the speed with which a product <strong>is</strong> produced <strong>is</strong> irrelevant to its exchange value,<br />

contrary to capital<strong>is</strong>m. The notion that th<strong>is</strong> concept forces everyone to “hurry-up” <strong>is</strong> wrong.<br />

On the contrary, it allows all workers to labor at their own pace. It specifically allows for the<br />

“Mozarts” and “Einsteins” <strong>of</strong> the world because it values labor intrinsically and abstractly<br />

equally with concrete labor. In th<strong>is</strong> model the end result <strong>is</strong> not the determinant <strong>of</strong> exchange<br />

value, contrary to capital<strong>is</strong>m. (By the way, Mozart and Einstein are bad examples <strong>of</strong> art<strong>is</strong>ts


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 25<br />

and thinkers whose efforts are generally suspect by the material<strong>is</strong>ts <strong>of</strong> the world. Better to<br />

use Courtney Love and Jackson Pollack. Yikes!)<br />

How Marx would go about setting the socially accepted labor standards <strong>is</strong> unknown to<br />

me. I assume h<strong>is</strong> theories would lead toward establ<strong>is</strong>hing some very unproductive “lowest<br />

common denominator” standards. That the world that once theoretically embraced h<strong>is</strong> ideas<br />

<strong>is</strong> moving away from them to something that <strong>is</strong>n’t quite capital<strong>is</strong>m yet also not social<strong>is</strong>m <strong>is</strong><br />

telling.<br />

Message [61] referenced by [66] and [71]. Next Message by Emma <strong>is</strong> [139].<br />

[62] Hans: <strong>What</strong> <strong>is</strong> average labor? Gottlieb’s answer [32] to <strong>Question</strong> 53 has many<br />

thoughful and interesting points, but also a few gaps and errors. I will go through it sentence<br />

by sentence. At the beginning, Gottlieb briefly summarizes Marx’s argument leading up to<br />

<strong>Question</strong> 53:<br />

Marx makes the argument that the value <strong>of</strong> a commodity relates directly<br />

to the amount <strong>of</strong> labor it takes to create the commodity. He makes a point<br />

to show, however, that a lazy or inept worker does not make h<strong>is</strong> or her<br />

commodity more valuable simply because it takes more <strong>of</strong> their labor time.<br />

So far it <strong>is</strong> very good and helpful. But then Gottlieb continues:<br />

Marx says that the worker must be held to a standard, a minimum standard,<br />

which <strong>is</strong> the average <strong>of</strong> the society.<br />

Marx does not say th<strong>is</strong> anywhere. He shows that in capital<strong>is</strong>t society the worker <strong>is</strong> indeed<br />

being held to a standard, not because there <strong>is</strong> a need for it and someone steps in and says:<br />

th<strong>is</strong> freeloading <strong>is</strong> getting out <strong>of</strong> hand, we must introduce some standards here, but by the<br />

automatic working <strong>of</strong> the market. Marx’s argument <strong>is</strong> not as clear as it could be, th<strong>is</strong> <strong>is</strong> why<br />

I am asking <strong>Question</strong> 57, which can be re-phrased as: which market mechan<strong>is</strong>m <strong>is</strong> Marx<br />

referring to here? Gottlieb <strong>is</strong> not answering all th<strong>is</strong>, but he brings an interesting implication<br />

<strong>of</strong> the ex<strong>is</strong>tence <strong>of</strong> such a mechan<strong>is</strong>m:<br />

Th<strong>is</strong> would cause those below average to “hurry up” to meet the minimum<br />

requirements. He does not follow the thought further as he should. If those<br />

below the average are constantly forcing themselves to work faster, then<br />

the average would continuously r<strong>is</strong>e, ra<strong>is</strong>ing the minimum standards for<br />

production and ra<strong>is</strong>ing the output for all <strong>of</strong> the workers because they all<br />

want to “meet the minimum requirements.”<br />

You are coming to th<strong>is</strong> conclusion because you are taking the word “average” in the sense<br />

<strong>of</strong> “arithmetic mean”. Had Marx written “median” instead <strong>of</strong> average, then your conclusion<br />

would no longer have been valid. If the outliers are moved towards the median without<br />

crossing the median, th<strong>is</strong> does not change the median one bit.<br />

Marx’s concept <strong>of</strong> “average” does not specify whether the median <strong>is</strong> meant or the mean<br />

or whatever. These are mathematical formulas which know nothing about the specific circumstances.<br />

Marx does not expect any formula to be able to automatically figure out what<br />

26 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

the socially normal level <strong>is</strong> in the given circumstance. It <strong>is</strong> kind <strong>of</strong> strange that we tend to<br />

think that there should be such a formula, <strong>is</strong>n’t it?<br />

Having said th<strong>is</strong>, I still agree with you that the mechan<strong>is</strong>ms Marx refers to and which you<br />

did not explain tend to push the normal level towards more intensive labor.<br />

The only other option in keeping with th<strong>is</strong> “average labor time” rule <strong>is</strong> that<br />

instead <strong>of</strong> the slower workers having to “hurry up,” the faster workers must<br />

slow down lowering the minimum standard.<br />

I hope you know now what to think about the ‘average labor time rule’, but you are<br />

still broaching an important <strong>is</strong>sue. Indeed, there <strong>is</strong> no automatic mechan<strong>is</strong>m causing those<br />

who work too fast to slow down. Th<strong>is</strong> has to be done by peer pressure, union work rules,<br />

etc. There <strong>is</strong> an interesting analogy in international finance: in the Bretton Woods system,<br />

countries in balance <strong>of</strong> payments deficit were penalized and had to scramble in order to<br />

adjust to the “average”, but those in balance <strong>of</strong> payments surplus did not feel any pain and<br />

did not have to do anything. Keynes wanted to put more <strong>of</strong> the burden <strong>of</strong> adjustment on the<br />

surplus countries, but he was voted down in 1944.<br />

It <strong>is</strong> the society as a whole who decides how much value a commodity<br />

holds due to the amount <strong>of</strong> time it allocates to produce the commodity.<br />

Marx should have pointed out in more detail the “theoretical” problem <strong>of</strong><br />

capital<strong>is</strong>tic societies <strong>of</strong> m<strong>is</strong>matching labor to different types <strong>of</strong> production.<br />

He says that in a capital<strong>is</strong>tic society, “Wasted labor will then be a labor in<br />

which the producer <strong>is</strong> not matched to the production in order to make h<strong>is</strong> or<br />

her best contribution.”<br />

The sentence which you quoted <strong>is</strong> from me and not from Marx, and it refers to social<strong>is</strong>m,<br />

not capital<strong>is</strong>m, i.e., to a society in which the law <strong>of</strong> the average no longer reigns.<br />

The CEO will produce no more valuable commodities than the car salesman<br />

in a perfect society if they are 1) Producing commodities with the same<br />

labor time, and 2) are both matched with the production <strong>of</strong> a commodity in<br />

which they make their best contribution.<br />

I hope you are aware that in Marx’s view, the CEO does not produce any value. H<strong>is</strong> high<br />

income <strong>is</strong> not a sign <strong>of</strong> h<strong>is</strong> productivity but <strong>is</strong> the sign that he <strong>is</strong> on the receiving end <strong>of</strong><br />

capital<strong>is</strong>t exploitative relations. In social<strong>is</strong>m, these people will be allowed to do something<br />

more useful than figuring out the latest tricks how to channel as much <strong>of</strong> the social surplus<br />

value as possible into their pockets.<br />

I am confused however which society decides the value <strong>of</strong> the commodity.<br />

Would th<strong>is</strong> be on a local, national, or world level. Surely I cannot type as<br />

fast as most secretaries, but I can type faster than most aboriginies. Who<br />

constitues the average?<br />

Very interesting question. With modern computers and satellite communications, it has<br />

indeed become feasible that the aborigines take over certain rote <strong>of</strong>fice tasks, like scanning


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 27<br />

in checks or sorting merchand<strong>is</strong>e coupons. Right now we are using Mexicans to do th<strong>is</strong>,<br />

and the question how fast these people are able and willing to work <strong>is</strong> tendentially affecting<br />

the number <strong>of</strong> c<strong>of</strong>fee breaks in <strong>of</strong>fices in the USA. It <strong>is</strong> a matter <strong>of</strong> both technology and<br />

the character <strong>of</strong> the international economic institutions how far beyond the own nation these<br />

social norms go.<br />

Adherance to th<strong>is</strong> rule <strong>is</strong> not enforced in a capital<strong>is</strong>tic society.<br />

You haven’t described the mechan<strong>is</strong>m which I am looking for, therefore you cannot know<br />

how “forceful” these mechan<strong>is</strong>ms are.<br />

Next Message by Hans <strong>is</strong> [63].<br />

[64] Hans: Mechan<strong>is</strong>ms <strong>of</strong> Capital<strong>is</strong>t Exploitation Dragonfly’s [53] gives an accurate<br />

description <strong>of</strong> one <strong>of</strong> the most important economic mechan<strong>is</strong>ms in capital<strong>is</strong>m today: how it<br />

happens that the workers have to do all the work and the capital<strong>is</strong>ts get all the money.<br />

I would just like to add one paragraph, in order to make the connections perhaps a little<br />

clearer. In today’s technology, a worker working with h<strong>is</strong> own tools <strong>is</strong> hopelessly outdated.<br />

Today mass production <strong>is</strong> socially necessary. In a society <strong>of</strong> mass production, the workers<br />

should collectively have control over the factories which are so-to-say their tools. But in<br />

modern capital<strong>is</strong>m they do not. Control over the factories <strong>is</strong> monopolized by a small elite<br />

group in society, who, due to th<strong>is</strong> control, can cream <strong>of</strong>f most <strong>of</strong> the <strong>wealth</strong> produced in<br />

these factories.<br />

Of course, th<strong>is</strong> <strong>is</strong> not an answer to <strong>Question</strong> 53. In <strong>Question</strong> 53, I was also looking for an<br />

economic mechan<strong>is</strong>m, but a much simpler one. Dragonfly’s [53] may give you an idea what<br />

an economic mechan<strong>is</strong>m <strong>is</strong>.<br />

Message [64] referenced by [92] and [335.9]. Next Message by Hans <strong>is</strong> [66].<br />

[66] Hans: Emma did in [61] exactly what she intended to do: she laid out her assumptions<br />

so openly and clearly that it <strong>is</strong> more easily possible to “spot and correct” her errors.<br />

At the beginning, everything <strong>is</strong> correct, and I am repeating it here, because it <strong>is</strong> so well<br />

formulated:<br />

For Marx a commodity <strong>is</strong> a use value which <strong>is</strong> produced for sale in the<br />

market and thus has an exchange value. The “value” referred to in the<br />

question <strong>is</strong> the exchange value. It <strong>is</strong> primarily a social relation and may<br />

have a dollar amount ascribed to it. Unlike a use value which <strong>is</strong> a carrier <strong>of</strong><br />

exchange value and represents utility possibilities not measured per se, the<br />

value mentioned in the question has an explicit exchange value, or price,<br />

that may or may not change over time.<br />

Exchange value <strong>is</strong> set in a capital<strong>is</strong>t society through a market where bartering<br />

and negotiating work to set a price. In th<strong>is</strong> process, the capital<strong>is</strong>t<br />

observes the needs <strong>of</strong> the market to determine which commodities are in<br />

demand. He then adjusts h<strong>is</strong> production to meet the demands he observes.<br />

Th<strong>is</strong> <strong>is</strong> a process grounded on the self-interest <strong>of</strong> the producer <strong>of</strong> the commodity<br />

who intends to meet a market need and thereby maximize h<strong>is</strong> own<br />

benefit. The commodity in question <strong>is</strong> produced strictly for the market.<br />

28 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The exchange value <strong>of</strong> a commodity in a capital<strong>is</strong>t society <strong>is</strong> exactly equal<br />

to what someone <strong>is</strong> willingto pay or trade for it.<br />

But what comes next <strong>is</strong> a m<strong>is</strong>understanding. Emma continues<br />

Marx believes that a better and more equitable way to establ<strong>is</strong>h the exchange<br />

value <strong>of</strong> a commodity <strong>is</strong> through the quantification <strong>of</strong> the labor required<br />

to produce the commodity.<br />

Th<strong>is</strong> <strong>is</strong> incorrect. Marx says on the contrary: the blind bartering for self-interest on the<br />

market has the social consequence that exchange proportions are governed by labor time.<br />

Please go back and read the text again, Emma. <strong>What</strong> you interpret to be Marx’s judgments<br />

how a fair economy ought to function are in reality Marx’s inferences about how an actual<br />

“simple commodity” economy ticks. Admittedly, everything looks fair, but it already has<br />

some hidden sources <strong>of</strong> inequity built in, which will assert themselves later in the book.<br />

There <strong>is</strong> really lots <strong>of</strong> good stuff in what you write, Emma, even if your main organizing<br />

principle <strong>is</strong> wrong now. But I will just pick out one example <strong>of</strong> what you say in order to make<br />

my point. For instance, regarding the question that all labor <strong>is</strong> equally valued, regardless <strong>of</strong><br />

what it produces and how high the technology <strong>is</strong>, you write:<br />

the idea being that although some labor may be aided by higher levels <strong>of</strong><br />

technology and produce more <strong>of</strong> a commodity than labor without such advantages<br />

for example, the abstract labor in both cases <strong>is</strong> still <strong>of</strong> equal intrinsic<br />

value.<br />

Marx’s conclusion <strong>is</strong> not based on the value judgment that all labor should be valued<br />

equal, but on the simple fact that the exact same labor which today produces with very low<br />

technology can tomorrow go to a different workplace and produce something with very high<br />

technology. Th<strong>is</strong> mobility <strong>of</strong> labor <strong>is</strong> the reason why certain kinds <strong>of</strong> labor cannot permanently<br />

command higher prices on the market than others. If they would, then laborers would<br />

just migrate into those industries which command the higher prices. Th<strong>is</strong> <strong>is</strong> an economic<br />

mechan<strong>is</strong>m <strong>of</strong> the kind I was looking for. Modern economic models are full <strong>of</strong> them.<br />

Marx differs from modern economics in that he does not yet consider these economic<br />

mechan<strong>is</strong>ms to be the final explanation. He goes one step further and says: th<strong>is</strong> migration <strong>of</strong><br />

labor <strong>is</strong> possible because in a certain respect these two kinds <strong>of</strong> labor are indeed equal, they<br />

are both the expenditure <strong>of</strong> human brain, nerves, muscles, etc. Now it <strong>is</strong> easy to interpret th<strong>is</strong><br />

as a value judgment, that it would be fair to treat these labors as equals, but Marx means it<br />

as a factual statement, these labors are equal qua abstract labor, and th<strong>is</strong> equality <strong>is</strong> socially<br />

recognized in the equality <strong>of</strong> market prices.<br />

<strong>Question</strong> 53 still has not yet been answered. The answer <strong>is</strong> really simple, almost trivial,<br />

and after all th<strong>is</strong>, many <strong>of</strong> you will probably be d<strong>is</strong>appointed when you hear it. But nevertheless,<br />

your attempted answers to 53 have been very instructive and have by no means been<br />

a waste <strong>of</strong> time.<br />

Message [66] referenced by [176.2]. Next Message by Hans <strong>is</strong> [72].<br />

[70] Fritz: car wash Dragonfly wrote in [53]:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 29<br />

THe independent worker producing the same commodity as the capital<strong>is</strong>t<br />

will be unable to <strong>of</strong>fer their commodity at the price <strong>of</strong> the capital<strong>is</strong>t and<br />

still have the exchange value <strong>of</strong> their commodity commeasurate with the<br />

labor they have invested in it. The capital<strong>is</strong>t will continually undersell the<br />

independent worker, eventually driving them out <strong>of</strong> business, eliminating<br />

the competition.<br />

<strong>Question</strong> <strong>is</strong> more along the lines <strong>of</strong>:<br />

I can wash a car in 1 hour. You can wash a car in 15 minutes. Our product (the car wash)<br />

<strong>is</strong> the same. The value contained in our product <strong>is</strong> the same.<br />

why?<br />

Cheers. Fritz<br />

Message [70] referenced by [104] and [197.4]. Next Message by Fritz <strong>is</strong> [71].<br />

[71] Fritz: Courtney Love Emma wrote in [61]:<br />

For Marx a commodity <strong>is</strong> a use value which <strong>is</strong> produced for sale in the<br />

market and thus has an exchange value. The “value” referred to in the<br />

question <strong>is</strong> the exchange value.<br />

Doesn’t “value” refer to the amount <strong>of</strong> abstract labor contained in the good or service.<br />

For example, the price (exchange value) can fluctuate, but its value remains constant.<br />

<strong>of</strong> “average human labor power” which <strong>is</strong> a social interpretation and measurement<br />

<strong>of</strong> the abstrac labor time necessary to produce a commodity. It <strong>is</strong><br />

an attempt at establ<strong>is</strong>hing a norm against which to measure the productivity<br />

and value <strong>of</strong> other labor.<br />

Abstract labor <strong>is</strong> characterized as the general expenditure <strong>of</strong> human energy.<br />

if we wanted to quantify how many brake shoes are produced using one hour <strong>of</strong> abstract<br />

labor, how would we go about it?<br />

would we pluck 100 people at random and check their productivity? or, would we find<br />

100 people who are adept at th<strong>is</strong> task and check their productivity?<br />

you provide the beginnings <strong>of</strong> an answer:<br />

“prevailing socially normal conditions <strong>of</strong> production and with the socially<br />

average degree <strong>of</strong> skill and intensity,”<br />

but question remains – if I were such a poor builder <strong>of</strong> brake shoes that no capital<strong>is</strong>t would<br />

ever hire me, would I still be included in determining the amount <strong>of</strong> abstract labor needed<br />

for creating a brake shoe?<br />

if I am a very adept builder <strong>of</strong> brake shoes, and yet my personal supply curve <strong>is</strong> such that<br />

I will never be demanded, am I included in the determination <strong>of</strong> the abstract labor necessary<br />

for producing brake shoes?<br />

30 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

basically, my question boils down to whether the definition <strong>of</strong> abstract labor <strong>is</strong> ultimately<br />

based upon the supply and demand for commodities.<br />

or if it simply a question <strong>of</strong> the skill and intensity <strong>of</strong> the average human?<br />

Better to use Courtney Love and Jackson Pollack.<br />

Was not Jackson Pollack the art<strong>is</strong>t dripper?<br />

Cheers. Fritz<br />

Next Message by Fritz <strong>is</strong> [78].<br />

[96] Pizza: value <strong>of</strong> commodities The assertion that the value <strong>of</strong> a commodity does not<br />

increase if it <strong>is</strong> made by a slow or inept laborer ex<strong>is</strong>ts under certain conditions.<br />

The homogeneity <strong>of</strong> products<br />

Perfect market information <strong>of</strong> all participants<br />

No differentiation <strong>of</strong> labor<br />

Under these conditions, the commodity has a uniform exchange value to other commodities.<br />

Th<strong>is</strong> exchange value will remain constant regardless <strong>of</strong> the individual contribution.<br />

Under these conditions the exchange value <strong>is</strong> a reflection <strong>of</strong> “the labor time socially neccessary...<br />

required to produce an article under the prevailing socially normal conditions <strong>of</strong><br />

production and with the socially average degree <strong>of</strong> skill and intensity”. There <strong>is</strong> no d<strong>is</strong>tingu<strong>is</strong>hable<br />

differences between one good and another produced by the abstract labor. Th<strong>is</strong> <strong>is</strong><br />

one <strong>of</strong> the conditions resulting from the unifrom production <strong>of</strong> goods that asserts itself in the<br />

marketplace. The marketplace therfore dictates the exchange relation commodities and thus<br />

enforces the abstraction <strong>of</strong> labor.<br />

Message [96] referenced by [104], [206.5], and [321.1]. Next Message by Pizza <strong>is</strong> [135].<br />

[104] Hans: A much-desired connection with the mainstream Pizza’s answer [96]<br />

phrases the same argument in the language <strong>of</strong> modern mainstream economics, which Chocolate<br />

gave in [54], and which also Fritz gave in [70] with h<strong>is</strong> car wash example. When I say<br />

“rephrase” one might think th<strong>is</strong> <strong>is</strong> no big deal. But it <strong>is</strong>. By th<strong>is</strong> rephrasing, Pizza makes a<br />

very powerful analytical apparatus available to us.<br />

Neoclassical theory <strong>is</strong> wrong, but th<strong>is</strong> does not mean we cannot learn from it. Lots <strong>of</strong><br />

extremely smart people are working in the field. Yes it <strong>is</strong> amazing that despite their IQ they<br />

don’t notice (or in any case do not admit to themselves) the obvious flaws <strong>of</strong> their approach.<br />

Just one question, Pizza: I don’t quite see which role your assumption <strong>of</strong><br />

No differentiation <strong>of</strong> labor<br />

plays in th<strong>is</strong> derivation.<br />

Next Message by Hans <strong>is</strong> [105].<br />

[161.1] Chocolate: Subm<strong>is</strong>. <strong>of</strong> 1st. midterm According to Marx, workers who are<br />

slower and are not capable <strong>of</strong> keeping up to with the norms are not employed in capital<strong>is</strong>m.<br />

The value <strong>of</strong> a commodity does not increase if produced by a slow worker or inept worker,<br />

because that worker <strong>is</strong> not providing any useful or additional labor that might increase the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 31<br />

value <strong>of</strong> the commodity. In fact, Marx states that a worker who works half as much as<br />

another will only produce half as much value per hour.<br />

Our own society <strong>is</strong> what causes us to do things th<strong>is</strong> way and also enforce it throughout the<br />

workforce. A worker who <strong>is</strong> slow will be forced out <strong>of</strong> a job because he/she will be unable<br />

to keep up with other employees who are faster. The capatil<strong>is</strong>t will see that the slow and<br />

inept worker <strong>is</strong> only holding up progress for h<strong>is</strong> company, therefore terminating that worker<br />

and hiring a faster worker <strong>is</strong> the only logical solution. Competition <strong>is</strong> the primary enforcer<br />

<strong>of</strong> it all.<br />

Hans: You see correctly that it <strong>is</strong> enforced by competition, but you think it <strong>is</strong> competition in the labor market, while<br />

it <strong>is</strong> really competition in the goods market. When the buyer buys the fin<strong>is</strong>hed product, he has no idea whether it<br />

was made by a slow or an average worker, and he does not care; he pays the same price. Therefore the worker who<br />

puts in twice as much labor than the norm, will only get half the reward per hour.<br />

Next Message by Chocolate <strong>is</strong> [199].<br />

[166.2] MUCHO: According to Marx, the value <strong>of</strong> a commodity relates directly to the<br />

amount <strong>of</strong> labor it takes to create the commodity. However, a low or inept worker does<br />

not make h<strong>is</strong> or her commodity more valuable simply because it takes more <strong>of</strong> their labor<br />

time which will be an extra cost for the firm. Gap between cost and pr<strong>of</strong>it make the value<br />

<strong>of</strong> commodity. When the gap expands to certain commodity, the value <strong>of</strong> the commodity<br />

will r<strong>is</strong>e. On the other hand, as the gap narrows down, the value <strong>of</strong> the commodity will<br />

decrease. The labor <strong>is</strong> the key to the value, and the amount <strong>of</strong> socially necessary abstract<br />

labor determines exchange value.<br />

Hans: During the exam, you literally copied a passage from [53], which <strong>is</strong> a different mechan<strong>is</strong>m, not the one<br />

asked for in th<strong>is</strong> <strong>Question</strong>. In your resubm<strong>is</strong>sion you take the very capital<strong>is</strong>t point <strong>of</strong> view to consider only the<br />

gap between cost and price to be value. I.e., the part <strong>of</strong> the product which the worker gets <strong>is</strong> not considered value.<br />

It <strong>is</strong> capital<strong>is</strong>t logic to consider the wage, the income <strong>of</strong> the worker, as cost, but in Marx’s eyes the wages are an<br />

equivalent <strong>of</strong> part <strong>of</strong> the value newly created by the worker.<br />

Next Message by MUCHO <strong>is</strong> [182].<br />

[169.5] MsMarx: Skilled labor will always produce more value per hour than unskilled<br />

labor. If there are two individuals, one skilled and one unskilled, and they produce an identical<br />

product and it took them the same amount <strong>of</strong> labor and time to produce th<strong>is</strong> product; then<br />

both <strong>of</strong> the products that were produced (one by an unskilled and one by a skilled worker)<br />

will have equal use and exchange value.<br />

An individual who <strong>is</strong> skilled in what he or she produces will always find a better way to<br />

increase h<strong>is</strong> or her technology <strong>of</strong> producing h<strong>is</strong> or her product. Because he or she <strong>is</strong> skilled,<br />

that individual will also find a way to produce more products per hour. Who would you<br />

trust to fix your transm<strong>is</strong>sion–a mechanic with 10 years experience or one with one 1 year<br />

experience? The logical answer in th<strong>is</strong> point would be to pick the one who has 10 years under<br />

their belt. But assume that the individual who only has 1 year <strong>of</strong> experience graduated with<br />

very high credentials from their automechanic school Also assume h<strong>is</strong> credentials were much<br />

higher than the mechanic with 10 years <strong>of</strong> experience. I would still choose the mechanic<br />

with 10 years experience, because throughout the years, th<strong>is</strong> individual will have acquired<br />

the necessary knowledge.<br />

The mechanic who had only one year <strong>of</strong> experience, might have answered all <strong>of</strong> h<strong>is</strong><br />

test questions correctly, but how would he perform under such pressure <strong>of</strong> actually fixing a<br />

32 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

transm<strong>is</strong>sion under a certain amount <strong>of</strong> time. Better yet, how fast and accurate would he be<br />

able to fix the transm<strong>is</strong>sion if their company <strong>is</strong> booked and very busy on a certain day?<br />

The mechanic who has ten years under h<strong>is</strong> belt, will know how to deal with those kinds <strong>of</strong><br />

pressure situations mainly because he has been around longer and has acquired the necessary<br />

skill that will enable him to overcome those situations and produce more output than one who<br />

<strong>is</strong> unskilled.<br />

Thus, the economic mechan<strong>is</strong>m which enforces that the labor <strong>of</strong> the slow worker produces<br />

less value than that <strong>of</strong> the fast worker <strong>is</strong> that both products are ind<strong>is</strong>tingu<strong>is</strong>hable once they<br />

are on the market, and therefore the values <strong>of</strong> the products must be the same, regardless <strong>of</strong><br />

the circumstances under which they are produced.<br />

One <strong>of</strong> the important mechan<strong>is</strong>ms in capital<strong>is</strong>m today <strong>is</strong> how it happens that the workers<br />

have to do all the work and the capital<strong>is</strong>ts get all the money. In today’s technology, a worker<br />

working with h<strong>is</strong> own tools <strong>is</strong> hopelessly outdated. Today mass production <strong>is</strong> socially necessary.<br />

In a society <strong>of</strong> mass production, the workers should collectively have control over<br />

the factories which are so to say their tools. But in modern capital<strong>is</strong>m they do not. Control<br />

over the factories <strong>is</strong> monopolized by a small elite group in society, who, due to th<strong>is</strong> control,<br />

can cream <strong>of</strong>f most <strong>of</strong> the <strong>wealth</strong> produced in these factories.<br />

The labor time socially necessary <strong>is</strong> that required to produce an article under the prevailing<br />

socially normal condition <strong>of</strong> production and with the socially average degree <strong>of</strong> skill and<br />

intensity. The image <strong>of</strong> the lay or unskilled laborer makes the concept <strong>of</strong> socially necessary<br />

labor time look more natural and innocuous than it really <strong>is</strong>. Everyone thinks automatically:<br />

if someone <strong>is</strong> lazy, he or she should not get full credit. But one need not be lazy or inept to<br />

be slower than others! Perhaps a producer <strong>is</strong> slower because he or she <strong>is</strong> producing a work<br />

<strong>of</strong> art, <strong>of</strong>fer <strong>is</strong> making a unique contribution which nobody else can make. The concept <strong>of</strong><br />

socially necessary labor time leaves no room for th<strong>is</strong>; it forces everyone to hurry up, everyone<br />

has to meet some minimum standards, everyone has to be like the average, which means<br />

that exceptional contribution cannot be recognized.<br />

Socially necessary labor time <strong>is</strong> not identical to the labor time actually used. For example,<br />

the introduction <strong>of</strong> power looms into England probably reeduced by one half the labor<br />

required to weave a given amount <strong>of</strong> yarn into cloth. The Engl<strong>is</strong>h hand-loom weavers, as a<br />

matter <strong>of</strong> fact, continued to require the same time as before; but after the change, the production<br />

<strong>of</strong> one hour <strong>of</strong> their labor represented only half an hour’s social labor, and consequently<br />

fell to one-half its former value. Here Marx does not take the average <strong>of</strong> the old and new production<br />

method, but the new method <strong>is</strong> the one socially necessary! That which determines<br />

the magnitude <strong>of</strong> the value <strong>of</strong> any article <strong>is</strong> only the amount <strong>of</strong> socially necessary labor, or<br />

the labor time socially necessary for its production. The value <strong>of</strong> the necessities <strong>of</strong> life, when<br />

they are exchanged the one for another, <strong>is</strong> regulated by the quantity <strong>of</strong> labor necessarily required<br />

and commonly taken in producing them. Not the labor time actually contained in the<br />

commodity, but the socially necessary labor time under which it can be produced, counts. A<br />

result like th<strong>is</strong> <strong>is</strong> to be expected since the individual commodity <strong>is</strong> generally to be considered<br />

as an average sample <strong>of</strong> its kind.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 33<br />

Even if the socially necessary labor time <strong>is</strong> not actually contained in a particular article<br />

under consideration, it usually <strong>is</strong> contained in the majority <strong>of</strong> other articles which have the<br />

same use value. As long as the use values are identical, the buyers do not d<strong>is</strong>tingu<strong>is</strong>h between<br />

them. In other words, an exceptionally slow worker has to compete with identical articles<br />

made by average laborers, therefore he cannot fetch a better price than those.<br />

Hans: Th<strong>is</strong> <strong>is</strong> a very comprehensive contribution. Everything your wrote except the paragraph how it happens that<br />

the worker has to do all the work and the capital<strong>is</strong>t gets all the money <strong>is</strong> relevant for the <strong>Question</strong> asked.<br />

Next Message by MsMarx <strong>is</strong> [262].<br />

[176.2] Karl: The value <strong>of</strong> a commodity <strong>is</strong> two-fold. A commodity <strong>is</strong> compr<strong>is</strong>ed <strong>of</strong> use<br />

value, and value. These two parts <strong>of</strong> the commodity are sub-divided into underlying components<br />

<strong>of</strong> “concrete labor(with use value)” and “abstract labor(with value).” Marx said, “ all<br />

human labor expenditures are equal.” Taking th<strong>is</strong> into consideration we can see that Marx<br />

was not concerned with qualitative values <strong>of</strong> labor, ie:slow or inept labor, rather with quantitative<br />

values. Therefore a commodity does not increase in value based on the qualitative<br />

worker. Marx only goes as far as giving an average societal labor power in definition <strong>of</strong><br />

qualitative efforts in labor. He called th<strong>is</strong> subdiv<strong>is</strong>ion “simple labor.”<br />

It makes no difference or change to the commodity, whether made by “skilled” or “unskilled”<br />

labor. Th<strong>is</strong> <strong>is</strong> re-enforced by the second part <strong>of</strong> the question. Hans stated, “sometimes<br />

simple labor <strong>is</strong> better than skilled.”<br />

Who makes the dec<strong>is</strong>ion? In a pure capital<strong>is</strong>t system it seems to be extremely arbitrary,<br />

and th<strong>is</strong> may be one reason why Marx wrote Capital. An example <strong>of</strong> th<strong>is</strong> was made in one<br />

<strong>of</strong> the subm<strong>is</strong>sions. The example was given <strong>of</strong> an Aborigine being able to type as fast as<br />

one <strong>of</strong> our class mates. Taking in consideration outside cultural factors, really doesn’t make<br />

sense that one person or a societal aggregate can be the one who defines who <strong>is</strong> a “slow” or<br />

“inept” laborer.<br />

How <strong>is</strong> it enforced? Assuming the status quo <strong>of</strong> a capital<strong>is</strong>t system, th<strong>is</strong> question <strong>is</strong><br />

answered in the question 53 subm<strong>is</strong>sion rebuttals, by Hans. It was stated, “that in a capital<strong>is</strong>t<br />

system th<strong>is</strong> rule <strong>is</strong> not enforced.” So we can infer by th<strong>is</strong> that no person or entity enforces<br />

th<strong>is</strong> assuming a capital system.<br />

Hans: It <strong>is</strong> true that, according to Marx’s theory, the market considers all human labor expenditures to be equal, but<br />

only if these labors are performed with the socially average level <strong>of</strong> skill and technology. You are right, th<strong>is</strong> means<br />

that labor only counts quantitatively, but my “only if” in the preceding sentence gives r<strong>is</strong>e to the qualification: the<br />

quality only enters if the labor does not meet certain social minimum standards.<br />

The remainder <strong>of</strong> your subm<strong>is</strong>sion suffers under several confusions:<br />

(1) you seem not to be clear about the difference between the two <strong>is</strong>sues which Chocolate’s [160] also confused,<br />

and which I tried to explain in [165].<br />

(2) you must have m<strong>is</strong>understood my subm<strong>is</strong>sions. I never said that these minimum standards were not enforced.<br />

They are enforced by the fact that the buyer does not see whether the product was produced by an exceptionally<br />

slow or an average worker.<br />

(3) generally you also seem to be confused about the purpose <strong>of</strong> Marx’s work: he does not try to enunciate a<br />

set <strong>of</strong> principles which a market system should adhere to, but he <strong>is</strong> trying to explore those which it does adhere to.<br />

Look what I wrote about th<strong>is</strong> in [66].<br />

Next Message by Karl <strong>is</strong> [184].<br />

[181.4] TOAD: Midterm 53 The value does not increase because product value <strong>is</strong> based<br />

on an average <strong>of</strong> time taken by such a large number <strong>of</strong> workers that one slow worker will not<br />

change the average. It <strong>is</strong> the dec<strong>is</strong>ion <strong>of</strong> the society to do things th<strong>is</strong> way. It <strong>is</strong> enforced by<br />

34 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

the market and the value <strong>of</strong> the product if a company can’t produce as many items per hour<br />

as another company producing the same thing they will fall out <strong>of</strong> the market. Labor time<br />

enforces itself if one person <strong>is</strong>n’t producing as well as those arround him then he will lose<br />

business because he won’t be selected in the future to produce.<br />

Hans: You are describing why a capital<strong>is</strong>t who needs more than the average labor time cannot survive, but your<br />

description <strong>is</strong> not very well written and also incomplete. He will fall out <strong>of</strong> the market because h<strong>is</strong> costs will exceed<br />

h<strong>is</strong> revenues. (And there <strong>is</strong> another gap: why does he not simply pay the slow worker a lower wage?). In the case <strong>of</strong><br />

independent producers (which <strong>is</strong> the case we are dealing with right now, Marx does not yet speak <strong>of</strong> wage laborers<br />

in Chapter One), they have no wage costs, because they themselves produce; they do not fall out <strong>of</strong> the market, but<br />

they must make do with a lower revenue.<br />

Don’t say:<br />

It <strong>is</strong> the dec<strong>is</strong>ion <strong>of</strong> the society to do things th<strong>is</strong> way.<br />

It <strong>is</strong> built into the structure <strong>of</strong> society that things must be done th<strong>is</strong> way, but it <strong>is</strong> nobody’s dec<strong>is</strong>ion.<br />

Next Message by TOAD <strong>is</strong> [204].<br />

[182.2] Caren: “The exchange-value <strong>of</strong> commodities <strong>is</strong> measured by the labor time<br />

needed to produce them.” The use-value <strong>of</strong> a commodity depends on the totality <strong>of</strong> its physical<br />

qualities, which determine its utility. The ex<strong>is</strong>tence <strong>of</strong> th<strong>is</strong> use-value <strong>is</strong> an ind<strong>is</strong>pensable<br />

condition for the appearance <strong>of</strong> an exchange-value; nobody will accept in exchange for h<strong>is</strong><br />

own product a commodity which has no utility, no use-value, for anyone. But the use-value<br />

<strong>of</strong> 2 commodities, expressed in their physical qualities, <strong>is</strong> incommensurable; one cannot<br />

measure with a common gauge the weight <strong>of</strong> corn, the length <strong>of</strong> cloth, the color <strong>of</strong> flowers.<br />

For reciprocal exchange between these products to be possible, a quality must be found<br />

which they all possess, which can be measured and expressed quantitatively, and which must<br />

be a social quality, acceptable to all members <strong>of</strong> society. The totality <strong>of</strong> the physical qualities<br />

<strong>of</strong> commodities which give them their use-value, <strong>is</strong> determined by the specific labor which<br />

has produced them. But if the commodities are each the products <strong>of</strong> specific kind <strong>of</strong> labor,<br />

they are also the products <strong>of</strong> social human labor, that <strong>is</strong>, <strong>of</strong> a part <strong>of</strong> the total labor time<br />

available to a particular society, and on the economy <strong>of</strong> which society <strong>is</strong> based. Now, we<br />

consider only “simple commodity production” which labor no longer results directly in sat<strong>is</strong>fying<br />

the producer’s needs; labor and product <strong>of</strong> labor are no longer identical for him. But<br />

producer remains owner <strong>of</strong> the product <strong>of</strong> h<strong>is</strong> labor; he gives it up only in order to acquire<br />

for himself the goods which will ensure h<strong>is</strong> ex<strong>is</strong>tence. The div<strong>is</strong>ion <strong>of</strong> labor has already<br />

separated the producer from h<strong>is</strong> product, but it does not yet oppress the former by means<br />

<strong>of</strong> the latter. Commodity production develops slowly within society, while production <strong>of</strong><br />

use-values pure and simple <strong>is</strong> slowly shrinking. On the market where the products <strong>of</strong> labor<br />

<strong>of</strong> different regions meet, exchange-values establ<strong>is</strong>h themselves henceforth in accordance<br />

with social averages. It <strong>is</strong> not the number <strong>of</strong> hours actually spent on making an object that<br />

determine its value, but the number <strong>of</strong> hours <strong>of</strong> labor necessary to make it in the average<br />

conditions <strong>of</strong> productivity <strong>of</strong> th<strong>is</strong> society in th<strong>is</strong> period. Commodities would indeed become<br />

incommensurable if their value were determined by the actual time spent, by chance, by each<br />

individual producer on producing them. Since the value <strong>of</strong> commodities <strong>is</strong> establ<strong>is</strong>hed by the<br />

amount <strong>of</strong> labor socially necessary to produce them-that <strong>is</strong>, since th<strong>is</strong> average becomes fixed<br />

by the experience <strong>of</strong> repeated acts <strong>of</strong> exchange,by the simultaneous appearance <strong>of</strong> products<br />

from several different producers competing with each other-producer who are clumsy, slow,<br />

or who employ out-<strong>of</strong>-date methods, are penal<strong>is</strong>ed. They receive in exchange for the labortime<br />

they have individually given to society only an equivalent produced in a shorter length


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 35<br />

<strong>of</strong> time. Greater d<strong>is</strong>cipline and stricter labor accounting thus accompany the development<br />

<strong>of</strong> commodity production. With the development <strong>of</strong> simple commodity production, human<br />

labor begins to be differentiated according to quality. Composite, skilled labor separates <strong>of</strong>f<br />

from simple labor.<br />

Hans: Your resubm<strong>is</strong>sion <strong>is</strong> excellent, and quite different than your in-class exam, which was excellent too. The<br />

only sentence which I do not like <strong>is</strong> the following:<br />

For reciprocal exchange between these products to be possible, a quality must be found which<br />

they all possess, which can be measured and expressed quantitatively, and which must be a<br />

social quality, acceptable to all members <strong>of</strong> society.<br />

Th<strong>is</strong> sounds as if valuation by labor time was somehow agreed on by all commodity producers, because it <strong>is</strong> fair<br />

and acceptable. In your in-class exam you stressed correctly that it was the blind competition on the market and<br />

mobility <strong>of</strong> labor which led to the measurement by labor time, not an agreement.<br />

I like the following, which <strong>is</strong> very close to how Marx himself argued:<br />

I also like th<strong>is</strong>:<br />

Commodities would indeed become incommensurable if their value were determined by the<br />

actual time spent, by chance, by each individual producer on producing them.<br />

With the development <strong>of</strong> simple commodity production, human labor begins to be differentiated<br />

according to quality. Composite, skilled labor separates <strong>of</strong>f from simple labor.<br />

Next Message by Caren <strong>is</strong> [271].<br />

[182.5] Lamma: The question here <strong>is</strong> kind <strong>of</strong> tricky because Marx does not believe that<br />

in a capital<strong>is</strong>t economy there are any slow or inept workers that get hired because those type<br />

<strong>of</strong> people are not employed by the owners <strong>of</strong> capital. The owners <strong>of</strong> capital are trying to<br />

make as much money as possible and would not hire a worker that would effect thier pr<strong>of</strong>its.<br />

Therefore a value <strong>of</strong> a commodity would not be in th<strong>is</strong> particular situation as outlined in the<br />

question. The dec<strong>is</strong>ion to make things th<strong>is</strong> way <strong>is</strong> decided by the owners <strong>of</strong> capital. They are<br />

the ones who control the means <strong>of</strong> earning a wage for the workers. They own the means and<br />

the mode <strong>of</strong> production at th<strong>is</strong> point. If a guy were to try and go out on h<strong>is</strong> own and compete<br />

with h<strong>is</strong> employer, the chances are that he will not be able to compete at the same price with<br />

out running himself into banktruptcy. So it <strong>is</strong> the capital<strong>is</strong>t system itself that enforces th<strong>is</strong><br />

process, by having the owners <strong>of</strong> capital much more able to sell at low prices and still make<br />

a pr<strong>of</strong>it. The owners <strong>of</strong> capital keep the workers in thier factories and out <strong>of</strong> competition<br />

with themselves.<br />

Hans: I like your first observation:<br />

The question here <strong>is</strong> kind <strong>of</strong> tricky because Marx does not believe that in a capital<strong>is</strong>t economy<br />

there are any slow or inept workers that get hired because those type <strong>of</strong> people are not<br />

employed by the owners <strong>of</strong> capital.<br />

You could even have said it more bluntly: under capital<strong>is</strong>m th<strong>is</strong> question does not make sense. But it does make<br />

sense under simple commodity production, th<strong>is</strong> <strong>is</strong> a point which your answer overlooks.<br />

Another point: You say the dec<strong>is</strong>ion <strong>is</strong> made by the capital<strong>is</strong>ts. I d<strong>is</strong>agree. The capital<strong>is</strong>ts are faced with the<br />

following economic realities: (1) the product <strong>of</strong> the slow laborer fetches the same price on the market as the product<br />

<strong>of</strong> an anverage laborer, and (2) he cannot just pay the slow laborer half the wage, and (3) modern mass production<br />

techniques, in which the machine controls the laborer, simply cannot accommodate the exceptionally slow laborer.<br />

Th<strong>is</strong> <strong>is</strong> why the capital<strong>is</strong>t has to fire the slow laborer.<br />

Next Message by Lamma <strong>is</strong> [185].<br />

[182.1] Jupiter: slow laborer The slower a laborer <strong>is</strong> in producing a commodity does<br />

not increase the price or the value <strong>of</strong> a commodity. When a laborer <strong>is</strong> slow or lazy h<strong>is</strong><br />

or her work <strong>is</strong> only a by product <strong>of</strong> time, and the time lost in producing th<strong>is</strong> product <strong>is</strong> a<br />

36 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

quantitative factor. Th<strong>is</strong> means that the slower laborer will only produce a fraction <strong>of</strong> what<br />

a normal laborer could produce. In other words, the slower or more inept a laborer does not<br />

mean that they will get a higher price for their commodity or product. It <strong>is</strong> the difference in<br />

use-value that brings about a differentiation in the price, if two identical products are out in<br />

the market place the person who <strong>is</strong> purchasing that product will pay for that which <strong>is</strong> going<br />

to cost the least amount, which in turn leaves no room for the slower laborer to go out and<br />

ask for a higher price.<br />

The second part <strong>of</strong> th<strong>is</strong> question <strong>is</strong> not as obvious a the first, however I feel that I have<br />

found one strong economic principal that will prove my answer. I would have to say that<br />

the responsibility would fall on the person who <strong>is</strong> performing the labor thus the laborer. The<br />

laborer has the ability to dictate at what speed he or she <strong>is</strong> willing to work. It has been said<br />

that that <strong>is</strong> not true in a capital<strong>is</strong>tic society, rather that the slow worker has to speed up and<br />

be compeditive in their labor, or they will not be used and end up without a job. To th<strong>is</strong> I do<br />

agree but to take a different angle <strong>of</strong> approach I would say that it <strong>is</strong> the individual laborer and<br />

their choice <strong>of</strong> allocating their time. It <strong>is</strong> the simple theory <strong>of</strong> “opprotunity costs”, a laborer<br />

<strong>is</strong> going to choose whether or not the time that <strong>is</strong> spent on laboring <strong>is</strong> pr<strong>of</strong>itable or not. Th<strong>is</strong><br />

<strong>is</strong> what I see as the problem, if a person <strong>is</strong> willing to labor hard but get minimal rewards<br />

for their efforts they will do something else that will give them greater returns, whether it br<br />

monetary, spiritual or physical.<br />

The way th<strong>is</strong> <strong>is</strong> enforced <strong>is</strong> through an individuals own perspectives <strong>of</strong> what <strong>is</strong> important<br />

and what <strong>is</strong> not.<br />

Hans: By “how <strong>is</strong> it decided” I meant “how <strong>is</strong> it decided that a slower worker produces proportionately less<br />

value”, but you answered the <strong>Question</strong>: “how <strong>is</strong> it decided how fast the worker <strong>is</strong> producing.” Th<strong>is</strong> second <strong>Question</strong><br />

<strong>is</strong> interesting because in simple commodity production or for self-employed individuals, th<strong>is</strong> dec<strong>is</strong>ion <strong>is</strong> up to the<br />

individual, as you say. But in full-blown capital<strong>is</strong>m, a worker who <strong>is</strong> too slow will d<strong>is</strong>rupt the production process<br />

and therefore will be fired, i.e., in th<strong>is</strong> situation the worker has no choice regarding the speed <strong>of</strong> h<strong>is</strong> or her work.<br />

Next Message by Jupiter <strong>is</strong> [182.3].<br />

[187.4] Skyler: Fwd: Your Subm<strong>is</strong>sion Returned “Marx claims that a worker who<br />

works at half the pace <strong>of</strong> the average will produce half as much value per hour.” The value <strong>of</strong><br />

a commodity does not increase if made by a slow worker because the value <strong>of</strong> the commodity<br />

<strong>is</strong> the same regardless <strong>of</strong>the necessary labor time used in producing it. Capital<strong>is</strong>m weeds out<br />

the slow or inept worker inorder to control costs and increase the amount <strong>of</strong> production per<br />

hour. The social<strong>is</strong>t society tries to individualize people into those areas <strong>of</strong> work that they are<br />

good at. Socially necessary labor time <strong>is</strong> an example <strong>of</strong> the manufacturing (industrialized)<br />

society. For example; line-workers produce the same products at variable speeds, although<br />

the value <strong>of</strong> the commodity <strong>is</strong> the same regardless <strong>of</strong> the labor time it took to produce the<br />

commodity. The actual socially necessary labor time <strong>is</strong> not found in a particular product,<br />

but in the mass <strong>of</strong> products as a whole. If a group <strong>of</strong> line-workers are producing bottles <strong>of</strong><br />

beer at different speeds the socially necessary labor time cannot be seen until the mass or the<br />

amount <strong>of</strong> say 200 beer’s <strong>is</strong> produced at a quota <strong>of</strong> 205 bottles <strong>of</strong> beer per hour. Showing that<br />

the average time to produce 205 beer’s <strong>is</strong> 1 hour, but the group <strong>of</strong> worker’s only produced<br />

200 beer’s in 1 hour. THe slow worker or the fast worker cannot be seen although the quota<br />

shows a problem in labor time. It <strong>is</strong> enforced by corporate and business America in trying<br />

to control costs and increase pr<strong>of</strong>its. Done through the increase <strong>of</strong> machinery (technology).


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 37<br />

Hans: Your first two sentences claim Marx as an authority. Th<strong>is</strong> <strong>is</strong> not sufficient; I wanted you to reproduce the<br />

arguments which lead Marx to h<strong>is</strong> conclusion. These may be very simple arguments, but I want you to be aware <strong>of</strong><br />

them. Your obsrvations that one may know that there <strong>is</strong> a problem without necessariuly knowing what the problem<br />

<strong>is</strong> <strong>is</strong> a good one; th<strong>is</strong> comes from the fact that enforcement <strong>is</strong> done by the market.<br />

Next Message by Skyler <strong>is</strong> [188.1].<br />

[193.1] Angela: From the Marx’s point <strong>of</strong> view, the value <strong>of</strong> a commodity relates directly<br />

to the amount <strong>of</strong> labor it takes to create the commodity. But the value <strong>of</strong> a commodity does<br />

not increase if it <strong>is</strong> made by a slow or inept labors. Because a slow or inept labors spend<br />

more the labor time to produce the commodity and th<strong>is</strong> labor time excesses the labor time<br />

socially necessary on the average. So that the value <strong>of</strong> a commodity does not increase if it <strong>is</strong><br />

made bu a slow or inept labor.<br />

Marx <strong>is</strong> referring to market mechan<strong>is</strong>m which decides the necessary on the average <strong>of</strong><br />

labor time. I think the necessary on the average <strong>of</strong> labor time <strong>is</strong> determined by the average<br />

labor power which <strong>is</strong> made by the speed <strong>of</strong> the output. So if a slow or inept labor spend more<br />

labor time to produce the commodity and it will not increase the value <strong>of</strong> commodity.<br />

Hans: You were unable to identify the market mechan<strong>is</strong>m which enforces th<strong>is</strong> rule regarding the value produced<br />

by a slow laborer.<br />

Next Message by Angela <strong>is</strong> [194.2].<br />

[194.4] Panacea: The value <strong>of</strong> the commodity <strong>is</strong> not determined by the amount <strong>of</strong> labour<br />

necessary for the slow/inept worker to produce it, but rather the “social labour” required.<br />

“Social labour” <strong>is</strong> a function <strong>of</strong> the average rather than the best or the worst labourer. For th<strong>is</strong><br />

reason, perhaps an example <strong>of</strong> Marx<strong>is</strong>t ‘goals’ would be to ‘ra<strong>is</strong>e the average’ by increasing<br />

skills for everyone rather than educating a couple <strong>of</strong> perfection<strong>is</strong>t craftsmen.<br />

Often if an item <strong>is</strong> built by inferior skills it <strong>is</strong> unfit for use, and therefore its value drops.<br />

Conversely, the extra labour time it took a slow worker to produce a commodity <strong>is</strong> not added<br />

into the value, for the value remains a function <strong>of</strong> the average<br />

Whose dec<strong>is</strong>ion <strong>is</strong> th<strong>is</strong>? My opinion <strong>is</strong> that it <strong>is</strong> a social dec<strong>is</strong>ion. I won’t pay full price<br />

for lousy workmanship, and I think most people would agree. In addition, I won’t pay more<br />

for an item simply because the producer was slow and inefficient. I will pay the average<br />

<strong>of</strong> the cost <strong>of</strong> production. Consumers in the economy enforce th<strong>is</strong> through the allocation <strong>of</strong><br />

their buying power in th<strong>is</strong> way. Panacea.<br />

Hans: Since value <strong>is</strong> determined by “average” labor, you conclude that<br />

perhaps an example <strong>of</strong> Marx<strong>is</strong>t ‘goals’ would be to ‘ra<strong>is</strong>e the average’ by increasing skills for<br />

everyone rather than educating a couple <strong>of</strong> perfection<strong>is</strong>t craftsmen.<br />

I tried to argue in the Annotations that the conformity implied in th<strong>is</strong> rule <strong>of</strong> the “averages” <strong>is</strong> very restrictive. In<br />

my view, social<strong>is</strong>ts have to get away from the necessity to do one’s work like everybody else. Will that open the<br />

doors to perfection<strong>is</strong>m? Perfection<strong>is</strong>ts suffer under psychic injuries. I hope and assume that social<strong>is</strong>m will be a<br />

social environment which makes such injuries less likely, and which <strong>of</strong>fers more opportunities for people to heal<br />

themselves again. Social<strong>is</strong>t policies should not be influenced by the few perfecton<strong>is</strong>ts that remain.<br />

Regarding the question: Whose dec<strong>is</strong>ion <strong>is</strong> th<strong>is</strong>?, you overlook that the social dec<strong>is</strong>ion you are talking about<br />

<strong>is</strong> helped along by the fact that the buyer usually does not even know under which conditions h<strong>is</strong> commodity was<br />

produced. I would argue that th<strong>is</strong> dec<strong>is</strong>ion <strong>is</strong> pre-empted by the social structure.<br />

Next Message by Panacea <strong>is</strong> [196].<br />

[197.3] Kia: According to Marx value <strong>of</strong> one’s commodity should be judged on how it<br />

was produced. If one produce a commodity that <strong>is</strong> developed effectively by using h<strong>is</strong> or her<br />

skills and time fully it should be valued. Compare to the product that <strong>is</strong> produced spending<br />

38 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

great amount <strong>of</strong> uneffective time. Like worker who are slower than the normal standard time<br />

that <strong>is</strong> required. Th<strong>is</strong> workers product <strong>is</strong> valued less than compare to ones that are producing<br />

in norm times. Worker who produe in half the pace <strong>of</strong> regular time than Marx said th<strong>is</strong><br />

worker <strong>is</strong> not employed in capital<strong>is</strong>m. On top <strong>of</strong> it slower workers cause the factory to ship<br />

the product slow or needs more wage put into the prodcut. Therefore, costs could be added<br />

to consumers creating higer price that could <strong>of</strong> been voided.<br />

Next Message by Kia <strong>is</strong> [197.6].<br />

[197.7] Jake: If two commodities are identical in all ways, they will contain the same<br />

value as market sees it. One <strong>of</strong> these commodities could have been produced by an individual<br />

that produces less than the levels <strong>of</strong> normal productivity <strong>of</strong> the society. As a price taker in<br />

the market, the slow individual must take the price the market has to <strong>of</strong>fer. Capital<strong>is</strong>m<br />

controls mechan<strong>is</strong>ms in the market. A slow worker working with h<strong>is</strong> own tools <strong>is</strong> hopelessly<br />

outdated in a market today based on mass production. For the slow worker to blend into<br />

todays production ways, it would mean that instead <strong>of</strong> using h<strong>is</strong> old tools, he would be using<br />

large machines that are more efficient and productive. For the situation to be un-capital<strong>is</strong>tic,<br />

the worker would have to have a collective control over the factories or their so called tools.<br />

Marx also treats labor as abstract labor, and th<strong>is</strong> equality <strong>is</strong> socially recognized in the equality<br />

<strong>of</strong> market prices.<br />

Next Message by Jake <strong>is</strong> [201].<br />

[200.2] KALISPEL: The value <strong>of</strong> a commodity does not increase because <strong>of</strong> a slow<br />

or inept laborer because the labor time required to produce the commodity <strong>is</strong> taken under<br />

socially normal conditions <strong>of</strong> productions. Th<strong>is</strong> means that the slower or more inept workers<br />

do not produce a commodity with higher value because we are considering identical human<br />

labor power, we look at “the labor time which <strong>is</strong> necessary on average” no individual labor<br />

times. In a capital<strong>is</strong>tic society, the dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> made collectively be all<br />

commodity producing laborer.<br />

In capital<strong>is</strong>m th<strong>is</strong> dec<strong>is</strong>ion <strong>is</strong> made by the capital<strong>is</strong>t; the owner <strong>of</strong> the means <strong>of</strong> production.<br />

The mechan<strong>is</strong>m that <strong>is</strong> used to keep workers from being slow and inept <strong>is</strong> unemployment.<br />

Government policy <strong>is</strong> made to keep x amount <strong>of</strong> workers unemployed. Th<strong>is</strong> <strong>is</strong> because<br />

politicians <strong>of</strong> both parties believe full employment will lead to inflation. Th<strong>is</strong>, however, does<br />

not need to be the case. Under full employment a worker can reduce h<strong>is</strong>/her exploitation.<br />

The happened in the UK from about 1950 to about 1970. It was these years that the rate<br />

<strong>of</strong> exploitation halved and pr<strong>of</strong>its <strong>of</strong> capital<strong>is</strong>ts halved from 23.4% to 12.1%. It can be<br />

concluded that capital<strong>is</strong>ts have created unemployment to keep pr<strong>of</strong>its high.<br />

Hans: You are right, unemployment <strong>is</strong> an important mechan<strong>is</strong>m, and government cannot eliminate it because<br />

capital<strong>is</strong>m would unravel because <strong>of</strong> it. But a slow worker will produce proportionally less value even in simple<br />

commodity production without capital<strong>is</strong>ts and workers, but where everybody produces with h<strong>is</strong> own tools.<br />

Next Message by KALISPEL <strong>is</strong> [203.1].<br />

[200.4] Emma: Some musings, for what they’re worth. At the root <strong>of</strong> Marx’s critic<strong>is</strong>m<br />

<strong>of</strong> capital<strong>is</strong>m and h<strong>is</strong> theory on the value <strong>of</strong> labor seems to be the belief that all abstract<br />

labor <strong>is</strong> equal as expenditures <strong>of</strong> human energy. It apparently makes no difference whether<br />

the energy <strong>is</strong> expended in splitting the atom, composing a beautiful sonata, or contemlating<br />

just how many angels can dance on the head <strong>of</strong> a pin. Marx faults capital<strong>is</strong>m for attaching<br />

different exchange value to different expenditures <strong>of</strong> human energy and, asthe study guide<br />

says, such a system d<strong>is</strong>courages the production <strong>of</strong> art<strong>is</strong>ts and thinkers. Marx also doesn’t


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 39<br />

like the idea that only socially necessary time, and average time at that, <strong>is</strong> what counts in<br />

the labor process and which attach to exchange value. On a theoretical level I might agree<br />

with Marx to some extent. But unfortunately we can’t really afford ourselves h<strong>is</strong> luxury and<br />

survive at the level <strong>of</strong> consumption we enjoy. Th<strong>is</strong> in no way, however, prohibits the creation<br />

<strong>of</strong> Mozarts and Michaelangelos. But it does limit their usefulness, if not their number, given<br />

the concept in capital<strong>is</strong>m <strong>of</strong> “socially necessary labor time.” Fortunately we have the option<br />

to pursue avocations in addition to vocations. <strong>What</strong> I do by vocation <strong>is</strong>, I believe, important<br />

work that also allows me and my family to survive and even thrive. But my avocation <strong>is</strong><br />

much different and while highly valued by me <strong>is</strong> not highly valued by society as socially<br />

necessary. But that doesn’t stop me from pursuing it. I just can’t expect society to value my<br />

avocation, as I believe Marx <strong>is</strong> saying, although not in the same words. And their <strong>is</strong> also the<br />

chance that at some point my avocation will overtake my vocation and be deemed socially<br />

necessary through acquiring exchange value and I can have the best <strong>of</strong> all worlds.<br />

The real critic<strong>is</strong>m <strong>of</strong> capital<strong>is</strong>m <strong>is</strong> not that labor <strong>is</strong> viewed prejudicially but that it contains<br />

no prov<strong>is</strong>ions for the “slow and inept” workers that will naturally ex<strong>is</strong>t. Strict capital<strong>is</strong>m <strong>is</strong><br />

not compassionate and does not make allowances for such laborers. But within capital<strong>is</strong>tic<br />

societies the notion <strong>of</strong> a social net to catch such individuals has evolved. The problem <strong>is</strong><br />

occurs when the net becomes a hammock and ends up encouraging the behavior.<br />

Hans: You have a tough philosophy: everybody must first toil on some money making job before they are allowed<br />

to think about what contribution they can make to society, and compassion should be used sparingly because it<br />

encourages weakness.<br />

By the way, what you wrote in class was not bad, and it seem also from your “musings” that you understand the<br />

material.<br />

Next Message by Emma <strong>is</strong> [217].<br />

[200.1] Kia: Inept workers or slow wokers costs more for the factory or even to those<br />

who consumes th<strong>is</strong> workers product or service. If you look at businesses they main goal<br />

<strong>is</strong> to maximize their pr<strong>of</strong>it. By attaining higest possible prices at cheapest costs. To do<br />

so, business needs workers who can provide cheapest labor at fastest rate <strong>of</strong> producing the<br />

goods. Doing so, it will produce the goods that <strong>is</strong> valued at higest point it could possibly get.<br />

So, society has come to know, if you work effectively by putting you greatest efforts you<br />

will receive your compensation on your effort. Th<strong>is</strong> <strong>is</strong> something we learn as child at home<br />

where parents and role models teaches us that what ever you do give your fullest effort.<br />

Next Message by Kia <strong>is</strong> [200.5].<br />

[201.1] Gottlieb: The value <strong>of</strong> labor Marx makes the argument that the value <strong>of</strong> a<br />

commodity relates directly to the amount <strong>of</strong> labor it takes to create the commodity. He makes<br />

a point to show, however, that a lazy or inept worker does not make h<strong>is</strong> or her commodity<br />

more valuable simply because it takes more <strong>of</strong> their labor time. Marx says that the worker<br />

must be held to a standard, a minimum standard, which <strong>is</strong> the average <strong>of</strong> the society. Th<strong>is</strong><br />

would cause those below average to “hurry up” to meet the minimum requirements. He does<br />

not follow the thought further as he should. If those below the average are constantly forcing<br />

themselves to work faster, then the average would continuously r<strong>is</strong>e, ra<strong>is</strong>ing the minimum<br />

standards for production and ra<strong>is</strong>ing the output for all <strong>of</strong> the workers because they all want<br />

to “meet the minimum requirements.” The only other option in keeping with th<strong>is</strong> “average<br />

labor time” rule <strong>is</strong> that instead <strong>of</strong> the slower workers having to “hurry up,” the faster workers<br />

must slow down lowering the minimum standard.<br />

40 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

It <strong>is</strong> the society as a whole who decides how much value a commodity holds due to the<br />

amount <strong>of</strong> time it allocates to produce the commodity. Marx should have pointed out in<br />

more detail the “theoretical” problem <strong>of</strong> capital<strong>is</strong>tic societies <strong>of</strong> m<strong>is</strong>matching labor to different<br />

types <strong>of</strong> production. He says that in a capital<strong>is</strong>tic society, “Wasted labor will then be a<br />

labor in which the producer <strong>is</strong> not matched to the production in order to make h<strong>is</strong> or her best<br />

contribution.” The CEO will produce no more valuable commodities than the car salesman<br />

in a perfect society if they are 1) Producing commodities with the same labor time, and 2)<br />

are both matched with the production <strong>of</strong> a commodity in which they make their best contribution.<br />

I am confused however which society decides the value <strong>of</strong> the commodity. Would<br />

th<strong>is</strong> be on a local, national, or world level. Surely I cannot type as fast as most secretaries,<br />

but I can type faster than most aboriginies. Who constitues the average? Adherance to th<strong>is</strong><br />

rule <strong>is</strong> not enforced in a capital<strong>is</strong>tic society.<br />

Hans: You resubmitted exactly your [32] again. I was hoping you would learn from my comments and the general<br />

d<strong>is</strong>cussion <strong>of</strong> th<strong>is</strong> <strong>Question</strong>.<br />

Next Message by Gottlieb <strong>is</strong> [202].<br />

[206.5] Ramb<strong>is</strong>: The question rightly states that “the value <strong>of</strong> a commodity does not increase<br />

if it <strong>is</strong> made by a slow or inept worker.” Marx says on page 129 (Study Guide) that<br />

“..that which determines the magnitude <strong>of</strong> the value <strong>of</strong> any article <strong>is</strong> only the amount <strong>of</strong><br />

socially necessary labor, or the labor time socially necessary for its production.” Dr. Hans<br />

Ehrbar followed th<strong>is</strong> up by saying on page 28 (Answers) that “the labor time actually contained<br />

in the...(production <strong>of</strong> the commodity), counts.” ‘Pizza’ rather succinctly encapsuled<br />

the main point <strong>of</strong> why th<strong>is</strong> <strong>is</strong> when he said (on page 18 [96] <strong>of</strong> the Answers),“There <strong>is</strong><br />

no d<strong>is</strong>tingu<strong>is</strong>hable difference between one good and another produced by the abstract labor.”<br />

Because the final goods are identical, the value <strong>is</strong> fixed regardless <strong>of</strong> the time spent<br />

to produce them. Slower workers would turn out less final products and be forced out by<br />

competition. To quote Pizza again,“Th<strong>is</strong> <strong>is</strong> one <strong>of</strong> the conditions resulting from the uniform<br />

production <strong>of</strong> goods that asserts itself in the marketplace. The marketplace therefore dictates<br />

the exchange relation commodities and thus enforces the abstraction <strong>of</strong> labor.”<br />

Hans: Good answer. I have only been puzzling over your quote <strong>of</strong> me saying that<br />

“the labor time actually contained in the...(production <strong>of</strong> the commodity), counts.”<br />

I did not find th<strong>is</strong> quote, and I suspect it <strong>is</strong> a m<strong>is</strong>understanding. It would also directly contradict the Marx quote<br />

about which you said mine was a follow-up.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [206.7].<br />

[210.1] Femme: The value <strong>of</strong> a commodity does not increase because <strong>of</strong> a slow laborer<br />

because the labor time required to produce the commodity <strong>is</strong> taken under socially normal<br />

conditions <strong>of</strong> productions. <strong>What</strong> th<strong>is</strong> equates to <strong>is</strong> the slower worker does not produce commidity<br />

with higher value because we are considering identical human labor power, not individual<br />

labor time. In a capatil<strong>is</strong>tic society the dec<strong>is</strong>ion <strong>is</strong> to do things th<strong>is</strong> way <strong>is</strong> made<br />

collectively by all commodity producing laborers. It <strong>is</strong> enforced by social normes that ostracizes<br />

the weak and slow by not employing them. Or it may be enforced because we only<br />

look at production under socially normal conditions, or the most optimal production enviornment,<br />

and one could assume an average outcome <strong>of</strong> labor production force. According<br />

to Marx the market enforces the value <strong>of</strong> the commodity. Because a commodity’s value <strong>is</strong><br />

already predetermined, it <strong>is</strong> what one receives in exchange in the market place.<br />

Hans: Instead <strong>of</strong> saying that the dec<strong>is</strong>ion <strong>is</strong> made by the whole society, I would rather say that it <strong>is</strong> not really a<br />

dec<strong>is</strong>ion, it <strong>is</strong> built into the way production <strong>is</strong> organized in a commodity economy.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 41<br />

Next Message by Femme <strong>is</strong> [212].<br />

[212.1] Positive: The value <strong>of</strong> a commodity does notincrease because <strong>of</strong> a slow or inept<br />

laborer because the labor-time required to produce the commodity <strong>is</strong> taken under socially<br />

normal conditions <strong>of</strong> production. Th<strong>is</strong> means, that the slower or more inept worker does not<br />

produce commodity with higher value because we are considering identical human laborpower,<br />

we look at “the labor time which <strong>is</strong> necessary on an average”, not individual labortimes.<br />

In a capetal<strong>is</strong>tic society the dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> made collectively by<br />

all commodity producing laborers. It <strong>is</strong> enforced by social mores and norms that serve to<br />

ostacize the slow and inept by not employing them. Also in order to produce any use-value<br />

commodity , the socially necessary labor-time <strong>is</strong> required. Therefore, no matter the worker<br />

<strong>is</strong> fast or slow, skillful or inept, there <strong>is</strong> still a requirement <strong>of</strong> average labor-time, certain<br />

level <strong>of</strong> skill or ability, and intensive labor for every individual. In order for the society to<br />

get the most in retun from the commodities produced, all laborers shall work towards their<br />

individal capability.<br />

Hans: You literally copied Chacci’s [29] without noticing that I voiced some d<strong>is</strong>agreements in [30].<br />

Next Message by Positive <strong>is</strong> [275].<br />

[214.3] Chacci: The value <strong>of</strong> a commodity does not increase because <strong>of</strong> a slow or inept<br />

laborer because the labor time required to produce the commodity <strong>is</strong> taken under socially<br />

normal conditions <strong>of</strong> productions. Th<strong>is</strong> means that the slower or more inept worker does<br />

not produce commodity with higher value because we are considering identical human labor<br />

power, we look at “the labor time which <strong>is</strong> necessary on an average”, not individual labor<br />

times. The dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> done by the market in which the commodity<br />

producers exchanges h<strong>is</strong> or her goods. If the commodity producer does not produce at what<br />

<strong>is</strong> ‘socially necessary’ he or she will produce a commodity that <strong>is</strong> <strong>of</strong> too high <strong>of</strong> a ‘price’ for<br />

the producer to survive. Th<strong>is</strong> <strong>is</strong> how it <strong>is</strong> enforced.<br />

Hans: You write:<br />

If the commodity producer does not produce at what <strong>is</strong> ‘socially necessary’ he or she will<br />

produce a commodity that <strong>is</strong> <strong>of</strong> too high <strong>of</strong> a ‘price’ for the producer to survive. Th<strong>is</strong> <strong>is</strong> how it<br />

<strong>is</strong> enforced.<br />

It goes a little differently: if he <strong>is</strong> too slow, he will not be able to fetch a high enough price for h<strong>is</strong> things, and<br />

therefore he will not be able to survive (maybe it would be better to say: live at the customary standard <strong>of</strong> living for<br />

h<strong>is</strong> class).<br />

You also wrote some additional things in your in-class subm<strong>is</strong>sion which were not completely wrong. Instead<br />

<strong>of</strong> dropping them out I would have liked it if you had integrated them into your resubm<strong>is</strong>sion in the right way.<br />

Next Message by Chacci <strong>is</strong> [214.4].<br />

[214.2] Kalle: Since Marx chose to use amount <strong>of</strong> labor as one measure for the value<br />

<strong>of</strong> a commodity, one can easily be fooled to believe that a commodity produced by a slow<br />

worker <strong>is</strong> more valuable then one produced by a fast one. However, Marx uses the term<br />

,socially necessary, which refers to the average necessary time for producing a commodity.<br />

By necessary one the average, Marx means amount <strong>of</strong> time necessary given the prevailing<br />

conditions in the society regarding both labor and technology. As new technology and production<br />

methods are introduced, which speed up the production process, the new method <strong>is</strong><br />

the socially necessary. Marx does not consider the average <strong>of</strong> the old and the new method as<br />

the time socially necessary. At the same time the value <strong>of</strong> what <strong>is</strong> produced also decreases<br />

since less labor time <strong>is</strong> represented in the fin<strong>is</strong>hed commodity. If you do not adjust to the<br />

42 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

“new standard” in the market, and continue to produce with the old method you will use<br />

more labor time than socially necessary on the average, and thus produce less value.<br />

Hans: It <strong>is</strong> implicit in your answer, especially in the last sentence, that th<strong>is</strong> <strong>is</strong> enforced by the market. The important<br />

point <strong>is</strong> that buyers cannot d<strong>is</strong>tingu<strong>is</strong>h between the commodity made by a slow worker or under outdated conditions<br />

and the other commodity. I would have liked you to say th<strong>is</strong> a little more explicitly. You also did not say anything<br />

about whose dec<strong>is</strong>ion it <strong>is</strong> to do things th<strong>is</strong> way. Th<strong>is</strong> depressed your grade for an otherw<strong>is</strong>e excellent answer<br />

(which <strong>is</strong> exactly the answer you wrote in class).<br />

Next Message by Kalle <strong>is</strong> [219].<br />

[221.1] Homer: The value <strong>of</strong> a commodity <strong>is</strong> based on the social average <strong>of</strong> the labor time<br />

needed to produce it. Therefore, a slower worker who takes more time will not increase the<br />

value <strong>of</strong> a commodity. For the same reason, a faster than average worker will not reduce the<br />

value <strong>of</strong> the commodity.<br />

Th<strong>is</strong> has been decided and enforced by the market. It <strong>is</strong> immpossible for someone to<br />

know how much labor time went in to the production <strong>of</strong> a specific article. But they do<br />

know exactly how much time they spent producing the item they are <strong>of</strong>fering for exchange.<br />

Therefore they must base their dec<strong>is</strong>ion <strong>of</strong> whether or not the exchange <strong>is</strong> fair on the average<br />

amount <strong>of</strong> time to produce the commodity.<br />

Hans: You write:<br />

It <strong>is</strong> impossible for someone to know how much labor time went into the production <strong>of</strong> a<br />

specific article. But they do know exactly how much time they spent producing the item<br />

they are <strong>of</strong>fering for exchange. Therefore they must base their dec<strong>is</strong>ion <strong>of</strong> whether or not the<br />

exchange <strong>is</strong> fair on the average amount <strong>of</strong> time to produce the commodity.<br />

Th<strong>is</strong> <strong>is</strong> not quite the mechan<strong>is</strong>m. When you are considering an exchange, you are not necessarily comparing labor<br />

times. You are considering whether the use value you are getting <strong>is</strong> worth the labor time put into the thing you are<br />

giving in exchange. Marx writes that the use value <strong>of</strong> the coat (not the value <strong>of</strong> the coat or the labor time in the<br />

coat) <strong>is</strong> the representation <strong>of</strong> the value <strong>of</strong> the linen. No you probably wonder how does proportionality with labor<br />

time come in? Not through the demand side but through the supply side. If something has a use value which <strong>is</strong> so<br />

desired that the price on the market <strong>is</strong> relatively high compared to the labor time in it, then more people will start<br />

producing it.<br />

<strong>What</strong> you wrote in class was not entirely wrong either, and I would have liked you to integrate the two.<br />

Next Message by Homer <strong>is</strong> [221.2].<br />

[314.3] Peaches: The value <strong>of</strong> a commodity does not increase if that commodity was made<br />

by a slow or inept laborer simply because we are not measuring the laborer and h<strong>is</strong> time,<br />

but that socially necessary labor that was put into the commodity. Because the commodity<br />

has a uniform exchange value to other commodities, the exchange value which <strong>is</strong> a “byproduct”<br />

<strong>of</strong> value remains constant regardless <strong>of</strong> the individual contribution. There <strong>is</strong> only<br />

a difference <strong>of</strong> qualities between the commodities, not between the laborers/workers. The<br />

standard average requirement to produce a commodity enforces the need to only market<br />

the “end product” <strong>of</strong> a commodity. Value <strong>is</strong> defined as that property <strong>of</strong> things which gives<br />

them weight on the market. If a thing has high value, then it can be exchanged for large<br />

quantities <strong>of</strong> other things. Therefore, the exchange <strong>of</strong> goods for each other <strong>is</strong> determined<br />

fundamentally by the amount <strong>of</strong> labor embodied in it. Besides, in Marx’s point <strong>of</strong> view on<br />

Capital<strong>is</strong>m, slow workers are not employed in Capital<strong>is</strong>m.<br />

Hans: You mean the right thing but you are not saying it very clearly. “By-product” <strong>is</strong> perhaps too loose a connection<br />

between value and exchange value (the exchange value <strong>is</strong> the expression <strong>of</strong> value), but I appreciate your using<br />

th<strong>is</strong> original term, because th<strong>is</strong> shows that you are thinking these things through instead <strong>of</strong> repeating buzzwords<br />

back to me. Your grade suffered because your resubm<strong>is</strong>sion, which <strong>is</strong> identical to your in-class exam, was late.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 43<br />

Next Message by Peaches <strong>is</strong> [314.4].<br />

[315.1] Fox: The value <strong>of</strong> a commodity does not increase if it made by a slow or inept<br />

laborer because the lobor time required to produce the commodity <strong>is</strong> taken under socially<br />

normal conditions <strong>of</strong> productions. Th<strong>is</strong> means that the slower or more inept worker does not<br />

produce a commodity with higher value because we are considering identical human labor<br />

power, we look at the labor time on average not the individual labor times. In a capital<strong>is</strong>tic<br />

society, the dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> make colletively by all commodity producing<br />

laborers.<br />

The mode <strong>of</strong> productin the laborer uses <strong>is</strong> owned by the capital<strong>is</strong>t. If the worker owns h<strong>is</strong><br />

own capital and <strong>is</strong> not forced by the owner, then Marx claims a worker who works at half<br />

the pace <strong>of</strong> the average will produce half as much value per hour, thus the individual labor<br />

<strong>is</strong> an average <strong>of</strong> the commodity.<br />

Hans: You are giving a careful restatement <strong>of</strong> the rules which Marx derives, without giving a good explanation<br />

where they come from. Th<strong>is</strong> <strong>is</strong> what I meant with “why not”. Your sentence that th<strong>is</strong> <strong>is</strong> a collective dec<strong>is</strong>ion <strong>of</strong><br />

all commodity producing laborers <strong>is</strong> plain wrong. Apparently you were not aware <strong>of</strong> your errors because your<br />

resubm<strong>is</strong>sion <strong>is</strong> literally what you wrote in the exam. Although your resubm<strong>is</strong>sion was late, I did not duck your<br />

grade because <strong>of</strong> that because you got your email account extremely late.<br />

Next Message by Fox <strong>is</strong> [315.2].<br />

[318.3] Brumbys: We will stick to a “simple commodity produciton”, in which each<br />

worker owns h<strong>is</strong> own means <strong>of</strong> production and <strong>is</strong> not hired by a capital<strong>is</strong>t. In th<strong>is</strong> situation,<br />

Marx claims that a wroker who works at half the pace <strong>of</strong> the average will produce half as<br />

much value per hour. It <strong>is</strong> more repressive and less innocuous rule than it may first seem.<br />

Hans: Your answer was taken literally from my [30]. Apparently you did not notice that I did not answer the<br />

<strong>Question</strong> in [30], but I merely restated the <strong>Question</strong>. Then I said that one common explanation <strong>is</strong> incorrect and<br />

asked the class to come up with a different explanation. Your resubm<strong>is</strong>sion was also late.<br />

Next Message by Brumbys <strong>is</strong> [388].<br />

[321.1] Pizza: The value <strong>of</strong> a commodity does not increase when created by an unskilled<br />

laborer due to the fact that the process <strong>of</strong> production eliminates any d<strong>is</strong>tinction between<br />

skilled and unskilled labor. A perfect information market would d<strong>is</strong>allow any d<strong>is</strong>tinction<br />

between commodities produced by skilled and unskilled labor and thus unskilled labor value<br />

would not manifest itself in the marketplace. The dec<strong>is</strong>ion to do things th<strong>is</strong> way <strong>is</strong> not a<br />

conscious one instead it <strong>is</strong> the manifestation <strong>of</strong> the perfect information marketplace which<br />

enforces the continual process <strong>of</strong> abstracting labor.<br />

Hans: Your in-class exam was very similar to your [96]. In the resubm<strong>is</strong>sion you tried to d<strong>is</strong>till it down to the<br />

general principles, and here I d<strong>is</strong>agree with the sentence:<br />

the process <strong>of</strong> production eliminates any d<strong>is</strong>tinction between skilled and unskilled labor.<br />

Th<strong>is</strong> <strong>is</strong> a m<strong>is</strong>-characterization <strong>of</strong> [96] and it <strong>is</strong> also not in keeping with Marx’s thinking. The abstraction <strong>of</strong> labor<br />

<strong>is</strong> not caused by the production process. It happens because producers relate to each other through the (too)<br />

narrow channel <strong>of</strong> market interactions. (Th<strong>is</strong> <strong>is</strong> by the way what you are saying in your last sentence.) It may<br />

seem as if productivity increases require the standardization and abstraction <strong>of</strong> labor, but Marx claims that under<br />

a social arrangement where the workers are the masters <strong>of</strong> the production process th<strong>is</strong> will not be the case. Your<br />

resubm<strong>is</strong>sion was also late.<br />

Next Message by Pizza <strong>is</strong> [335.16].<br />

[335.9] CaseWorker: CaseWorker did not resubmit h<strong>is</strong> exam. H<strong>is</strong> in-class exam were<br />

two literal excerpts from [53], although Hans had responded in [64] that th<strong>is</strong> was not an<br />

answer to the <strong>Question</strong> that was asked, but was nevertheless an example indicating what an<br />

economic mechan<strong>is</strong>m <strong>is</strong>.<br />

44 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Next Message by CaseWorker <strong>is</strong> [335.13].<br />

[335.8] Chuck: Chuck did not resubmit h<strong>is</strong> exam. He said that a coat has the same value<br />

no matter who produces it, and then he says it <strong>is</strong> decided by the sellers how much to charge<br />

for the coat. But the fact that the same coat has the same price <strong>is</strong> really enforced by the<br />

buyers, who will not buy a more expensive coat if the same coat <strong>is</strong> also <strong>of</strong>fered at a cheaper<br />

price. I would say it <strong>is</strong> nobody’s dec<strong>is</strong>ion, it comes from the structure <strong>of</strong> a market economy.<br />

Next Message by Chuck <strong>is</strong> [335.11].<br />

[545.2] Skippy: Th<strong>is</strong> question <strong>is</strong> not placing individuals value, but the value <strong>of</strong> the commodity.<br />

Th<strong>is</strong> value <strong>is</strong> based on the average. An individual may take 1 hour to produce a<br />

good, while it only takes another 2 hrs. Th<strong>is</strong> good, on the average <strong>of</strong> these two has the<br />

average <strong>of</strong> 1.5 hrs. <strong>of</strong> labor time. Since it takes some individuals more time or less time to<br />

produce identical commodities, the value <strong>of</strong> the commodity <strong>is</strong> averaged, not based on the<br />

one who produced it.<br />

Hans: You restate that the value <strong>is</strong> averaged, and you speak <strong>of</strong> “identical” commodites, but you do not make the<br />

conclusion that the market enforces it that identical commodities must have identical prices.<br />

Next Message by Skippy <strong>is</strong> [546].<br />

<strong>Exam</strong> <strong>Question</strong> 54 <strong>is</strong> 52 in 1996ut and 69 in 1999SP:<br />

<strong>Exam</strong> <strong>Question</strong> 54 Why must every individual commodity be considered as an average<br />

sample <strong>of</strong> its kind?<br />

[48] Snowman: Average value <strong>of</strong> a commodity The value <strong>of</strong> any product according to<br />

Marx “<strong>is</strong> determined by the quantity <strong>of</strong> labor used to produce it.” The reason that he uses<br />

th<strong>is</strong> determinant for deriving the value <strong>of</strong> products <strong>is</strong> it <strong>is</strong> the only factor <strong>of</strong> production that<br />

<strong>is</strong> inherent in all commodities, and therefor by measuring the quantity <strong>of</strong> that factor in any<br />

one commodity we can compare its value to any other commodity. The relative value then <strong>is</strong><br />

the quantity <strong>of</strong> labor used to produce a product. The value <strong>of</strong> a given product <strong>is</strong> not any one<br />

individuals labor but instead the labor hour <strong>is</strong> determined as a whole based on the average<br />

labor hour for the entire society. The labor hour <strong>is</strong> then merely the average time it takes to<br />

produce a commodity in a society.<br />

Because a commodity’s value <strong>is</strong> determined by the average amount <strong>of</strong> labor hours that <strong>is</strong><br />

required in its production, and labor hours are an average <strong>of</strong> society, it <strong>is</strong> required to consider<br />

any one commodity as generic, or representative <strong>of</strong> all the commodities <strong>of</strong> its kind. That <strong>is</strong> to<br />

determine the value based on the average labor in production we must assume that which <strong>is</strong><br />

being produced <strong>is</strong> representative <strong>of</strong> a group <strong>of</strong> products identical to one another. For example<br />

to know the value <strong>of</strong> a hammer one must assume that we are comparing an average hammer<br />

and its value to some other product and its value. Th<strong>is</strong> <strong>is</strong> a requirement that ensures apples<br />

are compared with apples and not oranges, as with the hammer its value would reflect the<br />

amount <strong>of</strong> labour used to produce it and all the hammers that are identical to it, but would<br />

not require that it represent the features <strong>of</strong> a hammer with different features, though it may<br />

accidently. So when given the value <strong>of</strong> hammer “A” that all hammers identical to “A” would<br />

have the same value and use value based on the average <strong>of</strong> the labor hours used to produce<br />

all “A” like hammers, and as such any on <strong>of</strong> the “A” like hammers <strong>is</strong> an “average sample <strong>of</strong><br />

its kind.”


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 45<br />

Hans: Although th<strong>is</strong> was labeled a Review <strong>Question</strong>, it was not an easy <strong>Question</strong>. Market relations seem so simple,<br />

but there <strong>is</strong> a lot implied in them. It <strong>is</strong> difficult to d<strong>is</strong>til the abstract principle out <strong>of</strong> th<strong>is</strong>, but you did a commendable<br />

job working yourself towards th<strong>is</strong>.<br />

Message [48] referenced by [85] and [327]. Next Message by Snowman <strong>is</strong> [138].<br />

[85] Hans: The commodity as Mr. Average Snowman’s [48] starts with a m<strong>is</strong>understanding<br />

which I want to clear up right away. It <strong>is</strong> not true that labor <strong>is</strong> the source <strong>of</strong> value<br />

because labor<br />

<strong>is</strong> the only factor <strong>of</strong> production that <strong>is</strong> inherent in all commodities<br />

One can find many other things like th<strong>is</strong>, for instance electricity <strong>is</strong> used for almost every<br />

production process, and if you look at direct and indirect inputs, there are many so-called<br />

“basic” goods which enter every product directly or indirectly. It <strong>is</strong> a social question, not a<br />

technological question, that labor <strong>is</strong> singled out by th<strong>is</strong> society among all other inputs.<br />

But now let us go to <strong>Question</strong> 54. Snowman explains correctly what it means to be<br />

considered an average sample <strong>of</strong> its kind; not only the labor content, but also the use value<br />

<strong>is</strong> considered average (and if it <strong>is</strong> not, you can return the good to the store). Now why <strong>is</strong><br />

th<strong>is</strong> so? Market relations are not establ<strong>is</strong>hed between idiosyncratic individual commodities,<br />

but between standardized commodity types. The commodities copy each other: if a certain<br />

commodity fetches a good price on the market, other commodity just like it come after it<br />

and want the same good price. There <strong>is</strong> no room for individuality in these abstract market<br />

relations. All labors are equalized not only with respect to intensity but also quality <strong>of</strong><br />

output, etc.<br />

Message [85] referenced by [327]. Next Message by Hans <strong>is</strong> [87].<br />

[91] Slacker: The commodity must be considered to be an average sample <strong>of</strong> its kind if<br />

it <strong>is</strong> to reflect the socially neccessary labor time that it embodies. It <strong>is</strong> also average in that<br />

the consumer cares not whether the commodity was produced by the most expediant worker,<br />

giving the lowest cost, or the slowest worker, giving the highest cost. The consumer pays the<br />

average <strong>of</strong> these two. In other words the consumer pays according to the socially necessary<br />

labor time required to produce the commodity. If the commodity was not sold according to<br />

snalt (socially necessary abstract labor time) then indeed the lazy and slow worker would<br />

recieve a higher price for the commodity that s/he produces.<br />

Message [91] referenced by [103] and [327]. Next Message by Slacker <strong>is</strong> [122].<br />

[103] Hans: Commodities must represent what they are I like Slacker’s answer [91] to<br />

<strong>Question</strong> 54. Slacker’s first sentence <strong>is</strong>:<br />

The commodity must be considered to be an average sample <strong>of</strong> its kind if it<br />

<strong>is</strong> to reflect the socially neccessary labor time that it embodies.<br />

Here <strong>is</strong> my take, how I would write th<strong>is</strong> sentence and how I would interpret it. Th<strong>is</strong> may<br />

not be the same as Slacker had in mind, but it was certainly inspired by Slacker’s response.<br />

Each <strong>of</strong> us gets a glimpse <strong>of</strong> a different aspect <strong>of</strong> it, and then when we compare notes, we<br />

may be able to put things together in a coherent way.<br />

Socially neccessary labor time <strong>is</strong> only the quantitative aspect <strong>of</strong> it, I would write “abstract<br />

labor” in order to get away from the emphas<strong>is</strong> on quantity. In Contribution, Marx wrote<br />

“abstract general labor”. I don’t know why the “general” was de-emphasized in Capital, to<br />

46 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

me th<strong>is</strong> seems relevant. (“General” means: the question <strong>of</strong> who <strong>is</strong> working <strong>is</strong> d<strong>is</strong>regarded,<br />

extingu<strong>is</strong>hed.) Anyway, throw in the “general” too.<br />

Now we can use an argument given at the beginning <strong>of</strong> Section 3 <strong>of</strong> Chapter One: a<br />

commodity <strong>is</strong> something tw<strong>of</strong>old, the product <strong>of</strong> concrete useful labor and the product <strong>of</strong><br />

general abstract labor, and it must reflect what it <strong>is</strong>. Its being an average sample <strong>of</strong> its kind<br />

<strong>is</strong> the reflection <strong>of</strong> the general nature <strong>of</strong> the abstract labor in it.<br />

Th<strong>is</strong> may seem a very abstract argument why a commodity must always be considered an<br />

average sample <strong>of</strong> its kind, but I think it <strong>is</strong> the right way to go. I hope that things will become<br />

clearer as we d<strong>is</strong>cuss Section 3 <strong>of</strong> Chapter One, which <strong>is</strong> central to Marx’s argument, but<br />

which <strong>is</strong> generally not very well understood.<br />

After h<strong>is</strong> first sentence, Slacker switches to a different argumentation:<br />

It <strong>is</strong> also average in that the consumer cares not whether the commodity<br />

was produced by the most expediant worker, giving the lowest cost, or the<br />

slowest worker, giving the highest cost. The consumer pays the average<br />

<strong>of</strong> these two. In other words the consumer pays according to the socially<br />

necessary labor time required to produce the commodity.<br />

Marx would call th<strong>is</strong> kind <strong>of</strong> argumentation an argument located in the “sphere <strong>of</strong> competition”.<br />

It takes appearances as given without identifying the forces that create th<strong>is</strong> appearance.<br />

Marx says that by their competition on the market, the agents force each other<br />

to conform with the laws <strong>of</strong> capital<strong>is</strong>m, but one cannot infer these laws themselves from<br />

competition.<br />

In the last sentence, Slacker switches back to a derivation <strong>of</strong> the appearances from the<br />

essence (here the “essence” being that the quantity <strong>of</strong> value <strong>is</strong> determined by “snalt”):<br />

If the commodity was not sold according to snalt (socially necessary abstract<br />

labor time) then indeed the lazy and slow worker would recieve a<br />

higher price for the commodity that s/he produces.<br />

My argumentation probably seems fuzzy to you, and at th<strong>is</strong> point I am aware that it<br />

<strong>is</strong> fuzzy. But I am convinced that th<strong>is</strong> <strong>is</strong> the direction to go in, and once we understand<br />

Marx better, we will be able to argue all th<strong>is</strong> in a much more rigorous way. In my view,<br />

Marx has never been fully understood; the development <strong>of</strong> Marx<strong>is</strong>m as a science <strong>is</strong> just now<br />

approaching the point where we may get ready to scale the same heights again which Marx<br />

had occupied in h<strong>is</strong> lone mountain scale over a century ago. (And one <strong>of</strong> the “underlaborers”<br />

helping us to get there <strong>is</strong> Bhaskar).<br />

Message [103] referenced by [109] and [327]. Next Message by Hans <strong>is</strong> [104].<br />

[327] Hans: <strong>What</strong> to do with my responses I am sending you my comments to Snowman’s<br />

resubm<strong>is</strong>sion <strong>of</strong> h<strong>is</strong> midterm answer [313-1] to <strong>Question</strong> 278 (which <strong>is</strong> similar to 54,<br />

and for the present purposes we can ignore the differences). Snowman’s resubm<strong>is</strong>sion was<br />

never sent to the l<strong>is</strong>t, but I hope my response <strong>is</strong> understandable on its own, and that you<br />

learn a little bit more from it about the structure <strong>of</strong> capital<strong>is</strong>m, and also about what you are<br />

expected to do with my responses, and how to best prepare for the second quiz.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 47<br />

Snowman, you copied your own answer [48] to <strong>Question</strong> 54, but you either m<strong>is</strong>understood<br />

or ignored my response [85] to you, and you ignored the further d<strong>is</strong>cussion <strong>of</strong> th<strong>is</strong><br />

<strong>Question</strong> in [91] and [103].<br />

Let us see what you made <strong>of</strong> my response to your [48]. Your first paragraph says that<br />

value <strong>is</strong> determined by labor because labor <strong>is</strong> the only input which enters all commodities.<br />

My response was that there are many other inputs which enter directly or indirectly all<br />

commodities, and that the determination <strong>of</strong> value <strong>is</strong> a social and not a technological affair.<br />

My reasoning here was very similar to the reasoning <strong>of</strong>ten applied by Marx: it depends on<br />

the society, on the structure <strong>of</strong> the social relations <strong>of</strong> production, whether things have values<br />

or not. In some societies things are not exchangeable etc., although these societies still have<br />

a technology. Therefore it <strong>is</strong> wrong to try to derive value from technological principles.<br />

You apparently thought that I meant: since there are more than one input to production<br />

entering every product, it <strong>is</strong> a matter <strong>of</strong> social convention to pick labor and no other input.<br />

In the in-class quiz you wrote:<br />

Though Labor <strong>is</strong> not perhaps the only constant variable in the production<br />

<strong>of</strong> commodities it <strong>is</strong> the best suited to be used as a constant variable,<br />

and in your resubm<strong>is</strong>sion you deepen the argument by saying:<br />

it <strong>is</strong> the best suited to relate values, because <strong>of</strong> its relation to the society as<br />

a whole, most other inputs merely serve to increase or decrease the productivity<br />

<strong>of</strong> th<strong>is</strong> one variable.<br />

Th<strong>is</strong> reasoning <strong>is</strong> still too much based on technological arguments, and on the implicit<br />

assumption that it <strong>is</strong> somehow agreed on by society to value commodities by labor content.<br />

In Marx’s view, capital<strong>is</strong>t society simply does th<strong>is</strong>, and the market <strong>is</strong> the mechan<strong>is</strong>m which<br />

forces the participants in the economy to abide by it, but it <strong>is</strong> not the result <strong>of</strong> an agreement<br />

(just as it <strong>is</strong> not the result <strong>of</strong> a dec<strong>is</strong>ion <strong>of</strong> the frog to be green and have four legs).<br />

Regarding your second paragraph, I had written in [85]: “Snowman explains correctly<br />

what it means to be considered an average sample <strong>of</strong> its kind”, and then I asked: “Now why<br />

<strong>is</strong> th<strong>is</strong> so?” Perhaps I was too polite; I should have reminded the reader more clearly that<br />

<strong>Question</strong> 54 had asked “why”, and that Snowman’s [48] did not give a reason “why”. In the<br />

homework subm<strong>is</strong>sions I am <strong>of</strong>ten sat<strong>is</strong>fied with partial answers working themselves in the<br />

right direction, but in the quiz I want complete answers, i.e., you should be able to recognize<br />

whether the homework answers which you are citing are complete or not, and to fill in the<br />

m<strong>is</strong>sing parts.<br />

Next Message by Hans <strong>is</strong> [328].<br />

<strong>Question</strong> 56 <strong>is</strong> 45 in 1995WI, 54 in 1995ut, 60 in 1997WI, 63 in 1997sp, 59 in 1997ut, 79<br />

in 2002fa, 81 in 2003fa, 90 in 2005fa, 104 in 2007SP, 107 in 2008SP, 105 in 2008fa, 112<br />

in 2010fa, and 131 in 2012fa:<br />

<strong>Question</strong> 56 How <strong>is</strong> the value <strong>of</strong> raw materials determined in Marx’s theory? How does<br />

the scarcity <strong>of</strong> these materials influence their value? Is Marx’s argument still valid in the<br />

case <strong>of</strong> an exhaustible resource, which <strong>is</strong> present only in finite supply?<br />

48 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[43] Karl: Value <strong>of</strong> scarce and raw materials The value <strong>of</strong> raw materials must be determined<br />

differently than a commodity by Marx. Marx said, “that as values all commodities<br />

are only greater or smaller amounts <strong>of</strong> congealed labor.” In other words a commodity’s value<br />

in direct correlation with labor, in fact it <strong>is</strong> the “labor power” embodied in the commodity<br />

that solely value, as in the societal aggregate <strong>of</strong> labor, or speaking about an individually<br />

produced commodity.<br />

Speaking rationally then, how can Marx say there <strong>is</strong> a value, use or otherw<strong>is</strong>e intrinsically<br />

attached to a “raw material?” For instance in the reading the example given was that <strong>of</strong> a<br />

diamond. Now a diamond in it’s natural, or raw state beneath the earth required no labor <strong>of</strong><br />

any individual or societal aggregate. Therefore Marx would consider its value to be nil, as<br />

there <strong>is</strong> no appendage <strong>of</strong> labor to it. Th<strong>is</strong> seems to be one <strong>of</strong> Marxs’ underlying, planned,<br />

contradictory thoughts, that was mentioned by Hans. Because while it <strong>is</strong> a raw material the<br />

diamond sould be thought <strong>of</strong> as a commodity in embryo. In class it was mentioned that a<br />

commodity held value regardless <strong>of</strong> exchange. The diamond as a raw material also holds no<br />

exchange, and therefore can only have value once it <strong>is</strong> required to be developed by a laborer<br />

or in other words, unearthed, cut, and pol<strong>is</strong>hed.<br />

Addressing the question pertaining to scarcity having an influence on value, Marx appears<br />

to be straight forward with th<strong>is</strong>. Marx seems to give a straight answer, without any<br />

underlying abstract meanings. Marx stated, “all human labors are equal in so far as they are<br />

equal expinditures <strong>of</strong> human labor power.” And that a commodity “represents” labor, and<br />

thus labor <strong>is</strong> it’s value. Therefore if one variable changes in a commodity, but the labor remains<br />

constant to produce it, there needs to be addtional elements which caused the change<br />

in exchange value. In th<strong>is</strong> particular case that additional element <strong>is</strong> scarcity. Marx believed<br />

that exchange value <strong>is</strong> dependent on other variable factors such as abundance, where, and<br />

when a product <strong>is</strong> exchanged etc..<br />

The third question requires more subjective insight on how I think Marxs’ arguements<br />

would hold in terms <strong>of</strong> an exhaustible resource. Th<strong>is</strong> requires me to be somewhat rev<strong>is</strong>ion<strong>is</strong>tic<br />

in my response. Marxs’ arguement still holds validity in the use <strong>of</strong> an exhaustible<br />

resource, with the exception <strong>of</strong> variance in the resource itself. For instance if I was in the<br />

desert, with a supply <strong>of</strong> water to exchange, that product <strong>is</strong> exhaustible. Once used, that<br />

particular material <strong>is</strong> relativley exhausted. But to the purchaser <strong>of</strong> the resource it makes<br />

no difference if it <strong>is</strong> exhaustible, only that it <strong>is</strong> scarce or limited to a finite supply as addressed<br />

earlier. If anything it would increase the exchange value <strong>of</strong> the water, and finitness<br />

no exhaustibility would be included as the variable element reliant on change in value.<br />

Message [43] referenced by [67], [109], and [1997WI:29]. Next Message by Karl <strong>is</strong> [121].<br />

[67] Fritz: Whip me! Karl wrote in [43]<br />

Now a diamond in it’s natural, or raw state beneath the earth required no labor<br />

<strong>of</strong> any individual or societal aggregate. Therefore Marx would consider<br />

it’s value to be nil, as there <strong>is</strong> no appendage <strong>of</strong> labor to it.<br />

yes, correct<br />

Th<strong>is</strong> seems to be one <strong>of</strong> Marxs’ underlying, planned, contradictory thoughts,<br />

that was mentioned by Hans. Because while it <strong>is</strong> a raw material the diamond


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 49<br />

sould be thought <strong>of</strong> as a commodity in embryo. In class it was mentioned<br />

that a commodity held value regardless <strong>of</strong> exchange.<br />

spell check Marxs’ should be Marx’s, sould should be should<br />

yes, because that <strong>is</strong> the definition <strong>of</strong> commodity<br />

The diamond as a raw material also holds no exchange, and therefore can<br />

only have value once it <strong>is</strong> required to be developed by a laborer or in other<br />

words, unearthed, cut, and pol<strong>is</strong>hed.<br />

a raw diamond “holds no exchange”? – no price? Marx would not agree. . .<br />

Marx stated, “all human labors are equal in so far as they are equal expinditures<br />

<strong>of</strong> human labor power.”<br />

spell check expinditures should be expenditures<br />

yes, your labor <strong>is</strong> equivalent to mine in the sense that under Jon Huntsman’s whip, we<br />

sweat the same number <strong>of</strong> droplets. . .<br />

but as a skilled graduate student, I will create more value per hour for my master than the<br />

unskilled m<strong>is</strong>speller. =)<br />

Cheers. Fritz<br />

p.s. Dr. Ehrbar <strong>is</strong> a stickler for spelling. He learned Engl<strong>is</strong>h and asks the same <strong>of</strong> h<strong>is</strong><br />

students. =)<br />

Next Message by Fritz <strong>is</strong> [68].<br />

[109] Hans: Value <strong>of</strong> raw materials Karl’s answer [43] has a number <strong>of</strong> interesting<br />

thoughts. <strong>Question</strong> 56 <strong>is</strong> really three questions, and I will go through Karl’s answers to the<br />

three questions one by one.<br />

The first question <strong>is</strong>: How <strong>is</strong> the value <strong>of</strong> raw materials determined? In the assigned<br />

readings, Marx answers: by the labor needed to extract the raw materials. But th<strong>is</strong> <strong>is</strong> not the<br />

full story. Marx d<strong>is</strong>regards here the fact that even before any labor was applied to them, the<br />

raw materials in the ground have a price. Th<strong>is</strong> <strong>is</strong> the ground rent which the land owner can<br />

get from allowing the capital<strong>is</strong>t to mine the land.<br />

Although the raw diamond in the earth does not contain any labor, and therefore does not<br />

have value in Marx’s usual definition, Karl says:<br />

Because while it <strong>is</strong> a raw material the diamond should be thought <strong>of</strong> as a<br />

commodity in embryo. In class it was mentioned that a commodity held<br />

value regardless <strong>of</strong> exchange. The diamond as a raw material also holds<br />

no exchange, and therefore can only have value once it <strong>is</strong> required to be<br />

developed by a laborer or in other words, unearthed, cut, and pol<strong>is</strong>hed.<br />

Th<strong>is</strong> <strong>is</strong> similar to the following sentence by Ricardo (which <strong>is</strong> not quite a literal quote, for<br />

reasons <strong>of</strong> brevity and clarity):<br />

50 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The logging company which paid for the right to fell trees in the virgin<br />

forest, paid in consideration <strong>of</strong> the valuable commodity which was then<br />

standing on the land and actually repaid itself with a pr<strong>of</strong>it by the sale <strong>of</strong><br />

the timber.<br />

Instead <strong>of</strong> giving my own analys<strong>is</strong> <strong>of</strong> Karl’s thoughts regarding diamonds in the ground,<br />

I think it <strong>is</strong> more instructive if I show you how Marx analyzed Ricardo’s thoughts regarding<br />

the very analogous situation <strong>of</strong> a virgin forest. Here I am quoting from Marx’s Theories<br />

<strong>of</strong> Surplus Value 2, p. 247-9, in German MEW 26.2, p. 246-9, it <strong>is</strong> also somewhere in<br />

MECW 31. Marx gives extracts from the above quote <strong>of</strong> Ricardo on p. 246:0 in MEW 26.2<br />

and then criticizes it. These critic<strong>is</strong>ms which Marx makes <strong>of</strong> h<strong>is</strong> contemporary econom<strong>is</strong>ts<br />

in Theories <strong>of</strong> Surplus-Value are very thorough. Marx looks at selected sentences word by<br />

word, and points out even small errors in their thinking. On the other hand Marx also takes<br />

pains to find the true kernel in what the others say.<br />

Marx makes three critic<strong>is</strong>ms <strong>of</strong> the above sentence <strong>of</strong> Ricardo:<br />

(a) the word “valuable” <strong>is</strong> out <strong>of</strong> place here; the trees have use-value, but not value.<br />

(b) The price which the logger pays for the tree cannot be explained by the fact that the<br />

logger will be able to recover th<strong>is</strong> price when he himself sells the timber.<br />

Th<strong>is</strong> <strong>is</strong> I think what Marx means when he says that the question what the logger’s purpose<br />

was when he paid money for the right to fell trees has nothing in common with the real<br />

question. (“He paid in consideration <strong>of</strong> ...”) Marx does not say th<strong>is</strong> here, but th<strong>is</strong> would be<br />

an attempt to explain the economy from the sphere <strong>of</strong> competition, compare my [103] about<br />

th<strong>is</strong>.<br />

(c) Th<strong>is</strong> compensation does hold the answer to the question. The ex<strong>is</strong>tence <strong>of</strong> the compensation<br />

<strong>is</strong> not enough, however. The relevant question <strong>is</strong>: out <strong>of</strong> which fund does the<br />

compensation plus pr<strong>of</strong>it come which the logger receives from the sale <strong>of</strong> the trees after they<br />

are felled? And Marx argues they come from the unpaid labor <strong>of</strong> the workers who felled the<br />

trees.<br />

But then Marx also shows that Ricardo’s theory was not entirely wrong. There <strong>is</strong> some<br />

kernel <strong>of</strong> truth in what Ricardo says. After all, Ricardo was a great econom<strong>is</strong>t and Marx had<br />

a lot <strong>of</strong> respect for him. One should not expect him to say complete nonsense, what he says<br />

must be at least partially right. And Marx acknowledges th<strong>is</strong>.<br />

Ricardo remarks that the logging company recovers the price <strong>of</strong> the trees plus a pr<strong>of</strong>it. It<br />

<strong>is</strong> clear where th<strong>is</strong> pr<strong>of</strong>it comes from: it <strong>is</strong> the unpaid labor <strong>of</strong> the workers felling the trees.<br />

Then Marx adds: the ground rent, the fee the logging company has to pay for the right to<br />

fell these trees, comes from the unpaid labor as well. And then Marx generalizes: The price<br />

paid for natural resources <strong>is</strong> therefore the share <strong>of</strong> the social surplus-value which those who<br />

control access to the natural resources can claim for themselves. For production one needs<br />

three things: labor, produced means <strong>of</strong> production, and natural resources. In our capital<strong>is</strong>t<br />

society, the capital<strong>is</strong>ts monopolize the means <strong>of</strong> production and can extort a tribute from the<br />

laborers for using them. But natural resources are privately owned as well; and the ground<br />

rent <strong>is</strong> that part <strong>of</strong> th<strong>is</strong> tribute which goes to the owner <strong>of</strong> the natural resources. The “value”


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 51<br />

which Ricardo attributes to the virgin forest before logging does therefore have a link to<br />

human labor: it derives from the forest owner’s ability to take part in the exploitation <strong>of</strong> the<br />

workers.<br />

Let us go to the second question, how scarcity affects value. Karl does not mean natural<br />

scarcity (gold <strong>is</strong> valuable because there <strong>is</strong> not much <strong>of</strong> it), but an excess <strong>of</strong> demand over<br />

supply. Karl <strong>is</strong> not always using the right terms, he does not d<strong>is</strong>tingu<strong>is</strong>h value and exchange<br />

value clearly enough, but he seems to say the following: in the statement that exchange value<br />

<strong>is</strong> a representation <strong>of</strong> value, Marx leaves it open that factors other than value may find their<br />

representation in exchange value as well, and scarcity <strong>is</strong> one <strong>of</strong> them. Th<strong>is</strong> <strong>is</strong> totally correct,<br />

with respect to the kind <strong>of</strong> scarcity Karl <strong>is</strong> talking about.<br />

Also with respect to the third question, value <strong>of</strong> exhaustible resources, Karl makes a valid<br />

point. I am really taken by the way Karl <strong>is</strong> thinking, <strong>is</strong> <strong>is</strong> quite similar to Marx’s thought processes,<br />

although someone not trained in reading Marx will probably not understand Karl’s<br />

reasoning. Karl writes:<br />

If I was in the desert, with a supply <strong>of</strong> water to exchange, that product <strong>is</strong><br />

exhaustible. Once used, that particular material <strong>is</strong> relatively exhausted.<br />

By “relatively”, Karl apparently means: d<strong>is</strong>regarding the fact that one can make the trip<br />

back and get more water from outside the desert. For here and now, water <strong>is</strong> exhaustible.<br />

Karl’s next sentence <strong>is</strong> very interesting:<br />

But to the purchaser <strong>of</strong> the resource it makes no difference if it <strong>is</strong> exhaustible,<br />

only that it <strong>is</strong> scarce or limited to a finite supply as addressed<br />

earlier.<br />

Excellent point. Value <strong>is</strong> a social relationship attached to the product, and it <strong>is</strong> impossible<br />

to see, just by looking at the product, whether it <strong>is</strong> exhaustible or not. If you buy a can <strong>of</strong><br />

Anchov<strong>is</strong> in the store, you do not see whether th<strong>is</strong> <strong>is</strong> the last Anchov<strong>is</strong> ever f<strong>is</strong>hed out <strong>of</strong> the<br />

ocean. The only thing you see <strong>is</strong> whether there are many or few cans <strong>of</strong> Anchov<strong>is</strong> on the<br />

shelves. But th<strong>is</strong> can be very m<strong>is</strong>leading: the last school <strong>of</strong> f<strong>is</strong>h can be detected by satellite<br />

and “harvested” as cheaply and easily as a school <strong>of</strong> f<strong>is</strong>h with thousands others around. The<br />

lesson from th<strong>is</strong> <strong>is</strong>: market relations are a very inadequate mechan<strong>is</strong>m for dealing with <strong>is</strong>sues<br />

such as exhaustibility <strong>of</strong> resources.<br />

Message [109] referenced by [113], [521], and [1997WI:29]. Next Message by Hans <strong>is</strong> [110].<br />

<strong>Question</strong> 57 <strong>is</strong> 61 in 1997WI:<br />

<strong>Question</strong> 57 How do you explain the fact described here by Marx that the price <strong>of</strong> many<br />

scarce goods <strong>is</strong> below their value?<br />

[35] Angela: The price <strong>of</strong> many scare goods <strong>is</strong> below their value In our economy, we<br />

usually produce the scare goods at fr<strong>is</strong>t and then we want to produce as more quantities <strong>of</strong><br />

scare goods as we can. Because <strong>of</strong> th<strong>is</strong> reason, we will try to improve and develope the new<br />

methods <strong>of</strong> production process by technological applicability or others in order to increase<br />

the quantities <strong>of</strong> scare good. So in the market, the price <strong>of</strong> the scare goods usually <strong>is</strong> lower<br />

because the supplies are greater then the demands.<br />

52 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

And from Marx’s point <strong>of</strong> view, the value <strong>of</strong> a commodity would be greater or smaller<br />

ammounts <strong>of</strong> congeales labor time. Because the congealed labor time <strong>is</strong> determined by the<br />

productivity <strong>of</strong> labor that will be affected by a wide range <strong>of</strong> circumstances. Moreover, we<br />

also know that technological progress will induce a contradiction between value and real<br />

<strong>wealth</strong>. Therefore, the vaule <strong>of</strong> a commodity varies directly as the quantity and inversely as<br />

the productivity <strong>of</strong> labor.<br />

Tha price <strong>of</strong> the scare goods <strong>is</strong> not determined by the value <strong>of</strong> a commodity, because <strong>of</strong><br />

the above reasons, the price <strong>of</strong> many scare goods <strong>is</strong> below thier value.<br />

Message [35] referenced by [72] and [73]. Next Message by Angela <strong>is</strong> [131].<br />

[42] Skippy: Prices below their their value. Many scarace goods have a high market<br />

value due to the extensive labor hours required to extract them from where they hide. Over<br />

time, faster and efficient ways to excavate or produce these goods are put into effect. Or<br />

perhaps a new mine <strong>is</strong> found with a more abundant supply <strong>of</strong> the good so equal lobor time can<br />

produce a greater amount. Th<strong>is</strong> also depends on the conditions <strong>of</strong> the working enviroment.<br />

Since these goods do not expend as much labor time as before, be it by technology, or<br />

man’s own intervention, these goods are below their full value.<br />

Message [42] referenced by [73]. Next Message by Skippy <strong>is</strong> [143].<br />

[51] Camera: Additional comments to Skippy’s answer I feel that Skippy’s answer<br />

to 57 did overlook an important element to the question. That <strong>is</strong> the idea that these goods<br />

are scarce. It <strong>is</strong> true that with changing technology and new d<strong>is</strong>coveries, the scarcity <strong>of</strong><br />

these goods can change at any time. However, it <strong>is</strong> the element <strong>of</strong> the unknown that brings<br />

about undervalued goods. For example, we are aware that eventually the earth’s supply <strong>of</strong><br />

fossil fuel will be depleted. But do we really know how many more trips to Chevron we<br />

can take? When do we outlaw gasoline cars and convert to natural gas? Th<strong>is</strong> also brings<br />

the individual’s opinion on how important driving <strong>is</strong> to he or she. Are you willing to pay<br />

$15/gallon in order to drive to work? All these elements determine the value <strong>of</strong> gasoline<br />

and because we don’t really know what it will take to give up the old Chevy, our system <strong>of</strong><br />

valuing <strong>is</strong> only an estimate.<br />

Message [51] referenced by [73]. Next Message by Camera <strong>is</strong> [222].<br />

[72] Hans: Now it <strong>is</strong> scarce, now it <strong>is</strong> not In [35], answering 57, Angela wrote<br />

In our economy, we usually produce the scare goods at fr<strong>is</strong>t and then we<br />

want to produce as more quantities <strong>of</strong> scare goods as we can. Because <strong>of</strong><br />

th<strong>is</strong> reason, we will try to improve and develope the new methods <strong>of</strong> production<br />

process by technological applicability or others in order to increase<br />

the quantities <strong>of</strong> scare good. So in the market, the price <strong>of</strong> the scare goods<br />

usually <strong>is</strong> lower because the supplies are greater then the demands.<br />

You are saying: if something <strong>is</strong> scarce, then we produce so much <strong>of</strong> it that it <strong>is</strong> no longer<br />

scarce, and then its price falls below its value. But we start out producing so much <strong>of</strong> it<br />

because initially the price was above the value.<br />

Your next paragraph <strong>is</strong> just a summary <strong>of</strong> things from the study guide, I do not see the<br />

relevance <strong>of</strong> it for the present question. I will omit it here.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 53<br />

Finally, in your last sentence, you found a pro<strong>of</strong> in Marx that the labor theory <strong>of</strong> value <strong>is</strong><br />

wrong:<br />

The price <strong>of</strong> the scare goods <strong>is</strong> not determined by the value <strong>of</strong> a commodity,<br />

because <strong>of</strong> the above reasons, the price <strong>of</strong> many scare goods <strong>is</strong> below thier<br />

value.<br />

Th<strong>is</strong> <strong>is</strong> the only thought in your whole subm<strong>is</strong>sion.<br />

Next Message by Hans <strong>is</strong> [73].<br />

[73] Hans: Success at the third try Skippy’s answer [42] to <strong>Question</strong> 57 <strong>is</strong> very similar<br />

to Angela’s [35]. The only difference <strong>is</strong> that Skippy knows better what <strong>is</strong> meant by “scarce”<br />

in the context <strong>of</strong> the present <strong>Question</strong>. After two bummer answers [35] and [42], Camera’s<br />

[51] <strong>is</strong> like a ray <strong>of</strong> light. Camera notices that Skippy, although he knew what was meant by<br />

“scarce”, did not use th<strong>is</strong> knowledge in h<strong>is</strong> answer:<br />

I feel that Skippy’s answer to 57 did overlook an important element to the<br />

question. That <strong>is</strong> the idea that these goods are scarce. It <strong>is</strong> true that with<br />

changing technology and new d<strong>is</strong>coveries, the scarcity <strong>of</strong> these goods can<br />

change at any time. However, it <strong>is</strong> the element <strong>of</strong> the unknown that brings<br />

about undervalued goods.<br />

Excellent point. I also like how Camera integrates Skippy’s answer in her answer. She<br />

should have done it a little more explicitly, but it <strong>is</strong> fairly clear from her answer that the<br />

expectation that new technologies may at any time change the scarcity status <strong>of</strong> the good <strong>is</strong><br />

part <strong>of</strong> the uncertainty she <strong>is</strong> talking about. Unfortunately, the examples Camera brings use<br />

exhaustible goods rather than just scarce (but reproducible) goods; therefore they bring in<br />

additional complications.<br />

Next Message by Hans <strong>is</strong> [76].<br />

<strong>Exam</strong> <strong>Question</strong> 58 <strong>is</strong> 55 in 1996ut, 105 in 2007SP, 106 in 2008fa, 109 in 2009fa, and 133<br />

in 2011fa:<br />

<strong>Exam</strong> <strong>Question</strong> 58 Explain the following sentence in the text: “Jacob questions whether<br />

gold has ever been paid for at its full value.”<br />

[86] Alf: Jacob’s question Marx says that the value <strong>of</strong> a commodity depends directly<br />

on the labor time required to produce a given product. Take for example, the diamond.<br />

Diamonds are very rare, they are hard to find, and the process required to transform carbon<br />

into diamonds <strong>is</strong> very tedious. Therefore, a great deal <strong>of</strong> labor time goes into the production<br />

<strong>of</strong> a diamond, and the end product becomes a very valuable commodity. High labor time<br />

plus small volume equals much value. Unlike a diamond, the production process <strong>of</strong> gold <strong>is</strong><br />

more advanced technology w<strong>is</strong>e. One must also realize that gold has always been used as<br />

a medium <strong>of</strong> exchange, and the metal <strong>is</strong> found more abundant in the market today. Jacob<br />

knows th<strong>is</strong>, and realizes the differeces determining the values <strong>of</strong> both gold and diamonds,<br />

and he expresses th<strong>is</strong> in h<strong>is</strong> statement that questions whether gold <strong>is</strong> ever paid for at its full<br />

value. I too, believe th<strong>is</strong> to be the case.<br />

Message [86] referenced by [110]. First Message by Alf <strong>is</strong> [83].<br />

54 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[110] Hans: Jacob’s question In [86], Alf brings two reasons why “gold has never been<br />

paid for at its full value.” H<strong>is</strong> first reasion <strong>is</strong> wrong and the second <strong>is</strong> right. The first reason<br />

<strong>is</strong>:<br />

Unlike a diamond, the production process <strong>of</strong> gold <strong>is</strong> more advanced technology<br />

w<strong>is</strong>e.<br />

If the productivity <strong>of</strong> mining gold <strong>is</strong> more advanced, then the value <strong>of</strong> gold <strong>is</strong> lower. Th<strong>is</strong><br />

would be an explanation why the value <strong>of</strong> gold <strong>is</strong> what it <strong>is</strong>, not why the price <strong>of</strong> gold <strong>is</strong><br />

below its value.<br />

Alf’s second reason <strong>is</strong> right:<br />

One must also realize that gold has always been used as a medium <strong>of</strong> exchange,<br />

and the metal <strong>is</strong> found more abundant in the market today.<br />

So much gold has been mined, because <strong>of</strong> the monetary functions <strong>of</strong> gold, that there <strong>is</strong><br />

far too much gold around in relation to the nonmonetary needs for gold. Keynes called it a<br />

“barbarous relic”, and Lenin thought one should use all th<strong>is</strong> gold to gold-plate the p<strong>is</strong>soirs<br />

for the workers in Moskow and elsewhere.<br />

Next Message by Hans <strong>is</strong> [113].<br />

<strong>Question</strong> 59 <strong>is</strong> 55 in 1995ut, 62 in 1997WI, and 60 in 1997ut:<br />

<strong>Question</strong> 59 Give other examples where something <strong>is</strong> the carrier <strong>of</strong> something else but not<br />

its source.<br />

[95] Ramb<strong>is</strong>: Carrier relationship to source Marx states that use value <strong>is</strong> the carrier<br />

<strong>of</strong> exchange value, but as use value <strong>is</strong> not dependent on exchange value and yet exchange<br />

value <strong>is</strong> non-ex<strong>is</strong>tent without use value, use value cannot then be considered the source <strong>of</strong><br />

exchange value and use value and exchange value are not interchangeable terms. In simpler<br />

terms, the sun and the light that it emits can be considered the carrier <strong>of</strong> “daytime”, but the<br />

sun <strong>is</strong> not intrinsicly dependent on daytime, yet daytime doesn’t have expression without the<br />

sun (near the poles during seasonal periods <strong>of</strong> prolonged darkness, “daytime” ex<strong>is</strong>ts because<br />

people are up and around and about their work, but “daytime” as it <strong>is</strong> perceived and conveyed<br />

in the mind <strong>is</strong> not fully expressed). The sun <strong>is</strong> not considered the source <strong>of</strong> daytime,<br />

and sun or sunlight and daytime are certainly not interchangeable terms although there <strong>is</strong> an<br />

obvious relationship between the two. The same <strong>is</strong> true <strong>of</strong> the relationship between basketball<br />

equipment (basketball, backboard and rim) and the game <strong>of</strong> basketball. The equipment<br />

can be considered the carrier <strong>of</strong> the game itself, but <strong>is</strong> not the source <strong>of</strong> the game in the same<br />

sense that the sun <strong>is</strong> not the source <strong>of</strong> daytime. Without the equipment, the game does not<br />

ex<strong>is</strong>t, but the equipment does not depend on the game in the same way that the sun does not<br />

depend on daytime.<br />

Message [95] referenced by [105]. Next Message by Ramb<strong>is</strong> <strong>is</strong> [141].<br />

[105] Hans: Carrier versus content I agree with the basketball example in Ramb<strong>is</strong>’s<br />

[95]. Th<strong>is</strong> <strong>is</strong> a good example <strong>of</strong> a “carrier”.<br />

The relationship between sunlight and daytime <strong>is</strong> a different kind <strong>of</strong> relationship. Expressed<br />

in the Hegelian paradigm Marx <strong>is</strong> using, it <strong>is</strong> a form - content relationship. Such a


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 55<br />

relationship <strong>is</strong> d<strong>is</strong>cussed in [1995WI:63]. The rotation <strong>of</strong> the earth with the periodical exposure<br />

to light <strong>is</strong> the content, which imprints itself on the life rhythm <strong>of</strong> the animals living on<br />

earth. Th<strong>is</strong> life rhythm can be considered some kind <strong>of</strong> form taken by the raw astronomical<br />

content.<br />

The example with the arctic city illustrates nicely how the form can obtain relative autonomy<br />

from the content: even if the animals move into an environment in which there <strong>is</strong> no<br />

longer a periodical change between light during the day and darkness at night, they maintain<br />

their life rhythm because th<strong>is</strong> rhythm <strong>is</strong> now inside them.<br />

Interestingly, if left to their own devices, people would switch to a 25 hour day rather than<br />

a 24 hour day. Th<strong>is</strong> <strong>is</strong> an example <strong>of</strong> incongruity between form and content. Marx d<strong>is</strong>cusses<br />

such incongruities on many places without using the word, but he uses th<strong>is</strong> word explicitly<br />

in 195:2/o.<br />

Next Message by Hans <strong>is</strong> [106].<br />

<strong>Question</strong> 60 <strong>is</strong> 48 in 1995WI, 56 in 1995ut, 58 in 1996ut, 65 in 1997sp, 347 in 1998WI,<br />

348 in 1999SP, 441 in 2002fa, and 523 in 2007fa:<br />

<strong>Question</strong> 60 Labor power creates products. The value <strong>of</strong> the products comes from the<br />

value <strong>of</strong> labor power, and the use value from the use value <strong>of</strong> labor power. Is th<strong>is</strong> a correct<br />

rendering <strong>of</strong> Marx’s theory?<br />

[44] TOAD: Labor Power Yes. I would say that th<strong>is</strong> <strong>is</strong> a correct rendering <strong>of</strong> Marx’s<br />

theory. I feel th<strong>is</strong> way because <strong>of</strong> the readings <strong>of</strong> the following paragraphs 132:1-134:0 and<br />

R134:0-136:2. in these paragraphs Marx uses the example <strong>of</strong> the linen material and the coat<br />

that <strong>is</strong> made from the material. He explains that the linen <strong>is</strong> a product <strong>of</strong> nature and would<br />

ex<strong>is</strong>t weathor or not man used it for any purpose. However after the linen <strong>is</strong> woven into a<br />

fabric that can be used it has use value because <strong>of</strong> the labor that was put into changing it into<br />

fabric, eventhough the use value <strong>of</strong> the fabric <strong>is</strong> half <strong>of</strong> the fin<strong>is</strong>hed product it still has use<br />

vlaue. The use value <strong>of</strong> the fabric doubles when the coat <strong>is</strong> taylored because there <strong>is</strong> twice<br />

as much labor in the coat then there <strong>is</strong> in the linen.<br />

The value <strong>of</strong> the coat only represents the amount <strong>of</strong> labor put into the production <strong>of</strong><br />

the coat as the value <strong>of</strong> the linen only represents the amount <strong>of</strong> labor put into weaving the<br />

material. Therefore the coat has twice the value as the material.<br />

The use value <strong>of</strong> the material <strong>is</strong> half that <strong>of</strong> the coat because the two kinds <strong>of</strong> labor are <strong>of</strong><br />

different qualities. The quality <strong>of</strong> the labor in the material <strong>is</strong> half the quality <strong>of</strong> the labor in<br />

the coat.<br />

Message [44] referenced by [68] and [79]. Next Message by TOAD <strong>is</strong> [74].<br />

[68] Fritz: skinny puppy vs the stones TOAD wrote in [44]<br />

The value <strong>of</strong> the coat only represents the amount <strong>of</strong> labor put into the production<br />

<strong>of</strong> the coat as the value <strong>of</strong> the linen only represents the amount <strong>of</strong><br />

labor put into weaving the material. Therefore the coat has twice the value<br />

as the material.<br />

yes TOAD, correct.<br />

56 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

1) i spend 1 hour picking cotton, spinning and weaving the linen<br />

2) using th<strong>is</strong> linen I add 1 additional hour <strong>of</strong> my labor to create the coat<br />

linen = 1 hour <strong>of</strong> embodied labor<br />

coat = 2 hours <strong>of</strong> embodied labor<br />

The use value <strong>of</strong> the material <strong>is</strong> half that <strong>of</strong> the coat because the two kinds<br />

<strong>of</strong> labor are <strong>of</strong> different qualities. The quality <strong>of</strong> the labor in the material <strong>is</strong><br />

half the quality <strong>of</strong> the labor in the coat.<br />

not “quality”, it should be quantity: The quantity <strong>of</strong> the labor embodied in the linen <strong>is</strong><br />

half the quantity <strong>of</strong> labor embodied in the coat.<br />

The use value <strong>of</strong> the fabric doubles when the coat <strong>is</strong> taylored because there<br />

<strong>is</strong> twice as much labor in the coat then there <strong>is</strong> in the linen.<br />

spell check taylored should be tailored<br />

grammar check “coat then there <strong>is</strong>” should be “coat than there <strong>is</strong>”<br />

nein. . .<br />

when you go to Blockbuster and are deciding whether you want to purchase a CD <strong>of</strong><br />

Skinny Puppy or the Voodoo Lounge, you are comparing amounts <strong>of</strong> use value you will<br />

derive from each.<br />

i doubt your compar<strong>is</strong>on involved a measure <strong>of</strong> the amount <strong>of</strong> labor hours expended by<br />

Mick and Keith to the labor hours <strong>of</strong> the Puppies.<br />

Cheers. Fritz<br />

Next Message by Fritz <strong>is</strong> [69].<br />

[74] TOAD: skinny puppy vs. the stones “shot down” The quality <strong>of</strong> the labor embodied<br />

in the linen <strong>is</strong> half the quality <strong>of</strong> the labor in the coat. Th<strong>is</strong> <strong>is</strong> true in the compar<strong>is</strong>on <strong>of</strong> use<br />

value. If it were just vlaue then quantity would be correct.<br />

Not “quantity”→quality<br />

The “use value” (not value) <strong>of</strong> the fabric doubles when the coat <strong>is</strong> taylored because there<br />

<strong>is</strong> twice as much qualitative labor (not just labor but “quality labor”) in the coat th<strong>is</strong> increases<br />

the “use value”.<br />

Reference Marx Capitol 136:2<br />

Cheers. TOAD<br />

Message [74] referenced by [78]. Next Message by TOAD <strong>is</strong> [148].<br />

[78] Fritz: oh Ja, ich liebe die Stones TOAD [74] provides a proper reference 136:2, but<br />

<strong>is</strong> confusing different definitions which contain the word value.<br />

For example, use-value, value, and exchange value.<br />

When Marx writes 136:2, “Why <strong>is</strong> there th<strong>is</strong> difference in value?” He <strong>is</strong> not referring to<br />

use-value but value.


I will try to define Marx’s definition and use <strong>of</strong> use-value.<br />

use-value<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 57<br />

Marx writes 126:1: “the usefulness <strong>of</strong> a thing makes it a use-value.”<br />

So what <strong>is</strong> meant by “usefulness”? Well, Marx provides a footnote in the sentence above<br />

in which he makes reference to a quote by John Locke: “The natural worth/(use-value) <strong>of</strong><br />

anything cons<strong>is</strong>ts in its fitness to supply the necessities, or serve the conveniences <strong>of</strong> human<br />

life.”<br />

I read th<strong>is</strong> to mean: anything which brings an individual utility/sat<strong>is</strong>faction <strong>is</strong> a use-value.<br />

<strong>Exam</strong>ples might include: food a v<strong>is</strong>it to the Million Dollar Saloon enjoying the sunset<br />

over the Great Salt Lake<br />

If you say that sunsets and nudie bars are not necessities <strong>of</strong> life, I will ask to see Marx’s<br />

definition <strong>of</strong> “necessity.”<br />

If you said:<br />

“I get twice as much use-value from l<strong>is</strong>tening to a CD <strong>of</strong> Skinny Puppy than a CD <strong>of</strong><br />

Rolling Stones.”<br />

I would shrug and say “o.k.”<br />

Marx writes 127:4–128:1, “As use-values, commodities differ above all in quality...”<br />

If we put headphones on Marx and forced him to l<strong>is</strong>ten to a CD <strong>of</strong> Puppy and then a CD<br />

<strong>of</strong> Stones, the first words out <strong>of</strong> h<strong>is</strong> mouth would be:<br />

“oh Ja, der music <strong>of</strong> die Stones <strong>is</strong>t sehr qualitatively different than die music <strong>of</strong> die Puppies.”<br />

H<strong>is</strong> next sentence might be:<br />

“oh Ja, ich liebe diese CD <strong>of</strong> die Stones 2X as much as die Puppy.”<br />

All <strong>of</strong> th<strong>is</strong> to say that Marx would not take <strong>is</strong>sue with a quantitative measurements <strong>of</strong><br />

use-value – except to point out that the principal difference <strong>is</strong> qualitative.<br />

Next Message by Fritz <strong>is</strong> [93].<br />

[79] Hans: Quality and Quantity Sorry to say, TOAD’s answer [44] to <strong>Question</strong> 60 has<br />

a number <strong>of</strong> errors. Let us go through it in detail. TOAD writes:<br />

Marx explains that the linen <strong>is</strong> a product <strong>of</strong> nature and would ex<strong>is</strong>t weathor<br />

or not man used it for any purpose.<br />

No, linen <strong>is</strong> a woven fabric, it contains a lot <strong>of</strong> labor.<br />

However after the linen <strong>is</strong> woven into a fabric that can be used it has use<br />

value because <strong>of</strong> the labor that was put into changing it into fabric, eventhough<br />

the use value <strong>of</strong> the fabric <strong>is</strong> half <strong>of</strong> the fin<strong>is</strong>hed product it still has<br />

use vlaue.<br />

58 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Use values can not be compared. You cannot say whether an ice cream cone has more<br />

or less use value than a VCR rental. You cannot even say whether linen has more or less<br />

use value than a coat. You can describe the use value <strong>of</strong> each, but not arrange them on a<br />

comparative scale.<br />

The use value <strong>of</strong> the fabric doubles when the coat <strong>is</strong> taylored because there<br />

<strong>is</strong> twice as much labor in the coat then there <strong>is</strong> in the linen.<br />

Marx writes in 126:1 that the use value <strong>of</strong> a commodity “<strong>is</strong> independent <strong>of</strong> the amount <strong>of</strong><br />

labor required to appropriate its useful qualities.”<br />

The value <strong>of</strong> the coat only represents the amount <strong>of</strong> labor put into the production<br />

<strong>of</strong> the coat as the value <strong>of</strong> the linen only represents the amount <strong>of</strong><br />

labor put into weaving the material. Therefore the coat has twice the value<br />

as the material.<br />

Yes, as values, these things can be measured on the same scale. Th<strong>is</strong> scale <strong>is</strong> labor time.<br />

The use value <strong>of</strong> the material <strong>is</strong> half that <strong>of</strong> the coat because the two kinds<br />

<strong>of</strong> labor are <strong>of</strong> different qualities. The quality <strong>of</strong> the labor in the material <strong>is</strong><br />

half the quality <strong>of</strong> the labor in the coat.<br />

Things that have different qualities cannot be measured on the same scale. Th<strong>is</strong> would be<br />

comparing apples and oranges. All you can say <strong>is</strong>:<br />

The use value <strong>of</strong> the material <strong>is</strong> DIFFERENT THAN that <strong>of</strong> the coat because<br />

the two kinds <strong>of</strong> labor are <strong>of</strong> different qualities. The quality <strong>of</strong> the<br />

labor in the material <strong>is</strong> DIFFERENT THAN the quality <strong>of</strong> the labor in the<br />

coat.<br />

Next Message by Hans <strong>is</strong> [81].<br />

[82] Pippy: hats In (74), Toad answered th<strong>is</strong> question by comparing the two different<br />

use values <strong>of</strong> different commodities and translating th<strong>is</strong> difference into different values <strong>of</strong><br />

the labor which produced them. I d<strong>is</strong>agree. First, when commodities are compared with<br />

one another, their use values are abstracted, we are only able to compare them with regard<br />

to their common substance, the amount <strong>of</strong> socially necessary abstract labor time which they<br />

congeal. My second confusion, how one could measure these qualitative d<strong>is</strong>tinctions was<br />

addressed by Hans previously; they are in fact “apples and oranges.”<br />

Now, The statement in question 60 <strong>is</strong> incorrect.<br />

The capital<strong>is</strong>t purchases labor power to create commodities which will have a greater<br />

magnitude <strong>of</strong> value than the value <strong>of</strong> the inputs to produce the commodity. The laborer sells<br />

h<strong>is</strong> labor power to the capital<strong>is</strong>t at its value, the amount <strong>of</strong> socially necessary abstract labor<br />

time embodied in the necessaries that refuel the worker. As the worker labors he creates<br />

value, he acts as the surrogate father for the capital<strong>is</strong>t with capital as the womb. H<strong>is</strong> labor<br />

power <strong>is</strong> consumed in the production process, ergo it <strong>is</strong> the use value <strong>of</strong> labor power which<br />

creates the value we see embodied in the commodity.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 59<br />

Furthermore, the latter part <strong>of</strong> the statement “and the use value from the use <strong>of</strong> labor<br />

power”, <strong>is</strong> also false. The use value <strong>of</strong> the commodity has already been abstracted at the<br />

onset <strong>of</strong> its confrontation with other commodities as a valuable being in its social context.<br />

It has shed its natural properties like a gentleman who has removed h<strong>is</strong> hat upon entering<br />

a room with proper company. The commodity as a social creature abandons its individual<br />

qualities when it sits in relation to other commodities.<br />

Summary:<br />

The value <strong>of</strong> a product <strong>is</strong> created by the use value <strong>of</strong> labor power. The use value <strong>of</strong> the<br />

product <strong>is</strong> extracted upon valuation. The value <strong>of</strong> labor power <strong>is</strong> the amount <strong>of</strong> abstract labor<br />

required to replen<strong>is</strong>h labor power.<br />

Message [82] referenced by [84], [87], and [315.2].<br />

[84] Hans: Commodities: monks or angels? Pippy <strong>is</strong> right when she writes in [82]:<br />

The statement in question 60 <strong>is</strong> incorrect.<br />

Since <strong>Question</strong> 60 uses the concept “value <strong>of</strong> labor power”, it <strong>is</strong> appropriate that her<br />

explanations are given in a paragdigm in which <strong>is</strong> labor power <strong>is</strong> a commodity. In other<br />

words, Pippy uses things which are described in Chapter Six. In Chapter One, Marx already<br />

introduces the concept <strong>of</strong> labor power, but labor power <strong>is</strong> not yet a commodity. Therefore,<br />

what comes now <strong>is</strong> a preview <strong>of</strong> Chapter Six:<br />

The capital<strong>is</strong>t purchases labor power to create commodities which will have<br />

a greater magnitude <strong>of</strong> value than the value <strong>of</strong> the inputs to produce the<br />

commodity. The laborer sells h<strong>is</strong> labor power to the capital<strong>is</strong>t at its value,<br />

the amount <strong>of</strong> socially necessary abstract labor time embodied in the necessaries<br />

that refuel the worker. As the worker labors he creates value,<br />

So far it <strong>is</strong> good. But Pippy’s next sentence brings an unfortunate analogy:<br />

he acts as the surrogate father for the capital<strong>is</strong>t with capital as the womb.<br />

And I thought Pippy Longstocking was speaking here! In childbearing the mother <strong>is</strong><br />

doing all the work, while the father can at most ask every now and then: how <strong>is</strong> our baby<br />

doing, darling? In the factory, the worker <strong>is</strong> doing all the work, while the capital<strong>is</strong>t then<br />

claims ownership afterwards.<br />

H<strong>is</strong> labor power <strong>is</strong> consumed in the production process, ergo it <strong>is</strong> the use<br />

value <strong>of</strong> labor power which creates the value we see embodied in the commodity.<br />

Th<strong>is</strong> <strong>is</strong> right, and th<strong>is</strong> holds true whether the worker <strong>is</strong> a wage laborer or an whether he<br />

or she <strong>is</strong> an independent producer for the market. Pippy continues:<br />

Furthermore, the latter part <strong>of</strong> the statement “and the use value from the use<br />

<strong>of</strong> labor power”, <strong>is</strong> also false.<br />

60 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Yes, strictly speaking one can call it false, because it <strong>is</strong> not only labor (the use value <strong>of</strong><br />

labor power) but also nature which together produce the use value. But th<strong>is</strong> <strong>is</strong> not what Pippy<br />

means. She writes:<br />

The use value <strong>of</strong> the commodity has already been abstracted at the onset<br />

<strong>of</strong> its confrontation with other commodities as a valuable being in its social<br />

context. It has shed its natural properties like a gentleman who has removed<br />

h<strong>is</strong> hat upon entering a room with proper company. The commodity as a<br />

social creature abandons its individual qualities when it sits in relation to<br />

other commodities.<br />

I do not quite agree with all <strong>of</strong> th<strong>is</strong>, although there <strong>is</strong> a lot <strong>of</strong> truth in it, and I do like the<br />

analogy <strong>of</strong> the hat. I would rather say that a commodity <strong>is</strong> like a monk, it <strong>is</strong> only concerned<br />

with its value-soul and considers its pr<strong>of</strong>ane use-value body as burdensome and troublesome.<br />

But that a monk prays all the time does not mean that he <strong>is</strong> already in heaven. The<br />

commodity has both sides, for better or for worse, and they fight with each other. Therefore<br />

it <strong>is</strong> legitimate to talk about the use value <strong>of</strong> a commodity and to ask where it comes from.<br />

Next Message by Hans <strong>is</strong> [85].<br />

[98] Wolf: I agree and d<strong>is</strong>sagree with your rendering <strong>of</strong> Marx’s theory. I say th<strong>is</strong> because,<br />

labor power cons<strong>is</strong>ts <strong>of</strong> two parts singularly or together. Labor power <strong>is</strong> abstract labor and or<br />

concrete labor the difference <strong>of</strong> the two <strong>is</strong> qualitative. Abstract labor <strong>is</strong> synonomyous with<br />

unskilled labor, labor that <strong>is</strong> monotnous, with the main focus on producing a utility that <strong>is</strong><br />

demanded. It <strong>is</strong> the least rewarding and with the highest turnover rate <strong>of</strong> the two. Where<br />

as concrete labor <strong>is</strong> the same as saying creative / skilled labor. Th<strong>is</strong> <strong>is</strong> innovative and more<br />

rewarding because it <strong>is</strong> aimed at makeing or doing something new and exciting, bigger and<br />

better with or with out a commodity (in demand).<br />

As I said before, labor power cons<strong>is</strong>ts <strong>of</strong> two parts, singularly or together. Let’s look at<br />

them singularly, abstract labor has the focus <strong>of</strong> producing a utility that <strong>is</strong> demanded (by the<br />

market). Therefore, the value <strong>of</strong> products comes from abstract labor. Thus saying, value<br />

<strong>of</strong> labor power <strong>is</strong> the same as abstract labor. Where as the use value <strong>of</strong> the products comes<br />

from concrete labor. Where upon one can say that use value <strong>of</strong> labor power <strong>is</strong> the same as<br />

concrete labor.<br />

But however, th<strong>is</strong> <strong>is</strong> where I d<strong>is</strong>sagree. Labor, it’s value and use value can’t simply define<br />

labor power, because something <strong>is</strong> still lost / wasted. The reason for th<strong>is</strong> being, that laborers,<br />

capital<strong>is</strong>ts or anyone for that fact aren’t able to reap these powers we speek <strong>of</strong> because it<br />

may be the case that laborers are forced to bottle up their creative and innovative tallents all<br />

in the name <strong>of</strong> producing something for the market, something with value, not use value,<br />

something to be a carrier <strong>of</strong> exchange value. On top <strong>of</strong> it all, a laborer has to deal with a<br />

sence <strong>of</strong> alienation / depression / oppression, thus slowing their production and then even<br />

the capital<strong>is</strong>ts suffer.<br />

Message [98] referenced by [112]. Next Message by Wolf <strong>is</strong> [242.3].<br />

[112] Kevin: Civil Society and Alienation Re: Wolf’s answer Wolf writes in [98]<br />

I agree and d<strong>is</strong>sagree with your rendering <strong>of</strong> Marx’s theory. I say th<strong>is</strong> because,<br />

labor power cons<strong>is</strong>ts <strong>of</strong> two parts singularly or together. Labor power


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 61<br />

<strong>is</strong> abstract labor and or concrete labor the difference <strong>of</strong> the two <strong>is</strong> qualitative.<br />

Abstract labor <strong>is</strong> synonomyous with unskilled labor, labor that <strong>is</strong><br />

monotnous, with the main focus on producing a utility that <strong>is</strong> demanded. It<br />

<strong>is</strong> the least rewarding and with the highest turnover rate <strong>of</strong> the two. Where<br />

as concrete labor <strong>is</strong> the same as saying creative / skilled labor. Th<strong>is</strong> <strong>is</strong> innovative<br />

and more rewarding because it <strong>is</strong> aimed at makeing or doing something<br />

new and exciting, bigger and better with or with out a commodity (in<br />

demand).<br />

The one thing I would tend to d<strong>is</strong>agree with in your analys<strong>is</strong> <strong>is</strong> the qualitative description<br />

<strong>of</strong> abstract labor as monotonous, rather Marx defines abstract labor as alienated commodity<br />

production. Skill level, or the psychologically rewarding value <strong>of</strong> the task does not change<br />

the nature <strong>of</strong> commodity production.<br />

But however, th<strong>is</strong> <strong>is</strong> where I d<strong>is</strong>sagree. Labor, it’s value and use value<br />

can’t simply define labor power, because something <strong>is</strong> still lost / wasted.<br />

The reason for th<strong>is</strong> being, that laborers, capital<strong>is</strong>ts or anyone for that fact<br />

aren’t able to reap these powers we speek <strong>of</strong> because it may be the case that<br />

laborers are forced to bottle up their creative and innovative tallents all in<br />

the name <strong>of</strong> producing something for the market, something with value, not<br />

use value, something to be a carrier <strong>of</strong> exchange value. On top <strong>of</strong> it all, a<br />

laborer has to deal with a sence <strong>of</strong> alienation / depression / oppression, thus<br />

slowing their production and then even the capital<strong>is</strong>ts suffer.<br />

Here we venture into the territory <strong>of</strong> alienation, which I would like to get a perspective<br />

on from anyone on the l<strong>is</strong>t with interest in psychology, and especially its related Frankfurt<br />

School <strong>of</strong> Marx<strong>is</strong>m. The question <strong>is</strong> the subject <strong>of</strong> much debate and <strong>of</strong> much importance;<br />

whether Marx adequately developed a theory <strong>of</strong> subjectivity from the perspective <strong>of</strong> both the<br />

worker and the capital<strong>is</strong>t. By subjectivity I mean it in a broader context than it <strong>is</strong> sometimes<br />

used, that <strong>is</strong> the modern relationship between action, and reaction in civil society and class<br />

struggle. Perhaps th<strong>is</strong> <strong>is</strong> an <strong>is</strong>sue that Hans would like to begin a sub-thread on, as th<strong>is</strong> l<strong>is</strong>t<br />

seems to have become too much <strong>of</strong> a critique parlor in which involvement in extracurricular<br />

d<strong>is</strong>course has been low.<br />

On a different topic, for those interested in extra reading I would strongly recommend the<br />

letters <strong>of</strong> Antonio Gramsci in addressing the question <strong>of</strong> subjectivity and its relationship with<br />

alienation. Lukacs, Sartre, and Adorno could also be interesting additions to a mini-reading<br />

l<strong>is</strong>t to pursue. Suggestions or thoughts from anyone else?<br />

Next Message by Kevin <strong>is</strong> [191].<br />

[117] Mike: Re: Does anyone want to comment on Wolf’s answer? Wolf <strong>is</strong> correct in<br />

that Marx’s analys<strong>is</strong> <strong>of</strong> abstraction could use some “fleshing out.” In effect, market creates<br />

a double abstraction. 1. It takes the many sided nature <strong>of</strong> concrete labor and reduces it to a<br />

value, which we call the wage, or the value <strong>of</strong> labor power. 2. In doing so, it treats labor as a<br />

thing. To manage the labor process, capital<strong>is</strong>ts go further, reducing the individual differences<br />

within concrete labor, making labor more thing-like.<br />

62 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Marx looks at labor from the perspective <strong>of</strong> capital [You should check out Michael<br />

Lebowitz’s book, which says that Marx was intended to write a further book, which would<br />

incorporate the perspective <strong>of</strong> labor]. So you are right to spot the deficiency, but the problem<br />

was not with Marx – it was with the nature <strong>of</strong> the capital<strong>is</strong>t perspective.<br />

By the way, I am working with a group <strong>of</strong> people from Chico, who are following your<br />

course. We are grateful for the opportunity. All <strong>of</strong> us are impressed with the quality <strong>of</strong> your<br />

questions.<br />

[157] Kalle: The relative concept <strong>of</strong> use value I think most <strong>of</strong> what Fritz said about<br />

use value <strong>is</strong> correct, but he <strong>is</strong> obviously not aware <strong>of</strong> the relativity <strong>of</strong> use value. It <strong>is</strong> correct<br />

that use value <strong>is</strong> the utility <strong>of</strong> a thing. However, since we all are different human beings we<br />

are likely to attribute different properties to things. Therefore one can conclude that the use<br />

value <strong>of</strong> a thing <strong>is</strong> not universal nor an inherent property. The use value ar<strong>is</strong>es from each<br />

indvidual wants in relatinship to the thing he/she encounters.<br />

Im am, as you, a Stones fan and would therefore attribute the same proprerties to their<br />

music as you do. However, other people hate The Stones and attribute negative properties to<br />

the music, and concider the use value <strong>of</strong> a song as notthing more than a mean to get them in<br />

a bad mood, etc. Therefore one can not say that the use value or property <strong>of</strong> all music <strong>is</strong> to<br />

evoke good feelings. Properties are subjective, and it follows therefore that use value also <strong>is</strong><br />

subjective.<br />

Next Message by Kalle <strong>is</strong> [214.1].<br />

[159] Hans: Properties are not subjective Kalle, if the unnamed person in your life<br />

gets in a bad mood about the music, th<strong>is</strong> does not mean she hears different music than you<br />

do. The music <strong>is</strong> the same. Properties are not subjective. But <strong>of</strong> course you have a point.<br />

The use value <strong>of</strong> a thing <strong>is</strong> not the same as its properties. The use value <strong>is</strong> relative; it ar<strong>is</strong>es<br />

from the connection between the thing’s properties and human needs (and every human <strong>is</strong><br />

different). A good example <strong>is</strong> the bandana in Pizza’s [135], which was intended to be an<br />

answer to <strong>Question</strong> 90. It has nothing to do with <strong>Question</strong> 90, but it gives an impressive<br />

example where two bandanas which have physcially almost identical properties have quite<br />

different use values.<br />

Next Message by Hans <strong>is</strong> [163].<br />

<strong>Question</strong> 62 <strong>is</strong> 62 in 1997ut:<br />

<strong>Question</strong> 62 Can you think <strong>of</strong> actions whose result <strong>is</strong> not one <strong>of</strong> its determinations?<br />

[101] Dunny: Actions Result. According to Marx, “Result” <strong>is</strong> considered a determination<br />

so from h<strong>is</strong> point <strong>of</strong> view I would have to say No. But from my point <strong>of</strong> view I think that<br />

there are many whose actions result would not be a determination. In the example <strong>of</strong> the<br />

linen and the coat I would have to ask what do I want out <strong>of</strong> th<strong>is</strong>? If I just wanted a nice<br />

linen sheet for the bed, it <strong>is</strong> done and <strong>is</strong> as sat<strong>is</strong>fying and useful as the coat would be for<br />

the situation. Depending on the action and circumstance, the use-values could be equal for<br />

either commodity. It would be the same for rubber and the automobile. You need the rubber<br />

for the tires <strong>of</strong> the car or you would have a car without a use. At the same time the rubber<br />

can be used for a number <strong>of</strong> other commodities that sat<strong>is</strong>fy given use.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 63<br />

One <strong>of</strong> the determinations could be taken earlier in the production process as an action<br />

and result.,<br />

Message [101] referenced by [106]. Next Message by Dunny <strong>is</strong> [161].<br />

[106] Hans: Result and determination Dunny writes in [101]:<br />

According to Marx, “Result” <strong>is</strong> considered a determination so from h<strong>is</strong><br />

point <strong>of</strong> view I would have to say No.<br />

I d<strong>is</strong>agree here. In my interpretation <strong>of</strong> Marx, sometimes the result <strong>of</strong> an action <strong>is</strong> one <strong>of</strong><br />

its determinations, and sometimes it <strong>is</strong> not.<br />

<strong>What</strong> you write afterwards shows that you do not understand what Marx and / or my study<br />

guide were talking about. For you, “result” <strong>is</strong> the final end product, and “determination” <strong>is</strong><br />

something desirable or useful. You are arguing correctly that intermediate products are use<br />

values, but th<strong>is</strong> has little to do with <strong>Question</strong> 62.<br />

Next Message by Hans <strong>is</strong> [107].<br />

<strong>Exam</strong> <strong>Question</strong> 67 <strong>is</strong> 54 in 1995WI, 63 in 1995ut, 71 in 1997WI, 80 in 1999SP, 85 in<br />

2000fa, 106 in 2004fa, 107 in 2005fa, 132 in 2010fa, 152 in 2011fa, and 151 in 2012fa:<br />

<strong>Exam</strong> <strong>Question</strong> 67 Is labor the only source <strong>of</strong> use value? Is labor the only source <strong>of</strong> value?<br />

(“Value” <strong>is</strong> here the property which makes things exchangeable.)<br />

[37] Caren: Marx’s labor theory <strong>of</strong> value Marx’s labor theory <strong>of</strong> value <strong>is</strong> primarily<br />

concerned with the basic problem <strong>of</strong> why goods have prices at all. The slave owner takes by<br />

force what slaves produce. The feudal lord claims as a right some part <strong>of</strong> what <strong>is</strong> produced<br />

by the serfs. Only in capital<strong>is</strong>m <strong>is</strong> the d<strong>is</strong>tribution <strong>of</strong> what <strong>is</strong> produced a function <strong>of</strong> markets<br />

and prices. Marx’s explanation <strong>of</strong> th<strong>is</strong> anomaly concentrates on the separation makes necessary.<br />

As a result <strong>of</strong> th<strong>is</strong> separation, all the things that workers produce become available<br />

for exchange, indeed are produced with th<strong>is</strong> exchange in mind. “Value” <strong>is</strong> the general social<br />

form taken by all the products <strong>of</strong> alienated labor. (The people who do the work in capital<strong>is</strong>m<br />

own none <strong>of</strong> the means such as machines and raw materials that they use in their work.<br />

These are owned by the capital<strong>is</strong>ts, to whom workers must sell their labor power, in return<br />

for a wage. Th<strong>is</strong> system <strong>of</strong> productive activity, playing no part in deciding what to do or how<br />

to do it. The worker <strong>is</strong> alienated from the product <strong>of</strong> that activity, having no control over<br />

what <strong>is</strong> made or what becomes <strong>of</strong> it. The workers <strong>is</strong> alienated from the product other human<br />

beings, with competition and mutual indifference replacing most forms <strong>of</strong> cooperation. And<br />

the worker <strong>is</strong> alienated from the d<strong>is</strong>tinctive potential inherent in the nation <strong>of</strong> human being.).<br />

Such products could only sell (have “exchange values”) and serve (have “use values”) in<br />

ways that express and contribute to th<strong>is</strong> alienation.<br />

Therefore, labor <strong>is</strong> not the only source <strong>of</strong> use value; but labor <strong>is</strong> the only source <strong>of</strong> value,<br />

that <strong>is</strong> here the property which makes things exchangeable.<br />

Message [37] referenced by [50], [81], and [179]. Next Message by Caren <strong>is</strong> [75].<br />

[40] Kalle: Respons to Carens answer to question 67 I do not think Caren really<br />

answered what was asked in question 67. I interpreted the question in a little bit different<br />

way. To me the question was if a product must be produced by humans (labor) in order to<br />

have use -and exchange value. According to Marx labor <strong>is</strong> not the only source <strong>of</strong> use value<br />

64 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

or only source <strong>of</strong> value. In most cases labor seems to be the major source <strong>of</strong> both values.<br />

However, the nature can by itself, without the help from human labor, furn<strong>is</strong>h and shape<br />

objects to become “goods” with both use value and value to human beings. Wild apples<br />

for example, do not involve any kind <strong>of</strong> human labor in order to become a fin<strong>is</strong>hed product.<br />

Even though no labor <strong>is</strong> involved, the end product has both use value and exchange value.<br />

One aspect that might be reason for some confusion <strong>is</strong> that Marx said earlier that use value<br />

<strong>is</strong> created from human labor creativity. Then one must draw the conclusion that the nature<br />

also has the ability to create, and produce use value.<br />

Message [40] referenced by [81]. Next Message by Kalle <strong>is</strong> [137].<br />

[41] Jake: Use value and value with labor Any object that has some utility in it could<br />

be considered to have use value. By saying that labor <strong>is</strong> the only source <strong>of</strong> use value would<br />

be to say that any thing with utility has had labor involved receiving <strong>of</strong> that utility. I feel that<br />

labor <strong>is</strong>n’t the only source <strong>of</strong> use value. <strong>What</strong> physical labor <strong>is</strong> done when breathing other<br />

than inhaling? Air brings me great utility. As value <strong>is</strong> defined by Marx or the interpetation<br />

that value = abstract labor content, th<strong>is</strong> tells us that value <strong>is</strong> directly related to the labor that<br />

<strong>is</strong> input. Labor <strong>is</strong> the only factor that gives value to something.<br />

Message [41] referenced by [81]. Next Message by Jake <strong>is</strong> [118].<br />

[50] Fritz: slave = (insert your name here) Caren wrote in [37]:<br />

The slave owner takes by force what slaves produce. The feudal lord claims<br />

as a right some part <strong>of</strong> what <strong>is</strong> produced by the serfs. Only in capital<strong>is</strong>m <strong>is</strong><br />

the d<strong>is</strong>tribution <strong>of</strong> what <strong>is</strong> produced a function <strong>of</strong> markets and prices.<br />

These are owned by the capital<strong>is</strong>ts, to whom workers must sell their labor<br />

power, in return for a wage<br />

yes, to marx you are still my slave. if you don’t submit to my whip, you will not be paid.<br />

. . you will starve and die<br />

you do not see yourself as a slave because you live under a veil <strong>of</strong> false consciousness. . .<br />

i am terrified that you may read about false consciousness. . . because once you do, it<br />

<strong>is</strong>n’t likely you will be pleased with your position in my sausage machine.<br />

in fact, you might demand to be paid the value <strong>of</strong> what you produce.<br />

yikes I will pay and contribute handsomely to causes which promote the v<strong>is</strong>ion that you<br />

are not a slave. . .<br />

earlier modes <strong>of</strong> productions were a hassle. . . i had to house, feed and care for my value<br />

producers. today it <strong>is</strong> far easier and less burdensome to <strong>of</strong>fer my slaves health insurance and<br />

let you care for yourselves.<br />

Next Message by Fritz <strong>is</strong> [67].<br />

[81] Hans: <strong>What</strong> it means to be the only source We have three answers to 67. Caren’s<br />

[37] uses th<strong>is</strong> simple and specific <strong>Question</strong> to write a very interesting and far-reaching essay<br />

about exploitation. However I do not see the connection between th<strong>is</strong> essay and the <strong>Question</strong><br />

asked; therefore th<strong>is</strong> essay hurt her grade rather than helping it.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 65<br />

Caren’s answer to the <strong>Question</strong> <strong>is</strong> contained in the last two lines <strong>of</strong> her subm<strong>is</strong>sion. It <strong>is</strong><br />

right as far as it goes, but if Caren says that labor <strong>is</strong> not the only source <strong>of</strong> use value, she<br />

should also identify the other sources <strong>of</strong> use value.<br />

Kalle noticed that Caren went overboard with her answer (apparently he overlooked the<br />

last two lines in her answer), and tried to focus the answer more. Th<strong>is</strong> <strong>is</strong> good, Kalle’s<br />

answer [40] <strong>is</strong> focused, but unfortunately it <strong>is</strong> wrong.<br />

Jake’s answer [41] <strong>is</strong> for all practical purposes correct, but he interprets the question in a<br />

different way than it <strong>is</strong> meant. Th<strong>is</strong> d<strong>is</strong>crepancy occurred in previous years too, and I want<br />

to identify the source <strong>of</strong> these m<strong>is</strong>understandings here.<br />

With the formulation: <strong>is</strong> labor the only source <strong>of</strong> use value, I meant to ask: are there other<br />

sources <strong>of</strong> use value besides labor? The answer I wanted <strong>is</strong>: labor cooperates with nature to<br />

give use values. Therefore use value has two sources, labor and nature (labor <strong>is</strong> its father,<br />

and nature its mother).<br />

But I should not have asked the question in th<strong>is</strong> way. The present formulation suggests<br />

that all use values must contain labor. Th<strong>is</strong> suggestion <strong>is</strong> not a logical necessity. It <strong>is</strong> not<br />

necessary that every single use values derives from all possible sources <strong>of</strong> use value. Not<br />

every drunk person must have imbibed every alcoholic beverage there <strong>is</strong>. But I know by<br />

now from experience that the present formulation <strong>of</strong> my question m<strong>is</strong>leads a good number<br />

<strong>of</strong> people, therefore I should find another formulation <strong>of</strong> th<strong>is</strong> question.<br />

When Jake denied my question, he denied th<strong>is</strong> secretly suggested assumption in my question,<br />

he said that there are things which have use value but do not contain labor. Th<strong>is</strong> also<br />

answers the question itself in the negative, because these things must get their use value from<br />

something other than labor.<br />

A question to the class: how should I formulate <strong>Question</strong> 74 so that th<strong>is</strong> m<strong>is</strong>understanding<br />

will be avoided?<br />

Next Message by Hans <strong>is</strong> [84].<br />

<strong>Question</strong> 69 <strong>is</strong> 74 in 1997WI, 76 in 1997sp, 72 in 1997ut, 95 in 2002fa, 98 in 2003fa, 109<br />

in 2004fa, 110 in 2005fa, 123 in 2007SP, and 127 in 2008fa:<br />

<strong>Question</strong> 69 Explain better what I meant by the sentence: “Under capital<strong>is</strong>m, labor has<br />

social significance only as abstract labor.”<br />

[38] Panacea: Re: social significance <strong>of</strong> abstract labour Hans’ sentence “under capital<strong>is</strong>m,<br />

labour has social significance only as abstract labour” I found quite interesting. In many<br />

ways, social status has very little to do with the ‘time’ required to complete a task, but rather<br />

with the nature <strong>of</strong> the task itself. We look upon the job <strong>of</strong> the architect as much more important<br />

than that <strong>of</strong> the construction worker, although both may work eight hour days. Th<strong>is</strong><br />

<strong>is</strong> manifested in the pay each recieves. The abstract labour <strong>of</strong> the architect has more value<br />

socially, and could be a bas<strong>is</strong> for stratification in a society. Th<strong>is</strong> <strong>is</strong> odd, especially when one<br />

recognizes how much more physically demanding, and even in many cases more dangerous<br />

the job <strong>of</strong> the construction worker <strong>is</strong> when compared to the architect. The actual equality in<br />

time spent has nothing to do with the supposed inequality <strong>of</strong> their respective abstract labour<br />

Message [38] referenced by [87] and [92]. Next Message by Panacea <strong>is</strong> [39].<br />

66 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[87] Hans: Labor <strong>is</strong> taking <strong>of</strong>f its hat Panacea’s answer in [38] argues that the abstract<br />

labor <strong>of</strong> the construction worker does not have as much prestige as that <strong>of</strong> the architect,<br />

although it should. Th<strong>is</strong> seems to be just the opposite <strong>of</strong> what I said. How can th<strong>is</strong> be<br />

reconciled?<br />

First <strong>of</strong> all, what I meant by “social significane” <strong>is</strong> not social prestige, but economic<br />

significance: only the abstract labor counts in the social interaction between the labors.<br />

Pippy’s metaphor with the hat in her [82] fits better for labor than for the commodity. Pippy’s<br />

text should be rewritten as follows:<br />

The concrete useful aspect <strong>of</strong> the labor has already been abstracted at the<br />

onset <strong>of</strong> its confrontation with other labors in the social context. It has<br />

shed its useful properties like a gentleman who has removed h<strong>is</strong> hat upon<br />

entering a room with proper company. Labor as a social creature abandons<br />

its individual qualities when it sits in relation to other labors.<br />

Regarding the architect and the construction worker, there <strong>is</strong> on the one hand the social<br />

oddity that the productive laborers are socially looked down upon, although they create<br />

all the value. Perhaps one can also say that architects still have so much prestige because<br />

homebuilding <strong>is</strong> an industry which has res<strong>is</strong>ted mass production. How long before they will<br />

be replaced by computer programs in the hands <strong>of</strong> the sales agent for a firm which sells<br />

mass-produced “custom homes”?<br />

Next Message by Hans <strong>is</strong> [89].<br />

[100] Reidar: Abstract labor In considering two types <strong>of</strong> labor, “useful labor” and<br />

abstract labor, Marx defines useful labor as the act <strong>of</strong> manipulating an object or some thing<br />

to create a use which fulfills a perceived societal need. Abstract labor <strong>is</strong> defined as the energy,<br />

muscle, mind, and brain usage <strong>of</strong> the individual. Marx stated that, “useful labor...<strong>is</strong> therefore<br />

a necessary condition, independent <strong>of</strong> all forms <strong>of</strong> society.” Useful labor was in ex<strong>is</strong>tence<br />

before any society gave form to demand for commodities. Abstract labor <strong>is</strong> the only labor<br />

significant to societies because regardless <strong>of</strong> what use <strong>is</strong> given to an object to make it a<br />

commodity, only abstract labor, or the mental and physical usage <strong>of</strong> an individual’s abilities<br />

are left remaining in the commodity. The commoditie’s value <strong>is</strong> the percieved value which<br />

<strong>is</strong> held by a society, i.e., its “ghostlike parallel ex<strong>is</strong>tence.”<br />

Message [100] referenced by [107]. Next Message by Reidar <strong>is</strong> [129].<br />

[107] Hans: Social significance <strong>of</strong> abstract labor At the beginning <strong>of</strong> [100], Reidar<br />

gives a good definition <strong>of</strong> abstract and concrete labor. Then he continues:<br />

Abstract labor <strong>is</strong> the only labor significant to societies because regardless<br />

<strong>of</strong> what use <strong>is</strong> given to an object to make it a commodity, only abstract<br />

labor, or the mental and physical usage <strong>of</strong> an individual’s abilities are left<br />

remaining in the commodity.<br />

Th<strong>is</strong> <strong>is</strong> a little circular. It <strong>is</strong> like saying: th<strong>is</strong> person <strong>is</strong> rich because he has big houses<br />

and nice cars, instead <strong>of</strong> saying: th<strong>is</strong> person <strong>is</strong> rich because he <strong>is</strong> exploiting many workers.<br />

You also seem to say that abstract labor <strong>is</strong> significant for all kinds <strong>of</strong> societies. It <strong>is</strong> only<br />

significant for societies which have commodity production.<br />

Next Message by Hans <strong>is</strong> [108].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 67<br />

[169.1] MsMarx: Only the abstract labor counts in the social interaction between the<br />

labors. The concrete useful aspect <strong>of</strong> the labor has already been abstracted at the onset <strong>of</strong> its<br />

confrontation with other labors in the social context. It has shed its useful properties lke a<br />

gentelman who has removed h<strong>is</strong> hat upon entering a room with proper company. Labor as a<br />

social creature abandons its individual qualities when it sits in relation to other labors.<br />

Useful labor <strong>is</strong> the act <strong>of</strong> manipulating an object or something to create a use which fulfills<br />

a perceived societal need. Abstract labor <strong>is</strong> the energy, muscle, mind, and brain usage <strong>of</strong> the<br />

individual. Marx says, “useful labor... <strong>is</strong> therefore a necessary condition, independent <strong>of</strong> all<br />

forms <strong>of</strong> society.” Useful labor was in ex<strong>is</strong>tence before any society gave form to demand for<br />

commodities. Abstract labor <strong>is</strong> the only labor significant to societies because regardless <strong>of</strong><br />

what use <strong>is</strong> given to an object to make it a commodity, only abstract labor or the mental and<br />

physical usage <strong>of</strong> an individual’s abilities value <strong>is</strong> the perceived value which <strong>is</strong> held by a<br />

society, i.e. it’s like “ghostlike parallel ex<strong>is</strong>tence;” although abstract labor <strong>is</strong> only significant<br />

for societies which have commodity production.<br />

To help explain abstract human labor, let me define specific labor. Specific labor <strong>is</strong> what<br />

defines the physical qualities <strong>of</strong> commodities and gives them their use “value.” For example,<br />

the labor <strong>of</strong> the mason determines the size and shape <strong>of</strong> the bricks he makes, and the labor<br />

<strong>of</strong> the violin maker determines the physical qualities <strong>of</strong> the instrument.<br />

While bricks and violins are two products <strong>of</strong> specific labor, they are also the products<br />

<strong>of</strong> abstract human labor (called abstract because abstraction <strong>is</strong> made from its specific nature).<br />

The specific labor that was used to produce the two commodities was part <strong>of</strong> the total<br />

labor time available to society. Th<strong>is</strong> abstract labor <strong>is</strong> what provides the measurement <strong>of</strong> exchange<br />

value. Abstract labor <strong>is</strong> what bricks and violins have in common so that they may be<br />

exchanged for each other.<br />

An analogy: When one adds together four carrots, four peppers, and four turnips, one has<br />

to abstract from their specific character<strong>is</strong>tics to be left with twelve vegetables.<br />

In further reading, abstract labor <strong>is</strong> suggested to be a key to understanding the emergence<br />

<strong>of</strong> the working class through the development <strong>of</strong> the modern factory system. The description<br />

<strong>of</strong> factory work–the automaton itself <strong>is</strong> the subject, and the workers are only coordinated<br />

as the conscious organs <strong>of</strong> an organ without consciousness and subordinated to the same<br />

central power source–suggests the reality <strong>of</strong> factory work under capital<strong>is</strong>m. Th<strong>is</strong> <strong>is</strong> a realworld<br />

application <strong>of</strong> the concept <strong>of</strong> abstract labor. It <strong>is</strong> no longer the personal and purposive<br />

activity <strong>of</strong> a shoemaker or a tailor who creates a product for a person he meets face to face.<br />

It <strong>is</strong>, rather, the repetitious, machine-dominated toil <strong>of</strong> the growing mass <strong>of</strong> unskilled and<br />

semi-skilled workers characteric <strong>of</strong> nineteenth-century England.<br />

Marx put the same thought in the Critique <strong>of</strong> Political Economy: “Labor, which <strong>is</strong> thus<br />

measured by time, seems in fact not to be the labor <strong>of</strong> different subjects, but rather the<br />

different laboring individuals seem to be mere organs <strong>of</strong> the labor.”<br />

Hans: Very good. The following passage <strong>is</strong> somewhat contradictory:<br />

Abstract labor <strong>is</strong> the only labor significant to societies because regardless <strong>of</strong> what use <strong>is</strong> given<br />

to an object to make it a commodity, only abstract labor or the mental and physical usage <strong>of</strong><br />

an individual’s abilities value <strong>is</strong> the perceived value which <strong>is</strong> held by a society, i.e. it’s like<br />

68 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

“ghostlike parallel ex<strong>is</strong>tence;” although abstract labor <strong>is</strong> only significant for societies which<br />

have commodity production.<br />

There are many societies in which the concrete labor, not the abstract labor, <strong>is</strong> the labor’s social form, i.e., where<br />

labor does not take <strong>of</strong>f its hat. See the examples <strong>of</strong> medieval society or <strong>of</strong> an autarcic peasant family, 170:1 and<br />

171:1. Abstract labor <strong>is</strong> a real aspect <strong>of</strong> every labor process, but only in commodity production does it obtain social<br />

significance.<br />

One more remark. You call the abstractness <strong>of</strong> factory work a<br />

real-world application <strong>of</strong> the concept <strong>of</strong> abstract labor.<br />

I would formulate it as follows: since socially, every labor counts only as abstract labor, actual labor <strong>is</strong> more and<br />

more stripped <strong>of</strong> its concrete qualities (which do not count and which only are an obstacle to exploitation) and <strong>is</strong><br />

made more and more abstract.<br />

Next Message by MsMarx <strong>is</strong> [169.5].<br />

[175.1] Snake: abstract labor By definition, it <strong>is</strong> only the expression <strong>of</strong> equivalence<br />

between different sorts <strong>of</strong> commodities which brings to view the specific character <strong>of</strong> value<br />

creating labor, by actually reducing the different kinds <strong>of</strong> labor embedded in the different<br />

kinds <strong>of</strong> commodity to their common quality <strong>of</strong> being human labor in general. Therefore,<br />

the labor which constitutes the substance <strong>of</strong> value <strong>is</strong> equal human labor, expenditure <strong>of</strong> the<br />

same human power in which represented in the value <strong>of</strong> the commodities produced by a<br />

given society. Innumeraible individual labor power given by human labor power. Under<br />

Capital<strong>is</strong>m, society produce what they need to survive. Where abstract labor <strong>is</strong> determined<br />

by people <strong>of</strong> equal wants. The society binds together in order to allocate different portions<br />

<strong>of</strong> time at their jiont d<strong>is</strong>posal to the variuos use-values needed to operate in market time or<br />

self implication.<br />

Hans: You write:<br />

By definition, it <strong>is</strong> only the expression <strong>of</strong> equivalence between different sorts <strong>of</strong> commodities<br />

It <strong>is</strong> the other way around: the equivalence <strong>of</strong> different commodities on the market <strong>is</strong> the expression <strong>of</strong> the abstract<br />

labor in them. Reading on in your text, I think you are confusing the way Marx concluded about abstract labor with<br />

the way the real dependencies go. The remainder <strong>of</strong> your text <strong>is</strong> very unclear. It <strong>is</strong> literally from your in-class exam,<br />

but it would have needed some straightening out.<br />

Next Message by Snake <strong>is</strong> [176].<br />

[179.2] Bandit: Abstract labor <strong>is</strong> the actual concrete and specific work done by an individual.<br />

It <strong>is</strong> the condition that must take place before the evolution <strong>of</strong> the commodity.<br />

The reason abstract labor has social significance under capital<strong>is</strong>m <strong>is</strong> because after what<br />

use <strong>is</strong> defined for the commodity, only the mental and physical abilities <strong>of</strong> the laborer are left<br />

in the commodity. I believe Marx <strong>is</strong> saying that there <strong>is</strong> some kind <strong>of</strong> injustice with capital<strong>is</strong>m.<br />

He <strong>is</strong> arguing that there <strong>is</strong> an unequal balance between those who do the “grunge work”<br />

and those who do the “managerial work.” Those who do the “grunge work” are rewarded<br />

less, yet their jobes may entail more than the managerial position. Marx said himself that<br />

abstract labor <strong>is</strong> only the same when taken out <strong>of</strong> a capital<strong>is</strong>tic society. Th<strong>is</strong> <strong>is</strong> what I think<br />

he meant.<br />

Hans: Your instinct <strong>is</strong> right but the reasoning behind it <strong>is</strong> different. Grunge work <strong>is</strong> treated so badly under capital<strong>is</strong>m<br />

because only the grunge aspect <strong>of</strong> all work creates value. Marx said that it <strong>is</strong> not a blessing but a curse to be<br />

productive in capital<strong>is</strong>m. Because if you are productive then all the sharks descend on you who are trying to benefit<br />

from the value created by other people.<br />

Your theoretical analys<strong>is</strong> starts on the wrong foot because your definition <strong>of</strong> abstract labor <strong>is</strong> paradoxical (abstract<br />

<strong>is</strong> the opposite <strong>of</strong> concrete) and wrong:<br />

Abstract labor <strong>is</strong> the actual concrete and specific work done by an individual.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 69<br />

Yes, Marx says there <strong>is</strong> an injustice: not only because grunge work <strong>is</strong> harder than managerial work, but because the<br />

grunge workers produce all the value, yet they have no say about who gets it. But the question why market value<br />

comes from the drudgery <strong>of</strong> the grunge worker and not the ingenuity <strong>of</strong> the manager was not addressed.<br />

Next Message by Bandit <strong>is</strong> [180].<br />

[182.3] Jupiter: Abstract labor Abstract labor <strong>is</strong> a step beyond specific labor, they are<br />

different in that specific labor defines the physical qualities <strong>of</strong> commodities and gives them<br />

their use-value. The use-value <strong>is</strong> a product <strong>of</strong> the time and the labor put into the natural<br />

commodity.<br />

Now that i have very briefly defined specific labor, we have to look at abstact labor.<br />

Abstract labor <strong>is</strong> the mental, physical, and muscle that a laborer put into a commodity, the<br />

hard work and prec<strong>is</strong>ion if you will. Once we have th<strong>is</strong> in place we can now derive an<br />

exchange-value so that the product can and will be exchanged in the open market for other<br />

products that have different values.<br />

In a capital<strong>is</strong>tic society all labor has social significance only as abstract labor, th<strong>is</strong> <strong>is</strong> the<br />

statment that Marxs makes, what <strong>is</strong> ment by th<strong>is</strong> <strong>is</strong> clear to see but not so simple to explain.<br />

In a capital<strong>is</strong>tic society the end product <strong>is</strong> what <strong>is</strong> being exchanged, thus it <strong>is</strong> the abstact<br />

labor that has been put into the product which gives it its social value, the mental and the<br />

physical abilities <strong>of</strong> the laborer who performed that task. In a capital<strong>is</strong>tic society abstract<br />

labor itself <strong>is</strong> a commodity in the market, it ie being bought and sold as well as traded. Th<strong>is</strong><br />

<strong>is</strong> what Marxs <strong>is</strong> meaning by h<strong>is</strong> statment <strong>of</strong> its significance <strong>is</strong> only as abstract labor.<br />

Hans: Your definitions <strong>of</strong> concrete and abstract labor are good. Perhaps it might be worth while mentioning that<br />

both are aspects <strong>of</strong> every labor process. You are right, the fact that labor power <strong>is</strong> a commodity (and abstract labor<br />

<strong>is</strong> the expenditure <strong>of</strong> labor power) underlines the social significance <strong>of</strong> abstract labor. However there <strong>is</strong> something<br />

else that should be said here which you did not say.<br />

Here <strong>is</strong> more about your in-class exam. You defined abstract labor correctly, but did not explain why abstract<br />

and not concrete labor has social significance. You seem to say that abstract labor <strong>is</strong> what one needs at the bottom <strong>of</strong><br />

the hierarchy, and concrete labor at the top, and there <strong>is</strong> not enough room at the top. But th<strong>is</strong> presupposes that there<br />

must be a hierarchy. The emphas<strong>is</strong> on abstract labor comes from the one-dimensionality <strong>of</strong> the market interactions<br />

<strong>of</strong> the goods.<br />

Next Message by Jupiter <strong>is</strong> [183].<br />

[192.1] Scott: Abstract labour <strong>is</strong> the energy, muscle, mind and brain useage <strong>of</strong> the individual.<br />

It provides the measurement <strong>of</strong> exchange-value. Abstract labour determines the value<br />

<strong>of</strong> commodities, whereas concrete labour determines the use-value <strong>of</strong> commodities. Marx<br />

states that societies’ “recognition <strong>of</strong>” or “refusal to recognize” a given quality <strong>of</strong> labour, occurs<br />

exclusively in function <strong>of</strong> meeting effective demand on the market, that <strong>is</strong> independent<br />

<strong>of</strong> the use-value or social usefulness <strong>of</strong> the specific physical qualities <strong>of</strong> a given commodity.<br />

Society recognizes qualities <strong>of</strong> abstract socially necessary labour. Marx makes h<strong>is</strong> points<br />

concerning h<strong>is</strong> “labour theory <strong>of</strong> value”, by emphasizing that th<strong>is</strong> theory has nothing to do<br />

with judgements concerning the usefulness <strong>of</strong> things from the views <strong>of</strong> human happiness<br />

or social progress. i.e. Therefore, the use-value <strong>is</strong> not <strong>of</strong> importance to a capital<strong>is</strong>t society.<br />

Only the value has social significance, under capital<strong>is</strong>m, as it has weight in the markets.<br />

Hans: You interpreted the <strong>Question</strong> to mean that in a market economy the dec<strong>is</strong>ion which use value to produce <strong>is</strong><br />

not made by social need but by “effective” demand, i.e., demand backed by money. Yes, the ex<strong>is</strong>tence <strong>of</strong> money<br />

fouls th<strong>is</strong> up, as it does everything else. The dec<strong>is</strong>ion about use values <strong>is</strong> not made deep in society; deep down,<br />

society only cares about the abstract labor, not its concrete manifestations.<br />

Here <strong>is</strong> a smaller point. You write:<br />

70 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Abstract labour <strong>is</strong> the energy, muscle, mind and brain useage <strong>of</strong> the individual. It provides the<br />

measurement <strong>of</strong> exchange-value.<br />

Value <strong>is</strong> not the measurement <strong>of</strong> exchange value. Value <strong>is</strong> the underlying thing <strong>of</strong> which exchange value <strong>is</strong> the<br />

expression.<br />

Next Message by Scott <strong>is</strong> [192.3].<br />

[197.4] Reidar: Marx defines abstract labor as the expenditure <strong>of</strong> human energy, muscle,<br />

and mind usage. In guestion [70], Homer calls abstract human labor an abstraction from the<br />

specific labor <strong>of</strong> a worker; specific labor being useful or concrete labor.<br />

Under capital<strong>is</strong>m, labor has social or economic significance because it <strong>is</strong> what Homer<br />

calls the aspect which, “provides the measurement <strong>of</strong> exchange value”. Abstract labor becomes<br />

the equivalent form which gives a commodity value in the exchange process. Abstract<br />

human labor <strong>is</strong> interchangeable between differing work environments and <strong>is</strong> simply the human<br />

energy involved.<br />

In a capital<strong>is</strong>tic commodity producing society, the value created through exchange <strong>is</strong><br />

the driving force, and because th<strong>is</strong> value <strong>is</strong> the abstract human labor, th<strong>is</strong> labor <strong>is</strong> the only<br />

socially significant labor to th<strong>is</strong> type <strong>of</strong> society.<br />

Hans: Your in-class exam was longer and I liked it better than the resubm<strong>is</strong>sion. But also the resubm<strong>is</strong>sion <strong>is</strong> good.<br />

Next Message by Reidar <strong>is</strong> [209].<br />

[200.3] Emma: One concept I may have overlooked in the answer <strong>is</strong> the idea that for<br />

labor to have a social relationship and for it to interact among different people in a society<br />

it must have something common to it that will be relevant to others. That commonality <strong>is</strong><br />

abstract labor. Abstract labor allows labor to have social significance. All labor <strong>is</strong> derived<br />

from abstract labor, so when one producer intends to interact with another producer in a<br />

market and their products are different, they must resort to their common labor factors for<br />

reference, their common abstract labor as a denominator <strong>of</strong> exchange.<br />

Hans: The equality you are talking about in your resubm<strong>is</strong>sion <strong>is</strong> necessary only because the social relations are<br />

exchange relations, and exchasnge <strong>is</strong> an equalization, in other words, a very on-dimensional affair. Th<strong>is</strong> <strong>is</strong> why one<br />

has to reduce the many different concrete labors to one-dimensional abstract labor.<br />

Next Message by Emma <strong>is</strong> [200.4].<br />

[206.2] Super: Abstract labor can be seen when a labor produced commodity <strong>is</strong> exchanged<br />

for a different commodity <strong>of</strong> equivalent value. They can have different character<strong>is</strong>tics but<br />

equal exchange values. “Labor has social signifigance only as abstract labor,” can be described<br />

as different types <strong>of</strong> social interaction between laborers. The laborers used their<br />

minds and physical abilities to produce these different commodities. These commodities<br />

are socially equivalent. The use-value <strong>of</strong> these commodities are not considered here. Marx<br />

describes labor values as being equal and exchangeable for commodities. Therefore quantitative<br />

equivalence between commodities can always be seen;<br />

10 yards <strong>of</strong> linen = 1 coat<br />

Hans: Your thinking <strong>is</strong> not bad, but you are not explaining yourself very clearly. Your first paratgraph <strong>is</strong> not<br />

a definition <strong>of</strong> abstract labor; you say that exchange <strong>is</strong> the expression <strong>of</strong> abstract labor, but that does not define<br />

abstract labor. From your second paragraph it seems that you know the definition <strong>of</strong> abstract labor.<br />

Next Message by Super <strong>is</strong> [206.4].<br />

[221.2] Homer: First, the definition <strong>of</strong> abstract labor: Labor that <strong>is</strong> performed has two<br />

aspects. One <strong>is</strong> the specific labor that defines the physical qualities <strong>of</strong> commodities and gives<br />

them their use-value. The second <strong>is</strong> abstract labor. It <strong>is</strong> called abstract because abstraction


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 71<br />

<strong>is</strong> made from its specific nature. the abstract labor <strong>is</strong> what provides the exchange-value.<br />

Abstract labor <strong>is</strong> ehat all commodities have in common so that they may be exchanged for<br />

each other.<br />

Under capital<strong>is</strong>m, labor has social significance only as abstract labor because the usevalues<br />

that are created by specific labor cannot be compared; one cannot measure use-values<br />

with a common standard. Therefore, for the reciprocal exchange <strong>of</strong> commodities to be<br />

possible, which <strong>is</strong> neccessary for capital<strong>is</strong>m, a social quality must be used - abstact labor.<br />

Hans: Very good. The market reduces everything to a one-dimensional price number, and can therefore coordinate<br />

social labor only along a one-dimensional criterion.<br />

Next Message by Homer <strong>is</strong> [231].<br />

[242.3] Wolf: To begin with, I feel that it <strong>is</strong> necessary to recogn<strong>is</strong>e the fact that to abstract<br />

<strong>is</strong> to simply choose a focus. In th<strong>is</strong> sence, labor it self <strong>is</strong> an absrtaction. With in labor there<br />

are many different qualities allowing for different focuses. The qualities I w<strong>is</strong>h to speak <strong>of</strong><br />

are those which we have d<strong>is</strong>cussed =¿ abstract and concrete labor.<br />

Abstract labor <strong>is</strong> the expenditure <strong>of</strong> human brain, muscles, nerves, etc. In some respects,<br />

it <strong>is</strong> synonomyous with unskilled labor, labor that <strong>is</strong> monotnous, with the primary intention<br />

to produce a utliity that <strong>is</strong> demanded. It <strong>is</strong> some times viewed as the least rewarding and<br />

with the highest turnover rate compaired to concrete labor.<br />

As I said before, abstract labor <strong>is</strong> intended for the production <strong>of</strong> a commodity that <strong>is</strong><br />

demanded (by the market). Therefore, the value <strong>of</strong> products comes from abstract labor along<br />

with the fact that these products upon completion, due to abstract labor, become carriers <strong>of</strong><br />

exchange value.<br />

Now that abstract labor has been defined and many <strong>of</strong> it’s postitive attributes have been<br />

recogn<strong>is</strong>ed, it becomes necessary to answer/clear up the second part <strong>of</strong> the question. Ideally,<br />

in capital<strong>is</strong>m everything <strong>is</strong> determined in the market. Thus, giving r<strong>is</strong>e for the use <strong>of</strong> abstrtact<br />

labor. In the above paragraphs, abstract labor <strong>is</strong> shown to be the reason why a commodity<br />

has value and carries an exchange value. But however, it still <strong>is</strong>n’t clear why, according to<br />

Marx, labor has social significance only as abstract labor. The following should clear th<strong>is</strong><br />

up.<br />

The process <strong>of</strong> production <strong>is</strong> like leadership. Before something <strong>is</strong> produced it must first<br />

be invented, real<strong>is</strong>tic, efficient, and in demand. Then all other alternatives must be weighed<br />

and the degree <strong>of</strong> demand calculated (concrete labor). Th<strong>is</strong> <strong>is</strong> like leadership in that the<br />

leader must first come up with a v<strong>is</strong>ion <strong>of</strong> what could/should be, explain it to the masses (<strong>of</strong><br />

people) and then motivate them to set it into action. Th<strong>is</strong> too could be refered to as concrete<br />

labor. But , next <strong>is</strong> where social significance comes into play. Once the commodity <strong>is</strong> decided<br />

upon, abstract labor takes over from there on out (to consumption). The same holds<br />

true for leadership because a dream/v<strong>is</strong>ion <strong>is</strong> only a dream with out action by many people<br />

to set it into action (abstract labor) to MAKE it a reality. On top <strong>of</strong> it all, concrete labor or<br />

the v<strong>is</strong>ion <strong>of</strong> a leader doesn’t belong to just the concrete laborers or leaders because once<br />

it <strong>is</strong> set into action the v<strong>is</strong>ion/concrete labor belongs to the abstract laborers. In which the<br />

concrete laborers are now followers <strong>of</strong> abstract laborers, the leaders become followers and<br />

the followers became leaders. The <strong>is</strong> seen through out labor relations in our capital<strong>is</strong>t economy<br />

leading to the necessity <strong>of</strong> mediation and arbitration between capital<strong>is</strong>ts and laborers.<br />

72 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

An example <strong>of</strong> such <strong>is</strong> seen with the dealings <strong>of</strong> unions with owners / heads <strong>of</strong> companies.<br />

It <strong>is</strong> the hard to tell who works for who or who <strong>is</strong> at who’s mercy. And ultimately it <strong>is</strong> up<br />

to the abstract labor to get the job done. That <strong>is</strong> why labor has social significance ONLY as<br />

abstract labor.<br />

Hans: The in-class exam was only one sentence, which was wrong. The resubm<strong>is</strong>sion shows that you apparently<br />

did some reading, but you did not understand Marx’s argument.<br />

Next Message by Wolf <strong>is</strong> [309].<br />

[256.1] VanHalen: Abstract labor <strong>is</strong> kind <strong>of</strong> labor in it’s most basic sense; the use <strong>of</strong><br />

brain/muscle effort to do something. It differes from concrete labor in that concrete labor<br />

<strong>is</strong> like a weaver, mason, or an airline pilot; these are categories that abstract labor can be<br />

applied to. Abstract labor <strong>is</strong> like the raw lifeblood which when added to a set <strong>of</strong> skills<br />

becomes some type <strong>of</strong> labor that produces something.<br />

I think Marx, when he said,“under capital<strong>is</strong>m, labor has social significance only as abstract<br />

labor,” meant that under capital<strong>is</strong>m, labor <strong>is</strong> reduced to its lowest , most basic level.<br />

Meaning that there <strong>is</strong> capital and abstract labor. If you don’t own capital and make your<br />

money that way then you have to work for a capital<strong>is</strong>t in whatever job you can. If you lose<br />

your job you go find another one, maybe in a completly different industry. You may have<br />

been just a ditch digger and then now you are a chef. <strong>What</strong> <strong>is</strong> underlying all these jobs, and<br />

the fact that people can move between jobs as the economy goes up and down, <strong>is</strong> the concept<br />

<strong>of</strong> abstract labor.<br />

I think that Marx was pointing to the fact that a capital<strong>is</strong>t society polarizes people. Your<br />

either a capital<strong>is</strong>t or brain/muscle power. Those who work for capital<strong>is</strong>ts can really be reduced<br />

to just abstract laborers moving to and for between different concrete labor jobs. As<br />

the market for f<strong>is</strong>hermen <strong>is</strong> hot more people work for f<strong>is</strong>hing companies. As building homes<br />

becomes lucrative, people flock to work for home building companies. The social significance<br />

comes in when if you’re not a capital<strong>is</strong>t, in a capital<strong>is</strong>t society you are reduced to an<br />

abstract laborer.<br />

Hans: Excellent!<br />

Next Message by VanHalen <strong>is</strong> [301].<br />

[332.4] Dragonfly: Dragonfly did not resubmit h<strong>is</strong> exam. Good definition <strong>of</strong> abstract<br />

labor, but its social significance according to the readings in Chapter One <strong>is</strong> not that it <strong>is</strong> the<br />

only power <strong>of</strong> the working class, but it comes from the fact that products are produced as<br />

commodities.<br />

First Message by Dragonfly <strong>is</strong> [9].<br />

[332.6] Camera: Camera did not resubmit her exam. I like her sentence: “the only thing<br />

recognized socially <strong>is</strong> the expenditure <strong>of</strong> time and energy”, but a few words <strong>of</strong> explanation<br />

why society ignores all the fun aspects <strong>of</strong> the labor process would have been appropriate.<br />

It <strong>is</strong> also wrong to say that the concept <strong>of</strong> abstract labor ex<strong>is</strong>ts “in order to better analyze<br />

and measure labor as a whole.” Th<strong>is</strong> <strong>is</strong> an abstraction not only made in our heads but also in<br />

society.<br />

Next Message by Camera <strong>is</strong> [335.14].<br />

<strong>Exam</strong> <strong>Question</strong> 70 <strong>is</strong> 57 in 1995WI, 66 in 1995ut, 75 in 1997WI, 84 in 1999SP, 89 in<br />

2001fa, 99 in 2003fa, 139 in 2010fa, 159 in 2011fa, and 158 in 2012fa:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 73<br />

<strong>Exam</strong> <strong>Question</strong> 70 <strong>What</strong> <strong>is</strong> abstract human labor? I want you to say what it <strong>is</strong>, not what<br />

its significance <strong>is</strong> in commodity-producing society! These are two different questions.<br />

[45] Positive: AbstractDrudgery Abstract human labor <strong>is</strong> concrete and specific work by<br />

an individual. It can be for tailoring and it can be for larger production. The products which<br />

are being made from “abstract human labor” will always have a given value. Th<strong>is</strong> value<br />

<strong>is</strong> determined by the costs <strong>of</strong> production. There <strong>is</strong> no difference between one compared to<br />

another, all labors are the same. It <strong>is</strong> not a matter <strong>of</strong> who <strong>is</strong> doing the labor, it <strong>is</strong> depended<br />

upon how it <strong>is</strong> done, which again will effect how long it will take to make that specific<br />

product.<br />

Message [45] referenced by [89]. Next Message by Positive <strong>is</strong> [136].<br />

[56] Homer: abstract human labor To help explain what abstract human labor <strong>is</strong>, I will<br />

first define specific labor. Specific labor <strong>is</strong> what defines the physical qualities <strong>of</strong> commodities<br />

and gives them their use-value. For example, the labor <strong>of</strong> the mason determines the size and<br />

shape <strong>of</strong> the bricks he makes, and the labor <strong>of</strong> the violin maker determines the physical<br />

qualities <strong>of</strong> the instrument.<br />

While bricks and violins are the products <strong>of</strong> specific labor, they are also the products<br />

<strong>of</strong> absrtact human labor (called absract because abstraction <strong>is</strong> made from its specific nature).<br />

The specific labor that was used to produce the two commodities was part <strong>of</strong> the total<br />

labor time available to society. Th<strong>is</strong> abstract labor <strong>is</strong> what provides the measurement <strong>of</strong><br />

exchange-value. Abstract labor <strong>is</strong> what bricks and violins have in common so that they may<br />

be exchanged for each other.<br />

An analogy: when one adds together four carrots, four peppers, and four turnips, one has<br />

to abstract from their specific character<strong>is</strong>tics to be left with twelve vegetables.<br />

Message [56] referenced by [89]. Next Message by Homer <strong>is</strong> [145].<br />

[80] Peace: Abstract Drudgery Abstract human labor <strong>is</strong> not merely a cognitive act, but it<br />

<strong>is</strong> in fact concrete or has “ontological” status. But it <strong>is</strong> not concrete specific, but <strong>is</strong> (concrete)<br />

labor in general (or as such).<br />

Abstract human labor <strong>is</strong> a social process that ex<strong>is</strong>ts in capital<strong>is</strong>t production relations, but<br />

<strong>is</strong> not rendered an empirical status until the act <strong>of</strong> exchange. In th<strong>is</strong> sense, abstract human<br />

labor should be understood as a reality that ex<strong>is</strong>ts in capital<strong>is</strong>m (it has ontological status).<br />

Abstract human labor <strong>is</strong> a generative mechan<strong>is</strong>m <strong>of</strong> capital<strong>is</strong>m.<br />

It <strong>is</strong> the condition that <strong>is</strong> necessary for the emergence <strong>of</strong> commodity production. Marx<br />

wants to explain the generative mechan<strong>is</strong>ms which presuppose the ex<strong>is</strong>tence <strong>of</strong> commodity<br />

production and the act <strong>of</strong> exchange, th<strong>is</strong> <strong>is</strong> not necessarily an empirical question, but a more<br />

transcendental (as Collier explains in the optional course text) question. Or to repeat, it <strong>is</strong> the<br />

type <strong>of</strong> (transcendental) question that asks what <strong>is</strong> necessary for the act <strong>of</strong> exchange to ex<strong>is</strong>t<br />

that renders heterogenous labor homogeneous. The generative mechan<strong>is</strong>m that <strong>is</strong> necessary<br />

to perform th<strong>is</strong> function (which <strong>is</strong> specific to capital<strong>is</strong>m) Marx dubs “abstract human labor.”<br />

Hence, in th<strong>is</strong> sense it <strong>is</strong> a social process in capital<strong>is</strong>m. More specifically it occurs in the<br />

labor process itself.<br />

Hans: You don’t seem to realize to what extent abstract labor <strong>is</strong> an aspect <strong>of</strong> every actual labor process.<br />

Message [80] referenced by [89]. Next Message by Peace <strong>is</strong> [237].<br />

74 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[89] Hans: Is abstract labor “concrete”? We have received 3 answers, which I will<br />

comment on in turn.<br />

Positive’s answer [45] starts out with several wrong statements:<br />

Abstract human labor <strong>is</strong> concrete and specific work by an individual. It can<br />

be for tailoring and it can be for larger production.<br />

No. Marx d<strong>is</strong>tingu<strong>is</strong>hes abstract human labor and concrete useful labor. They are two<br />

opposite aspects <strong>of</strong> the same labor process.<br />

The products which are being made from “abstract human labor” will always<br />

have a given value.<br />

Th<strong>is</strong> <strong>is</strong> the significance <strong>of</strong> abstract labor in commodity-poducing society, something<br />

which the <strong>Question</strong> asked you not to talk about here.<br />

Th<strong>is</strong> value <strong>is</strong> determined by the costs <strong>of</strong> production.<br />

The costs <strong>of</strong> production are the values <strong>of</strong> the inputs. Defining values <strong>of</strong> the outputs by<br />

values <strong>of</strong> the inputs <strong>is</strong> circular. At the end, Positive <strong>is</strong> also saying something right:<br />

There <strong>is</strong> no difference between one compared to another, all labors are the<br />

same. It <strong>is</strong> not a matter <strong>of</strong> who <strong>is</strong> doing the labor, it <strong>is</strong> depended upon how<br />

it <strong>is</strong> done, which again will effect how long it will take to make that specific<br />

product.<br />

Homer’s [56] <strong>is</strong> an excellent answer. I have nothing to add to it.<br />

Peace’s [80] tries to see Marx’s analys<strong>is</strong> through Bhaskarian lenses. I am not quite convinced<br />

and have one question here: generative mechan<strong>is</strong>ms are “simply the ways <strong>of</strong> acting<br />

<strong>of</strong> things” (RTS2, 51). Which thing <strong>is</strong> acting in the generative mechan<strong>is</strong>m which Peace<br />

identifies here with abstract human labor?<br />

Next Message by Hans <strong>is</strong> [90].<br />

<strong>Question</strong> 72 <strong>is</strong> 59 in 1995WI, 68 in 1995ut, 71 in 1996ut, 77 in 1997WI, 79 in 1997sp, 74<br />

in 1997ut, 80 in 1998WI, 86 in 1999SP, 98 in 2002fa, 114 in 2004fa, 115 in 2005fa, 128<br />

in 2007SP, 132 in 2008fa, 141 in 2010fa, 161 in 2011fa, and 160 in 2012fa:<br />

<strong>Question</strong> 72 <strong>What</strong> <strong>is</strong> the difference between labor and labor power?<br />

[58] Chuck: labor Labor <strong>is</strong> the human act <strong>of</strong> producing an actual commodity. labor<br />

in turn produces use value. Labor power on the other hand <strong>is</strong> the average amount <strong>of</strong> labor<br />

that every unit <strong>of</strong> labor gives. Labor power <strong>is</strong> the amount <strong>of</strong> effort and the skill level that <strong>is</strong><br />

required in order to produce a good.<br />

Message [58] referenced by [90]. Next Message by Chuck <strong>is</strong> [335.8].<br />

[65] MsMarx: Labor and labor power The Capital<strong>is</strong>t buys labor power in order to use<br />

it, and labor power in use <strong>is</strong> labor itself. The purchase <strong>of</strong> labor power consumes it by setting<br />

the seller <strong>of</strong> it to work. By working, the seller becomes actually, what before he only was<br />

potentially, labor power in action, a laborer.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 75<br />

Capital<strong>is</strong>m labor power <strong>is</strong> just one commodity among others, whose price <strong>is</strong> determined<br />

by the amount <strong>of</strong> labor that goes into its production. Human labor power itself must be<br />

developed before it can be expended in different forms. The value <strong>of</strong> a commodity represents<br />

human labor plain and simple, the expenditure <strong>of</strong> human labor in general. Labor power needs<br />

development (schooling, training, experience).<br />

Labor <strong>is</strong> a process in which both man and nature participate, and in which man <strong>of</strong> h<strong>is</strong> own<br />

accord starts, regulates, and controls the material re-actions between himself and nature.<br />

Message [65] referenced by [90] and [1997ut:56]. Next Message by MsMarx <strong>is</strong> [88].<br />

[90] Hans: Labor power need not be a commodity The second <strong>of</strong> the two answers to 72,<br />

MsMarx’s [65], <strong>is</strong> very good. The only thing MsMarx overlooks <strong>is</strong> that under commodity<br />

production labor power ex<strong>is</strong>ts and has real economic effects even if it <strong>is</strong> not a commodity<br />

itself.<br />

Here <strong>is</strong> the other answer, Chuck’s [58], with my comments:<br />

Labor <strong>is</strong> the human act <strong>of</strong> producing an actual commodity.<br />

By an “actual commodity” you apparently mean what Marx calls the “body” <strong>of</strong> the commodity,<br />

the physical thing that makes up the commodity. (A commodity <strong>is</strong> more than a<br />

physical thing; it <strong>is</strong> a physical thing endowed with social powers).<br />

labor in turn produces use value.<br />

Th<strong>is</strong> sentence seems to be a re-wording <strong>of</strong> the first sentence, using Marx’s terminological<br />

convention to write “a use value” instead <strong>of</strong> “the body <strong>of</strong> a commodity”. But why did you<br />

write “in turn”?<br />

Labor power on the other hand <strong>is</strong> the average amount <strong>of</strong> labor that every<br />

unit <strong>of</strong> labor gives.<br />

Look at th<strong>is</strong> sentence closely; it does not make any sense. We are using email here so that<br />

we can formulate our thoughts a little more carefully than that.<br />

Labor power <strong>is</strong> the amount <strong>of</strong> effort and the skill level that <strong>is</strong> required in<br />

order to produce a good.<br />

Th<strong>is</strong> might be a possible explication <strong>of</strong> the phrase “labor power <strong>is</strong> potential labor”, but it<br />

does not convey the universality <strong>of</strong> labor power. It <strong>is</strong> a central aspect <strong>of</strong> Marx’s definition <strong>of</strong><br />

labor power that the same labor power can give r<strong>is</strong>e to various kinds <strong>of</strong> labor. Your definition<br />

should be rephrased along the following lines: “labor power <strong>is</strong> the ability to exert goaldirected<br />

effort, and to learn and use various skills, in order to produce various commodities.”<br />

Message [90] referenced by [1997ut:56]. Next Message by Hans <strong>is</strong> [92].<br />

<strong>Question</strong> 74 <strong>is</strong> 61 in 1995WI, 70 in 1995ut, 73 in 1996ut, 81 in 1998WI, 88 in 1999SP, 93<br />

in 2000fa, 93 in 2001fa, and 117 in 2005fa:<br />

<strong>Question</strong> 74 Does skilled labor produce more value per hour than unskilled labor? Explain!<br />

76 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[31] Pinky: Skilled vs. unskilled labor values per hour. In response to th<strong>is</strong> dilemma,<br />

Marx theorizes that “a smaller amount <strong>of</strong> complicated labor <strong>is</strong> equal to a bigger amount<br />

<strong>of</strong> simple labor.” He states that “...the magnitude <strong>of</strong> the value <strong>of</strong> a commodity represents<br />

nothing but the quantity <strong>of</strong> labor embodied in it, ...all commodities, when taken in the right<br />

proportions, must be equal in value.” Based on th<strong>is</strong>, I would believe that Marx’s answer to<br />

the question would be yes. In Marx’s view, one hour <strong>of</strong> unskilled labor would be equal to<br />

an hour <strong>of</strong> skilled labor because the unskilled laborer <strong>is</strong> able to turn out a larger quantity <strong>of</strong><br />

something that, despite its lesser value, <strong>is</strong> produced in greater quantities because <strong>of</strong> the lack<br />

<strong>of</strong> skill it requires. Additionally, though one hour <strong>of</strong> work performed by a skilled laborer<br />

may produce something <strong>of</strong> greater value, because it required skill, the laborer was not able<br />

to produce as much.<br />

If I have correctly interpreted Marx’s theory on th<strong>is</strong> subject, I d<strong>is</strong>agree. There are many<br />

instances where the results <strong>of</strong> skilled labor exceed the value <strong>of</strong> unskilled labor not only on an<br />

hourly bas<strong>is</strong>, but on a much larger scale. Compare the commodities produced by the surgeon<br />

and the plastic wh<strong>is</strong>tle assembler. The surgeon can rid a patient <strong>of</strong> a life threatening ailment.<br />

The wh<strong>is</strong>tle assembler can provide you (at best), hours <strong>of</strong> wh<strong>is</strong>tling entertainment. Even if<br />

you take the money you would have spent on one surgergy and bought all <strong>of</strong> your friends and<br />

relatives multi-colored wh<strong>is</strong>tles, and you all joined in on a big, beautiful wh<strong>is</strong>tling session<br />

like you have never known before, it can not equal the value <strong>of</strong> saving a life.<br />

Message [31] referenced by [92], [218.1], and [407.1]. Next Message by Pinky <strong>is</strong> [123].<br />

[36] MUCHO: skilled labor produce more than unskilled labor? I don’t think there<br />

<strong>is</strong> an right answer for th<strong>is</strong> question. Because there <strong>is</strong> no guarantee that skilled labor always<br />

produce more value per hour than unskilled labor. I think that it really depending upon the<br />

circumstances or the environments. For instance, different countries, different cultures and<br />

the level <strong>of</strong> complication for the labor. All these can change the level <strong>of</strong> production no matter<br />

how skilled or unskilled labors are in production line. As the labor gets complicated, skilled<br />

labor produce more value per hour. However, under the simple labor, it doesn’t mean that<br />

skilled labor always better <strong>of</strong>f with unskilled labor. I believe, there <strong>is</strong> a good chance for the<br />

unskilled labor may produce more value per hour than skilled labor. Because, sometimes<br />

unskilled labors can be more efficient for the simple labor. I’ve heard a great example to<br />

support my argument before but, I cannot remember the story exactly. I will let you know<br />

the story as soon as I remember or find out.<br />

Message [36] referenced by [92] and [166.1]. Next Message by MUCHO <strong>is</strong> [111].<br />

[39] Panacea: Re: skilled labour and unskilled labour Th<strong>is</strong> has got to be a loaded<br />

question, Hans, but I’ll take a stab at it.<br />

The quote ‘standing on the shoulders <strong>of</strong> giants’ comes to mind. Marxian thought, as far<br />

as I understand, views knowledge and learning as a social activity. Society accumulates<br />

knowledge, and no one individual <strong>is</strong> responsible for ‘new knowledge’, but rather we all owe<br />

each other and our forebears. (Erich Fromm) So your question <strong>is</strong> difficult. Could the skilled<br />

labour have any effectiveness if it were’nt for unskilled labour? The architect designs the<br />

house - but it must still be built. <strong>What</strong> due you mean by ‘value’, here? Socially attributed<br />

value? I believe Marx had a great deal <strong>of</strong> insight when he spoke <strong>of</strong> how little recognition<br />

goes to the hands which actually build the abstract concepts which skilled labour create. The


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 77<br />

architect will be cold and wet without the construction worker. And then what value has h<strong>is</strong><br />

concept <strong>of</strong> a beautiful new house?<br />

Message [39] referenced by [92]. Next Message by Panacea <strong>is</strong> [194.3].<br />

[54] Chocolate: Re: skilled vs. unskilled labor First <strong>of</strong> all i believe that skilled labor<br />

will always produce more value per hour than unskilled labor. My understanding <strong>of</strong> Marx’s<br />

views on th<strong>is</strong> questions <strong>is</strong> that if two individuals (one skilled and one unskilled) produce<br />

an identical product, and it took them the same amount <strong>of</strong> labor and time to produce th<strong>is</strong><br />

product. Then both <strong>of</strong> the products that were produced (one by an unskilled worker, one by<br />

a skilled worker) will have equall use and exchange value.<br />

An individual who <strong>is</strong> skilled in what he or she produces will always find a better way to<br />

increase h<strong>is</strong> or her technology <strong>of</strong> producing h<strong>is</strong> or her product. And because he or she <strong>is</strong><br />

skilled, that individual will also find a way to produce more products per hour. Who would<br />

you trust to fix your transm<strong>is</strong>sion, a mechanic with ten-years <strong>of</strong> experience, or one with only<br />

a year <strong>of</strong> experience? The logical answer in my point <strong>of</strong> would be to pick the one who has<br />

ten-years under their belt. But, let us assume that the individual who only has one year <strong>of</strong><br />

experience graduated with very high credentials from their automechanic school. Let us also<br />

assume that h<strong>is</strong> credentials were by far higher than that <strong>of</strong> the mechanic who has ten-years<br />

<strong>of</strong> experience. In my opinion, I would still chose the mechanic with ten-years <strong>of</strong> experience,<br />

because throughout the years th<strong>is</strong> individual will have aquired the necessary knowledge,<br />

experience and know-how, to properly and quickly fix a transm<strong>is</strong>sion. The mechanic who<br />

had only one year <strong>of</strong> experience, might have answered all <strong>of</strong> h<strong>is</strong> test questions correctly,<br />

but how would he perform under pressure <strong>of</strong> actually fixing a transm<strong>is</strong>sion under a certain<br />

amount <strong>of</strong> time. Better yet how fast and accurate would he be able to fix the transm<strong>is</strong>sion if<br />

their company <strong>is</strong> booked and very busy on a certain day.<br />

The mechanic who has ten-years under h<strong>is</strong> belt, will know how to deal with those kinds <strong>of</strong><br />

pressure situation mainly because he has been around longer and has aquired the necessary<br />

skill that will enable him to overcome those situations and produce more output than one<br />

who <strong>is</strong> unskilled.<br />

Message [54] referenced by [92] and [104]. Next Message by Chocolate <strong>is</strong> [160].<br />

[60] Gilligan: skill v/s unskilled Who <strong>is</strong> to say that a skilled worker produces more<br />

than a unskilled worker. People seem to forget that those skilled workers that sit atop <strong>of</strong> the<br />

unskilled workers <strong>of</strong>ten times had the oportunity to attend school and receive the training<br />

necessary to be in those types <strong>of</strong> situations. Where as, an unskilled worker maybe a very<br />

bright person who <strong>is</strong> capable <strong>of</strong> the same tasks and positions as the skilled, but has been left<br />

out <strong>of</strong> these situations because he didn’t have the same oportunities as the skilled worker. We<br />

need to look at the situations in which these people come from and most <strong>of</strong>ten it <strong>is</strong> the answer<br />

to the reason <strong>of</strong> them being in th<strong>is</strong> type <strong>of</strong> situation. If it weren’t for the unskilled worker<br />

many skilled workers would be out <strong>of</strong> a job because it’s through the unskilled production<br />

that these skilled workers look so good. We can’t just say that a skilled worker produces<br />

more per hour than an unskilled worker because I feel in many cases the unskilled worker<br />

produces equal to or more than a skilled worker. Like I stated many times those who are<br />

very bright and are able to produce find themselves d<strong>is</strong>criminated against and in a position<br />

under the skilled worker do circumstances they had no control over.<br />

Message [60] referenced by [92], [93], and [205.1]. Next Message by Gilligan <strong>is</strong> [134].<br />

78 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[92] Hans: Skill: a protection against exploitation? We received five answers to <strong>Question</strong><br />

74: Pinky’s [31], MUCHO’S [36], Panacea’s [39], Chocolate’s [54], and Gilligan’s<br />

[60]. Th<strong>is</strong> <strong>Question</strong> has so much interest because getting a skill <strong>is</strong> widely believed to be a<br />

protection against exploitation.<br />

Here are some comments. Pinky wrote in [31]:<br />

In Marx’s view, one hour <strong>of</strong> unskilled labor would be equal to an hour<br />

<strong>of</strong> skilled labor because the unskilled laborer <strong>is</strong> able to turn out a larger<br />

quantity <strong>of</strong> something that, despite its lesser value, <strong>is</strong> produced in greater<br />

quantities because <strong>of</strong> the lack <strong>of</strong> skill it requires.<br />

In other words, the value produced <strong>is</strong> the same, because unskilled laborers must make up<br />

for their lack <strong>of</strong> skill by working faster. Here <strong>is</strong> my reaction to th<strong>is</strong>:<br />

Of course, the capital<strong>is</strong>t would love it if the skilled workers were to work faster too, but<br />

it <strong>is</strong> much more difficult to control and speed up a skilled laborer than an unskilled laborer.<br />

The difference which Pinky observes here <strong>is</strong> therefore not due to the intrinsic character <strong>of</strong><br />

skilled or unskilled labor, but it usd “constellational”, i.e., it comes from the side effect that<br />

labor which <strong>is</strong> skilled can also <strong>of</strong>ten not be controlled so easily. According to th<strong>is</strong>, getting a<br />

skill <strong>is</strong> a protective measure, like joining a union.<br />

The remainder <strong>of</strong> Pinky’s answer makes it clear that she does not know that in the Marxian<br />

paradigm value comes from “congealed abstract labor time”, but that she thinks more along<br />

the lines <strong>of</strong> Peaches’s [7], which I critiz<strong>is</strong>ed in [8]. Th<strong>is</strong> <strong>is</strong> a major m<strong>is</strong>understanding, which<br />

adversely affects her grade.<br />

MUCHO’s [36] notices that the difference pointed out by Pinky <strong>is</strong> constellational, he<br />

writes that it <strong>is</strong><br />

depending upon the circumstances or the environments. For instance, different<br />

countries, different cultures and the level <strong>of</strong> complication for the labor.<br />

All these can change the level <strong>of</strong> production no matter how skilled or<br />

unskilled labors are in production line.<br />

But MUCHO fails to notice that Pinky has the wrong concept <strong>of</strong> value, and adopts Pinky’s<br />

error.<br />

Chocolate’s [54] d<strong>is</strong>cusses a different situation than that which the <strong>Question</strong> referred to.<br />

Instead <strong>of</strong> comparing two workers producing two different commodities, one requiring skill<br />

and the other not, she compares two workers producing the same commodity. Therefore<br />

Chocolate <strong>is</strong> really answering <strong>Question</strong> 53, and she finally gives the economic mechan<strong>is</strong>m<br />

which enforces that the labor <strong>of</strong> the slow worker produces less value than that <strong>of</strong> the fast<br />

worker (compare my [64]): both products are ind<strong>is</strong>tingu<strong>is</strong>hable once they are on the market,<br />

and therefore the values <strong>of</strong> the products must be the same, regardless <strong>of</strong> the circumstances<br />

under which they are produced.<br />

Panacea’s [39] <strong>is</strong> much too philosophical, and similar to her [38]. Panacea has not yet<br />

noticed that th<strong>is</strong> <strong>is</strong> no longer Econ 509. In 508 we mean business and require specific,<br />

rigorous thinking.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 79<br />

Gilligan’s [60] argues that the skilled workers should come down from their high horse.<br />

Often it <strong>is</strong> not their merit that they had the opportunity to acquire a skill while others did not.<br />

Th<strong>is</strong> point <strong>is</strong> well taken, and I agree with it. But Gilligan should not conclude from th<strong>is</strong> that<br />

the skilled worker produces no more value than the unskilled worker. Value does not come<br />

from merit but it <strong>is</strong> a very specific economic relationship.<br />

In other words, due to th<strong>is</strong> flurry <strong>of</strong> subm<strong>is</strong>sions, we finally have the answer to <strong>Question</strong><br />

53, but <strong>Question</strong> 74 <strong>is</strong> still not answered properly.<br />

Message [92] referenced by [205.1]. Next Message by Hans <strong>is</strong> [99].<br />

[94] Scott: Skilled labor produce more value per hr than unskilled? According to<br />

Marx the answer <strong>is</strong> not. It seems that most <strong>of</strong> the previous answers are imposing personal<br />

opinions and relating them to the wages paid between the two separate groups. I have the<br />

same problem. We are asked to reduce all labor to simple labor so that we don’t continually<br />

have to make the reduction between skilled and unskilled labor. Marx states “More complicated<br />

labor counts as multiplied simple labor, so that a smaller amount <strong>of</strong> complicated<br />

labor <strong>is</strong> equal to a bigger amount <strong>of</strong> simple labor.” It <strong>is</strong> then annotated that the market does<br />

the counting. I believe th<strong>is</strong> to be the answer in that the market counts by valuing through<br />

higher salaries, (which <strong>is</strong> the capital<strong>is</strong>t greatest desire and its’ mark <strong>of</strong> success. Opinions<br />

may or may not agree with the market, obviously. It <strong>is</strong> a capital<strong>is</strong>t“value” being reduced to a<br />

quantitiy. I think one <strong>of</strong> the problems <strong>is</strong> whom determines value, and th<strong>is</strong> more or less value<br />

should be unique to individuals. i.e. I may think that lawyers are much more valuable than<br />

teachers or plumbers, but my opinion would only be just that.<br />

Message [94] referenced by [108]. Next Message by Scott <strong>is</strong> [146].<br />

[108] Hans: Getting higher wages <strong>is</strong> not the same as creating more value Scott’s [94]<br />

goes to Marx’s text in order to answer <strong>Question</strong> 74. Th<strong>is</strong> <strong>is</strong> good; the previous answers<br />

haven’t done it enough. Scott writes:<br />

According to Marx the answer <strong>is</strong> not.<br />

Th<strong>is</strong> <strong>is</strong> not true. Marx thinks skilled labor does produce more value per hour than unskilled<br />

labor.<br />

Further down Scott m<strong>is</strong>understands Marx again:<br />

We are asked to reduce all labor to simple labor so that we don’t continually<br />

have to make the reduction between skilled and unskilled labor.<br />

Th<strong>is</strong> <strong>is</strong> only a styl<strong>is</strong>tic device. Marx will act from now on as if all labor was unskilled,<br />

although what <strong>is</strong> really the case (according to the way how Marx sees it) <strong>is</strong> that there are<br />

different skills, which are then reduced to unskilled labor.<br />

Next Scott writes how he understand my sentence in the Annotations that “the market<br />

does the counting”:<br />

I believe th<strong>is</strong> to be the answer in that the market counts by valuing through<br />

higher salaries, (which <strong>is</strong> the capital<strong>is</strong>t greatest desire and its’ mark <strong>of</strong> success.<br />

80 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Th<strong>is</strong> <strong>is</strong> another m<strong>is</strong>understanding, and a basic one which I haven’t criticized enough in<br />

my earlier subm<strong>is</strong>sions. We are not yet talking here about wages. We are talking about the<br />

values which the commodities containing skilled or unskilled labor fetch on the market.<br />

In another thread <strong>of</strong> h<strong>is</strong> argument, Scott criticizes that the previous subm<strong>is</strong>sions used a<br />

subjective concept <strong>of</strong> value. I agree here, th<strong>is</strong> <strong>is</strong> again something which I should have marked<br />

as wrong with a big red pen in the earlier subm<strong>is</strong>sions. When Marx talks about “value” he<br />

means some objective social reality, not some subjective valuation.<br />

Next Message by Hans <strong>is</strong> [109].<br />

[160] Chocolate: Sub. <strong>of</strong> 1st. midterm According to Marx, a skilled labor does produce<br />

more value per hour than an unskilled labor. If two individuals, one skilled and the other<br />

unskilled, were to produce the same commodity their end results would be quite different.<br />

For example, let us say that given the time <strong>of</strong> one working day, the unskilled labor will<br />

be able to produce one coat. Whereas the skilled labor will produce more than one coat<br />

but also in better quality because <strong>of</strong> the experience and the advance training he/she had<br />

recieved. Therefore I believe that the more education and job training an individual recieves<br />

the better the chances <strong>of</strong> that individual producing a better product than an individual with<br />

less education and training.<br />

Hans: I <strong>of</strong>fered you to send in another subm<strong>is</strong>sion.<br />

Message [160] referenced by [165] and [176.2]. Next Message by Chocolate <strong>is</strong> [161.1].<br />

[165] Hans: Errors in the Quiz <strong>Question</strong> Message [160] was Chocolate’s answer to the<br />

Quiz question 74. It was forwarded to everyone by m<strong>is</strong>take. I hope I have removed the bug<br />

in my program now, and your resubm<strong>is</strong>sions will no longer be forwarded to everyone. But<br />

since you have [160] now, I will point out its errors so that you will not repeat those errors in<br />

your resubm<strong>is</strong>sions <strong>of</strong> the Quiz. Chocolate <strong>is</strong> welcome to re-send her subm<strong>is</strong>sion too after<br />

reading my comments.<br />

According to Marx, a skilled labor does produce more value per hour than<br />

an unskilled labor. If two individuals, one skilled and the other unskilled,<br />

were to produce the same commodity their end results would be quite different.<br />

For example, let us say that given the time <strong>of</strong> one working day, the<br />

unskilled labor will be able to produce one coat. Whereas the skilled labor<br />

will produce more than one coat but also in better quality because <strong>of</strong> the<br />

experience and the advance training he/she had recieved.<br />

Chocolate <strong>is</strong> confusing here two <strong>is</strong>sues. One <strong>is</strong>: you have two people producing the same<br />

product, one has the average dexterity, skill, and experience necessary to do the job, and the<br />

other <strong>is</strong> lazy or a beginner. Then the average worker produces value in proportion to the<br />

labor time he spends, and the value produced by the exceptionally slow worker <strong>is</strong> measured<br />

by the time it would take the average worker to produce the same output. Everything <strong>is</strong> clear<br />

and simple here.<br />

The other situation <strong>is</strong>: two people from different trades, each with the average skill required<br />

for their trade, produce two different things. The mason <strong>is</strong> building a house and the<br />

engineer <strong>is</strong> designing a car. Do they produce the same value per hour, and if not, how are<br />

the values determined? Th<strong>is</strong> <strong>is</strong> the situation which <strong>Question</strong> 74 refers to.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 81<br />

By the assumption that the unskilled tailor not only produces less per hour but also produces<br />

an inferior product, Chocolate makes it impossible for herself to make th<strong>is</strong> clear d<strong>is</strong>tinction.<br />

If she were to assume that the unskilled tailor produces an identical product, but<br />

uses more time for it, she would get a clear-cut answer. But what if she were to compare the<br />

labor <strong>of</strong> a tailor with that <strong>of</strong> a blacksmith?<br />

Therefore I believe that the more education and job training an individual<br />

recieves the better the chances <strong>of</strong> that individual producing a better product<br />

than an individual with less education and training.<br />

It was not the question who produces a better product, but who produces more value per<br />

hour.<br />

Message [165] referenced by [176.2]. Next Message by Hans <strong>is</strong> [166].<br />

[166.1] MUCHO: I would like to add little bit more to what I wrote for the question<br />

74. According to the book, The additional labor costs necessary for producing the skill, in<br />

which are also included the total costs <strong>of</strong> schooling spent on those who do not successfully<br />

conclude their studies. The book also mentions that skilled labor participates in the total<br />

labor-power <strong>of</strong> society not only with its own labor-power but also with a fraction <strong>of</strong> the<br />

labor-power necessary to produce its skill. The skill can be compared to an additional tool,<br />

which <strong>is</strong> in itself not value-producing, but which transfers part <strong>of</strong> its own value into the value<br />

<strong>of</strong> the product produced by the skilled worker.<br />

Hans: Your resubm<strong>is</strong>sion <strong>is</strong> right, while that what you wrote in class, which was taken from [36], was wrong.<br />

Better late than never.<br />

Next Message by MUCHO <strong>is</strong> [166.2].<br />

[172.2] Snake: labor represented in commdities Th<strong>is</strong> <strong>is</strong> true. Once the location <strong>of</strong> the<br />

determined workers are establ<strong>is</strong>hed, then we can break down the skill level <strong>of</strong> the workers<br />

into one defined time frame. The amount <strong>of</strong> an commodity to be produced differentiates the<br />

skill level <strong>of</strong> the laborers. Where a high standard <strong>of</strong> labor <strong>is</strong> put into the production <strong>of</strong> an<br />

commodity, could be compared to say, the production <strong>of</strong> an unskilled laborer under a d<strong>is</strong>tinct<br />

period <strong>of</strong> time. Yet, both could produce a commodity <strong>of</strong> the same value. Although th<strong>is</strong> does<br />

not exclude the idea that under these cicumstances one laborer might just produce the same<br />

quality product <strong>of</strong> another unskilled laborer under the same time period. Where the value<br />

<strong>of</strong> both the the skilled and the unskilled laborers commodities could be <strong>of</strong> equal value. Yet,<br />

since the skilled labor can produce the commodity much faster, then that individual will gain<br />

more in value from h<strong>is</strong> commodity because th<strong>is</strong> skilled individaul will have aquired more <strong>of</strong><br />

the commodity then the other unskilled laborer, once the given time frame has expired.<br />

Hans: I found the text you wrote in class much clearer than your resubm<strong>is</strong>sion. You only made a few, mostly<br />

cosmetic, changes, but these changes made your resubm<strong>is</strong>sion very hard to understand.<br />

You are arguing the right point if both workers produce the same commodity, but <strong>Question</strong> 74 was posed in<br />

a context in which Marx was d<strong>is</strong>cussing different kinds <strong>of</strong> labor, one skilled and the other unskilled, producing<br />

different use values.<br />

Next Message by Snake <strong>is</strong> [173].<br />

[173.2] Wight: Yes! Marx asserts here that skilled labor does produce more value per<br />

hour than unskilled labor. Marx from th<strong>is</strong> point on adopts the idea that all labor <strong>is</strong> unskilled,<br />

although what <strong>is</strong> really the case according to the viewpoint <strong>of</strong> Marx <strong>is</strong> that there are different<br />

skills, which are then reduced to unskilled labor. The tricky <strong>is</strong>sue here <strong>is</strong> how does Marx<br />

quantitatively measure value produced between skilled and unskilled laborers. It <strong>is</strong> important<br />

82 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

to note that Marx <strong>is</strong> not talking about wages here. When Marx talks about value, he means<br />

some objective social reality not subjective valuation. Value does not come from the merit <strong>of</strong><br />

workers, instead it <strong>is</strong> a very specific economic relationship. We are talking about the values<br />

which the commodities containing skilled or unskilled labor fetch on the market Marx states<br />

that “More complicated labor counts as multiplied simple labor, so that a smaller amount<br />

<strong>of</strong> complicated labor <strong>is</strong> equal to a bigger amount <strong>of</strong> simple labor.” The market then assigns<br />

values which the commodities containing skilled or unskilled labor fetch on the market.<br />

The important point here <strong>is</strong> that the value <strong>of</strong> labor, as it <strong>is</strong> being d<strong>is</strong>cussed here, <strong>is</strong> market<br />

determined not wage determined.<br />

Hans: Everything you are writing <strong>is</strong> right and relevant to the <strong>Question</strong>. You do not quite answer how exactly th<strong>is</strong><br />

tricky <strong>is</strong>sue <strong>of</strong> reducing qualitative skill differences to merely quantitative differences <strong>is</strong> done, but Marx himself<br />

stays vague about it because there <strong>is</strong> not really a general rule.<br />

Next Message by Wight <strong>is</strong> [189].<br />

[179.1] Bandit: Yes, the reason skilled labor produces more value per hour than an ujnskilled<br />

laborer <strong>is</strong> becuase <strong>of</strong> the skill in which they are trained. <strong>Exam</strong>ple <strong>is</strong> a doctor who<br />

provides a much more valuable service than say someone who makes cardboard egg cartons.<br />

Because <strong>of</strong> the difficulty <strong>of</strong> the task or job, a skilled worker <strong>is</strong> trained and taught in the trit<br />

and therefore are able to conquer the more complicated and soph<strong>is</strong>ticated jobs.<br />

I believe the bas<strong>is</strong> <strong>of</strong> the argument <strong>is</strong> the value to society each type <strong>of</strong> laborer provides or<br />

contributes. A doctor <strong>is</strong> one who analyzes the body and its multi-functions and learns how<br />

to treat the different parts when they are d<strong>is</strong>functioning. If soceity had to do without doctors<br />

the result would be choas. On the hand if we lost those who make cardboard egg cartons<br />

(th<strong>is</strong> may be an extreme compar<strong>is</strong>on) we certainly could find another place to put our eggs.<br />

Hans: I said in [8] that value <strong>is</strong> not based on social need. Th<strong>is</strong> <strong>is</strong> a basic m<strong>is</strong>understanding <strong>of</strong> Marx’s whole<br />

argument.<br />

Next Message by Bandit <strong>is</strong> [179.2].<br />

[181.1] Caren: Marx states that the quantity <strong>of</strong> the ‘value-forming substance’,the labor,<br />

must be <strong>of</strong> an average or a socially necessary labor-time. He also wrote that socially necessary<br />

labor-time <strong>is</strong> the labor-time required to produce any use-value under the conditions<br />

<strong>of</strong> production normal for a given society and with the average degree <strong>of</strong> skill and intensity<br />

<strong>of</strong> labor prevalent in that society. In the case <strong>of</strong> producing the same kind <strong>of</strong> use-value, it<br />

<strong>is</strong> not difficult to compare and measure the degree <strong>of</strong> skill and intensity <strong>of</strong> labor under the<br />

same conditions <strong>of</strong> production. The labor-time <strong>of</strong> skillful workers <strong>is</strong> reduced to a certain<br />

amount <strong>of</strong> the socially necessary labor-time by comparing the resultant quantity <strong>of</strong> products.<br />

Moreover the mechan<strong>is</strong>ed factory system <strong>of</strong> capital<strong>is</strong>t production generally homogen<strong>is</strong>es the<br />

efficiency <strong>of</strong> labor under the same conditions <strong>of</strong> production, making the instruments o labor<br />

the main determinants <strong>of</strong> production, rather than in workers’ ability, tend to be the dec<strong>is</strong>ive<br />

influence on productivity <strong>of</strong> the same sort <strong>of</strong> product. Therefore, in th<strong>is</strong> case, the answer <strong>is</strong><br />

“NO”.<br />

However, the problem <strong>of</strong> the degree <strong>of</strong> skill and intensity <strong>of</strong> labor cannot conceptually<br />

be confined to the same kind <strong>of</strong> labor. Marx refers to complex labor in contrast with simple<br />

average labor, when he compares different kinds <strong>of</strong> useful labor. Complex labor can be<br />

regarded as expenditure <strong>of</strong> labor-power <strong>of</strong> skilled workers better trained or educated than<br />

the average unskilled or simple workers. For example, an engineer <strong>is</strong> a skilled labor and a


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 83<br />

mason <strong>is</strong> an unskilled labor. Marx then explicates the reducing complex into simple labor;<br />

quote:<br />

“ More complex labour counts only as intensified, or rather multiplied simple<br />

labour, so that a smaller quantity <strong>of</strong> complex labour <strong>is</strong> considered equal<br />

to a larger quantity <strong>of</strong> simple labor. Experience shows that th<strong>is</strong> reduction<br />

<strong>is</strong> constantly being made. A commodity may be the outcome <strong>of</strong> the most<br />

complicated labour, but through its value it <strong>is</strong> posited as equal to the product<br />

<strong>of</strong> simple labour. The various proportions in which different kinds <strong>of</strong><br />

labour are reduced to simple labour as their unit <strong>of</strong> measurement are establ<strong>is</strong>hed<br />

by a social process that goes on behind the backs <strong>of</strong> the producers;<br />

these proportions therefore appear to the producers to have been handed<br />

down by tradition. In the interests <strong>of</strong> simplification, we shall henceforth<br />

view every form <strong>of</strong> labour-power directly as simple labour-power; by th<strong>is</strong><br />

we shall simply be ourselves the troubles <strong>of</strong> making the reduction,”.<br />

Marx believed that the higher value <strong>of</strong> complex labor-power <strong>is</strong> causally related with the<br />

higher value created by that labor-power. A higher sort <strong>of</strong> skilled labor can be regarded as<br />

being able somehow to create higher values in proportion to its value according to Marx<br />

quotation:<br />

“ All labour <strong>of</strong> a higher, or more complicated, character than average labour<br />

<strong>is</strong> expenditure <strong>of</strong> labor-power <strong>of</strong> a more costly kind, labour-power whose<br />

production has cost more time and labour than unskilled or simple labourpower,<br />

and which therefore has higher value. Th<strong>is</strong> power being <strong>of</strong> higher<br />

value, <strong>is</strong> expresses itself in labour <strong>of</strong> a higher sort, and therefore becomes<br />

objectified, during an equal amount <strong>of</strong> time, in proportionally higher values.<br />

<strong>What</strong>ever difference in skill there may be between the labour by which the<br />

jeweller merely replaces the value <strong>of</strong> h<strong>is</strong> own labour-power does not in<br />

any way differ in quality from the additional portion by which he creates<br />

surplus-value,”.<br />

Therefore, in th<strong>is</strong> case, the answer <strong>is</strong> “YES,” skilled labor produces more value per hour<br />

than unskilled labor.<br />

Hans: Your resubm<strong>is</strong>sion <strong>is</strong> excellent.<br />

Next Message by Caren <strong>is</strong> [182.2].<br />

[181.3] TOAD: Midterm74 Yes skilled labor gets paid more per hour, but th<strong>is</strong> <strong>is</strong> because<br />

it took more invested time to become skilled. Therefore a skilled laborer hour, eventhough<br />

it cons<strong>is</strong>ts <strong>of</strong> 60 minutes also includes the time it took for that person to become a skilled<br />

laborer. So what took a skilled laborer 1 hour to do may take a unskilled laborer 2 hours to<br />

accompl<strong>is</strong>h. So there <strong>is</strong> more value per hour in the skilled laborer as opposed to the unskilled<br />

because <strong>of</strong> the one hour <strong>of</strong> additional hour <strong>of</strong> training the skilled laborer has. I believe an<br />

example was <strong>of</strong> the doctor that went to school for 15 years and then practiced for 15 years.<br />

He <strong>is</strong> getting paid twice as much for h<strong>is</strong> labor as someone that has only worked for 15 years.<br />

Th<strong>is</strong> <strong>is</strong> because the doctor has twice as many hours invested.<br />

84 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The example would be the same if it took 10 hours to produce 10 yards <strong>of</strong> linen and 10<br />

hours to produce 20 yards <strong>of</strong> cotton. The cotton would be the same value because it took the<br />

same amount <strong>of</strong> labor time to produce the product.<br />

Hans: Your first argument <strong>is</strong> right:<br />

Yes skilled labor gets paid more per hour, but th<strong>is</strong> <strong>is</strong> because it took more invested time to<br />

become skilled. Therefore a skilled laborer hour, eventhough it cons<strong>is</strong>ts <strong>of</strong> 60 minutes also<br />

includes the time it took for that person to become a skilled laborer.<br />

But now you are bringing a different argument. Th<strong>is</strong> <strong>is</strong> not applicable here, because usually someone who does not<br />

have the training cannot do what the trained person does, even if he takes 10 times more time:<br />

So what took a skilled laborer 1 hour to do may take a unskilled laborer 2 hours to accompl<strong>is</strong>h.<br />

So there <strong>is</strong> more value per hour in the skilled laborer as opposed to the unskilled because <strong>of</strong><br />

the one hour <strong>of</strong> additional hour <strong>of</strong> training the skilled laborer has.<br />

In the next part <strong>of</strong> your answer you are confusing the question what someone gets paid with the question how much<br />

value someone creates. These are two completely different <strong>is</strong>sues (and it cannot have escaped you that a doctor gets<br />

paid much more than twice as much as an unskilled laborer):<br />

I believe an example was <strong>of</strong> the doctor that went to school for 15 years and then practiced for<br />

15 years. He <strong>is</strong> getting paid twice as much for h<strong>is</strong> labor as someone that has only worked for<br />

15 years. Th<strong>is</strong> <strong>is</strong> because the doctor has twice as many hours invested.<br />

Next Message by TOAD <strong>is</strong> [181.4].<br />

[182.4] Lamma: Marx feels that skilled labor does produce more value per hour than<br />

unskilled labor. He argues that the value <strong>of</strong> a commodity produced by skilled labor will<br />

bring a higher price on the market. In other words a product produced by skilled labor will<br />

obtain a higher value than a commodity produced by unskilled labor. Th<strong>is</strong> <strong>is</strong> determined by<br />

the quality <strong>of</strong> work and the pace <strong>of</strong> that good quality work. However, Marx assumes in h<strong>is</strong><br />

arguments from th<strong>is</strong> point on that all labor <strong>is</strong> unskilled. He sees skilled labor as a bunch <strong>of</strong><br />

unskilled labor that has come together and <strong>is</strong> acting as one now.<br />

Hans: You wrote:<br />

He argues that the value <strong>of</strong> a commodity produced by skilled labor will bring a higher price<br />

on the market. In other words a product produced by skilled labor will obtain a higher value<br />

than a commodity produced by unskilled labor.<br />

Th<strong>is</strong> sounds as if value was determined by price. Th<strong>is</strong> <strong>is</strong> not Marx’s view. He considers price to be the expression<br />

<strong>of</strong> value. And besides you are not explaining why the product <strong>of</strong> skilled labor has a higher price.<br />

Th<strong>is</strong> <strong>is</strong> determined by the quality <strong>of</strong> work and the pace <strong>of</strong> that good quality work.<br />

Marx says that the quality <strong>of</strong> work does not matter for value (as long as it meets some minimum standards). And<br />

there <strong>is</strong> a difference between intensity and skill level.<br />

Your last sentence <strong>is</strong> good.<br />

Next Message by Lamma <strong>is</strong> [182.5].<br />

[192.3] Scott: Marx explains the higher value <strong>of</strong> skilled labour in regards to unskilled<br />

labour strictly in terms <strong>of</strong> h<strong>is</strong> “labour theory <strong>of</strong> value”.He does not involve wage differentials<br />

between the two groups, as I have m<strong>is</strong>stakenly in previous subm<strong>is</strong>sions. Clearly, th<strong>is</strong> <strong>is</strong> an<br />

area where Marx has many critics, as the capital<strong>is</strong>t cannot see beyond realtionships between<br />

the two groups’ wages. The skilled labourer has the higher value due to the additional labour<br />

costs necessary for being classified as skilled in the first palce, namely education or training.<br />

The skill, in Marxs’ words,“can be compared to an additional tool, which <strong>is</strong> in itself not<br />

value-producing, but which transfers part <strong>of</strong> its own value <strong>of</strong> the product produced by the<br />

skilled worker.” So, the values that the commodities containing either skilled or unskilled


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 85<br />

labour “fetch on the market”, <strong>is</strong> the value compar<strong>is</strong>on here. Marx does indeed state that<br />

skilled labour produces more value per hour than the unskilled labour.<br />

Hans: Your subm<strong>is</strong>sion (but not your in-class exam) says correctly that the value created does not depend on<br />

people’s wages. But apparently you do not quite believe th<strong>is</strong>, since you add:<br />

Clearly, th<strong>is</strong> <strong>is</strong> an area where Marx has many critics, as the capital<strong>is</strong>t cannot see beyond realtionships<br />

between the two groups’ wages.<br />

Th<strong>is</strong> difference in value created <strong>is</strong> present even if there are no capital<strong>is</strong>ts but only independent producers. As with<br />

many value relationships, the competitive mechan<strong>is</strong>m which enforces it <strong>is</strong> very long term: if a certain skill gets a<br />

higher premium than warranted by the difference in costs <strong>of</strong> education, then more workers will acquire the skill.<br />

Next Message by Scott <strong>is</strong> [220].<br />

[194.2] Angela: Marx thinks skilled labor does produce more value per hour than unskilled<br />

labor. Because skilled labor and unskilled labor have the diverse kinds <strong>of</strong> labor powers,<br />

the diverse kinds <strong>of</strong> labor powers will constitute the different substance <strong>of</strong> values. The<br />

skilled labor has to spend more training time to develop h<strong>is</strong>/her skill and technical knowledge<br />

so that he/she will create more value labor power. I think th<strong>is</strong> <strong>is</strong> the interpretation for<br />

Marx to explain th<strong>is</strong> question.<br />

Hans: Your in-class exam was much clearer than your very terse resubm<strong>is</strong>sion.<br />

Next Message by Angela <strong>is</strong> [239].<br />

[194.3] Panacea: Yes! The greatest difficulty in speaking about labour <strong>is</strong> it’s reduction<br />

to general terms - ‘skilled’ and ‘unskilled’. Th<strong>is</strong> <strong>is</strong> not an exact and absolute science, and<br />

Marx knew it. There are no absolutes. But a great deal <strong>of</strong> evidence ex<strong>is</strong>ts which indicate<br />

a ‘multiplier effect’ possible in labour - th<strong>is</strong> <strong>is</strong> the qualitative d<strong>is</strong>tinction between ‘skilled’<br />

and ’unskilled’labour. A brain surgeon studies for years ( a relatively unproductive time<br />

for society) in order to become an effective doctor. Those years <strong>of</strong> training multiply h<strong>is</strong><br />

effectiveness in terms <strong>of</strong> use value (one coat clothes one man; if I can work better and more<br />

skilled, I can produce two coats to clothe two men in the same time). Note: the effort<br />

expended remains the same between unskilled and skilled (or should). Panacea.<br />

Hans: The case in which two workers produce the same product <strong>is</strong> much clearer than the case d<strong>is</strong>cussed in th<strong>is</strong><br />

<strong>Question</strong> in which the skilled labor <strong>of</strong> a doctor <strong>is</strong> explained with the labor <strong>of</strong> h<strong>is</strong> janitor. Your “multiplier effect”,<br />

if I understand it right, <strong>is</strong> an effort to combine the two. Forget it! A surgeon does not have to work twice as fast as<br />

someone else in order to get h<strong>is</strong> training time added to the value produced when he uses h<strong>is</strong> skills.<br />

Next Message by Panacea <strong>is</strong> [194.4].<br />

[197.6] Kia: Marx believed that skilled workers labor does produce more value per hour<br />

compare to unskilled laborer’s product. Skilled laborer produce something that not all <strong>of</strong> us<br />

can produce. Something that <strong>is</strong> unique and takes time and special skill to produce, which<br />

puts more value to the item. If you look at those who has special skills, they put in time<br />

and effort to learn those skills. Therefore, their skills should be valued more than unskilled<br />

laborers. Society too had the same ideas who should get paid more. Like the doctors and<br />

lawyers who put vast amount <strong>of</strong> time and money to acquire the skills needed to perform. So,<br />

it seems logical for skilled workers labor should be worth more and compensated for.<br />

Hans: In your in-class exam you wrote the additional sentence: “Unskilled labor <strong>is</strong> something most <strong>of</strong> us can do,<br />

so putting value on something like th<strong>is</strong> <strong>is</strong> not common.” Th<strong>is</strong> also seems to be underlying your resubm<strong>is</strong>sion. You<br />

think skilled labor creates more value because it <strong>is</strong> exceptional. Marx thinks just the opposite: skilled labor creates<br />

more value to the extent that it <strong>is</strong> equivalent to a larger amount <strong>of</strong> unskilled labor – unskilled labor that first has to<br />

be trained etc.<br />

Next Message by Kia <strong>is</strong> [200.1].<br />

86 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[197.2] Jake: Marx thinks that skilled labor does produce more value per hour than<br />

unskilled labor. Skilled labor seems to fetch more value on the market compared to unskilled<br />

labor. In capital<strong>is</strong>m th<strong>is</strong> concept <strong>of</strong> skilled and unskilled labor <strong>is</strong> really noticed or amplified.<br />

The skilled labor seems to take a higher social stance than unskilled labor. Usually the<br />

skilled labor sector <strong>is</strong> the sector that exploits the unskilled labor force. Th<strong>is</strong> meaning that<br />

workers are not receiving full compensation for the work they do. The capital<strong>is</strong>t high in<br />

the pyramid reaps th<strong>is</strong> excess denied to the common worker. Though skilled labor produces<br />

more value per an hour than unskilled, the difference in the value that society puts on the<br />

skilled labor <strong>is</strong> inflated.<br />

Hans: You are right, a skilled laborer may be in a position in which h<strong>is</strong> income cons<strong>is</strong>ts <strong>of</strong> more value than<br />

he produces. (You must d<strong>is</strong>tingu<strong>is</strong>h these two questions: the value one produces and the income one receives).<br />

However the prime means to exploit other workers <strong>is</strong> not skills but ownership <strong>of</strong> the means production. Marx said,<br />

the capital<strong>is</strong>t <strong>is</strong> not the a capital<strong>is</strong>t because he <strong>is</strong> the boss, but he <strong>is</strong> the boss because he <strong>is</strong> capital<strong>is</strong>t.<br />

Next Message by Jake <strong>is</strong> [197.7].<br />

[200.6] Gottlieb: Einfache Arbeitskraft Skilled labor produces no more value per hour<br />

than unskilled labor, according to Marx. He explains that two laborers both have the same<br />

value due to the abstract value <strong>of</strong> labor they posses. The only problem facing a society<br />

<strong>is</strong> matching the laborer with the production <strong>of</strong> a commodity that he or she does best. As<br />

Gottlieb said, as long as the laborers are matched to the “effective” commodity producing<br />

job, the CEO makes no more valuable contribution than does the car salesman.<br />

The reader gets the idea after reading Marx’s comments on “simple labor power” that he<br />

<strong>is</strong> refering more to time than to labor. Perhaps in the German translation, Marx could have<br />

said not that simple labor <strong>is</strong> “einfache Arbeitskraft,” but that there <strong>is</strong> “einfach Arbeitskraft,”<br />

or...there <strong>is</strong> simply labor!<br />

It makes no difference what you are producing. You are “simply” producing “labor.” You<br />

are not producing a type <strong>of</strong> labor, just labor. One could give time a value and get a better<br />

idea <strong>of</strong> th<strong>is</strong> “simple labor.” Each society <strong>is</strong> given so much time or labor hours. As long as<br />

they are all being utilized effectively, they are producing their potential.<br />

Hans: Good thinking, but: your formulations are sometimes inaccurate, and you are overlooking something. First<br />

regarding your formulations: You write:<br />

<strong>What</strong> you mean <strong>is</strong>:<br />

[Marx] explains that two laborers both have the same value due to the abstract value <strong>of</strong> labor<br />

they posses.<br />

[Marx] explains that two laborers both create the same value per hour due to the abstract labor<br />

they represent.<br />

And later, instead <strong>of</strong> saying:<br />

It makes no difference what you are producing. You are “simply” producing “labor.” You are<br />

not producing a type <strong>of</strong> labor, just labor.<br />

you should have said<br />

It makes no difference what you are producing. You are “simply” performing “labor.” You are<br />

not performing a type <strong>of</strong> labor, just labor.<br />

Now here <strong>is</strong> your oversight: From your argument that all labor only counts as time follows that labor which needs<br />

training before it can be preformed should be credited not only with the time <strong>of</strong> the actual preformance, but also<br />

with the training time.<br />

Next Message by Gottlieb <strong>is</strong> [201.1].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 87<br />

[200.5] Kia: I believe skilled workers produce more value per hour than unskilled laborer.<br />

If you look at teachers, we think <strong>of</strong> them as educational provider, leaders in many ways, and<br />

role models. However, what if everyday we seat in class for hours and learn nothing from<br />

th<strong>is</strong> teacher. Not because the teachers personality or race, color, age, nor sex has nothing to<br />

do with the sub par performance students are receiving. Then students must wonder if th<strong>is</strong><br />

teacher <strong>is</strong> worth their time and money. Therefore, unskilled workers produce less value per<br />

hour compare to skilled workers.<br />

Hans: Your resubm<strong>is</strong>sion re-interprets the question so that it <strong>is</strong> more in line with <strong>Question</strong> 53, where two people<br />

produce the same commodity, one <strong>is</strong> good at it, and the other <strong>is</strong> not. Th<strong>is</strong> was not the <strong>Question</strong> Marx was grappling<br />

with in the text where <strong>Question</strong> 74 was posed.<br />

Next Message by Kia <strong>is</strong> [344.2].<br />

[205.1] Gilligan: Skilled vs. unskilled Many times we find ourselves saying a skilled<br />

laborer can produce more per hour than an unskilled laborer. We almost automatically make<br />

that assumption, but we actually need to look upon the laborers circumstances. Many skilled<br />

laborers are able to get the training necessary to be in the situations that they are in, where<br />

as a unskilled laborer doesn’t have the same opportunities as the skilled laborers have i.e<br />

schooling and the means by which to become a skilled worker. Even though Marx does state<br />

that skilled labor does produce more per hour than an unskilled laborer does. Something<br />

produced can have a lot <strong>of</strong> time and effort put into it, and therefore the value placed on that<br />

good should resemble the labor time spent in creating the good. But there <strong>is</strong> a key factor in<br />

determining the value <strong>of</strong> labor whether it be skilled or unskilled and what produces more per<br />

hour. If we break everything down into simple labor we can define the value <strong>of</strong> a commodity.<br />

If we use simple labor as a measurement we can better determine the value. So if a skilled<br />

worker <strong>is</strong> able to create a product the value comes through by mesuring as a quantity <strong>of</strong><br />

simple labor. It takes a smaller quantity <strong>of</strong> skilled labor per hour to produce a product that<br />

<strong>is</strong> measured in simple terms, therefore stating the fact that the quantity <strong>of</strong> labor involved in<br />

creating a product measured by simple labor time creates the value, and therefore the skilled<br />

laborer produces more simple labor value per hour than a unskilled worker.<br />

Hans: I regret now that I did not say more in my [92] about your [60]. The income earned by skilled workers may<br />

be boosted if others are denied access to education. But the value they produce <strong>is</strong> computed under the assumption<br />

that enough people have access to education; therefore the only thing that counts <strong>is</strong> how much time <strong>is</strong> spent at<br />

school, and the cost <strong>of</strong> schooling. Th<strong>is</strong> <strong>is</strong> the only way to break skilled labor down into simple labor.<br />

Next Message by Gilligan <strong>is</strong> [206].<br />

[206.4] Super: According to Marx skilled labor does produce more value per hour than<br />

unskilled labor. However the use value <strong>of</strong> these commodities will always be equal. Along<br />

with th<strong>is</strong> all labor used in production for these similar commodities will be equalized. The<br />

skilled laborers make up for the loss in production <strong>of</strong> the unskilled workers. For th<strong>is</strong> reason<br />

all labor can be viewed as unskilled labor with respect to th<strong>is</strong> commodity. These commodities<br />

will have equal labor values.<br />

Hans: You are confusing the present <strong>Question</strong>, which deals with different kinds <strong>of</strong> labor producing different products,<br />

one skilled (needing training) and the other not, with the <strong>is</strong>sue <strong>of</strong> the fast and slow worker producing the same<br />

thing, which was the subject <strong>of</strong> <strong>Question</strong> 53.<br />

Next Message by Super <strong>is</strong> [230].<br />

[206.7] Ramb<strong>is</strong>: On page 33 <strong>of</strong> Answers, Hans states, “Marx thinks skilled labor does<br />

produce more value per four than unskilled labor..(and) when Marx talks about ‘value’ he<br />

means some objective social reality, not some subjective valuation.” The argument <strong>is</strong> that<br />

88 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

the unskilled worker might be able to turn out a large quantity <strong>of</strong> commodity X because<br />

the skill required to produce them was minimal, but the skilled worker (because the work<br />

required much skill) was able to turn out a much smaller amount <strong>of</strong> commodity Y. However,<br />

the exchange value <strong>of</strong> the commodities produced by the skilled and the unskilled workers<br />

<strong>is</strong> where the compensation for quantity comes into play. Qualitative differences are factors<br />

as important as quantitative differences. Generally speaking, the skilled worker turns out a<br />

commodity <strong>of</strong> a much higher qualitative value, while the unskilled worker produces a higher<br />

quantitative commodity.<br />

Hans: Say commodity X <strong>is</strong> cleaning an <strong>of</strong>fice building, and commodity Y <strong>is</strong> writing a computer program. Is the<br />

quantity <strong>of</strong> X larger than the quantity <strong>of</strong> Y? They cannot be compared. Also your argument with the quality <strong>of</strong><br />

labor <strong>is</strong> wrong. Qualitatively, both kinds <strong>of</strong> labor are needed.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [207].<br />

[209.1] Positive: Marx defines value as the social property which makes things exchangeble<br />

in a commodity society. Value does not describe the “ worth” <strong>of</strong> a thing, but a property<br />

<strong>of</strong> things which gives them weight on the market. The value <strong>of</strong> labor-power and the value<br />

which that the labor-power creates in the labor-process, are two different magnitudes. The<br />

bas<strong>is</strong> for pr<strong>of</strong>it lies in the differences in between. All labors are the same. It does not matter<br />

if you are the chief excecitive in a larger corporation, or an unskilled worker at a mill.Labor<br />

<strong>is</strong> still labor. According to Marx, there are different kinds <strong>of</strong> skills, which then are reduced to<br />

unskilled labor. Any human being, skilled or unskilled, uses ¿ the same amount <strong>of</strong> energy to<br />

produce something. Skilled labor counts only as multiplied simple labor and it will usually<br />

produce more products. Nevertheless, the only thing that changes <strong>is</strong> an increase <strong>of</strong> production<br />

in the use-value <strong>of</strong> the commodity. In other words, one coat will clothe one man, two<br />

coats will clothe two men and so forth. Therefore, the increased use-value <strong>of</strong> a commodity<br />

from an increase due to skilled labor does not change the value <strong>of</strong> the coat. If we are to bring<br />

the labor-power expended to produce a commodity down to how much time or a per hour<br />

bas<strong>is</strong>, then the skilled worker will produce more value than the unskilled worker. They still<br />

have the same value as human beings, but in the meaning <strong>of</strong> efficiency as workers, they are<br />

different.<br />

Hans: The beginning <strong>is</strong> right. The sentence<br />

Any human being, skilled or unskilled, uses the same amount <strong>of</strong> energy to produce something.<br />

<strong>is</strong> irrelevant. Value <strong>is</strong> not the expression <strong>of</strong> the “energy” used by the producer. The first half <strong>of</strong> the next sentence <strong>is</strong><br />

right<br />

Skilled labor counts only as multiplied simple labor<br />

but now it gets wrong:<br />

and it will usually produce more products.<br />

Marx’s text where <strong>Question</strong> 74 was posed deals with different kind <strong>of</strong> labor, producing different products. You<br />

cannot quantitatively compare different products, apples and oranges.<br />

You must go by the time it takes to acquire the skill, and in some cases just by the constellation <strong>of</strong> demand and<br />

supply.<br />

Next Message by Positive <strong>is</strong> [212.1].<br />

[212.3] Snowman: The first and thing to consider <strong>is</strong> that Marx here <strong>is</strong> not referring to the<br />

wages or value that a given “labor receives for its labor time, what th<strong>is</strong> question addresses <strong>is</strong><br />

the value <strong>of</strong> the commodity in which the labor time <strong>is</strong> materialized.” Skilled labor <strong>is</strong> assumed<br />

to produce a greater quantity <strong>of</strong> a commodity than does unskilled labor for the same duration<br />

<strong>of</strong> time. If the skilled labor <strong>is</strong> then producing a larger quantity <strong>of</strong> a commodity then the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 89<br />

value <strong>of</strong> that labor per hour <strong>is</strong> <strong>of</strong> higher material value than the unskilled. Th<strong>is</strong> <strong>is</strong> because<br />

the output <strong>of</strong> the skilled labor creates quantitatively more use-value per hour. However “the<br />

same labor applied for the same duration <strong>of</strong> time always produces the same amount <strong>of</strong> value,<br />

independent <strong>of</strong> it productivity.” In other words the labor <strong>of</strong> one hour <strong>is</strong> always <strong>of</strong> the same<br />

value, the only thing that actually changes for changes in productivity <strong>is</strong> the quantity <strong>of</strong> use<br />

values that are produced. An increase in the overall productivity therefor reduces the amount<br />

<strong>of</strong> labor contained in the commodity thus lowers its value, that <strong>is</strong> if you determine the value<br />

<strong>of</strong> commodities by the amount <strong>of</strong> labor that they contain, as Marx does. The reason for th<strong>is</strong><br />

paradox, an increase in use values with, corresponding decreases in value <strong>is</strong> because <strong>of</strong> the<br />

dual nature <strong>of</strong> labor, which relates labor on two level quanitatively and qualitatively.<br />

Hans: The resubm<strong>is</strong>sion was much better than your in-class exam. You are still confusing th<strong>is</strong> <strong>Question</strong> with<br />

<strong>Question</strong> 53, but you made some interesting observations. You d<strong>is</strong>covered an apparent contradiction between what<br />

Marx said about the exceptionally slow worker, and what he said about general increases in productivity. How can<br />

it be resolved?<br />

Next Message by Snowman <strong>is</strong> [241].<br />

[213] Dunny: Re-subm<strong>is</strong>sion <strong>of</strong> labor compar<strong>is</strong>on Upon reading your interpretation <strong>of</strong><br />

Marx’s point <strong>of</strong> view concerning skilled and unskilled labor and reviewing my own quiz, I<br />

need to clear up some <strong>of</strong> my own ideas on the subject. I was comparing the differing skills<br />

as producing different commodities. If the two workers were to produce the same thing or<br />

commodity then it <strong>is</strong> obvious that there will be a difference between the quantity and the<br />

quality <strong>of</strong> the two. Th<strong>is</strong> <strong>is</strong> where the value comes into the picture. Do people value a job<br />

well done or does the value come with how much <strong>of</strong> the thing you are able to get. Many<br />

people argue over the matter even with life. Is it more important to have a life <strong>of</strong> quality or<br />

<strong>is</strong> it better to just have a lot more time in your life. The answer lies in the judgement <strong>of</strong> value<br />

in each <strong>of</strong> the labors. “Quality or Quantity”.<br />

Next Message by Dunny <strong>is</strong> [218].<br />

[214.4] Chacci: When we observe labor in the simple form, skilled labor <strong>is</strong> a ‘multiple’<br />

or <strong>is</strong> ‘intensified’ simple labor. Th<strong>is</strong> simple labor <strong>is</strong> still expenditure <strong>of</strong> human labor. Marx<br />

states ‘A commodity may be the product <strong>of</strong> the most complicated labor, but its value, by<br />

equating it to the value <strong>of</strong> simple labor, represents a certain amount <strong>of</strong> simple labor alone.’<br />

Thus all labor skilled and unskilled can be reduced to its simplest form. Then we can compare<br />

it at a quantitative level. Since a commodity has value because human labor has been<br />

expended on it and since skilled labor <strong>is</strong> a ‘multiple’ <strong>of</strong> simple labor it follows that skilled<br />

labor will produce a ‘multiple’ value <strong>of</strong> unskilled labor. For example, a skilled shoe maker<br />

can make two pairs <strong>of</strong> shoes an hour because he has a certain amount <strong>of</strong> training or experience.<br />

While an unskilled laborer will only be able to make one pair <strong>of</strong> shoes an hour because<br />

he has not had the experience.<br />

Hans: I like your in-class exam better than your resubm<strong>is</strong>sion. You are juggling with all the right concepts and<br />

thoughts, but you need to sort them out better.<br />

Next Message by Chacci <strong>is</strong> [232].<br />

[216.1] Pinky: Marx believes that skilled labor does produce more value per hour than<br />

unskilled labor. He explains that simple labor varies from culture to culture and country to<br />

country, but <strong>is</strong> given once society <strong>is</strong> given. In determining the “value”, Marx <strong>is</strong> referring to an<br />

objective social reality. He states that skilled labor counts merely as potentiated or multiplied<br />

simple labor, so a smaller amount <strong>of</strong> complicated labor <strong>is</strong> equal to a bigger amount <strong>of</strong> simple<br />

labor. Th<strong>is</strong>, however <strong>is</strong> not to say that a C.E.O, for example would be more productive than<br />

90 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

an assembly-line worker; money (income) <strong>is</strong> NOT the determining factor in evaluating one’s<br />

productivity.<br />

Hans: You are bringing interesting and relevant facts about skilled labor, but I am m<strong>is</strong>sing the argument with the<br />

training time prorated over the work time.<br />

Next Message by Pinky <strong>is</strong> [278].<br />

[218.1] Punani: In response to th<strong>is</strong> question, Marx theorizes that a “smaller amount <strong>of</strong><br />

complicated labor <strong>is</strong> equal to a bigger amount <strong>of</strong> simple labor.” He states that...“the magnitude<br />

<strong>of</strong> the value <strong>of</strong> a commodity represents nothing but the quantity <strong>of</strong> labor embodied in<br />

it,..all commodities, when taken in the right proportions, must be equal in value.” In referring<br />

to the answers Pinky wrote in [31]: “In Marx’s view one hour <strong>of</strong> unskilled labor would<br />

be equal to an hour <strong>of</strong> skilled labor because the unskilled laborer <strong>is</strong> able to turn out a larger<br />

quantity <strong>of</strong> something that, despite its lesser value, <strong>is</strong> produced in greater quantities because<br />

<strong>of</strong> the lack <strong>of</strong> skill it requires.” So to sum it up, the value produced <strong>is</strong> the same, because<br />

unskilled laborers must make up for their lack <strong>of</strong> skill b working faster. And the capital<strong>is</strong>t<br />

would love it if skilled workers were faster, but much more difficult to control and speedup<br />

a skilled laborer than an unskilled laborer. Value does not come from merit but it <strong>is</strong> very<br />

specific economic relationship. Marx also thinks skilled labor does produce more value per<br />

hour than unskilled labor. According to the way Marx sees it there are different skills, which<br />

are then reduced to unskilled labor. When Marx talks about“value” he means some objective<br />

social reality, not some subjective valuation.<br />

According to Marx, skilled labor does produce more value perhour than an unskilled<br />

labor. If we had one skilled labor and an unskilledd laborer to produce the same commodity<br />

their end results would vary. The skilled labor will produce more and the quality would<br />

be better due to their experience and advance training they’ve received. Thus, the more<br />

job training and education a person receives the better chances that person produces better<br />

products than the person with less job training and education.<br />

Hans: You are excerpting the students’ wrong answers and my arguments trying to correct them without even<br />

noticing that something was wrong. In th<strong>is</strong> class you cannot just copy things; you must think them through. Your<br />

subm<strong>is</strong>sion <strong>is</strong> repetitive and unorganized. Instead adding another paragraph in your resubm<strong>is</strong>sion (which went in<br />

the wrong direction anyway), you should have tried to organize better what you had written in class.<br />

Next Message by Punani <strong>is</strong> [219.1].<br />

[242.2] Dragonfly: Skilled Labor does not produce more value per hour than unskilled<br />

labor. Skilled labor, in it’s accessment <strong>of</strong> value per hour, must take into account a variety <strong>of</strong><br />

factors, including: the cost to the laborer <strong>of</strong> education (resulting in the skilled labor status)<br />

and the value <strong>of</strong> the time spent getting the education (time not spent selling labor or producing<br />

commodities). While these arguments are equally relevant to a description <strong>of</strong> the wage<br />

<strong>of</strong> the skilled laborer vs. the wage <strong>of</strong> the unskilled laborer, one must be sure not to confuse<br />

the value <strong>of</strong> skilled labor and the wage <strong>of</strong> the skilled laborer. There <strong>is</strong> also the question <strong>of</strong><br />

the value <strong>of</strong> the commodity produced by the skilled laborer. THe unskilled laborer produces<br />

through their labor, the commodity which, most <strong>of</strong>ten, are the most necessary commodity:<br />

perhaps even the foundation <strong>of</strong> the economy, i.e. food, water, power, roads, etc. Without<br />

these commodities, the skilled laborer would not only not be able to produce their commodities,<br />

but would scarcely be able to live. Marx would suggest that as all value <strong>is</strong> simply<br />

congealed abstract labor time, and, thusly all labor hours are equal.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 91<br />

Hans: Your grade suffered because your resubm<strong>is</strong>sion was one day late. You bring some <strong>of</strong> the right arguments,<br />

but you do not put them together correctly, and at the end you bring the wrong arguments instead. It <strong>is</strong> right that<br />

the skilled labor has to account for the time spent for acquiring the skill. Consequently, one hour spent in using the<br />

skilled labor produces more than one hour <strong>of</strong> simple labor. Th<strong>is</strong> has nothing to do with the fact how necessary the<br />

labors are.<br />

Next Message by Dragonfly <strong>is</strong> [332.4].<br />

[314.4] Peaches: Marx writes in 126:1 that the use value <strong>of</strong> a commodity “<strong>is</strong> independent<br />

<strong>of</strong> the amount <strong>of</strong> labor required to appropriate its useful qualities.” So whether it <strong>is</strong> skilled<br />

labor or unskilled labor we cannot measure its value in a commodity. For instance, if a coat<br />

<strong>is</strong> more expensive than another, it <strong>is</strong> not because the more expensive one was done by a<br />

skilled laborer and the latter by a non-skilled laborer. It <strong>is</strong> the socially necessary abstract<br />

labor time put into the coat that makes a commodity more valuable. It <strong>is</strong> th<strong>is</strong> that makes the<br />

coat have more quality. Th<strong>is</strong> means that all we can say <strong>is</strong> that “the use value <strong>of</strong> the skilled<br />

laborer <strong>is</strong> different than that <strong>of</strong> the non-skilled laborer because the two kinds <strong>of</strong> labor are <strong>of</strong><br />

different qualities.”<br />

Hans: Your first sentence says:<br />

the use value <strong>of</strong> a commodity <strong>is</strong> independent <strong>of</strong> the amount <strong>of</strong> labor required to appropriate its<br />

useful qualities.<br />

Th<strong>is</strong> <strong>is</strong> correct, but it seems what you really wanted to say, and what fits with the rest <strong>of</strong> your argument, <strong>is</strong> so-to-say<br />

the mirror image <strong>of</strong> th<strong>is</strong> sentence, which <strong>is</strong> also correct:<br />

the value <strong>of</strong> a commodity <strong>is</strong> independent <strong>of</strong> the specific character <strong>of</strong> the labor required to<br />

appropriate its useful qualities.<br />

Arguing from there you come to the conclusion that it does not matter whether the labor <strong>is</strong> skilled or not. Th<strong>is</strong> <strong>is</strong><br />

logical and it <strong>is</strong> also in the spirit <strong>of</strong> Marx. Skills as such do not make a difference. They only make a difference if<br />

society has to spend labor time to make a laborer skilled, i.e., when society has a choice between a lower number<br />

<strong>of</strong> hours <strong>of</strong> skilled labor or a higher number <strong>of</strong> hours <strong>of</strong> unskilled labor. I like the way you are woring on these<br />

problems; unfortunately your grade suffered because your subm<strong>is</strong>sion was late.<br />

Next Message by Peaches <strong>is</strong> [323].<br />

[315.2] Fox: The value <strong>of</strong> a product <strong>is</strong> created by the use value <strong>of</strong> lobor power. The use<br />

value <strong>of</strong> the product <strong>is</strong> extracted upon valuation. The value <strong>of</strong> labor power <strong>is</strong> the amount<br />

<strong>of</strong> abstract labor required to replen<strong>is</strong>h labor power. When commodities are compared with<br />

one another, their use values are abstracted, we are only able to compare them with regard<br />

to their common substance, the amount <strong>of</strong> socially necessary abstract labor time with they<br />

congeal.<br />

The capital<strong>is</strong>t purchases labor to create commodities which will have a greater magnitude<br />

<strong>of</strong> value than the value <strong>of</strong> the inputs to produce the commodity. The laborer sells h<strong>is</strong> labor<br />

power to the capital<strong>is</strong>t at its value. As the worker labors he creates value, he acts as the<br />

provider substitute for the capital market. H<strong>is</strong> labor power <strong>is</strong> consumed in the production<br />

process, it <strong>is</strong> the use value <strong>of</strong> labor power which creates the value we see in the commodity.<br />

Hans: Th<strong>is</strong> <strong>is</strong> an almost literal copy from Pippy’s [82], which was an answer to <strong>Question</strong> 60 and has nothing to<br />

do with <strong>Question</strong> 74 asked here. Instead <strong>of</strong> reproducing Pippy’s flowery sentence “he acts as the surrogate father<br />

for the capital<strong>is</strong>t with capital as the whomb,” you changed it into: “he acts as the provider substitute for the capital<br />

market.” Th<strong>is</strong> makes me wonder how much you understood <strong>of</strong> what you wrote.<br />

Next Message by Fox <strong>is</strong> [316].<br />

[335.13] CaseWorker: CaseWorker did not resubmit h<strong>is</strong> exam. He <strong>is</strong> talking about two<br />

workers producing the same product, one faster than the other, instead <strong>of</strong> the problem which<br />

92 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Marx was d<strong>is</strong>cussing around <strong>Question</strong> 74 with two people producing different products and<br />

having different skills which may require schooling.<br />

Next Message by CaseWorker <strong>is</strong> [391.1].<br />

[335.15] Dunny: Dunny did not resubmit h<strong>is</strong> exam. He seems to say that skilled and<br />

unskilled labor produce the same value because skilled labor does not have to work as fast<br />

as unskilled labor. Th<strong>is</strong> <strong>is</strong> not bad thinking.<br />

Next Message by Dunny <strong>is</strong> [402].<br />

[335.11] Chuck: Chuck did not resubmit h<strong>is</strong> exam. He says skilled labor <strong>is</strong> harder labor,<br />

which <strong>is</strong> not true. And generally he only compares laborers producing the same commodity<br />

at different speeds, instead <strong>of</strong> comparing laborers who produce different things and have had<br />

different trainings to do that.<br />

Next Message by Chuck <strong>is</strong> [601].<br />

[335.16] Pizza: Pizza did not resubmit h<strong>is</strong> exam. He says two unskilled workers equal<br />

one skilled worker. Th<strong>is</strong> <strong>is</strong> right, but why <strong>is</strong> th<strong>is</strong> so?<br />

Next Message by Pizza <strong>is</strong> [386].<br />

[335.14] Camera: Camera did not resubmit her exam. She has some basic confusions<br />

about value but seems to be a thoughtful person. I think she would benefit from submitting<br />

more answers.<br />

Next Message by Camera <strong>is</strong> [369.3].<br />

[407.1] Punani: In response to th<strong>is</strong> question, Marx theorizes that “a smaller amount<br />

<strong>of</strong> complicated labor <strong>is</strong> equal to a bigger amount <strong>of</strong> simple labor.” He states that “... the<br />

magnitude <strong>of</strong> the value <strong>of</strong> a commodity represents nothing but the quantity <strong>of</strong> labor embodied<br />

in it,...all commodities, when taken in the right proportions, must be equal in value” in<br />

referring to the answers pinky wrote in [31]: In Marx’s view one hour <strong>of</strong> unskilled labor<br />

would be equal to an hour <strong>of</strong> skilled labor because the unskilled labor <strong>is</strong> able to turn out a<br />

larger quantity <strong>of</strong> something that, despite its lesser value, <strong>is</strong> produced in greater quantities<br />

because <strong>of</strong> the lack <strong>of</strong> skill it requires. So to sum it up, the value produced <strong>is</strong> the same,<br />

because unskilled laborers must make up for their lack <strong>of</strong> skill by working faster. And the<br />

capital<strong>is</strong>t would love it if skilled workers were faster, but much more difficult to control and<br />

speed up a skilled laborer than an unskilled laborer. Value does not come from merit but it<br />

<strong>is</strong> a very specific economic relationship. Marx also thinks skilled labor does produce more<br />

value per hour than unskilled labor. According to the way Marx sees it there are different<br />

skills, which are then reduced to unskilled labor. When Marx talks about “value” he means<br />

some objective social reality, not some subjective valuation.<br />

Hans: You are stringing several quotes from Marx and the printut <strong>of</strong> the d<strong>is</strong>cussion l<strong>is</strong>t together, without explainign<br />

clearly enough the connections between them, or resolving apparent contradictions between these statements.<br />

Next Message by Punani <strong>is</strong> [420.3].<br />

[545.1] Skippy: Finally th<strong>is</strong> thing works; sorry. Value has little to do with who produces<br />

the good. The good <strong>is</strong> produced. A person put in a hour <strong>of</strong> work. Skilled or not. A hour <strong>of</strong><br />

labor went into producing th<strong>is</strong> commodity.<br />

In Marx<strong>is</strong>m, each person <strong>is</strong> just as valuable as the next. It does not matter if he <strong>is</strong> a doctor,<br />

teacher, lawncare, etc. A hour <strong>of</strong> work <strong>is</strong> a hour <strong>of</strong> work.<br />

There <strong>is</strong>n’t any difference in who has worked the hour. A hour <strong>is</strong> a hour. Under Marx<strong>is</strong>m,<br />

each hour worked <strong>is</strong> equal.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 93<br />

If a equal amount <strong>of</strong> labor was put into the production <strong>of</strong> a good, then it doesn’t matter<br />

who put in that hour.<br />

Under the capital<strong>is</strong>t system, skilled labor can be more valuable tha unskilled. The skilled<br />

person would produce a higher quality product at a faster rate than a nonskilled person doing<br />

the same job.<br />

Hans: You are making the elementary error <strong>of</strong> thinking that Marx was talking about social<strong>is</strong>t society, in which all<br />

labor counts as equal. Also the explanation in the last paragraph about capital<strong>is</strong>t society <strong>is</strong> wrong. <strong>Question</strong> 74 <strong>is</strong><br />

about skilled workers who produce different things than unskilled workers.<br />

Next Message by Skippy <strong>is</strong> [545.2].<br />

<strong>Question</strong> 75 <strong>is</strong> 62 in 1995WI, 75 in 1996ut, 81 in 1997WI, 95 in 2000fa, 103 in 2002fa,<br />

and 119 in 2004fa:<br />

<strong>Question</strong> 75 D<strong>is</strong>cuss the implications <strong>of</strong> the fact that an increase in material <strong>wealth</strong> in the<br />

form <strong>of</strong> commodities may be accompanied by a decrease in the total amount <strong>of</strong> their value.<br />

How does th<strong>is</strong> contradiction manifest itself in developed capital<strong>is</strong>m?<br />

[52] KALISPEL: More <strong>wealth</strong> leads to more exploitation I like th<strong>is</strong> question because,<br />

to me, it refers to the nature <strong>of</strong> the rigid capital<strong>is</strong>tic system in place controlling the workers.<br />

In capital<strong>is</strong>m there <strong>is</strong> th<strong>is</strong> rush to produce more, more, more. American standards <strong>of</strong> living<br />

have continually increased. Th<strong>is</strong> has been possible due to longer work hours, increases in<br />

technology, etc. Essentially, one worker produces more <strong>of</strong> a commodity in the average work<br />

day than ever before.<br />

Th<strong>is</strong> has made it possible for the goods produced to cost less and for there to be “more<br />

for everyone”. Thus, in answer to the question, the rush for material <strong>wealth</strong> has decreased<br />

the value <strong>of</strong> the commodities.<br />

How does th<strong>is</strong> decrease in value affect the working class? <strong>What</strong> happens <strong>is</strong> it <strong>is</strong> cheaper<br />

for the subs<strong>is</strong>tence level needs to be met. As farming <strong>is</strong> more productive and textile industries<br />

innovate you can clothe and feed people much more cheaply. Th<strong>is</strong> makes it possible for the<br />

capital<strong>is</strong>t to keep wages down. Why? If you do not eat very well and are not healthy and<br />

likew<strong>is</strong>e if you do not have adequate work clothing your productivity goes down greatly.<br />

The capital<strong>is</strong>t knows he must pay you at least th<strong>is</strong> much. The contradiction here <strong>is</strong> that as<br />

society innovates and brings about more material <strong>wealth</strong> it only puts a firmer grip into the<br />

capital<strong>is</strong>t’s hands. It <strong>is</strong> more possible to keep wages low and have more surplus left over for<br />

the those at the top <strong>of</strong> the economic system.<br />

It <strong>is</strong> interesting to note that after some time additional goods will be introduced into the<br />

average working class family lifestyle. For example, a car <strong>is</strong> considered a necessity for most<br />

people in modern day society (America). Th<strong>is</strong> was not the case 70 years ago. <strong>What</strong>’s ironic<br />

<strong>is</strong> that Americans are at the point where, more than ever, they could opt for le<strong>is</strong>ure time.<br />

Some econom<strong>is</strong>ts have argued th<strong>is</strong> <strong>is</strong> because <strong>of</strong> the desire for class and status. We all want<br />

to have “x” amount <strong>of</strong> goods. Keep up with the Jones’s. Th<strong>is</strong> <strong>is</strong> true for a large extent, in my<br />

opinion. <strong>What</strong> I believe, although, <strong>is</strong> that we do not really need all that we think we need.<br />

Somehow society has been convinced that they really do need “x” amount <strong>of</strong> goods. Being<br />

convinced that we need “x” amount <strong>of</strong> goods has some interesting effects.<br />

94 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

It makes us work more and more to get these goods. It also gets us to buy what the<br />

capital<strong>is</strong>t produces. It <strong>is</strong> part <strong>of</strong> the establ<strong>is</strong>hed parameters around the capital<strong>is</strong>t system.<br />

If man was happy with food, shelter, clothing, and a few intrinsic interests there would<br />

be a decline in the rich capital<strong>is</strong>t. Capital<strong>is</strong>m must grow, innovate, and produce a desire<br />

to exchange in the market place for goods. All <strong>of</strong> th<strong>is</strong> <strong>is</strong> fueled by the capital<strong>is</strong>t desire<br />

for growth because growth=pr<strong>of</strong>its. Thus, in my opinion, you should be careful what you<br />

believe in. Capital<strong>is</strong>ts are there to convince us <strong>of</strong> the things that they want. If they had our<br />

best interests in mind they would not exploit us. They would not let the unproductive stand<br />

on the street corner with a sign will work for food.<br />

Simply stated: 1 – The drive <strong>is</strong> for material <strong>wealth</strong> and/or pr<strong>of</strong>its 2 – Th<strong>is</strong> drive reduces<br />

the value <strong>of</strong> goods 3 – th<strong>is</strong> keeps the capital<strong>is</strong>t system firmer in place 4 – be careful <strong>of</strong> what<br />

you believe about capital<strong>is</strong>t dogma. Capital<strong>is</strong>ts do not have your best interests at heart 5 – It<br />

will get worse before it gets better.<br />

Please note: I read th<strong>is</strong> in the Salt Lake Tribune. In several <strong>of</strong> the industrialized nations<br />

the average work week has been reduced to 32 hours with the same 40 hour a week pay.<br />

Interestingly, productivity has gone up as a result!<br />

Hans: Please do not rest on your laurels now after th<strong>is</strong> grade. Th<strong>is</strong> class requires not only a sense <strong>of</strong> the overall<br />

connections, which you showed you have, but also some quite tedious analys<strong>is</strong> <strong>of</strong> the details.<br />

Message [52] referenced by [102]. Next Message by KALISPEL <strong>is</strong> [57].<br />

[102] Hans: Non-congruence <strong>of</strong> <strong>wealth</strong> and value Your answer [52] <strong>is</strong> terrific, KALISPEL.<br />

To be honest with you, I hadn’t thought about it th<strong>is</strong> way, but now that you explain it, I am<br />

thinking: how could I have m<strong>is</strong>sed th<strong>is</strong> aspect <strong>of</strong> it? The answer I had in mind when posing<br />

<strong>Question</strong> 75 went along the following lines:<br />

(1) if <strong>wealth</strong> and value move in opposite directions, then a market economy, which focuses<br />

on value, <strong>is</strong> like a ship whose compass went awry. Th<strong>is</strong> <strong>is</strong> why you have economic<br />

phenomena like: when crops are good (which means more <strong>wealth</strong>), then the farmers suffer<br />

(because farm prices plunge). Or the recent developments in which incredible increases in<br />

productivity (the computer, the technology which allows us to have th<strong>is</strong> class in th<strong>is</strong> way),<br />

do not lead to the enrichment <strong>of</strong> all but to unemployment and m<strong>is</strong>ery.<br />

(2) But the fact that capital<strong>is</strong>m, through the market system, focuses on the wrong measure<br />

<strong>of</strong> <strong>wealth</strong>, also comes to haunt the capital<strong>is</strong>ts: despite all technological innovations,<br />

it becomes harder and harder for the capital<strong>is</strong>ts to make money, because machines do not<br />

create value, only workers do, and workers are being more and more eliminated out <strong>of</strong> the<br />

production process. Th<strong>is</strong> <strong>is</strong> the law <strong>of</strong> the “falling rate <strong>of</strong> pr<strong>of</strong>it”, which Marx considered to<br />

be the most important law <strong>of</strong> capital<strong>is</strong>m.<br />

Therefore I saw how the non-congruence <strong>of</strong> <strong>wealth</strong> and value hurts the capital<strong>is</strong>ts, but I<br />

did not see the much more obvious fact, pointed out in your answer, how it hurts the workers.<br />

I guess th<strong>is</strong> bias on my part <strong>is</strong> due to my middle-class upbringing and the privileged job I<br />

have as a university pr<strong>of</strong>essor. Recently, the capital<strong>is</strong>t system has become so desperate for<br />

pr<strong>of</strong>its that it <strong>is</strong> getting ready to seriously squeeze the university pr<strong>of</strong>essors. In my view, th<strong>is</strong><br />

<strong>is</strong> stupid <strong>of</strong> them, because they r<strong>is</strong>k losing their best apolog<strong>is</strong>ts.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 95<br />

Allow me just one minor quibble with the wording <strong>of</strong> one sentence in your answer. You<br />

write:<br />

They would not let the unproductive stand on the street corner with a sign<br />

will work for food.<br />

Don’t call the unemployed “unproductive”. These are workers willing to work whom<br />

capital<strong>is</strong>m does not need, because, as you said, the capital<strong>is</strong>ts do not have the general welfare<br />

in mind, but only their narrow class interests. The state <strong>of</strong> being unproductive <strong>is</strong> forced on<br />

these workers, they are not intrinsically unproductive.<br />

Next Message by Hans <strong>is</strong> [103].<br />

<strong>Exam</strong> <strong>Question</strong> 78 <strong>is</strong> 65 in 1995WI, 74 in 1995ut, 78 in 1996ut, 84 in 1997WI, 86 in<br />

1997sp, 82 in 1997ut, 89 in 1998WI, and 101 in 2000fa:<br />

<strong>Exam</strong> <strong>Question</strong> 78 Give economic, not philosophical reasons why a commodity must appear<br />

as what it <strong>is</strong> (use your own words).<br />

[132] Wight: Commodities must appear as what they are Commodities must appear as<br />

what they are from an economic standpoint because sellers and buyers both participating in<br />

the market for the commodity must be able to easily understand and interpret what exactly<br />

the commodity <strong>is</strong> in order to have a need for the commodity as well as determine a market<br />

price. Price <strong>is</strong> determined both objectively, based on the actual value <strong>of</strong> the commodity i.e<br />

labor hours, cost <strong>of</strong> inputs, capital, etc, as well as subjectively, based on the price <strong>of</strong> other<br />

comparable or substitutable items. <strong>What</strong> <strong>is</strong> boils down to <strong>is</strong> buyers and sellers must be able<br />

to identify commodities on the market in order to determine utility for the item and price,<br />

therefore the commodity must appear clearly and simply as what <strong>is</strong> truely <strong>is</strong>. Th<strong>is</strong> seems<br />

a very basic and fundamental concept but <strong>is</strong> important <strong>is</strong> keep in mind as the bas<strong>is</strong> for the<br />

exchange <strong>of</strong> commodities in the economy.<br />

Hans: In the Annotations, just above <strong>Question</strong> 78, it says: “appear as” <strong>is</strong> used here in the meaning <strong>of</strong> “take the<br />

social form <strong>of</strong>.” Then the Annotations elaborate on what th<strong>is</strong> means. It does not mean, as you seem to think, that<br />

the buyer must know what use value he <strong>is</strong> buying. You must look more closely at the context in which the <strong>Question</strong><br />

<strong>is</strong> posed.<br />

Next Message by Wight <strong>is</strong> [173.1].<br />

<strong>Question</strong> 79 <strong>is</strong> 66 in 1995WI, 75 in 1995ut, 85 in 1997WI, 87 in 1997sp, 83 in 1997ut, 113<br />

in 2002fa, 116 in 2003fa, 131 in 2005fa, 150 in 2007fa, and 156 in 2008SP:<br />

<strong>Question</strong> 79 Why can commodities not express their values in their own use values?<br />

[83] Alf: A commodity, when produced, <strong>is</strong> always in its natural form and has a use<br />

value, but does not yet have value. Although it was produced through labor, the value <strong>of</strong><br />

a commodity does not ex<strong>is</strong>t until the product <strong>is</strong> introduced into the market. The market <strong>is</strong><br />

what gives a commodity labor value, but only if the product <strong>is</strong> accepted socially. If accepted<br />

by the market, the products labor value will be validated, and the product will become a<br />

commodity with both use value and value. Products must always be integrated into a real<br />

social context, or in other words, as Marx says, must take the form <strong>of</strong> a commodity. All<br />

products must pass a test <strong>of</strong> whether or not the labor time exhausted on them <strong>is</strong> socially<br />

necessary. Therefore, commodities cannot express their own use values, th<strong>is</strong> must be done<br />

96 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

through social acceptance in the market as a valuable commodity. Th<strong>is</strong> <strong>is</strong> only done by the<br />

market, or through the market socially, and not by the commodity itself!!<br />

Message [83] referenced by [113]. Next Message by Alf <strong>is</strong> [86].<br />

[88] MsMarx: Expression <strong>of</strong> commodity’s value Marx says that commodities come into<br />

the world in the form <strong>of</strong> use values or material goods. Those objects which are a result <strong>of</strong><br />

the production process are only one form <strong>of</strong> the commodity, its natural form. Marx states<br />

that a commodity <strong>is</strong> a product whose production process has the double character <strong>of</strong> being<br />

the congelation <strong>of</strong> abstract labor in addition to being the application <strong>of</strong> concrete labor.<br />

Commodities have a tw<strong>of</strong>old character, so they need a tw<strong>of</strong>old form. One <strong>of</strong> their forms<br />

<strong>is</strong> their natural form, or use value (the product <strong>of</strong> useful labor). To express their values, commodities<br />

need the other aspect <strong>of</strong> their character, value form or money form (the congelation<br />

<strong>of</strong> abstract labor). Therefore, the commodity cannot express its value in its own use value in<br />

and <strong>of</strong> itself.<br />

Commodities must take the form <strong>of</strong> a commodity by becoming a social product. Th<strong>is</strong> social<br />

form <strong>is</strong> manifested in that products must be sold on the market and in th<strong>is</strong> way they pass<br />

the test whether the labor time spent on them was socially necessary. Since commodities<br />

need th<strong>is</strong> double form, even if a commodity had the highest quality use value, that doesn’t<br />

mean the commodity <strong>is</strong> socially accepted as a social product. The social form <strong>of</strong> the commodity<br />

<strong>is</strong> an expression <strong>of</strong> the value <strong>of</strong> the commodity.<br />

Message [88] referenced by [113]. Next Message by MsMarx <strong>is</strong> [164].<br />

[113] Hans: Alf’s and MsMarx’s answers Although Alf’s [83] starts out with a wrong<br />

statement, it gives at the end a good answer to the <strong>Question</strong>. But first the wrong statement:<br />

Although it was produced through labor, the value <strong>of</strong> a commodity does not<br />

ex<strong>is</strong>t until the product <strong>is</strong> introduced into the market.<br />

Alf confuses here value with value form, something which <strong>is</strong> easy to do and <strong>of</strong>ten done.<br />

The value already ex<strong>is</strong>ts, because the labor has been spent on the good, but the introduction<br />

into the market <strong>is</strong> necessary to “realize” the value, to induce th<strong>is</strong> labor into a social context.<br />

Alf’s next sentence <strong>is</strong> somewhat contradictory, th<strong>is</strong> contradiction coming from Alf’s<br />

confusion <strong>of</strong> the categories:<br />

The market <strong>is</strong> what gives a commodity labor value, but only if the product<br />

<strong>is</strong> accepted socially.<br />

Did you notice the contradiction? How can the market give labor value? It can at best<br />

give market value. Only labor can give labor value. But the market can give th<strong>is</strong> labor the<br />

proper social form.<br />

Now let us go to that part <strong>of</strong> Alf’s subm<strong>is</strong>sion where he gives the right answer to <strong>Question</strong><br />

79. Actually, I have another quibble with the first sentence here. Excuse me that I am so<br />

pedantic, I don’t mean it personally. Let’s read th<strong>is</strong> sentence:<br />

Products must always be integrated into a real social context, or in other<br />

words, as Marx says, must take the form <strong>of</strong> a commodity.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 97<br />

Only in very particular kinds <strong>of</strong> economies, those based on commodity production, will<br />

th<strong>is</strong> integration into a social context go through the market. It <strong>is</strong> a very impover<strong>is</strong>hed, onedimensional<br />

link between the different labors; for instance it cannot deal very well with the<br />

<strong>is</strong>sue <strong>of</strong> exhaustible resources (I just wrote [109] about th<strong>is</strong>).<br />

The rest <strong>of</strong> Alf’s subm<strong>is</strong>sion <strong>is</strong> exactly the right answer to <strong>Question</strong> 79:<br />

All products must pass a test <strong>of</strong> whether or not the labor time exhausted<br />

on them <strong>is</strong> socially necessary. Therefore, commodities cannot express their<br />

own use values, th<strong>is</strong> must be done through social acceptance in the market<br />

as a valuable commodity. Th<strong>is</strong> <strong>is</strong> only done by the market, or through the<br />

market socially, and not by the commodity itself!!<br />

Now let us go to MsMarx’s [88]. Instead <strong>of</strong> directly tackling th<strong>is</strong> one specific <strong>Question</strong>,<br />

MsMarx briefly recapitulates Marx’s development at the beginning <strong>of</strong> Section 3. Th<strong>is</strong> <strong>is</strong> appreciated,<br />

such a bird’s eye view can be a greatly help clearing things up. I won’t reproduce<br />

MsMarx’s first and second paragraphs here. They are basically right, although the second<br />

paragraph, in my view, makes a claim which it does not back up sufficiently. Th<strong>is</strong> claim <strong>is</strong>:<br />

since the commodity has a tw<strong>of</strong>old character, it needs a double form. My objection, which<br />

gave r<strong>is</strong>e to the present <strong>Question</strong> 79, <strong>is</strong>: I grant you that the form must be a reflection <strong>of</strong><br />

the inner character, but why can both aspects <strong>of</strong> the commodity not be reflected by the same<br />

form?<br />

In her third paragraph, MsMarx’s d<strong>is</strong>course unravels a bit. Marx’s argument <strong>is</strong> very<br />

abstract, and if one argues so abstractly, it <strong>is</strong> difficult to keep track <strong>of</strong> what one <strong>is</strong> talking<br />

about. MsMarx writes:<br />

Commodities must take the form <strong>of</strong> a commodity by becoming a social<br />

product.<br />

I would see it just the other way around: Commodities must become a social product by<br />

taking the form <strong>of</strong> a commodity. MsMarx’s next sentence kind <strong>of</strong> says th<strong>is</strong>:<br />

Th<strong>is</strong> social form <strong>is</strong> manifested in that products must be sold on the market<br />

and in th<strong>is</strong> way they pass the test whether the labor time spent on them was<br />

socially necessary.<br />

The sentence that follows again argues in exactly the opposite direction than I would<br />

argue:<br />

Since commodities need th<strong>is</strong> double form, even if a commodity had the<br />

highest quality use value, that doesn’t mean the commodity <strong>is</strong> socially accepted<br />

as a social product.<br />

The concrete economic fact MsMarx refers to in the second half <strong>of</strong> the sentence, which I<br />

will rephrase as: “Even if a commodity had the highest quality use value, that doesn’t mean<br />

the commodity <strong>is</strong> socially acceptable as a social product (because there may not be a need<br />

for th<strong>is</strong> use value)”, <strong>is</strong> not the consequence <strong>of</strong> th<strong>is</strong> double form, but I would see it as the<br />

98 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

reason why the commodity needs a double form. But perhaps MsMarx <strong>is</strong> aware <strong>of</strong> a deeper<br />

reason for the necessity <strong>of</strong> a double form than th<strong>is</strong>?<br />

Finally, I cannot make anything <strong>of</strong> the last sentence in MsMarx’s subm<strong>is</strong>sion:<br />

The social form <strong>of</strong> the commodity <strong>is</strong> an expression <strong>of</strong> the value <strong>of</strong> the commodity.<br />

Next Message by Hans <strong>is</strong> [116].<br />

[121] Karl: Expression Commodities cannot express their values in their use values<br />

mainly because commodities are multi-faceted material products. It <strong>is</strong> a conglomeration <strong>of</strong><br />

two separate, but reliant categories that compr<strong>is</strong>e the hol<strong>is</strong>tic element <strong>of</strong> the commodity. I<br />

mentioned that the commodity <strong>is</strong> multi-faceted implying that even the two said categories<br />

can thus be divided and sub-divided into a plethora <strong>of</strong> new underlying components. Much<br />

the same way as all things in nature work, ie: atoms, and subatomic particles. In the same<br />

manner an atom <strong>is</strong> dependent on the subatomic particle, although it <strong>is</strong> a differentially separate,<br />

a commodity also relies on individual sub-components that are unique, and cannot be<br />

found as a hol<strong>is</strong>tic representation <strong>of</strong> the commodity as it stands as a separate entity.<br />

The two aspects <strong>of</strong> the commodity at hand, are values, and use values. As one further<br />

studies Marx, we come to realize these are derived expressions <strong>of</strong> other unique categories,<br />

mainly concrete labor (useful labor), and abstract labor. It has been stated in the reading, “If<br />

something <strong>is</strong> a commodity it must take the form <strong>of</strong> a commodity...since the commodity has a<br />

two-fold character it needs a double form.” Th<strong>is</strong> form <strong>is</strong> the unique and separate quality that<br />

adds shape and dimension to the commodity, it cannot be intertwined or it will subtract and<br />

change the actual form <strong>of</strong> the commodity to something entirely different from the character<br />

<strong>of</strong> the original. For example concrete labor <strong>is</strong> instrinsically, and inseparably connected with<br />

certain elements such as use value, as <strong>is</strong> abstract labor connected with the value <strong>of</strong> the<br />

commodity. Marx believed the two were unique in character, in that abstract labor and<br />

value are a “mental process”, while concrete labor and use value contained unique physical<br />

properties. Thus the two values cannot express themselves interchangably, as they are found<br />

in two different mediums.<br />

It <strong>is</strong> the heterogeneous aspects <strong>of</strong> abstract labor, and concrete labor that serve as essential<br />

tools in answering the question <strong>of</strong> why commodities cannot express thier values in their own<br />

use values. Just as the underlying forms <strong>of</strong> labor are separate, and reliant identies. So also<br />

are the products they produce or “conceive”, mainly value and use value. They cannot be<br />

expressed in each other or else the unique identity <strong>of</strong> the value and use value will be changed<br />

into a form unrecognized from the original properties combining the two values.<br />

Message [121] referenced by [134] and [151]. Next Message by Karl <strong>is</strong> [176.1].<br />

[134] Gilligan: values compared to use values Well a commodity cannot express its<br />

value through its use value, because they are two different components <strong>of</strong> a commodity.<br />

When one thinks <strong>of</strong> a commodity they must realize that it carries two values, one being its<br />

use value and the other being its value or better stated its exchange value. A commodity<br />

cannot express its own value through a use value because it still <strong>is</strong>n’t a social commodity.<br />

Something has use value if it creates some type <strong>of</strong> utility but th<strong>is</strong> use value does not carry<br />

any form <strong>of</strong> monetary value <strong>of</strong>ten called its exchange value. As marx states they must take<br />

the “form” <strong>of</strong> a commodity. Like I stated above the commodity has double form its natural


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 99<br />

form or its use value, and a social form in which the exchange value <strong>is</strong> created. I can create<br />

something that gives me a great amount <strong>of</strong> utility and by th<strong>is</strong> I have created something with<br />

use value, but that item that I have created must be socially acceptable if I even think about<br />

placing an exchange value on it, not until the item has been accepted socially can I truely<br />

express the value <strong>of</strong> the commodity. Even though something gives utility and has a use<br />

value doesn’t say that the item has value. The use value and the value <strong>of</strong> something are<br />

two different components that make up what we call a commodity. So for a commodity to<br />

express its value through its use value, I’am sorry to say th<strong>is</strong> but it can’t be done. X<br />

Hans: <strong>What</strong> you are saying <strong>is</strong> right. It <strong>is</strong> a reformulation <strong>of</strong> some ideas in Karl’s [121], which depressed your grade<br />

a little, but not by much, since you used your own words to express these same ideas.<br />

Next Message by Gilligan <strong>is</strong> [205.1].<br />

[139] Emma: Commodities expressing values As in the first assignment, I will attempt<br />

to lay out my assumptions and define my terms as clearly and conc<strong>is</strong>ely as possible in answering<br />

the question. I have chosen th<strong>is</strong> question since it seems to me that, while deceptively<br />

simple, it contains elements <strong>of</strong> seminal importance to understanding Marx’s theories <strong>of</strong> value<br />

and commodities in capital<strong>is</strong>m, two <strong>is</strong>sues at the foundation <strong>of</strong> Marx’s critic<strong>is</strong>m <strong>of</strong> it.<br />

Marx believes commodities are use values, or products, produced intentionally for exchange<br />

in the market, as opposed to being simply produced for a private purpose. They have<br />

a “double character” that lies at the heart <strong>of</strong> the answer to the question. In the first instance,<br />

or level, commodities are something capable <strong>of</strong> sat<strong>is</strong>fying human wants or needs and are<br />

at th<strong>is</strong> point the product <strong>of</strong> abstract labor. They have the substance <strong>of</strong> value, that <strong>is</strong>, they<br />

are pure use value due to some inherent qualities or properties that are desired at the time<br />

<strong>of</strong> production but which may not be desired in the future. In the second instance, or level,<br />

commodities are use values produced for exchange in the market either directly for other<br />

use values through barter or with money. Therefore, due to their desirability and exchangeability<br />

in the market commodities also possess an exchange value that <strong>is</strong> part <strong>of</strong> the result<br />

<strong>of</strong> concrete labor, that <strong>is</strong>, labor performed to produce a d<strong>is</strong>creet product. It <strong>is</strong> through th<strong>is</strong><br />

second level that the commodity takes on a form <strong>of</strong> value via its exchangeability for other<br />

use values.<br />

Up to now, I have attempted to define commodity and describe the two kinds <strong>of</strong> labor<br />

required to produce it. The next part <strong>of</strong> the question asks why a commodity cannot “express”<br />

its [exchange] “value in their use values?” Here I am assuming that “value” as used in the<br />

first occurence in the question refers to “exchange” value, cons<strong>is</strong>tent with the dual nature <strong>of</strong><br />

commodities.<br />

At the first level, the purely use value level, commodities have only potential possibilities<br />

for utility or exchange value. Commodities are first produced outside the social forum <strong>of</strong> the<br />

market, even though they are intended ultimately for participation in the market. Although,<br />

as the study guide points out, there <strong>is</strong> a social context at th<strong>is</strong> level which determines what<br />

the laborer will produce given what he observes as market demand. H<strong>is</strong> interaction with the<br />

market to decide how to direct h<strong>is</strong> abstract labaor and apply h<strong>is</strong> concrete labor <strong>is</strong> therefore a<br />

type <strong>of</strong> social component. Still, at th<strong>is</strong> first level there <strong>is</strong> no exchange value to be expressed<br />

because for exchange value to ex<strong>is</strong>t there must be included a second social aspect, the market,<br />

wherein exchange value <strong>is</strong> determined.<br />

100 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

For Marx, the expression <strong>of</strong> the exchange value <strong>of</strong> a commodity <strong>is</strong> a level two activity<br />

and <strong>is</strong> a purely social function made up <strong>of</strong> various relationships with other use values being<br />

<strong>of</strong>fered in the market at their own relative exchange values determined in conjunction<br />

with other commodities. The exchange value <strong>of</strong> each commodity <strong>is</strong> therefore dependent on<br />

the market as the setter <strong>of</strong> exchange value. That a commodity has exchange value implies<br />

that <strong>is</strong> has exchangeability. Th<strong>is</strong> exchangeability in turn acts to validate the private level<br />

one dec<strong>is</strong>ion to produce the commodity and allows a wide variety <strong>of</strong> different use values to<br />

interact rationally in the market. At the same time it validates the labor time expended to<br />

produce the commodity and confirms that the time necessary for production was “socially<br />

necessary.” Indeed for the producer <strong>of</strong> the commodity the labor he has expended in production<br />

only becomes useful if and when h<strong>is</strong> product enters the social context <strong>of</strong> the market and<br />

interacts therein. For it <strong>is</strong> only such commodities capable <strong>of</strong> useful interaction and which<br />

have exchangeability that are socially necessary.<br />

In short, at the use value level, level one, a commodity <strong>is</strong> only a possibility, it has substance<br />

but no form. It <strong>is</strong> only half developed. Its (exchange) value, however, <strong>is</strong> a function<br />

not only <strong>of</strong> its abstract level one labor, but also a function <strong>of</strong> its level two form or exchange<br />

value which can be determined only in the market. Until the commodity enters the market it<br />

cannot express its value as a whole since it <strong>is</strong> only in the market that its form <strong>is</strong> identified.<br />

Message [139] referenced by [152]. Next Message by Emma <strong>is</strong> [200.3].<br />

[143] Skippy: <strong>What</strong> defines value? Use values depict personal preferences in the form<br />

<strong>of</strong> utility. Utility <strong>is</strong> the measurement <strong>of</strong> pleasure that one receives from an item. Th<strong>is</strong> does<br />

not reflect the exchange value <strong>of</strong> the item. As we d<strong>is</strong>cussed in class, a commodity has two<br />

values, a use value and an exchange value.<br />

The exchange value <strong>of</strong> an item <strong>is</strong> the value on the market. Th<strong>is</strong> <strong>is</strong> the trading value which<br />

one <strong>is</strong> able to exchange for other goods.<br />

For example: I have paintings that were painted by by my late Grandmother. The market<br />

value <strong>of</strong> these are probally very low, but to me they are priceless. That <strong>is</strong> that they are worth<br />

so much to me that I won’t sell them. They represent a great deal <strong>of</strong> my utility.<br />

Through th<strong>is</strong>, the values <strong>of</strong> the paintings are not express through their use values.<br />

A commodity <strong>is</strong> expressed through two independant values, their use value and their<br />

exchange value. One <strong>is</strong> not reflective <strong>of</strong> the other.<br />

Hans: A commodity’s value <strong>is</strong> not the pleasure one gets from a commodity, but all <strong>is</strong>t uses, whether pleasurable <strong>of</strong><br />

not. You m<strong>is</strong>sed the central part <strong>of</strong> the <strong>Question</strong> and obviously everything the people before you wrote about 79.<br />

Next Message by Skippy <strong>is</strong> [475.1].<br />

[151] Hans: Karl, <strong>is</strong> Marx your surname? When Karl’s answer [121] came late on<br />

Sunday, I was tired and in a hurry and could not make much <strong>of</strong> it. But on Monday night after<br />

midnight, I made a nice typeset printout <strong>of</strong> all your subm<strong>is</strong>sions, and Tuesday morning, after<br />

a good night’s sleep, I looked at it first thing in the morning with a fresh mind. Then I could<br />

see what Karl was doing, and I will tell you about it in a minute.<br />

But first I want to emphasize the moral <strong>of</strong> what I just said. It <strong>is</strong> something which I have<br />

experienced more than once: reading Marx’s text (or also your subm<strong>is</strong>sions, which <strong>is</strong> similar<br />

kind <strong>of</strong> mental effort,) <strong>is</strong> not something which you can do in a hurry. You need time to ponder


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 101<br />

it, and you need a clear mind for it. Once I had good ideas when I went over my Annotations<br />

sitting in the bus taking me up to Snowbird. The anticipation <strong>of</strong> a nice day <strong>of</strong> skiing made me<br />

relaxed and therefore my mind was open. Often it happens that I try to understand a certain<br />

passage <strong>of</strong> Marx, and nothing goes; the text <strong>is</strong> closed, it won’t reveal itself to me. Frustrated<br />

I lay it aside, but my mind keeps working on it without me being aware <strong>of</strong> it. When I return<br />

to it a day later, I suddenly recognize the things which I m<strong>is</strong>sed in my earlier reading.<br />

Now let’s go to Karl’s subm<strong>is</strong>sion.<br />

Commodities cannot express their values in their use values mainly because<br />

commodities are multi-faceted material products.<br />

The more interesting facets <strong>of</strong> commodities are not material, but social. <strong>What</strong> you are<br />

going to emphasize below <strong>is</strong> correct: such social properties can, to some extent, be theorized<br />

in a way similar to material things. Bhaskar calls th<strong>is</strong> “natural<strong>is</strong>m”, and he wrote a whole<br />

book, called “The Possibility <strong>of</strong> Natural<strong>is</strong>m,” about exactly th<strong>is</strong> question: why and to what<br />

extent social and natural phenomena can be investigated using a similar methodology. But<br />

th<strong>is</strong> does not mean that social phenomena and natural phenomena are one and the same<br />

thing.<br />

It <strong>is</strong> a conglomeration <strong>of</strong> two separate, but reliant categories that compr<strong>is</strong>e<br />

the hol<strong>is</strong>tic element <strong>of</strong> the commodity.<br />

I think you mean “interrelated” instead <strong>of</strong> “reliant”.<br />

I mentioned that the commodity <strong>is</strong> multi-faceted implying that even the<br />

two said categories can thus be divided and sub-divided into a plethora <strong>of</strong><br />

new underlying components. Much the same way as all things in nature<br />

work, ie: atoms, and subatomic particles. In the same manner an atom <strong>is</strong><br />

dependent on the subatomic particle, although it <strong>is</strong> a differentially separate,<br />

a commodity also relies on individual sub-components that are unique, and<br />

cannot be found as a hol<strong>is</strong>tic representation <strong>of</strong> the commodity as it stands<br />

as a separate entity.<br />

Good analogy: just as in physics one goes from molecules to atoms to “elementary particles”<br />

(protons, neutrons), to quarks, and there <strong>is</strong> no end in sight how far one can go down,<br />

so one can go from the commodity to value and use value; and then use values can have<br />

a social dimension, a psychological dimension (those which come from the “imagination”<br />

etc.), while value comes from labor, and then we have the problems <strong>of</strong> skilled labor and <strong>of</strong><br />

individual differences <strong>of</strong> the laborers, etc. Nevertheless, a commodity, just as an atom, <strong>is</strong><br />

also a very elementary unit. It makes sense to start there; it <strong>is</strong> not necessary (aside from the<br />

fact that it <strong>is</strong> also not possible) to start at the bottom <strong>of</strong> th<strong>is</strong> hierarchy.<br />

The two aspects <strong>of</strong> the commodity at hand, are values, and use values. As<br />

one further studies Marx, we come to realize these are derived expressions<br />

<strong>of</strong> other unique categories, mainly concrete labor (useful labor), and abstract<br />

labor.<br />

102 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I would rather say: one can find concrete and abstract labor in the commodity, just as one<br />

can find muscles and bones in a person. But th<strong>is</strong> does not mean that the person <strong>is</strong> “derived”<br />

from h<strong>is</strong> or her physcial body; there <strong>is</strong> emergence (see <strong>Question</strong> 89). Without emergence one<br />

would have to start at the bottom <strong>of</strong> the hierarchy. Similarly, the commodity <strong>is</strong> not “derived”<br />

from labor. One cannot start with the general character<strong>is</strong>tics <strong>of</strong> the labor process and hopeto<br />

derive capital<strong>is</strong>m from it.<br />

Now Karl starts talking about the “form”:<br />

It has been stated in the reading, “If something <strong>is</strong> a commodity it must take<br />

the form <strong>of</strong> a commodity...since the commodity has a two-fold character<br />

it needs a double form.” Th<strong>is</strong> form <strong>is</strong> the unique and separate quality that<br />

adds shape and dimension to the commodity, it cannot be intertwined or it<br />

will subtract and change the actual form <strong>of</strong> the commodity to something<br />

entirely different from the character <strong>of</strong> the original.<br />

I am not quite sure what you mean by “intertwined”. But the thrust <strong>of</strong> what you are saying<br />

<strong>is</strong> right: “form” <strong>is</strong> not extraneous to the content, and form <strong>is</strong> very important.<br />

For example concrete labor <strong>is</strong> instrinsically, and inseparably connected with<br />

certain elements such as use value, as <strong>is</strong> abstract labor connected with the<br />

value <strong>of</strong> the commodity. Marx believed the two were unique in character,<br />

in that abstract labor and value are a “mental process”, while concrete labor<br />

and use value contained unique physical properties. Thus the two values<br />

cannot express themselves interchangably, as they are found in two different<br />

mediums.<br />

It <strong>is</strong> media, not mediums. And Marx emphasizes that the abstraction <strong>of</strong> labor <strong>is</strong> not a<br />

mental process but a social process. But your argument still stands: the laws <strong>of</strong> society are a<br />

different set <strong>of</strong> mechan<strong>is</strong>ms than the laws <strong>of</strong> nature, and the social properties <strong>of</strong> commodities<br />

cannot be represented by something natural. Th<strong>is</strong> <strong>is</strong> a very good answer to <strong>Question</strong> 79, and<br />

it <strong>is</strong> different than what I wrote in the Annotations.<br />

It <strong>is</strong> the heterogeneous aspects <strong>of</strong> abstract labor, and concrete labor that<br />

serve as essential tools in answering the question <strong>of</strong> why commodities cannot<br />

express thier values in their own use values. Just as the underlying<br />

forms <strong>of</strong> labor are separate, and reliant identies. So also are the products<br />

they produce or “conceive”, mainly value and use value.<br />

I think you means “namely” instead <strong>of</strong> “mainly”. But more importantly, it <strong>is</strong> wrong to say<br />

that all the character<strong>is</strong>tics <strong>of</strong> the production process must be reflected in the product. It was<br />

one <strong>of</strong> the errors <strong>of</strong> Hegel to think that everything <strong>is</strong> preserved (and modern thinking <strong>is</strong> very<br />

much influenced by Hegel, although almost nobody has read him nowadays). For instance,<br />

a product will only remind us <strong>of</strong> the concrete labor <strong>of</strong> its producer if there are some flaws in<br />

it. The good laborer d<strong>is</strong>appears behind the product. The abstract labor, however, lingers on<br />

in the price or exchange value <strong>of</strong> the product.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 103<br />

They cannot be expressed in each other or else the unique identity <strong>of</strong> the<br />

value and use value will be changed into a form unrecognized from the<br />

original properties combining the two values.<br />

Again, as in your subm<strong>is</strong>sion last week, you show that you are a very good thinker.<br />

Somehow your mind escaped the shallowing <strong>of</strong> thinking which <strong>is</strong> so prevalent today, and<br />

which <strong>is</strong> also so necessary for capital<strong>is</strong>m to remain unchallenged. I can easily imagine that<br />

you may sometimes not get the grades which you deserve, because those who grade you do<br />

not recognize the depth <strong>of</strong> your thinking.<br />

Next Message by Hans <strong>is</strong> [152].<br />

[152] Hans: <strong>What</strong> makes things exchangeable? I will only pick out one sentence from<br />

Emma’s [139], which contains the pivotal error which taints all the rest <strong>of</strong> her answer:<br />

Due to their desirability [...] in the market commodities also possess an<br />

exchange value that <strong>is</strong> part <strong>of</strong> the result <strong>of</strong> concrete labor, that <strong>is</strong>, labor<br />

performed to produce a d<strong>is</strong>creet product.<br />

To us living in a commodity society it seems as if usefulness implies exchangeability.<br />

However primitive societies ex<strong>is</strong>t which produce lots <strong>of</strong> useful things, without any <strong>of</strong> them<br />

ever being exchanged. Also the flow <strong>of</strong> goods inside a factory <strong>is</strong> not mediated by exchange.<br />

It <strong>is</strong> a property <strong>of</strong> society at large, a level [2] property, that allows useful things to be exchanged<br />

on a routine bas<strong>is</strong>. Which property <strong>of</strong> society <strong>is</strong> it? That all labors count as equal.<br />

I exchange my product against yours because I consider the labor I put into my product<br />

equivalent to the labor you put into yours. But labors are equal only as abstract labors. Th<strong>is</strong><br />

<strong>is</strong> why Marx says that the abstrat labor inside the goods <strong>is</strong> what makes them exchangeable.<br />

Next Message by Hans <strong>is</strong> [155].<br />

<strong>Question</strong> 80 <strong>is</strong> 69 in 1995WI, 77 in 1995ut, 81 in 1996ut, 87 in 1997WI, 90 in 1997sp, 86<br />

in 1997ut, 142 in 2005fa, 162 in 2007fa, and 186 in 2010fa:<br />

<strong>Question</strong> 80 <strong>What</strong> does Marx understand to be the riddle <strong>of</strong> money?<br />

[144] KALISPEL: <strong>What</strong> <strong>is</strong> the riddle <strong>of</strong> money? Money as a measure <strong>of</strong> value <strong>is</strong> the<br />

necessary form <strong>of</strong> appearance <strong>of</strong> the measure <strong>of</strong> value which <strong>is</strong> immanent in commodities,<br />

namely labour-time. In other words, money represents the amount <strong>of</strong> labor time that was put<br />

into a product.<br />

Money can be represented in equation form. For example, 2 dollars = 2 king size candy<br />

bars. The point <strong>of</strong> having an equation <strong>is</strong> to show that an equal amount must be on both<br />

sides. Money should accurately represent the worth <strong>of</strong> the commodity as it relates to other<br />

commodities. Th<strong>is</strong> <strong>is</strong> where the price <strong>of</strong> a commodity comes from. Thus, pricing items<br />

needs to be a social process. However, money has no price and in order to give it a price<br />

it can only be brought in equivalent with itself. Not with other commodities. Herein lies a<br />

danger and a riddle.<br />

Additionally, money becomes more difficult to use because it <strong>is</strong> “inv<strong>is</strong>ible.” Commodity<br />

values are expressed in th<strong>is</strong> inv<strong>is</strong>ible form. Sellers dictate the prices <strong>of</strong> commodities based<br />

on th<strong>is</strong> “imaginary” price. However, to purchase the product you must pay in the actual<br />

substance itself.<br />

104 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Th<strong>is</strong> <strong>is</strong> the bas<strong>is</strong> <strong>of</strong> problems in the money system. A Ford Explorer may be worth<br />

$30,000 dollars today imaginary price, but because <strong>of</strong> market fluctuations or any type <strong>of</strong><br />

altered ratio between the Explorer and the money creates a problem. Why? You may pay<br />

more for the vehicle than the labor that was socially necessary to be put into it. On the other<br />

hand, you may get a good deal and pay less than the labor put into it. Either way, the two<br />

sides <strong>of</strong> the equation do not match up. The true value <strong>of</strong> the Explorer <strong>is</strong> skewed. The equation<br />

could start out like th<strong>is</strong>: 1 Explorer = $25,000 dollars, and end up like th<strong>is</strong> in real terms;<br />

1 Explorer = $45,000 dollars. Th<strong>is</strong> happens in capital<strong>is</strong>m all <strong>of</strong> the time.<br />

Additionally, if all commodities are represented in an equivalent <strong>of</strong> money there <strong>is</strong> a<br />

loss <strong>of</strong> control to consumers. The commodity now has an objective value outside <strong>of</strong> itself.<br />

Th<strong>is</strong> changes relations <strong>of</strong> production. Relations <strong>of</strong> production are now independent <strong>of</strong> their<br />

control and their conscious individual action. In other words, the individual can no longer<br />

individually control means <strong>of</strong> production. People must now look to an outside or objective<br />

source for meaning or exchange. Th<strong>is</strong> <strong>is</strong> what makes money magic and a riddle. It <strong>is</strong><br />

imaginary, you can’t see it and can’t control it.<br />

The ruling class can now take money and manipulate it to serve their best interests. For<br />

example, in Germany at the end <strong>of</strong> World War II the country was having serious debt problems.<br />

One <strong>of</strong> the plans to pay back the debt was simply to ra<strong>is</strong>e the interest rates faster than<br />

the economy could pick up, (without destroying it). <strong>What</strong> you do <strong>is</strong> print a lot <strong>of</strong> money<br />

to pay back your debts. Of course, it will cause the price <strong>of</strong> everything else to r<strong>is</strong>e, but<br />

your debts will be paid back easier. Why? Essentially, you are stealing because you are not<br />

paying back the real value <strong>of</strong> the money. Capital<strong>is</strong>m <strong>is</strong> good at introducing “money tricks”<br />

through various types <strong>of</strong> the same things. If anyone <strong>is</strong> interested I would like to d<strong>is</strong>cuss some<br />

<strong>of</strong> these “money tricks” in thread 301.<br />

Message [144] referenced by [163]. Next Message by KALISPEL <strong>is</strong> [162].<br />

[146] Scott: <strong>What</strong> does Marx understand to be the riddle <strong>of</strong> money? The riddle <strong>is</strong><br />

related to Marxs’ view that money <strong>is</strong> a commodity. Marx writes“ money, like every other<br />

commodity, cannot express the magnitude <strong>of</strong> its value except relatively in other commodities.<br />

Th<strong>is</strong> value <strong>is</strong> determined by the labour-time required for its production, and <strong>is</strong> expressed<br />

in the quantity <strong>of</strong> any other commodity in which the same amount <strong>of</strong> labour-time <strong>is</strong> congealed.”<br />

Finally, “the difficulty lies not in comprehending that money <strong>is</strong> a commodity, but in<br />

d<strong>is</strong>covering how, why, and by what means a commodity becomes money.” I believe th<strong>is</strong> to<br />

be h<strong>is</strong> riddle concerning money.<br />

Hans: You are just guessing, picking out two Marx quotes which seem especially mysterious to you, and not<br />

revealing any understanding <strong>of</strong> the text on your part. Do you think these are the riddles which will d<strong>is</strong>appear if one<br />

does what Marx describes in 139:1?<br />

Next Message by Scott <strong>is</strong> [192.1].<br />

[163] Hans: The Capital<strong>is</strong>ts do not need Money Tricks for Exploitation KALISPEL’s<br />

answer [144] makes many theoretical statements about money, and I will see here how much<br />

they coincide with or contradict Marx’s theory. The first paragraph <strong>is</strong> something Marx could<br />

have said as well:<br />

Money as a measure <strong>of</strong> value <strong>is</strong> the necessary form <strong>of</strong> appearance <strong>of</strong> the<br />

measure <strong>of</strong> value which <strong>is</strong> immanent in commodities, namely labour-time.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 105<br />

In other words, money represents the amount <strong>of</strong> labor time that was put into<br />

a product.<br />

Next KALISPEL says that actual prices <strong>of</strong>ten deviate from the value proportions:<br />

Money can be represented in equation form. For example, 2 dollars = 2<br />

king size candy bars. The point <strong>of</strong> having an equation <strong>is</strong> to show that an<br />

equal amount must be on both sides. Money should accurately represent the<br />

worth <strong>of</strong> the commodity as it relates to other commodities. Th<strong>is</strong> <strong>is</strong> where<br />

the price <strong>of</strong> a commodity comes from. Thus, pricing items needs to be a<br />

social process.<br />

KALISPEL <strong>is</strong> going to stress th<strong>is</strong> again two paragraphs down. Marx <strong>is</strong> not as upset as<br />

KALISPEL about th<strong>is</strong> d<strong>is</strong>crepancy. Marx says such a d<strong>is</strong>crepancy <strong>is</strong> necessary as long as<br />

production <strong>is</strong> private. Only in exceptional cases will demand and supply be such that the<br />

market clearing prices deviate from values. That will lead to an adjustment <strong>of</strong> supply, and<br />

th<strong>is</strong> <strong>is</strong> the mechan<strong>is</strong>m by which the production responds to demand.<br />

However, money has no price and in order to give it a price it can only be<br />

brought in equivalent with itself. Not with other commodities. Herein lies<br />

a danger and a riddle.<br />

My guess <strong>is</strong> that KALISPEL means here: although money <strong>is</strong> so valuable, it can be printed<br />

or created by the banking system at no cost. I have the hunch that th<strong>is</strong> <strong>is</strong> h<strong>is</strong> main concern<br />

regarding “money tricks.” But th<strong>is</strong> <strong>is</strong> the wrong place to be worried about capital<strong>is</strong>m. Only<br />

in very primitive conditions, in which the state does not have the apparatus to ra<strong>is</strong>e taxes,<br />

will capital<strong>is</strong>t states resort to printing money as a source <strong>of</strong> revenue. Th<strong>is</strong> <strong>is</strong> not cost free;<br />

th<strong>is</strong> creates inflation and makes the currency an unreliable measure <strong>of</strong> value, and th<strong>is</strong> <strong>is</strong><br />

very bad for capital<strong>is</strong>m. Modern capital<strong>is</strong>t states know how important it <strong>is</strong> to have a sound<br />

monetary system and not to debase the currency, and not to let anyone, state or bankers etc.,<br />

screw around with the currency. It much more lucrative for the ruling class to have a stable<br />

currency and do the exploitation on the workplace, in the sphere <strong>of</strong> production, rather than<br />

the state or anyone else trying to skim <strong>of</strong>f some <strong>of</strong> the <strong>wealth</strong> from circulation. The factory<br />

owner <strong>is</strong> the much more successful robber than the bank robber.<br />

Additionally, money becomes more difficult to use because it <strong>is</strong> “inv<strong>is</strong>ible.”<br />

Commodity values are expressed in th<strong>is</strong> inv<strong>is</strong>ible form. Sellers dictate the<br />

prices <strong>of</strong> commodities based on th<strong>is</strong> “imaginary” price. However, to purchase<br />

the product you must pay in the actual substance itself.<br />

The difficulty for the workers to buy what they need, does not come from the monopoly<br />

power <strong>of</strong> the corporations to charge what they want, and also not from the fact that there <strong>is</strong><br />

not enough money because someone <strong>is</strong> screwing around with the monetary system. It comes<br />

from the fact that the means <strong>of</strong> production are private property. All those who get income<br />

not from labor but from property get it in fact from the unpaid labor <strong>of</strong> others.<br />

106 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Th<strong>is</strong> <strong>is</strong> the bas<strong>is</strong> <strong>of</strong> problems in the money system. A Ford Explorer may be<br />

worth $30,000 dollars today imaginary price, but because <strong>of</strong> market fluctuations<br />

or any type <strong>of</strong> altered ratio between the Explorer and the money<br />

creates a problem. Why? You may pay more for the vehicle than the labor<br />

that was socially necessary to be put into it. On the other hand, you may get<br />

a good deal and pay less than the labor put into it. Either way, the two sides<br />

<strong>of</strong> the equation do not match up. The true value <strong>of</strong> the Explorer <strong>is</strong> skewed.<br />

The equation could start out like th<strong>is</strong>: 1 Explorer = $25,000 dollars, and<br />

end up like th<strong>is</strong> in real terms; 1 Explorer = $45,000 dollars. Th<strong>is</strong> happens<br />

in capital<strong>is</strong>m all <strong>of</strong> the time.<br />

I agree that it <strong>is</strong> infuriating how the prices change; you bought something last week for<br />

one price, and today it only costs half th<strong>is</strong> amount. Th<strong>is</strong> variability comes from the fact<br />

that all prices have a pr<strong>of</strong>it margin in them, and sometimes th<strong>is</strong> margin <strong>is</strong> very large. The<br />

capital<strong>is</strong>t sells most <strong>of</strong> h<strong>is</strong> goods at a high pr<strong>of</strong>it, and when he has some left over at the end<br />

<strong>of</strong> theseason or so, he clears out h<strong>is</strong> inventory at low prices, becausehe has already made<br />

a lot <strong>of</strong> pr<strong>of</strong>it. If he had to pay the workers anywhere near the value they produce, prices<br />

would not fluctuate so wildly.<br />

Additionally, if all commodities are represented in an equivalent <strong>of</strong> money<br />

there <strong>is</strong> a loss <strong>of</strong> control to consumers. The commodity now has an objective<br />

value outside <strong>of</strong> itself. Th<strong>is</strong> changes relations <strong>of</strong> production. Relations<br />

<strong>of</strong> production are now independent <strong>of</strong> their control and their conscious individual<br />

action. In other words, the individual can no longer individually<br />

control means <strong>of</strong> production. People must now look to an outside or objective<br />

source for meaning or exchange. Th<strong>is</strong> <strong>is</strong> what makes money magic and<br />

a riddle. It <strong>is</strong> imaginary, you can’t see it and can’t control it.<br />

Th<strong>is</strong> <strong>is</strong> a very deep and very true point. We will d<strong>is</strong>cuss more <strong>of</strong> th<strong>is</strong> when we d<strong>is</strong>cuss the<br />

commodity fet<strong>is</strong>h<strong>is</strong>m section.<br />

The next point <strong>is</strong> a myth. After World War II, the German ruling class was extremely<br />

successful exactly because the USA guaranteed them a sound monetary system. The USA<br />

acted here as a friend, not as a competitor. They wanted a successful capital<strong>is</strong>m in West<br />

Germany, so that the people in East Germany and elsewhere in the Eastern Bloc would be<br />

thinking their social<strong>is</strong>m was inadequate. There was hyperinflation after World War I, and th<strong>is</strong><br />

was due to the m<strong>is</strong>directed attempts <strong>of</strong> the foreign states to exploit Germany via reparations.<br />

IT did not work, and everyone learned the lesson: the regular capital<strong>is</strong>t exploitation <strong>is</strong> so<br />

efficient that it dwarfs any other attempts to enrich oneself by legalized stealing.<br />

The ruling class can now take money and manipulate it to serve their best<br />

interests. For example, in Germany at the end <strong>of</strong> World War II the country<br />

was having serious debt problems. One <strong>of</strong> the plans to pay back the debt<br />

was simply to ra<strong>is</strong>e the interest rates faster than the economy could pick up,<br />

(without destroying it). <strong>What</strong> you do <strong>is</strong> print a lot <strong>of</strong> money to pay back<br />

your debts. Of course, it will cause the price <strong>of</strong> everything else to r<strong>is</strong>e, but<br />

your debts will be paid back easier. Why? Essentially, you are stealing


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 107<br />

because you are not paying back the real value <strong>of</strong> the money. Capital<strong>is</strong>m<br />

<strong>is</strong> good at introducing “money tricks” through various types <strong>of</strong> the same<br />

things. If anyone <strong>is</strong> interested I would like to d<strong>is</strong>cuss some <strong>of</strong> these “money<br />

tricks” in thread 301.<br />

Next Message by Hans <strong>is</strong> [165].<br />

<strong>Question</strong> 81 <strong>is</strong> 70 in 1995WI, 78 in 1995ut, 88 in 1997WI, and 91 in 1997sp:<br />

<strong>Question</strong> 81 <strong>What</strong> <strong>is</strong> the most simple expression <strong>of</strong> the value <strong>of</strong> a commodity, and what <strong>is</strong><br />

the most “dazzling,” commonly known expression <strong>of</strong> the value <strong>of</strong> a commodity?<br />

[161] Dunny: value <strong>of</strong> a commodity <strong>What</strong> <strong>is</strong> the most simple expression <strong>of</strong> the value <strong>of</strong><br />

a commodity, and what <strong>is</strong> the most “dazzling,” commonly known expression <strong>of</strong> the value <strong>of</strong><br />

a commodity?<br />

The most simple expression <strong>of</strong> a commodity <strong>is</strong> the expression that you obtain by relating<br />

one commodity to another. It <strong>is</strong> not as simple as merely looking at the cost in and <strong>of</strong><br />

itself. There needs to be some kind <strong>of</strong> a compar<strong>is</strong>on but at the same time needs to contrast<br />

one another. The financial compar<strong>is</strong>on or strictly speaking the money form compar<strong>is</strong>ons <strong>of</strong><br />

commodities <strong>is</strong> not the best route. Marx describes th<strong>is</strong> money compar<strong>is</strong>on as “dazzling” or<br />

“blinding”. It makes it easier to look past the real value <strong>of</strong> a commodity. The price does not<br />

necessarily tell you the amount <strong>of</strong> labor used to produce the product <strong>of</strong> the differing values<br />

or use-values that it contains. The simplest expression therefore lies within comparing the<br />

values <strong>of</strong> commodities one with another and not just individually.<br />

Hans: I like your independent thinking. You cannot expect to get everything right the first time, but th<strong>is</strong> <strong>is</strong> much<br />

better than just regurgitating Marx’s formulations.<br />

Message [161] referenced by [166]. Next Message by Dunny <strong>is</strong> [213].<br />

[166] Hans: Dunny’s answer to <strong>Question</strong> 81, and <strong>Question</strong> 90 Dunny gives a basically<br />

correct answer in [161]. Just a minor quibble: Marx calls the money form “dazzling” not<br />

because the price may quantitatively diverge from value, but because the commodities need<br />

something as mysterious as money, glimmering gold, the key which opens all locks, to<br />

express such a prosaic fact as that they are all products <strong>of</strong> the expenditure <strong>of</strong> human labor<br />

power.<br />

Furthermore, Dunny says that the most basic expression <strong>of</strong> value <strong>is</strong> “the cost in and <strong>of</strong><br />

itself.” I hope by th<strong>is</strong> he means the labor content, the labor hours directly and indirectly contained<br />

in the commodity. Th<strong>is</strong> <strong>is</strong> the theoretical analys<strong>is</strong> <strong>of</strong> value which the social scient<strong>is</strong>t<br />

comes up with. The “expression” <strong>of</strong> value, by contrast, can be viewed as the analys<strong>is</strong> <strong>of</strong><br />

value which the commodities themselves make and tell us in their language. See R141:3<br />

and <strong>Question</strong> 90 about that:<br />

90¿ How does the social scient<strong>is</strong>t’s analys<strong>is</strong> <strong>of</strong> the substance <strong>of</strong> 90¿ value differ from<br />

what the commodities tell each other in the 90¿ exchange?<br />

Next Message by Hans <strong>is</strong> [167].<br />

<strong>Exam</strong> <strong>Question</strong> 83 <strong>is</strong> 72 in 1995WI, 80 in 1995ut, 84 in 1996ut, 90 in 1997WI, 93 in<br />

1997sp, 88 in 1997ut, 95 in 1998WI, 112 in 2000fa, 117 in 2001fa, 147 in 2004fa, and<br />

199 in 2010fa:<br />

108 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Exam</strong> <strong>Question</strong> 83 In the equation “20 yards <strong>of</strong> linen = 1 coat,” what <strong>is</strong> the difference<br />

between the left hand side and the right hand side?<br />

[118] Jake: 20 yards <strong>of</strong> linen When Marx made the relationship between the yards <strong>of</strong><br />

linen being equal to a coat, he was making a relationship between two commodities that<br />

were to have no relation in use values. So when analyzing each side <strong>of</strong> the equation, one<br />

can see that if the value <strong>of</strong> 20 yards <strong>of</strong> linen has the same value <strong>of</strong> say 10 bags <strong>of</strong> potatoes<br />

a relationship can be made between the potatoes and a coat to form an equality. If 1 coat<br />

carries the same value as 10 bags <strong>of</strong> potatoes then the two commodities are equal and the<br />

equation <strong>of</strong> 20 yards <strong>of</strong> linen = 1 coat becomes true. The point <strong>is</strong> that no matter what the<br />

good <strong>is</strong>, it can have a relational value with other goods no matter how different the uses may<br />

be.<br />

Message [118] referenced by [120]. Next Message by Jake <strong>is</strong> [197.2].<br />

[120] Hans: Difference between left and right The subject <strong>of</strong> the present reading assignment<br />

<strong>is</strong> so difficult because it <strong>is</strong> so simple and abstract. The statement<br />

20 yards <strong>of</strong> linen <strong>is</strong> worth 1 coat<br />

<strong>is</strong> a different and indeed a simpler statement than<br />

20 yards <strong>of</strong> linen <strong>is</strong> worth as much as 1 coat.<br />

Do you see the difference? In the second statement, the worth <strong>of</strong> the 20 yards <strong>of</strong> linen<br />

and the worth <strong>of</strong> the coat are some third thing outside linen and coat, which <strong>is</strong> equal for both.<br />

In the first statement, the coat <strong>is</strong> the worth <strong>of</strong> the linen. One might say (oversimplifying a<br />

bit) that Marx’s tedious development in Section 3 <strong>of</strong> Chapter One <strong>is</strong> the transition from the<br />

former statement to the latter.<br />

Jake in h<strong>is</strong> answer [118] overlooked th<strong>is</strong>. He used the bag <strong>of</strong> potatoes as the outside<br />

measure <strong>of</strong> the worth <strong>of</strong> both linen and coat. He did not notice that Marx did not say “20<br />

yards <strong>of</strong> linen <strong>is</strong> worth as much as 1 coat,” but that he said “20 yards <strong>of</strong> linen <strong>is</strong> worth 1<br />

coat.” The former statement <strong>is</strong> symmetric, but the latter statement <strong>is</strong> not. <strong>Question</strong> 83 asked<br />

you to elaborate on th<strong>is</strong> asymmetry. Since Jake converted the statement into a symmetric<br />

statement, he could not do that.<br />

Message [120] referenced by [174]. Next Message by Hans <strong>is</strong> [124].<br />

[137] Kalle: 20 yards <strong>of</strong> linen= 1 coat Before I explain the difference between the two<br />

sides <strong>of</strong> the equation I will first look at the relationship between the two. Marx clearly states<br />

that there ex<strong>is</strong>ts a value relationship between the linen and the coat. In th<strong>is</strong> example the 20<br />

yards <strong>of</strong> linen expresses its value in a certain “amount” <strong>of</strong> coat. Since the coat here plays<br />

the passive role, any other commodity could in the same way be on the right hand hand side<br />

<strong>of</strong> the equation, as an expression <strong>of</strong> the value <strong>of</strong> linen. The value <strong>of</strong> a commodity can only<br />

be expressed relatively compared to another commodity. The amount <strong>of</strong> the commodity on<br />

the right hand side <strong>is</strong> the equivalent, and therefore, dictates the relative value <strong>of</strong> the first<br />

commodity.<br />

However, if we change the commodity represented on the right hand side, lets say 200<br />

green apples, the relative value <strong>of</strong> 20 yards <strong>of</strong> linen can no longer be said to be equivelant<br />

to 1 coat. Now the equivelant value <strong>of</strong> 20 yards <strong>of</strong> linen <strong>is</strong> 200 apples, but we know nothing


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 109<br />

abouts it’s relative value to coats. Both the relative and equivelant value have changed, even<br />

though we only changed one side <strong>of</strong> the equation.<br />

In a barter economy, value relationships between commodities would be easier to identify,<br />

because commodities are exchanged daily, and “prices” <strong>of</strong> commodities are expressed in<br />

terms <strong>of</strong> others. An infinit number <strong>of</strong> value relationships would ex<strong>is</strong>t in th<strong>is</strong> economy. The<br />

relative value <strong>of</strong> all commodities in terms <strong>of</strong> others, would also be subject to constant change,<br />

as the supply and demand for these commodities change the equivalent value.<br />

Hans: I like the connection you see between passivity and the fact that any other commodity might take the place<br />

<strong>of</strong> the equivalent too.<br />

I don’t like the sentence<br />

The amount <strong>of</strong> the commodity on the right hand side <strong>is</strong> the equivalent, and therefore, dictates<br />

the relative value <strong>of</strong> the first commodity.<br />

because “dictates” <strong>is</strong> not passive enough.<br />

Message [137] referenced by [175]. Next Message by Kalle <strong>is</strong> [157].<br />

[142] VanHalen: The difference between the left hand side and the right hand side <strong>of</strong><br />

the equation <strong>is</strong> the roles that the respective sides <strong>of</strong> the equation play. The value <strong>of</strong> the<br />

first commodity (the left hand side), <strong>is</strong> represented as relative value, in other words the<br />

commodity <strong>is</strong> in the relative form <strong>of</strong> value. The second commodity (the right hand side)<br />

fulfils the function <strong>of</strong> the equivalent, in other words it <strong>is</strong> in the equivalent form. (pg. 140<br />

Capital) But these two qualitatively equated commodities do not play the same part. (pg.141<br />

Capital)<br />

Thats the difference between the left and right side <strong>of</strong> the equation, the 20 yards <strong>of</strong> linen<br />

are playing the role <strong>of</strong> the relative form and the 1 coat <strong>is</strong> playing the role <strong>of</strong> the equivalent<br />

value. The converse <strong>of</strong> 20 yards <strong>of</strong> linen = 1 coat could be written, but as Marx points out<br />

on page 140, we must first reverse the equation in order to express the value <strong>of</strong> the coat<br />

relatively.<br />

Marx seems to place a lot <strong>of</strong> emphas<strong>is</strong> on which side <strong>of</strong> the equation a commodity falls<br />

on. On page 140 <strong>of</strong> capital, Marx says,“ whether a commodity <strong>is</strong> in the relative form or in<br />

its opposite, the equivalent form, entirely depends on its actual position in the expression <strong>of</strong><br />

value.” Earlier on page 140, Marx also says,“ The value <strong>of</strong> the linen can therefore only be<br />

expressed relatively, i.e. in another commodity. The relative form <strong>of</strong> the value <strong>of</strong> the linen<br />

therfore presupposes that some other commodity confronts it in the equivalent form.”<br />

I think that Kalle did a good job <strong>of</strong> answering the question and in her response she points<br />

out the same idea as the above quote when she said,“The value <strong>of</strong> a commodity can only be<br />

expressed relatively compared to another commodity.”<br />

I think Jake gave it a good go but by bringing in the third commodity I think he kind <strong>of</strong><br />

lost the point that Marx was trying to make.<br />

Hans: Everything you write <strong>is</strong> correct, but you are sticking a little bit too much to the text, without giving the<br />

slightest hint what it all means, and also without trying to draw the slightest conclusions <strong>of</strong> your own, as Kalle and<br />

Jake did. I like it that you referred to Kalle and Jake.<br />

Next Message by VanHalen <strong>is</strong> [170.2].<br />

<strong>Question</strong> 84 <strong>is</strong> 73 in 1995WI, 81 in 1995ut, 85 in 1996ut, 91 in 1997WI, 94 in 1997sp, 89<br />

in 1997ut, 148 in 2004fa, and 172 in 2008SP:<br />

110 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Question</strong> 84 Can one say the coat symbolizes the value <strong>of</strong> the linen?<br />

[136] Positive: The coat symbolizes the linen. According to the reading, value <strong>is</strong> measured<br />

by the amount <strong>of</strong> average labor-time it takes the society to produce the commodity.<br />

The use value, <strong>is</strong> how much the specific product <strong>is</strong> worth to the individual owner <strong>of</strong> the<br />

product. Exchange value, <strong>is</strong> how much the product can be exchanged for in terms <strong>of</strong> other<br />

products. In th<strong>is</strong> case, the linen has been made. The person who did it, <strong>is</strong> actually the only<br />

one who knows how time consuming it really was.<br />

The linen <strong>is</strong> now ready for exchange at the market place.<br />

The maker <strong>of</strong> the linen <strong>is</strong> to determine how much it <strong>is</strong> worth to himself, but the price he<br />

will get, <strong>is</strong> still the price the market <strong>is</strong> willing to pay for it. If the person wants to exchange<br />

the linen for the coat, it <strong>is</strong> because he thinks the coat <strong>is</strong> <strong>of</strong> a high enough exchangeble value.<br />

The maker <strong>of</strong> the linen knows anything about h<strong>is</strong> own product, but very little about the<br />

labor time put into the coat. Even though the linen and the coat has different use value, the<br />

maker <strong>of</strong> the linen <strong>is</strong> willing to exchane h<strong>is</strong> product with the coat, so long as he consider the<br />

coat as an equal source <strong>of</strong> commodity.<br />

Message [136] referenced by [140] and [322]. Next Message by Positive <strong>is</strong> [209.1].<br />

[140] Hans: Positive’s answer Positive’s [136] has overall the right ideas, but it <strong>of</strong>ten<br />

uses the wrong words and has a number <strong>of</strong> other flaws in the details. Apparently, Positive<br />

grasps the connections but does not want to be bothered by the details. Let us go through it<br />

sentence by sentence. The first sentence <strong>is</strong> right (although a pur<strong>is</strong>t may complain that value<br />

should not be reduced to its quantitative dimension):<br />

According to the reading, value <strong>is</strong> measured by the amount <strong>of</strong> average<br />

labor-time it takes the society to produce the commodity.<br />

The next sentence <strong>is</strong> still right (although a pur<strong>is</strong>t may complain that Marx’s cconcept <strong>of</strong><br />

use value <strong>is</strong> not a measure <strong>of</strong> the sat<strong>is</strong>faction <strong>of</strong> the user but should rather be thought as the<br />

menu <strong>of</strong> possible uses <strong>of</strong> the thing):<br />

The use value, <strong>is</strong> how much the specific product <strong>is</strong> worth to the individual<br />

owner <strong>of</strong> the product.<br />

The next sentence <strong>is</strong> right:<br />

Exchange value, <strong>is</strong> how much the product can be exchanged for in terms <strong>of</strong><br />

other products.<br />

Having these three concepts sorted out right <strong>is</strong> a big advantage. Now Positive starts h<strong>is</strong><br />

argument:<br />

In th<strong>is</strong> case, the linen has been made. The person who did it, <strong>is</strong> actually the<br />

only one who knows how time consuming it really was. The linen <strong>is</strong> now<br />

ready for exchange at the market place.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 111<br />

The next sentence uses worth, a word Marx only uses for use value, but Positive uses it<br />

for exchange value: what the maker <strong>of</strong> the linen has to determine <strong>is</strong> how much he <strong>is</strong> going<br />

to ask for the linen:<br />

The maker <strong>of</strong> the linen <strong>is</strong> to determine how much it <strong>is</strong> worth to himself, but<br />

the price he will get, <strong>is</strong> still the price the market <strong>is</strong> willing to pay for it.<br />

Positive’s remark at the end <strong>of</strong> th<strong>is</strong> sentence <strong>is</strong> well taken, the linen weaver may not get<br />

what he <strong>is</strong> asking for, but here Marx <strong>is</strong> concerned with the process how the asking price <strong>is</strong><br />

determined.<br />

In the next sentence, Positive should have used the word “use value” instead <strong>of</strong> “exchangeable<br />

value”. The question whether he wants to accept the coat in exchange for the<br />

linen <strong>is</strong> determined by the use value which the coat has for him. <strong>What</strong> Positive calls “equal<br />

source <strong>of</strong> commodity” in the last sentence, I would transcribe as: “enough use value to compensate<br />

for the labor the weaver put into the linen (plus <strong>of</strong> course the cost <strong>of</strong> raw materials,<br />

etc., i.e., for the whole deal).”<br />

If the person wants to exchange the linen for the coat, it <strong>is</strong> because he<br />

thinks the coat <strong>is</strong> <strong>of</strong> a high enough exchangeble value. The maker <strong>of</strong> the<br />

linen knows anything about h<strong>is</strong> own product, but very little about the labor<br />

time put into the coat. Even though the linen and the coat has different use<br />

value, the maker <strong>of</strong> the linen <strong>is</strong> willing to exchane h<strong>is</strong> product with the coat,<br />

so long as he consider the coat as an equal source <strong>of</strong> commodity.<br />

Now Positive’s answer stops, although he has prepared himself very well to answer the<br />

question: does th<strong>is</strong> mean the coat <strong>is</strong> a symbol <strong>of</strong> the linen’s value or not?<br />

Next Message by Hans <strong>is</strong> [151].<br />

<strong>Question</strong> 86 <strong>is</strong> 76 in 1995WI, 84 in 1995ut, 87 in 1996ut, 93 in 1997WI, 96 in 1997sp, 91<br />

in 1997ut, and 150 in 2004fa:<br />

<strong>Question</strong> 86 Think <strong>of</strong> a real life situation (not necessarily related to what Marx <strong>is</strong> speaking<br />

about here) where someone says, “a pair <strong>of</strong> shoes <strong>is</strong> a pair <strong>of</strong> shoes,” or “a car <strong>is</strong> a car,”<br />

or “20 yards <strong>of</strong> linen are 20 yards <strong>of</strong> linen,” or “I am I” (compare footnote 18 to R144:1<br />

below). Describe exactly what <strong>is</strong> meant by th<strong>is</strong> phrase in the situation you chose.<br />

[111] MUCHO: “I am I” I think all the phrases in th<strong>is</strong> question meant that no matter<br />

what type <strong>of</strong> commodity you chose, the value <strong>of</strong> the commodity will determined by each<br />

individual. Because, there are many cases that if the certain commodity <strong>is</strong> extremely valuable<br />

to someone, it doesn’t mean that the commodity <strong>is</strong> valuable to others.<br />

For instance, the textbook I bought for the Econ. 508 class <strong>is</strong> very important and valuable<br />

to me. Because, without the textbook, I cannot study for exam or assignment. By using<br />

the textbook, I learn and get educated. Getting education in specific field <strong>of</strong> study <strong>is</strong> one <strong>of</strong><br />

the great investments for my future. On the other hand, for someone who studies computer<br />

science does not need to buy Econ. book. Even though th<strong>is</strong> someone and I agree with<br />

getting education <strong>is</strong> one <strong>of</strong> the great investments for our future, Econ. book for th<strong>is</strong> person<br />

<strong>is</strong> absolutely useless and worthless because <strong>of</strong> the different field <strong>of</strong> study.<br />

112 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Thus, the value <strong>of</strong> commodity <strong>is</strong> depending upon individuals. Time to time, certain value<br />

<strong>of</strong> commodity <strong>is</strong> shared by many individuals. Then, the commodity would be also valuable<br />

in real world such as gold. However, real value should be determined individually.<br />

Message [111] referenced by [119]. Next Message by MUCHO <strong>is</strong> [153].<br />

[115] Caren: The relative form <strong>of</strong> value “a pair <strong>of</strong> shoes <strong>is</strong> a pair <strong>of</strong> shoes”<br />

“a car <strong>is</strong> a car”<br />

“I am I”<br />

These expressions above have different meanings in each individual. In the real life situation,<br />

I think people who say “a pair <strong>of</strong> shoes <strong>is</strong> a pair <strong>of</strong> shoes” do mean something with it;<br />

even though, they do not see that it has “value” but everything has “worth” in itself. They do<br />

not relate the expression with the words “exchange” but the “useful object”. According to<br />

Annotations to Marx’s Capital on page 52, quote... “By means <strong>of</strong> the value-relation, therefore,<br />

the natural form <strong>of</strong> commodity B becomes the value-form <strong>of</strong> commodity A, in other<br />

words the physical body <strong>of</strong> commodity B becomes a mirrors in which the value <strong>of</strong> commodity<br />

A <strong>is</strong> reflected,”; all three expressions do not have any relationship or do not involve with<br />

th<strong>is</strong> definition. There <strong>is</strong> no relative form <strong>of</strong> value. People who say those expressions seem<br />

to not care anything about value, but indeed about “use value”, I think! In addition, human<br />

being <strong>is</strong> in the same situation as a commodity. The words “I am I”, <strong>is</strong> also meaningless in<br />

terms <strong>of</strong> means <strong>of</strong> value. We cannot relate to ourselves as a mirror in our hands.<br />

Message [115] referenced by [119]. Next Message by Caren <strong>is</strong> [171].<br />

[119] Hans: Mucho’s and Caren’s answers and some general hints The two answers<br />

received so far did not yet get us very far.<br />

MUCHO [111] read these examples as individual declarations <strong>of</strong> “value”: “I am I, and<br />

for me, a pair <strong>of</strong> shoes <strong>is</strong> worth th<strong>is</strong> much, and a car <strong>is</strong> worth that much.” Th<strong>is</strong> <strong>is</strong> not how the<br />

<strong>Question</strong> was meant; each utterance was an example for one <strong>is</strong>olated statement. But even<br />

if th<strong>is</strong> had been the meaning <strong>of</strong> the <strong>Question</strong>, MUCHO did not notice that such a statement<br />

would be a declaration <strong>of</strong> use value and not <strong>of</strong> value. The d<strong>is</strong>tinction between use value and<br />

value <strong>is</strong> so simple, if one thinks about it, but it <strong>is</strong> easy to trip up if one <strong>is</strong> unaware. Th<strong>is</strong> <strong>is</strong><br />

why you must study the study guide, not just buy it.<br />

Caren’s [115] corrected MUCHO’s error; she noticed that these statements are not value<br />

statements but have something to do with use value. Th<strong>is</strong> <strong>is</strong> right as far as it goes; but the<br />

<strong>Question</strong> wanted you to do more. It asked you make up a true or fictitious story where<br />

someone says “John <strong>is</strong> John” or “a T-shirt <strong>is</strong> a T-shirt” or whatever, and then analyze in that<br />

particular story exactly what th<strong>is</strong> seemingly tautological statement means. No relation to<br />

economics or the reading required.<br />

But since th<strong>is</strong> <strong>is</strong> a non-economic <strong>Question</strong>, somewhat <strong>of</strong> a side line, I will be a tough<br />

grader with th<strong>is</strong> <strong>Question</strong>. The subject assigned th<strong>is</strong> week <strong>is</strong> extremely difficult, and I would<br />

prefer if you were to plunge into the more central <strong>is</strong>sues, instead <strong>of</strong> avoiding them by taking<br />

up the tangential <strong>Question</strong>s. If you take some r<strong>is</strong>ks, you will have my sympathetic ear.<br />

On the other hand, don’t try to substitute courage for a reasonable amount <strong>of</strong> reading and<br />

working through the material. Chances are slim that you can intuit the right answers without<br />

having done your homework.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 113<br />

Next Message by Hans <strong>is</strong> [120].<br />

[129] Reidar: “I am I” Any situation in which one <strong>is</strong> apathetic about the commodity<br />

which one purchases can be a good example for th<strong>is</strong> question. I personally, am not particular<br />

about which brand or type <strong>of</strong> gasoline I buy. There are those companies and people which<br />

claim that a gasoline with a higher octane content will help my car run better, but I say<br />

,“gasoline <strong>is</strong> gasoline”. In th<strong>is</strong> statement I am inferring that the use value <strong>of</strong> the commodities<br />

involved are the same. Caren compared th<strong>is</strong> likeness <strong>of</strong> use values to showing a commodity<br />

its own reflection in a mirror. I would not only compare the likeness <strong>of</strong> their use values,<br />

but point out that for me, the consumer, they contain the same use value, and it makes no<br />

difference to me which product I buy. They therefore do not contain differing values, neither<br />

product has a greater value than the other for me.<br />

It <strong>is</strong> not only senseless to compare two products which contain the same use value, but<br />

a compar<strong>is</strong>on cannot be made, because they contain the same value based on the abstract<br />

human labor that <strong>is</strong> “congealed” in their production. Footnote 18 points th<strong>is</strong> out by explaining<br />

that exchanging commodities <strong>is</strong> really only exchanging the labor involved in those<br />

commodities. And Marx also says, “the value <strong>of</strong> the linen can therefore only be expressed<br />

relatively, i.e. in another commodity.” Marx hereby restates that commodities only contain<br />

an external value when they are compared to commodities which contain the same amount <strong>of</strong><br />

social human labor. By containing like amounts <strong>of</strong> social human labor and having differing<br />

use values, these commodities have an exchange value.<br />

In my first example re: gasoline, the different types <strong>of</strong> gasoline have no differing use<br />

values and therefore have no exchange value one with another. I would not exchange one<br />

gasoline for another. Therefore, gasoline <strong>is</strong> gasoline.<br />

Message [129] referenced by [167]. Next Message by Reidar <strong>is</strong> [197.4].<br />

[131] Angela: Logical m<strong>is</strong>take: I am I “I am I”, we usually make a logical m<strong>is</strong>take<br />

to say th<strong>is</strong> sentence. If we say th<strong>is</strong> sentence, we actually mean something except for the<br />

meaning <strong>of</strong> my personal. The first utterance “I” denotes “myself” and the second utterance<br />

“I” denotes lots <strong>of</strong> things except for “myself.” The second utterance “I” might mean “my<br />

individual,” “my personality,” “my character<strong>is</strong>tics,” etc. If I said th<strong>is</strong> sentence, I mean that I<br />

am my own master, or I have special personalities or character<strong>is</strong>tics so that no one can affect<br />

me, or I believe in myself, or I am independent individual, etc.<br />

When we say th<strong>is</strong> sentence, we mean lots <strong>of</strong> and not just “I am I.” We know th<strong>is</strong> <strong>is</strong> a logical<br />

m<strong>is</strong>take but we usually do that in our real life. Because <strong>of</strong> th<strong>is</strong> reason, the commodities can’t<br />

express their values in themselves. If we did so, then we make a logical m<strong>is</strong>take.<br />

Message [131] referenced by [167]. Next Message by Angela <strong>is</strong> [193].<br />

[167] Hans: “I am I”, two right answers Reidar’s answer [129] and Angela’s answer<br />

[131] are basically right.<br />

Angela elaborates on the statement made in the Annotations in the paragraph just preceding<br />

<strong>Question</strong> 86, that in the sentence “I am I”, the first “I” means something different than<br />

the second. (In the Annotations, I used the statement “a plant <strong>is</strong> a plant”.) I agree with Angela’s<br />

examples, but I would not call it a logical m<strong>is</strong>take. It only looks like a logical m<strong>is</strong>take,<br />

or say better, it looks like a meaningless statement, a tautology, to someone who does not<br />

recongize that the first “I” means something different than the second.<br />

114 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Reidar gives a good example, and he also tries to make a connection to the expression <strong>of</strong><br />

value. Here <strong>is</strong> my take on what Reidar should have written:<br />

The statement “linen <strong>is</strong> linen” or for instance “gasoline <strong>is</strong> gasoline” may not sound very<br />

meaningful at first, but people say such things all the time. If someone does not care about<br />

the brand <strong>of</strong> gasoline he <strong>is</strong> putting into h<strong>is</strong> car, he may justify h<strong>is</strong> indifference with the words<br />

“gasoline <strong>is</strong> gasoline.”<br />

Assume P in our fictitious exchange economy wants to trade Brand A gasoline against<br />

Brand B gasoline. He puts up a sign saying: “Trading brand A gasoline for brand B gasoline:<br />

to me, one gallon Brand A gasoline <strong>is</strong> worth one gallon Brand B gasoline.” Q happens to<br />

read th<strong>is</strong> sign and mutters to himself: “gasoline <strong>is</strong> gasoline!” Th<strong>is</strong> muttering almost sounds<br />

almost like the price sign P has put up, but has a quite different meaning: “Despite the brand<br />

differences, th<strong>is</strong> <strong>is</strong> the same use-value. There <strong>is</strong> no need to trade gasoline against gasoline.”<br />

If P were to rely on the success <strong>of</strong> h<strong>is</strong> proposed trade in order to confirm that the labor<br />

spent producing Brand A gasoline was socially necessary, he would be d<strong>is</strong>appointed. Nobody<br />

would want to make th<strong>is</strong> trade—but th<strong>is</strong> would not mean that P’s gasoline was socially<br />

superfluous. Th<strong>is</strong> <strong>is</strong> why Marx says: the statement “gasoline <strong>is</strong> gasoline” <strong>is</strong> not an expression<br />

<strong>of</strong> value. An expression <strong>of</strong> value must have two different commodities on the different<br />

sides. Marx has a very deep interpretation <strong>of</strong> th<strong>is</strong> necessity. It <strong>is</strong> formulated most explicitly<br />

in 154:1, but it <strong>is</strong> implicit in everything he says around there: the expression <strong>of</strong> value<br />

requires a different use value, because the value <strong>of</strong> the linen <strong>is</strong> something different than its<br />

use value. An argument on a less abstract and more explicit economic level would be: In<br />

order to assess the social necessity <strong>of</strong> the labor contained in linen one must compare it with<br />

alternative uses <strong>of</strong> the same labor.<br />

Next Message by Hans <strong>is</strong> [168].<br />

<strong>Question</strong> 87 <strong>is</strong> 85 in 1995ut, 88 in 1996ut, 94 in 1997WI, 92 in 1997ut, 99 in 1998WI, 107<br />

in 1999SP, 134 in 2003fa, 150 in 2005fa, 170 in 2007fa, and 182 in 2009fa:<br />

<strong>Question</strong> 87 In the Simple or Accidental form <strong>of</strong> value, which commodity plays an active<br />

role, and which a passive role? Explain what it means in th<strong>is</strong> situation to be active or<br />

passive.<br />

[123] Pinky: Active/Passive In the example: 10 bags <strong>of</strong> potatoes = 1 coat, the potatoes<br />

take the role <strong>of</strong> the relative form <strong>of</strong> a commodity and the coat takes the role <strong>of</strong> the equivalent<br />

form. The relative form <strong>is</strong> active in that it <strong>is</strong> expressing its value in the equivalent form. The<br />

equivalent form <strong>is</strong> passive since it <strong>is</strong> merely a means by which the relative form expresses<br />

its value.<br />

Message [123] referenced by [125] and [174]. Next Message by Pinky <strong>is</strong> [188].<br />

[125] Hans: Pinky’s answer Pinky’s [123] repeats what Marx says, but I wanted her to<br />

translate Marx’s abstract statements into something more tangible, fill these abstract concepts<br />

with concrete meaning. From everyday experience it seems like money, i.e., the equivalent<br />

(the coat), <strong>is</strong> active, not passive. The goods lie frozen on the shelf until your money<br />

takes them down from the shelf. Now Marx says, th<strong>is</strong> <strong>is</strong> an illusion. It <strong>is</strong> not money that <strong>is</strong><br />

active, but the goods are active. But Marx’s argumentation <strong>is</strong> encrypted in some Hegelian


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 115<br />

formal<strong>is</strong>ms, which we are no longer used to nowadays. I want you to de-crypt Marx’s argument.<br />

Assume you had to explain to your little brother the idea that money <strong>is</strong> not active but<br />

passive. <strong>What</strong> would you say?<br />

Message [125] referenced by [174] and [2003fa:294.18]. Next Message by Hans <strong>is</strong> [140].<br />

[169] Super: Active and Passive roles When 20 yards <strong>of</strong> linen = 1 coat, the linen <strong>is</strong><br />

representing the active role and the coat, the passive role. The linen <strong>is</strong> the commodity who’s<br />

value <strong>is</strong> being analized. Here, 20 yards <strong>of</strong> linen <strong>is</strong> being related to a different quantity <strong>of</strong><br />

another commodity which <strong>is</strong> considered equal in value. Therefore the linen <strong>is</strong> focused upon<br />

and plays the active role.<br />

The coat <strong>is</strong> the commodity which acts as a relation to or expression <strong>of</strong> equivalence to the<br />

linen. The linen’s value has been expressed through the value <strong>of</strong> the coat. So the coat acts<br />

as a passive role in th<strong>is</strong> situation because it <strong>is</strong> the object being used by the previous so as to<br />

come to a solution <strong>of</strong> relative equivalence in value.<br />

Message [169] referenced by [174]. Next Message by Super <strong>is</strong> [197].<br />

[174] Hans: Super’s two errors Super’s answer [169] has lots <strong>of</strong> overlap with Pinky’s<br />

[123] without answering any <strong>of</strong> the questions I posed in my commentary [125] to that subm<strong>is</strong>sion,<br />

and therefore does not get a good grade. Besides, it has two errors. Super writes:<br />

20 yards <strong>of</strong> linen <strong>is</strong> being related to a different quantity <strong>of</strong> another commodity<br />

which <strong>is</strong> considered equal in value.<br />

The coat <strong>is</strong> not considered equal in value to the linen, the coat <strong>is</strong> considered the linen’s<br />

value. See what I wrote about th<strong>is</strong> in [120].<br />

Super’s second error <strong>is</strong> that he writes:<br />

The linen’s value has been expressed through the value <strong>of</strong> the coat.<br />

Marx stresses several times that it <strong>is</strong> the use value <strong>of</strong> the coat which expresses the value<br />

<strong>of</strong> the linen.<br />

Next Message by Hans <strong>is</strong> [175].<br />

<strong>Question</strong> 88 <strong>is</strong> 86 in 1995ut and 95 in 1997WI:<br />

<strong>Question</strong> 88 In the Random House edition <strong>of</strong> Capital, th<strong>is</strong> sentence reads: “In order to<br />

find out how the simple expression <strong>of</strong> the value <strong>of</strong> a commodity lies hidden in the value<br />

relation between two commodities, ....” I claim that th<strong>is</strong> translation <strong>is</strong> blatantly incorrect<br />

and self-contradictory. Can you see why?<br />

[141] Ramb<strong>is</strong>: contradiction Th<strong>is</strong> translation <strong>is</strong> blatantly incorrect and self-contradictory<br />

because it says that the “simple expression <strong>of</strong> the value <strong>of</strong> a commodity lies hidden in the<br />

value relation between two commodities.” Th<strong>is</strong> would imply that the simple expression <strong>of</strong> a<br />

value <strong>is</strong> an implicit inference while by definition a simple expression <strong>of</strong> a value <strong>is</strong> an explicit,<br />

equation-like statement (Ex: x commodity A = y commodity B, or x commodity A <strong>is</strong> worth y<br />

<strong>of</strong> commodity B). The value relation between two commodities <strong>is</strong> expressed by the exchange<br />

relations <strong>of</strong> the two commodities and by the div<strong>is</strong>ion and interdependence <strong>of</strong> the different<br />

labor processes. It <strong>is</strong> incorrect obviously because it m<strong>is</strong>defines the terms <strong>of</strong> simple expression<br />

and value relationships, but it <strong>is</strong> also self-contradictory because the simple expression<br />

116 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> value <strong>is</strong> not hidden but <strong>is</strong> explicitly understood and given at the outset when measuring<br />

the relationship between two commodities. The value relation <strong>is</strong> determined by comparing<br />

and examining the ways in which the commodities interact and are interdependent and the<br />

processes used to arrive at their formulation.<br />

Hans: You seem to know what <strong>is</strong> going on, but you do not say it very clearly. Were you not quite sure?<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [206.5].<br />

<strong>Question</strong> 89 <strong>is</strong> 80 in 1995WI, 87 in 1995ut, and 95 in 1997ut:<br />

<strong>Question</strong> 89 Marx gave here a m<strong>is</strong>taken example <strong>of</strong> emergence. Give examples where there<br />

<strong>is</strong> indeed emergence.<br />

[145] Homer: emergence Emergence <strong>is</strong> where something possesses certain qualities<br />

which cannot be explained by the summation <strong>of</strong> its individual components.<br />

Using th<strong>is</strong> definition, I can think <strong>of</strong> a couple <strong>of</strong> examples. The first <strong>is</strong> human thought.<br />

The brain <strong>is</strong> composed <strong>of</strong> millions <strong>of</strong> individual cells. No single cell <strong>is</strong> capable <strong>of</strong> thought,<br />

therefore if one were to look at thought as the summation <strong>of</strong> the thought power <strong>of</strong> the millions<br />

<strong>of</strong> individual cells the total would equal zero and thought would not be possible. However,<br />

when brain cells are arranged in the right way, thought emerges from the cells, although no<br />

cell by itself contained any thought.<br />

Another example <strong>is</strong> the emotional effect <strong>of</strong> a musical composition. For instance, when<br />

l<strong>is</strong>tened to in its entirety, Beethoven’s Ninth Symphony has certain emotional effects on<br />

the l<strong>is</strong>tener. As the brain <strong>is</strong> composed <strong>of</strong> cells, the symphony <strong>is</strong> composed <strong>of</strong> notes. The<br />

individual notes do not possess any emotional quality. Therefore, the sum <strong>of</strong> the emotional<br />

qualities <strong>of</strong> the notes should be zero. But when the notes are arranged in a certain way, the<br />

music has an emotional effect which was not contained in the single notes.<br />

Message [145] referenced by [158]. Next Message by Homer <strong>is</strong> [221].<br />

[158] Hans: Emergence <strong>is</strong> even more miraculous than that Homer’s answer [145]<br />

gives two good examples <strong>of</strong> emergence, but in both examples, he did not quite see how far<br />

the emergent quality <strong>is</strong> above that from which it emerges. For instance you write:<br />

However, when brain cells are arranged in the right way, thought emerges<br />

from the cells, although no cell by itself contained any thought.<br />

I would argue that the physiological processes which the cells are capable <strong>of</strong> when they<br />

are connected, and which one cannot find in a single cell, cannot be identified with thought<br />

either. It <strong>is</strong> humans that think, not nerve cells. They use the nerve cells to think. But<br />

humans have a free will, and what they are up to cannot be derived from the structure <strong>of</strong><br />

their brains. (You cannot really think <strong>of</strong> a human in <strong>is</strong>olation here, humans are intrinsically<br />

social animals).<br />

And the emotional content <strong>of</strong> music <strong>is</strong> also not given by the succession <strong>of</strong> notes, just<br />

as the meaning <strong>of</strong> a sentence <strong>is</strong> not given by the succession <strong>of</strong> vowels and consonants. The<br />

meaning <strong>of</strong> a music, that which grips us, <strong>is</strong> emergent from the melodies and the other musical<br />

elements.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 117<br />

All th<strong>is</strong> <strong>is</strong> pretty vague; and many philosophers don’t like the concept <strong>of</strong> emergence<br />

because it <strong>is</strong> so vague, and because nobody really understands how it works. But if one<br />

looks at the real world, it seem obvious to me that there must be something like emergence.<br />

That we don’t understand it yet <strong>is</strong> not a reason to assume that it does not ex<strong>is</strong>t.<br />

Next Message by Hans <strong>is</strong> [159].<br />

[162] KALISPEL: Emergence. I find th<strong>is</strong> concept <strong>of</strong> emergence to be intriguing. It<br />

presupposes that there <strong>is</strong> no such thing as complete knowledge on any one subject. For<br />

example, God <strong>is</strong> transcendental. Th<strong>is</strong> means we can never be on h<strong>is</strong> level. Emergence <strong>is</strong> the<br />

process <strong>of</strong> going through these various levels. Once we a level <strong>of</strong> thought we must look to<br />

another level, for there are infinite possibilities.<br />

Emergence <strong>is</strong> known to have four or five successive levels: 1-psychophysical events 2life<br />

3-mind 4- spirit or God. Other emergents describe five levels: 1- space 2-time 3-matter<br />

4-life 5-mind and 6-deity. All <strong>of</strong> these categories interact together to explain intelligibility.<br />

One form leads to the other and in some way all are inextricably intertwined together.<br />

For example, we know that water <strong>is</strong> made <strong>of</strong> <strong>of</strong> hydrogen and oxygen. Th<strong>is</strong> chemical<br />

make-up explains the physical properies <strong>of</strong> water and bonding capabilities. However, oxygen<br />

and hydrogen cannot explain that water <strong>is</strong> translucent. Thus, it <strong>is</strong> evident that there <strong>is</strong><br />

much to still understand about the composition <strong>of</strong> matter. Emerg<strong>is</strong>ts attempt to explore these<br />

“unsolvable” realms.<br />

I find it interesting to explore the nature <strong>of</strong> what it <strong>is</strong> to be alive. If we take some energy<br />

in material form and unsolidified form (electricity) and make a computer that can reason. Is<br />

it now alive? World chess champions have been beaten by computers. And if the computers<br />

can reason out logically what the best move <strong>is</strong> then they are capable <strong>of</strong> logic. Additionally,<br />

they are made <strong>of</strong> matter just as we are. Once the computer learns how to “think” logically<br />

does th<strong>is</strong> make it also capable <strong>of</strong> introspection. Then again, if th<strong>is</strong> internal monologue in<br />

our heads called introspection or consciousness doesn’t ex<strong>is</strong>t are we reactionary robots as<br />

computers are? Do we really have power over our individual actions? Here <strong>is</strong> the problem,<br />

nobody in th<strong>is</strong> world can introspect for another. I can never get into your head no matter<br />

how hard I try. <strong>What</strong> if matter can be created or ex<strong>is</strong>ts naturally in a form that has consciousness.<br />

<strong>What</strong> about animals? If th<strong>is</strong> <strong>is</strong> all so, then the world <strong>is</strong> far different than we might<br />

think. Many attribute th<strong>is</strong> introspection to deity or a soul, but what if introspection works on<br />

scientific laws that can be manipulated like the human body? <strong>What</strong> if it would be possible<br />

to go to the doctor and get a metaphysical essence prescribed to you that could change your<br />

intropection or consciousness? Would th<strong>is</strong> then be the manipulation <strong>of</strong> God. If God controls<br />

our introspection then we may not have control over who we are. If we control it then how<br />

do we do it and by what laws <strong>of</strong> nature.<br />

Next Message by KALISPEL <strong>is</strong> [200.2].<br />

<strong>Exam</strong> <strong>Question</strong> 90 <strong>is</strong> 96 in 1997ut and 156 in 2004fa:<br />

<strong>Exam</strong> <strong>Question</strong> 90 How does the social scient<strong>is</strong>t’s analys<strong>is</strong> <strong>of</strong> the substance <strong>of</strong> value differ<br />

from what the commodities tell each other in the exchange?<br />

118 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[135] Pizza: substance <strong>of</strong> value The substance <strong>of</strong> value from the perspective <strong>of</strong> a social<br />

scient<strong>is</strong>t <strong>is</strong> that value which <strong>is</strong> separate from the exchange relation between two commodities.<br />

You note that we should skip over Marx’s analogy to the butric acid and propyl formate<br />

but lets apply th<strong>is</strong> structure again. Lets take two bandanna’s each same size, shape etc..<br />

identical in all material fact excepting their colors. One’s color <strong>is</strong> red and the other <strong>is</strong> blue.<br />

The exchange relations are equivalent. A gang member <strong>of</strong> the bloods walks into a store and<br />

looks at the two bandana’s and having no value for the blue bandanna purchases the red and<br />

walks out, why? The substance <strong>of</strong> value for the red bandana was its embodiedment <strong>of</strong> value<br />

in the eyes <strong>of</strong> the blood’s as a representation <strong>of</strong> their neihborhood, membership in a unit<br />

<strong>of</strong> brotherhood that only held its value within their own society. Th<strong>is</strong> <strong>is</strong> not a quantifiable<br />

value as the exchange value the blue bandana equates the same but does not embody the<br />

substance <strong>of</strong> value that the red bandana did. The substance value not only <strong>is</strong> unrelated to the<br />

quantifiable exchange but <strong>is</strong> additionaly dependent upon those in which the embodiedment<br />

<strong>of</strong> its value rests.<br />

Hans: You m<strong>is</strong>sed the <strong>Question</strong>, and your confusion between use value and substance <strong>of</strong> value <strong>is</strong> a serious blunder.<br />

But you brought in interesting example <strong>of</strong> the relativity <strong>of</strong> use value.<br />

Message [135] referenced by [159]. Next Message by Pizza <strong>is</strong> [290].<br />

<strong>Question</strong> 92 <strong>is</strong> 83 in 1995WI, 90 in 1995ut, and 94 in 1996ut:<br />

<strong>Question</strong> 92 Have we gotten away from th<strong>is</strong> personality cult in a modern democracy?<br />

[147] Chacci: Cult <strong>of</strong> Personality In a modern democracy where everyone <strong>is</strong> supposed<br />

to be equal we still have a cult <strong>of</strong> personality. For example, presidential candidates use<br />

campaign managers, public relations experts and pr<strong>of</strong>essional speech writers to make them<br />

appear to be intelligent, wholesome, religious and proper. Basically presidential candidates<br />

use these people to make them look more ‘presidently’. And people want to see a president<br />

in <strong>of</strong>fice that looks and acts like a president. Hans gives the example that good music sounds<br />

like Mozart, another example would be a presidential candidate looks like every other president.<br />

If a modern democracy didn’t have a cult <strong>of</strong> personality a Muslim African-American<br />

with long hair could be considered for president.<br />

Hans: Th<strong>is</strong> <strong>is</strong> excellent. I have nothing to add. And the <strong>Question</strong>s which you answered last week and as your trial<br />

subm<strong>is</strong>sion were very specific economic <strong>Question</strong>s, therefore there <strong>is</strong> nothing wrong with you picking one <strong>of</strong> the<br />

more general and tangential <strong>Question</strong>s for a change.<br />

Message [147] referenced by [175]. Next Message by Chacci <strong>is</strong> [214].<br />

<strong>Question</strong> 101 <strong>is</strong> 93 in 1995WI, 108 in 1997WI, and 112 in 1997sp:<br />

<strong>Question</strong> 101 I am the tailor. If I have a coat and want linen, would the linen weaver, who<br />

just said “20 yards <strong>of</strong> linen <strong>is</strong> worth one coat” have to make an exchange with me?<br />

[122] Slacker: Even though the linen weaver expresses the value <strong>of</strong> h<strong>is</strong>/her commodity<br />

as worth one coat there <strong>is</strong> nothing in th<strong>is</strong> that states that the weaver wants the coat. If the<br />

coat <strong>is</strong> the universal equivalant all producers would express the value <strong>of</strong> their commodities<br />

in coats. In fact, the inital statement may preccede a continuing statement as to the desire<br />

for a pair <strong>of</strong> trousers which <strong>is</strong> worth 1/2 a coat. Th<strong>is</strong> relation <strong>is</strong> expressed by the expanded<br />

relative form <strong>of</strong> value.<br />

Message [122] referenced by [124]. Next Message by Slacker <strong>is</strong> [215].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 119<br />

[124] Hans: Slacker’s answer Slacker, in [122], says: no. In order to argue h<strong>is</strong> claim,<br />

Slacker assumes that the coat <strong>is</strong> the universal equivalent (i.e., roughly, that the money commodity<br />

<strong>is</strong> coats). Let us go for a moment with th<strong>is</strong> assumption. In one respect, Slacker<br />

<strong>is</strong> right: the primary function <strong>of</strong> the universal equivalent <strong>is</strong> to deliver the material in which<br />

people can express their value. If you look at Chapter Three, you see that the first function <strong>of</strong><br />

money <strong>is</strong> “measure <strong>of</strong> value”, which <strong>is</strong> just that. All <strong>of</strong> mainstream and also PostKeynesian<br />

economics overlooks that, because they do not have an objective concept <strong>of</strong> value.<br />

But at the end <strong>of</strong> Section 1 <strong>of</strong> Chapter Three, Marx writes: “In the ideal measure <strong>of</strong> value<br />

lurks hard cash”, and Section 2 d<strong>is</strong>cusses the role <strong>of</strong> money as means <strong>of</strong> circulation. <strong>What</strong><br />

<strong>is</strong> going on here? Very simple: if everybody measures the value <strong>of</strong> their goods in gold (or<br />

in coats, as in your example), then nothing <strong>is</strong> more natural than that they also use gold as<br />

the means to trade their goods. If you <strong>of</strong>fer to buy something for $10, the seller will never<br />

say: although the price tag <strong>of</strong> my commodity says $10, I do not really want the $10, but I<br />

want something in that other store which <strong>is</strong> also valued $10. Instead, he will take your $10,<br />

and go to the other store and buy the other article himself. Therefore if we have a universal<br />

equivalent, then th<strong>is</strong> <strong>is</strong> at the same time the commodity which everybody wants.<br />

But we are not yet there. In section 3 <strong>of</strong> Chapter One, Marx <strong>is</strong> trying to explain how<br />

it happens that one commodity, gold, obtains such a privileged position. In the context <strong>of</strong><br />

<strong>Question</strong> 101, there <strong>is</strong> no money. Th<strong>is</strong> <strong>is</strong> why people express the values <strong>of</strong> their goods in<br />

other commodities, not in money. And if my reading <strong>of</strong> Section 3 <strong>is</strong> correct, th<strong>is</strong> <strong>is</strong> for them<br />

a simple practical matter. They do not think: how can I express the value <strong>of</strong> my linen, but<br />

they think: after working so hard on the linen, would I be willing to trade 20 yards <strong>of</strong> linen<br />

for a coat? In other words, do I need a coat bad enough to give my linen for it? Unlike in<br />

neoclassical revealed preference theory, they do not compare the use value <strong>of</strong> the linen with<br />

the use value <strong>of</strong> the coat. The linen has no use value for the linen weaver. The linen weaver<br />

has linen coming out <strong>of</strong> h<strong>is</strong> ears. Rather, he <strong>is</strong> comparing the time and effort he put in the<br />

linen with the use value <strong>of</strong> the coat. Th<strong>is</strong> <strong>is</strong> what Marx means by: expressing the value <strong>of</strong> the<br />

linen in the use value <strong>of</strong> the coat. It <strong>is</strong> therefore in the very nature <strong>of</strong> th<strong>is</strong> value expression<br />

that the linen weaver <strong>is</strong> willing to exchange h<strong>is</strong> linen for the coat. If he were not willing,<br />

then he would not have anything to back up h<strong>is</strong> statement; h<strong>is</strong> statement would only be an<br />

empty phrase, and not an expression <strong>of</strong> the value <strong>of</strong> the linen.<br />

Next Message by Hans <strong>is</strong> [125].<br />

<strong>Question</strong> 104 <strong>is</strong> 95 in 1995WI, 111 in 1997WI, 115 in 1997sp, and 109 in 1997ut:<br />

<strong>Question</strong> 104 Is it really true that a king <strong>is</strong> only king because others behave towards him<br />

as subjects?<br />

[150] Bandit: It <strong>is</strong> true that a king <strong>is</strong> only a king because others behave towards him as<br />

subjects. For instance, throughout h<strong>is</strong>tory we have seen people who have r<strong>is</strong>en up aga<strong>is</strong>nt a<br />

king and taken h<strong>is</strong> life because they no longer respect h<strong>is</strong> authority and will not act as h<strong>is</strong><br />

subjects. A king can also be taken from h<strong>is</strong> own country and placed in another and people<br />

will not respect him as a king, especially if they have never heard <strong>of</strong> him.<br />

Th<strong>is</strong> <strong>is</strong> what Marx was saying with h<strong>is</strong> theory “determination <strong>of</strong> reflection.” A king will<br />

only be treated as a king if h<strong>is</strong> people wil reflect him as a king.<br />

120 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Hans: It does not make a good impression if someone who starts with h<strong>is</strong> subm<strong>is</strong>sions as late as you do (th<strong>is</strong> <strong>is</strong><br />

your first subm<strong>is</strong>sion, and it was originally sumitted ten minutes after the deadline), picks a <strong>Question</strong> which has<br />

nothing to do with economics. In the future please pick <strong>Question</strong>s from which I can see that you understand the<br />

readings.<br />

Message [150] referenced by [168] and [241]. Next Message by Bandit <strong>is</strong> [179.1].<br />

[168] Hans: About the Ontology <strong>of</strong> Kings Bandit’s answer [150] gave good arguments<br />

supporting the point Marx made. Nevertheless, I did not mean <strong>Question</strong> 104 to be a rhetorical<br />

<strong>Question</strong>. As I see it, there <strong>is</strong> much more to a king than the obedience <strong>of</strong> h<strong>is</strong> citizens. If<br />

they are not obedient, he can force them. There <strong>is</strong> a very powerful social structure, including<br />

an army, laws and a judicial system, a school system which tells the citizens at a tender age<br />

how great their king <strong>is</strong>, etc.<br />

Next Message by Hans <strong>is</strong> [170].<br />

[241] Snowman: respnse to bandit’s answer Bandit wrote in [150]<br />

It <strong>is</strong> true that a king <strong>is</strong> only a king because others behave towards him as<br />

subjects. For instance, throughout h<strong>is</strong>tory we have seen people who have<br />

r<strong>is</strong>en up aga<strong>is</strong>nt a king and taken h<strong>is</strong> life because they no longer respect h<strong>is</strong><br />

authority and will not act as h<strong>is</strong> subjects. A king can also be taken from<br />

h<strong>is</strong> own country and placed in another and people will not respect him as a<br />

king, especially if they have never heard <strong>of</strong> him.<br />

Th<strong>is</strong> <strong>is</strong> what Marx was saying with h<strong>is</strong> theory “determination <strong>of</strong> reflection.”<br />

A king will only be treated as a king if h<strong>is</strong> people wil reflect him as a king.<br />

I feel that though th<strong>is</strong> <strong>is</strong> fairly logical in defining the condition for which a person hold<br />

the position <strong>of</strong> a king it fails to recognize all the conditions for which one can be a king. The<br />

one situation that I can think <strong>of</strong> <strong>is</strong> in the cse where the “king” <strong>is</strong> king because <strong>of</strong> the coercive<br />

power over those that he rules such that though they may not desire him to be king, and in<br />

fact do not consider him a worthy ruler, they are forced to be h<strong>is</strong> subjects. Situations such as<br />

th<strong>is</strong> may lead to social unrest and a loss dictative power for the position <strong>of</strong> king, such that the<br />

subjects are no longer in the control <strong>of</strong> the king, however for the matters <strong>of</strong> the state the king<br />

would still be the one making all the dec<strong>is</strong>ions. Theat <strong>is</strong> the king may be able to make the<br />

dec<strong>is</strong>ions for the country concerning other countries yet not have the control or leadership<br />

<strong>of</strong> the public. Though th<strong>is</strong> <strong>is</strong> more unlikely than the standard by which the “determination<br />

<strong>of</strong> reflection” theory <strong>is</strong> based it <strong>is</strong> a possibility. I do not believe the possibility <strong>of</strong> th<strong>is</strong> negates<br />

the validity <strong>of</strong> Marx as he applies it though.<br />

Next Message by Snowman <strong>is</strong> [296].<br />

<strong>Question</strong> 107 <strong>is</strong> 118 in 1997sp, 121 in 1998WI, 143 in 2001fa, 178 in 2004fa, and 197 in<br />

2007fa:<br />

<strong>Question</strong> 107 Repeat in your own words the three peculiarities <strong>of</strong> the equivalent form.<br />

[138] Snowman: The three peculiarities <strong>of</strong> equivalent form The first peculiarity <strong>is</strong><br />

that in exchange economies the form <strong>of</strong> notation that any one value takes. <strong>What</strong> <strong>is</strong> odd<br />

about th<strong>is</strong> <strong>is</strong> that we express the value <strong>of</strong> an object in terms <strong>of</strong> other objects different from<br />

the original object itself. The value <strong>of</strong> any one object as it relates to another <strong>is</strong> socially<br />

determined, and not based on any physical property. values are then assigned not based


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 121<br />

on d<strong>is</strong>tingu<strong>is</strong>hable properties but those socially assigned and not directly easily related to<br />

the object. For example my bicycle has many physical properties that can be compared in<br />

relation to other objects, maybe a skate-board, that also have physical properties. These<br />

physical properties include weight, mass, volume, and size. So physically speaking the bike<br />

may have a height value <strong>of</strong> four skate-boards, in other words the bike <strong>is</strong> four skate boards<br />

tall, yet th<strong>is</strong> has nothing to do with the exchange value <strong>of</strong> either product, it <strong>is</strong> only the<br />

Physical “equivalent values.” The value, and its magnitude, <strong>is</strong> different in that it <strong>is</strong> socially<br />

determined, or determined by the various relations that individuals keep with the object <strong>of</strong><br />

value as a whole. In other words it <strong>is</strong> determined by all the relations <strong>of</strong> the society and can<br />

not by reduced to any one individual relation.<br />

The second peculiarity <strong>is</strong> the statement that “concrete labor <strong>is</strong> the expression <strong>of</strong> abstract<br />

labor.” That <strong>is</strong> the labor used in production <strong>of</strong> a product <strong>is</strong> its concrete labor yet the abstract<br />

labor, or the labor that will be used to determine its price, <strong>is</strong> based on the socially determined<br />

labor value given the various factors <strong>of</strong> production. For example in my pocket I have a wallet<br />

whose value on the market <strong>is</strong> four dollars based on the abstract human labor used to produce<br />

the average wallet <strong>of</strong> its kind, though th<strong>is</strong> particular wallet may have required more or less<br />

time to produce. The value <strong>of</strong> the wallet <strong>is</strong> the average <strong>of</strong> all the specific labor hours required<br />

to produce all the individual wallets and it <strong>is</strong> th<strong>is</strong> average that <strong>is</strong> known as the abstract labor.<br />

The third peculiarity <strong>is</strong> derived from the second, that <strong>is</strong> all individual labor that produces<br />

a commodity <strong>is</strong> also social labor. That <strong>is</strong> in that act <strong>of</strong> producing any individual commodity<br />

that has value, that value <strong>is</strong> determined socially and not by the individual producing it, nor<br />

<strong>is</strong> the value determined by the type <strong>of</strong> labor, say frame building in case <strong>of</strong> the bike, the value<br />

<strong>is</strong> instead determined by its social value in terms <strong>of</strong> abstract labor hours. Therefor even as<br />

the labor <strong>is</strong> performed individually it contains “immediate social form.”<br />

Hans: Your grade suffered because you had the wrong concepts <strong>of</strong> value and <strong>of</strong> abstract labor.<br />

Message [138] referenced by [170] and [187]. Next Message by Snowman <strong>is</strong> [203].<br />

[170] Hans: Value <strong>is</strong> not the aggregate <strong>of</strong> use values According to Marx, the equivalent<br />

form <strong>is</strong> peculiar because it expresses the general social value qualities <strong>of</strong> the product in terms<br />

<strong>of</strong> individual use value qualities.<br />

In h<strong>is</strong> d<strong>is</strong>cussion <strong>of</strong> the first peculiarity, Snowman’s [138] uses a m<strong>is</strong>taken concept <strong>of</strong><br />

value: he thinks “value” <strong>is</strong> an aggregation <strong>of</strong> use value qualities, and therefore he <strong>is</strong> surpr<strong>is</strong>ed<br />

at the fact that the value <strong>of</strong> a product <strong>is</strong> measured by the use value <strong>of</strong> a different product. In<br />

the framework <strong>of</strong> Marx’s theory, in which product have value because they have absorbed<br />

a part <strong>of</strong> social labor which could also have been used for the production <strong>of</strong> a different<br />

product, the relation to a different product <strong>is</strong> not surpr<strong>is</strong>ing; what <strong>is</strong> surpr<strong>is</strong>ing <strong>is</strong> that value<br />

expresses itself in the use value <strong>of</strong> th<strong>is</strong> different product. But since Snowman uses a concept<br />

<strong>of</strong> value informed by neoclassical utility theory, he <strong>is</strong> surpr<strong>is</strong>ed at what the equivalent form<br />

does “right” instead <strong>of</strong> that what it does “wrong”.<br />

Regarding the second peculiarity, Snowman starts with a m<strong>is</strong>taken concept <strong>of</strong> abstract<br />

labor. Just as he considers the value <strong>of</strong> a product as an aggregate measure <strong>of</strong> all its use<br />

values, so he considers abstract labor as an average taken <strong>of</strong> all the different skill levels<br />

<strong>of</strong> concrete useful labor. He m<strong>is</strong>ses the main point here, that in abstract labor the useful<br />

properties <strong>of</strong> labor are extingu<strong>is</strong>hed. Therefore he m<strong>is</strong>ses that what Marx finds surpr<strong>is</strong>ing.<br />

122 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The third peculiarity, that in the equivalent form (and in that form only, i.e., Marx really<br />

speaks here only about the labor producing gold, not the labor producing an ordinary<br />

commodity), individual labor directly counts as social labor, <strong>is</strong> re-interpreted by Snowman<br />

to mean that the individual labor <strong>of</strong> any commodity does not create value, but that value <strong>is</strong><br />

something social. Th<strong>is</strong> <strong>is</strong> in keeping with Snowman’s conception <strong>of</strong> value laid out at the<br />

beginning <strong>of</strong> h<strong>is</strong> contribution, according to which value derives from a social aggregation<br />

<strong>of</strong> the use value <strong>of</strong> the commodity (th<strong>is</strong> aggregation presumably being accompl<strong>is</strong>hed by the<br />

play <strong>of</strong> demand and supply).<br />

For someone steeped in neoclassical concepts, who <strong>is</strong> just beginning to understand Marx,<br />

it <strong>is</strong> easy (and almost automatic) to fill in neoclassical concepts for those parts <strong>of</strong> Marx’s<br />

theory which one does not yet understand. Th<strong>is</strong> <strong>is</strong> not only Snowman’s problem, but th<strong>is</strong> <strong>is</strong><br />

a general problem which everyone in th<strong>is</strong> class must grapple with. Therefore it can happen<br />

that you write something which <strong>is</strong> quite intelligent, as Snowman’s contribution, but you will<br />

get the answer back that it <strong>is</strong> all wrong. Do not let that d<strong>is</strong>courage you.<br />

Next Message by Hans <strong>is</strong> [174].<br />

<strong>Question</strong> 120 <strong>is</strong> 13 in 1995WI, 14 in 1997ut, 18 in 2003fa, 20 in 2005fa, 24 in 2008fa,<br />

and 23 in 2012fa:<br />

<strong>Question</strong> 120 Why does Marx not go from the Simple form <strong>of</strong> value directly to the Universal<br />

form <strong>of</strong> value by letting everyone express their values in the same commodity?<br />

[126] Jupiter: Universal To understand the value <strong>of</strong> a given commodity we cannot simply<br />

just throw it into the market place without first understanding what type <strong>of</strong> use value it <strong>is</strong><br />

going to hold, as well as how much labor time <strong>is</strong> going to go into th<strong>is</strong> product. Why Marx<br />

starts out with a simple-value commodity, <strong>is</strong> to give it a bas<strong>is</strong> <strong>of</strong> value to be compared in<br />

direct correlation with another commodity ie.(20 yards <strong>of</strong> linen = 1 coat, or 20 yards <strong>of</strong><br />

linen <strong>is</strong> worth one coat). Th<strong>is</strong> <strong>is</strong> a direct compar<strong>is</strong>on <strong>of</strong> two commodities which derive their<br />

value from both the use-value <strong>of</strong> the commodity as well as the labor that <strong>is</strong> put into the<br />

commodities. With th<strong>is</strong> they are given quantitative and a qualitative properties and thus are<br />

given a value in the market place and are put up for exchange for other commodities.<br />

A more soph<strong>is</strong>ticated form <strong>of</strong> the market place will evolve from th<strong>is</strong> simple form <strong>of</strong> value<br />

to a universal form. In the universal form we have one bas<strong>is</strong> <strong>of</strong> exchange, or one thing to set<br />

the market prices, th<strong>is</strong> <strong>is</strong> other commodities <strong>of</strong> value.<br />

Marx does not go directly into th<strong>is</strong> form <strong>of</strong> exchange because we need to see how a<br />

commodity gets its value, then we can start to see how there <strong>is</strong>, labor and use value involved<br />

in the final forn <strong>of</strong> a product. Once we understand th<strong>is</strong> process that goes on in every form <strong>of</strong><br />

a product, then we can put it in an open market place, exchanging coats for iron, corn, gold<br />

etc. I see it as a metamorphos<strong>is</strong> <strong>of</strong> an evolving market place with the values <strong>of</strong> the different<br />

products setting their own equalibrium prices.<br />

Next Message by Jupiter <strong>is</strong> [182.1].<br />

<strong>Question</strong> 127 <strong>is</strong> 118 in 1995WI, 138 in 1997sp, 130 in 1997ut, 147 in 1999SP, 156 in<br />

2000fa, 163 in 2001fa, 177 in 2002fa, 180 in 2003fa, 207 in 2004fa, 203 in 2005fa, 223<br />

in 2007SP, 227 in 2007fa, 238 in 2011fa, and 248 in 2012fa:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 123<br />

<strong>Question</strong> 127 <strong>What</strong> <strong>is</strong> the progress <strong>of</strong> the Money form as compared to the General Equivalent<br />

form?<br />

[148] TOAD: Progress <strong>of</strong> the Money form If I understand the question correctly you<br />

are asking what changes have taken place in the commodity <strong>of</strong> gold to change it from a<br />

commodity to the Universal equivilent.<br />

First <strong>of</strong>f in example form C gold expresses its value in tearms <strong>of</strong> linen. As Kalle answered<br />

in question 83 the value <strong>of</strong> the commodity on the left <strong>of</strong> the equivelent <strong>is</strong> dictated by the the<br />

exchange vlaue <strong>of</strong> the commodity on the right. Meaning that in form C the value <strong>of</strong> gold<br />

was dictated by the “current exchange value” <strong>of</strong> linen.<br />

As time passed gold was more widely accepted as the universal equivalent meaning that<br />

<strong>is</strong> was used more and more as the means by which the exchange value <strong>of</strong> other commodities<br />

was judged. Gold made its move from the relative value to the equivalent value. (left side <strong>of</strong><br />

the equation to the right)<br />

As th<strong>is</strong> change became widley accepted it gained a monopoly over all other forms <strong>of</strong><br />

equivelents and became “the expression <strong>of</strong> value for the world <strong>of</strong> commodities”. With th<strong>is</strong><br />

change to the money commodity form D became the Money form and for th<strong>is</strong> reason it <strong>is</strong><br />

different from form C the General form.<br />

Message [148] referenced by [175]. Next Message by TOAD <strong>is</strong> [181.3].<br />

[173] Snake: progression <strong>of</strong> money The progression <strong>of</strong> money <strong>is</strong> deriveded from the<br />

idea <strong>of</strong> exchanging commodities by General Equivalent form. When we exchange goods by<br />

their equivalent form, the problem <strong>of</strong> determing the value <strong>of</strong> a commodity weighted aga<strong>is</strong>nt<br />

other commodities ar<strong>is</strong>es. The problem which ar<strong>is</strong>es <strong>is</strong> that it would be difficult to transport<br />

various commodities by which you would want to exchange with. Also you would have<br />

a difficult time finding another person with equal wants, whom you would exchange with.<br />

Therefore the progression <strong>of</strong> money form becomes tranferred to commodities which are<br />

fitted to perform the social function <strong>of</strong> a universal equivalent. Those commodities are the<br />

precious metals, gold and silver. The process <strong>of</strong> money has lead to simplifing the matter <strong>of</strong><br />

exchange by creating an general equivalent form that <strong>is</strong> portable, durable, div<strong>is</strong>ible, easily<br />

reconizble, and acceptible for exchange. Money form <strong>of</strong> the thing <strong>is</strong> external to the thing<br />

itself. By which a standard <strong>of</strong> one commdity which buys everthing else, currency.<br />

Message [173] referenced by [175]. Next Message by Snake <strong>is</strong> [175.1].<br />

[175] Hans: Toad’s and Snake’s answers Of the two answers received to th<strong>is</strong> <strong>Question</strong>,<br />

I will d<strong>is</strong>cuss Snake’s [173] first, although it was the second subm<strong>is</strong>sion. Snake describes<br />

the practical advantages which the introduction <strong>of</strong> money brings for the exchange. Implicit<br />

here <strong>is</strong> a “functional<strong>is</strong>t” explanation <strong>of</strong> money: money ex<strong>is</strong>ts because it has a function in the<br />

exchange process.<br />

Functional<strong>is</strong>t explanations have always been viewed with suspicion, and rightly so. Without<br />

getting into the details <strong>of</strong> th<strong>is</strong> philosophical debate, it <strong>is</strong> important for us here to notice<br />

that Marx <strong>is</strong> not giving a functional<strong>is</strong>t explanation <strong>of</strong> money. In Chapter Two, about the<br />

Exchange Process, Marx brings many <strong>of</strong> the arguments from Snake’s [147], but Marx’s underlying<br />

argument <strong>is</strong> not: money has been introduced in order to resolve these practical<br />

124 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

difficulties, but rather: since money <strong>is</strong> an appropriate expression <strong>of</strong> value, it can (among others)<br />

resolve these practical difficulties. But to Marx, the function <strong>of</strong> means <strong>of</strong> circulation <strong>is</strong><br />

not the most basic function <strong>of</strong> money. Marx’s derivation in Section 3 <strong>of</strong> Chapter One <strong>is</strong> <strong>of</strong> a<br />

more general nature than the functional<strong>is</strong>t explanation suggested by Snake. The function <strong>of</strong><br />

money in the circulation <strong>of</strong> commodities <strong>is</strong> only one corollary <strong>of</strong> Marx’s general derivation.<br />

A second and arguably a more important corollary <strong>of</strong> th<strong>is</strong> derivation will be the transition<br />

<strong>of</strong> money to capital given in Chapter Four, an <strong>is</strong>sue which completely eludes mainstream<br />

economics with its emphas<strong>is</strong> on the circulation process.<br />

Now let us turn to Toad’s [148]. Toad understood better than Snake that <strong>Question</strong> 127<br />

was meant to be a rather narrow <strong>Question</strong> about the difference between form C in 157:4 and<br />

form D in 162:3. Toad wanted to argue himself through step by step, but h<strong>is</strong> argument did<br />

not quite get <strong>of</strong>f the ground. I think th<strong>is</strong> may have to do with the fact that Toad was confused<br />

about two <strong>is</strong>sues.<br />

(1) Toad noticed that gold was on the left hand side in form C and on the right hand side<br />

in form D. Therefore he thought the transition from C to D was a switch from the left to the<br />

right hand side. But th<strong>is</strong> <strong>is</strong> not how one should look at it. The difference between form C<br />

and D <strong>is</strong> that form C <strong>is</strong> a temporally and spacially transitory form: one tribe may use linen as<br />

general equivalent, another spices, a third seashells, a fourth cattle. In form D, the function<br />

<strong>of</strong> general equivalent has been attached for good with one use value only, and that <strong>is</strong> gold.<br />

Seems a quite unimportant difference, and therefore my question: what <strong>is</strong> the progress in<br />

th<strong>is</strong>?<br />

(2) Toad also m<strong>is</strong>-quotes Kalle. Kalle had written in [137]:<br />

The amount <strong>of</strong> the commodity on the right hand side <strong>is</strong> the equivalent, and<br />

therefore, dictates the relative value <strong>of</strong> the first commodity.<br />

I wrote Kalle privately that I did not like the word “dictate” which was not passive enough,<br />

but Kalle was right to start h<strong>is</strong> sentence with “the amount”, which refers to use value, not<br />

value. But Toad thought that Kalle had written “its exchange value”, as becomes clear from<br />

Toad’s sentence<br />

the value <strong>of</strong> the commodity on the left <strong>of</strong> the equivelent <strong>is</strong> dictated by the<br />

the exchange vlaue <strong>of</strong> the commodity on the right.<br />

Toad did therefore not write the same thing Kalle had written. Nevertheless it can be<br />

argued that both are right, because they refer to different situations. Kalle had written about<br />

the Simple form <strong>of</strong> value, while Toad wrote about the Universal form <strong>of</strong> value. If all commodities<br />

express their values in gold, they no longer mean the use value <strong>of</strong> gold, but that<br />

what gold can buy, which <strong>is</strong> the exchange value <strong>of</strong> gold.<br />

Next Message by Hans <strong>is</strong> [177].<br />

<strong>Question</strong> 129 <strong>is</strong> 120 in 1995WI, 131 in 1996ut, 141 in 1998WI, 148 in 1999SP, and 167 in<br />

2001fa:<br />

<strong>Question</strong> 129 Do you know <strong>of</strong> other phenomena in capital<strong>is</strong>m which seem to be the result<br />

<strong>of</strong> “magic”?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 125<br />

[192] Wight: Capital<strong>is</strong>t magic In mu opinion, there <strong>is</strong> quite a bit <strong>of</strong> magical phenomena<br />

taking place in a capital<strong>is</strong>t system. Economic changes seem to be ongoing with no definitive<br />

cause and effect relationship. <strong>What</strong> causes economic conditions and data to fluctuate<br />

so wildly? Some <strong>of</strong> the so called magical phenomena are as follows: unemployment rate<br />

stat<strong>is</strong>tics, interest rate and stock price fluctuations, the changing value <strong>of</strong> the dollar on international<br />

currency markets, changing prices <strong>of</strong> various goods and services, especially gas<br />

prices (why <strong>is</strong> gas $.15 more expensive th<strong>is</strong> week as oppossed to last week), fluctuations<br />

regarding economic growth, GDP, and business cycles. All <strong>of</strong> these economic indicators or<br />

gages are endlessly being monitored and modified. They seem to be abstract numbers without<br />

any explanation. Especially the huge aggregated indices. How anyone ever compiles th<strong>is</strong><br />

data <strong>is</strong> a mystery to me. Econom<strong>is</strong>ts try and explain th<strong>is</strong> phenomena through changing supply<br />

and demand graphs, but are the theories really accurate and appropriate? <strong>What</strong> causes<br />

these huge market wide changes in supply or demand? When you really begin to look at the<br />

root <strong>of</strong> the <strong>is</strong>sue, it becomes very unclear and irrational. Do these economic indicators really<br />

have a magical quality about them? Definately yes when really analyzed from a critical<br />

perspective.<br />

Next Message by Wight <strong>is</strong> [299].<br />

[203] Snowman: Though there may be a great number <strong>of</strong> other factors in the capital<strong>is</strong>t<br />

society that are magical, the one that occurs most readily <strong>is</strong> the appreciation and depreciation<br />

in the value <strong>of</strong> commodities as a direct response to public taste. <strong>What</strong> <strong>is</strong> odd about th<strong>is</strong><br />

relation <strong>is</strong> that though a commodity has neither gained nor lost any <strong>of</strong> the original labor or<br />

utility from its time <strong>of</strong> introduction to the mardet a commodity can lose or gain value by<br />

there being a sway <strong>of</strong> public opinion. The two examples that leap to mind are old cars, and<br />

cabbage patch dolls.<br />

The ’57 chevy in 1957 cost at most between one and two thousan dollars, today however<br />

the same car can fetch a price <strong>of</strong> between thirty and fifty thousand dollars. Th<strong>is</strong> increase in<br />

price <strong>is</strong> not a result <strong>of</strong> any increase in the labor hours used to produce it, in fact to produce<br />

the car now would require fewer labor hours per unit. The increase <strong>is</strong> not from any increased<br />

utility from the car, as cars today are more reliable. The increase <strong>is</strong> indicative <strong>of</strong> the change<br />

in peoples wants and pecuniary emulation.<br />

The case <strong>of</strong> the cabbage patch dolls that I referenced before <strong>is</strong> refering to the incredible<br />

demands for that doll that ex<strong>is</strong>ted in the mid eighties around Chr<strong>is</strong>tmas time. Th<strong>is</strong> rush<br />

resulted in a shortage in the supply <strong>of</strong> the dolls compared to demand. Th<strong>is</strong> shortage resulted<br />

in people paying very high prices for the dolls. Though the dolls had no greater attributes or<br />

quantified labor in them, they became very expensive, at least as far as exchange values are<br />

concerned, it was not unheard <strong>of</strong> for people to pay three hundred dollars for a doll, a ten fold<br />

increase.<br />

<strong>What</strong> both these examples portray <strong>is</strong> the propensity <strong>of</strong> the capital<strong>is</strong>t to price set according<br />

to the influences <strong>of</strong> pecuniary emulation. Pecuniary emulation <strong>is</strong> the human condition which<br />

keeps the majority <strong>of</strong> the population in a capital<strong>is</strong>t society in competition withone another<br />

to d<strong>is</strong>play their <strong>wealth</strong> and prowess. Because what <strong>is</strong> determined to be prowess or <strong>wealth</strong><br />

<strong>is</strong> determined by the society as a whole based on thier wants, when thier wants change so<br />

does the relative values <strong>of</strong> commodities. <strong>What</strong> then <strong>is</strong> the magical part about th<strong>is</strong> <strong>is</strong> that it<br />

126 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

works and that people continue to by into the whole plan, even though any shift in the public<br />

wants and desires may crumble ones worth in the pecuniary relation, and thus forcing the<br />

individual to continually amass new forms <strong>of</strong> material <strong>wealth</strong> for the attempt at improving<br />

thier social status. The magic <strong>is</strong> the unconscious dec<strong>is</strong>ions <strong>of</strong> the mass in determining wants,<br />

desires, and values for commodities.<br />

Hans: Yes, th<strong>is</strong> <strong>is</strong> a good example.<br />

Message [203] referenced by [228]. Next Message by Snowman <strong>is</strong> [212.3].<br />

[228] Franz: Snowman Copperfield Snowman wrote in [203]:<br />

Though there may be a great number <strong>of</strong> other factors in the capital<strong>is</strong>t society<br />

that are magical, the one that occurs most readily <strong>is</strong> the appreciation and<br />

depreciation in the value <strong>of</strong> commodities as a direct response to public taste.<br />

The ’57 chevy in 1957 cost at most between one and two thousan dollars,<br />

today however the same car can fetch a price <strong>of</strong> between thirty and fifty<br />

thousand dollars. Th<strong>is</strong> increase in price <strong>is</strong> not a result <strong>of</strong> any increase in the<br />

labor hours used to produce it, in fact to produce the car now would require<br />

fewer labor hours per unit. The increase <strong>is</strong> not from any increased utility<br />

from the car, as cars today are more reliable. The increase <strong>is</strong> indicative <strong>of</strong><br />

the change in peoples wants and pecuniary emulation.<br />

The increase <strong>is</strong> indicative <strong>of</strong> changes in supply and demand.<br />

The case <strong>of</strong> the cabbage patch dolls that I referenced before <strong>is</strong> refering to<br />

the incredible demands for that doll that ex<strong>is</strong>ted in the mid eighties around<br />

Chr<strong>is</strong>tmas time. Th<strong>is</strong> rush resulted in a shortage in the supply <strong>of</strong> the dolls<br />

compared to demand. Th<strong>is</strong> shortage resulted in people paying very high<br />

prices for the dolls. Though the dolls had no greater attributes or quantified<br />

labor in them, they became very expensive, at least as far as exchange<br />

values are concerned, it was not unheard <strong>of</strong> for people to pay three hundred<br />

dollars for a doll, a ten fold increase.<br />

<strong>What</strong> both these examples portray <strong>is</strong> the propensity <strong>of</strong> the capital<strong>is</strong>t to price<br />

set according to the influences <strong>of</strong> pecuniary emulation.<br />

Capital<strong>is</strong>ts set price according to supply and demand.<br />

Pecuniary emulation <strong>is</strong> the human condition which keeps the majority <strong>of</strong> the<br />

population in a capital<strong>is</strong>t society in competition withone another to d<strong>is</strong>play<br />

their <strong>wealth</strong> and prowess. Because what <strong>is</strong> determined to be prowess or<br />

<strong>wealth</strong> <strong>is</strong> determined by the society as a whole based on thier wants, when<br />

thier wants change so does the relative values <strong>of</strong> commodities.<br />

yes, when supply and demand curves change, so too relative prices.<br />

<strong>What</strong> then <strong>is</strong> the magical part about th<strong>is</strong> <strong>is</strong> that it works and that people continue<br />

to by into the whole plan, even though any shift in the public wants<br />

and desires may crumble ones worth in the pecuniary relation, and thus


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 127<br />

forcing the individual to continually amass new forms <strong>of</strong> material <strong>wealth</strong><br />

for the attempt at improving thier social status. The magic <strong>is</strong> the unconscious<br />

dec<strong>is</strong>ions <strong>of</strong> the mass in determining wants, desires, and values for<br />

commodities.<br />

After watching a commercial <strong>of</strong> Michael Jordan drinking Gatorade on TV, you go to<br />

Smiths and buy a bottle <strong>of</strong> Gatorade.<br />

Is th<strong>is</strong> what you mean by magic?<br />

Next Message by Franz <strong>is</strong> [229].<br />

<strong>Question</strong> 131 <strong>is</strong> 121 in 1995WI, 98 in 1995ut, 133 in 1996ut, 181 in 2002fa, 185 in<br />

2003fa, 212 in 2004fa, 208 in 2005fa, 228 in 2007SP, 233 in 2007fa, 238 in 2008fa, 251<br />

in 2009fa, 278 in 2010fa, and 247 in 2011fa:<br />

<strong>Question</strong> 131 Which evidence does Marx refer to when he calls the commodity “mysterious”?<br />

[188] Pinky: Mysterious commodity evidence Marx notes that the economy exhibits<br />

tendencies which are independent <strong>of</strong> the individuals involved in the production and consumption<br />

<strong>of</strong> the commodities. He determines that the separate life that the economy has<br />

finds its origin in the mysterious aspects <strong>of</strong> the commodity itself.<br />

Before revealing the source <strong>of</strong> the mystery, Marx eliminates the aspects <strong>of</strong> the commodity<br />

which are not mysterious. Marx explains that “There <strong>is</strong> no mystery involved when man,<br />

by h<strong>is</strong> activity, changes the forms <strong>of</strong> the materials <strong>of</strong> nature in a manner useful to him.”<br />

Hence, use value <strong>is</strong> ruled out. Now, he investigates the possibilities contained in the value<br />

side <strong>of</strong> the commodity; the content <strong>of</strong> the value determinations and the form that the content<br />

takes. Marx defines three determinations <strong>of</strong> value; substatnce, quantity, and form. Then,<br />

he describes the content <strong>of</strong> these determinations as; human labor (abstract), socially necessary<br />

labor time, and a social relation. Marx eliminates these three contents systematically:<br />

Human labors are physiological truths, labor <strong>is</strong> always work. Labor time <strong>is</strong> not a mystery because<br />

even a society that <strong>is</strong> not mystified must consider it. And finally, the social interactions<br />

between the producers within a social web <strong>is</strong> not a mystery either.<br />

As a result <strong>of</strong> th<strong>is</strong> analys<strong>is</strong>, Marx leads into the identification <strong>of</strong> the mystery as being<br />

found within the form itself. Namely, the d<strong>is</strong>crepancy between content and form. Because<br />

Marx sees social relations in terms <strong>of</strong> a social connections rather than just the social relations<br />

<strong>of</strong> the individual, he points out that a fin<strong>is</strong>hed product takes on social abstraction, apart<br />

from the specific labor put into it. The mystery <strong>is</strong> the relationship between the products<br />

themselves. “...the social character<strong>is</strong>tics <strong>of</strong> men’s own labor are reflected back to them as<br />

objective character<strong>is</strong>tics inherent in the products <strong>of</strong> their labor, as quasi-physical properties<br />

<strong>of</strong> these things, and that therefore also the social relation <strong>of</strong> the producers to the aggregate<br />

labor <strong>is</strong> reflected as a social relation <strong>of</strong> objecte, a relation which ex<strong>is</strong>te apart from and outside<br />

the producers.” The real labor and the social relation between one’s labor and social aggregate<br />

labor assume properties and relations that ex<strong>is</strong>t as if they were inherent to the product<br />

itself and outside the world <strong>of</strong> the laborer.<br />

Hans: You are giving a very good summary <strong>of</strong> Marx’s argument, but <strong>Question</strong> 188 was much more specic; it refers<br />

to your second sentence:<br />

128 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

He determines that the separate life that the economy has finds its origin in the mysterious<br />

aspects <strong>of</strong> the commodity itself.<br />

Is there any evidence which would justify h<strong>is</strong> focusing on the commodity?<br />

Message [188] referenced by [200]. Next Message by Pinky <strong>is</strong> [205].<br />

[217] Emma: Mysterious Commodities Marx asserts that there <strong>is</strong> something mysterious<br />

about commodities. That <strong>is</strong>, that commodities assume a role in capital<strong>is</strong>m that one would<br />

not deduce based on available knowledge and which goes “beyond use value and the content<br />

<strong>of</strong> determinations.” After eliminating use value and content as the mysterious component,<br />

Marx settles on “form.” The evidence adduced for th<strong>is</strong> mysterious character<strong>is</strong>tic derives from<br />

secondary phenomena in acapital<strong>is</strong>t society supposedly caused by the mysterious form, not<br />

unlike how astronomers and physic<strong>is</strong>ts deduce the ex<strong>is</strong>tence <strong>of</strong> black holes and pulsars by<br />

extrapolating from behavior <strong>of</strong> objects in the vicinity whose actions could only be explained<br />

thus. Hard examples include how capital can grow on its own, how inflation works or recessions<br />

come about. Further examples would I presume include how interest rates are set<br />

and how unemployment rates change. It’s as if commodities were “endowed with their own<br />

life and striving to express their own substance” due to their ability to “transmit certain<br />

contraints faced by society as a whole to the individuals.”<br />

<strong>What</strong> does all th<strong>is</strong> mean? Well, admittedly after being even more confused than usual<br />

I have come to the (tenuous) conclusion that what Marx <strong>is</strong> talking about as the mystery<br />

component has to do with h<strong>is</strong> notions <strong>of</strong> commodities as social products and fet<strong>is</strong>h<strong>is</strong>m.<br />

First, it should be noted that Marx understood commodites to be social products, that they<br />

owe their value not primarily to the estimation <strong>of</strong> their utility by consumers, but to the ex<strong>is</strong>tence<br />

<strong>of</strong> social relations which constitute the “fabric <strong>of</strong> society and which make the productin<br />

<strong>of</strong> the commodity possible in the first place.” Next, for Marx mystification meant fet<strong>is</strong>hization,<br />

which in turn worked to obscure the reality behind commodities. Marx believed that<br />

when people worked for one another their labor automatically assumed social form. That<br />

<strong>is</strong>, the products <strong>of</strong> labor were “merely the material representation <strong>of</strong> social relation, <strong>of</strong> the<br />

living connections between human beings.”<br />

But people don’t comprehend that social aspect <strong>of</strong> the commodity and are thus alienated<br />

from their own products. The commodity <strong>is</strong> in fact much more than the laborer suspects<br />

and much less. More, because the true social character <strong>of</strong> the commodity appears to the laborer<br />

instead as an “objective character stamped upon the product <strong>of</strong> that labor.” Any social<br />

relation left <strong>is</strong> not seen as one between laborers but one between commodites, between products.<br />

That other phenomena in the capital<strong>is</strong>t economy ex<strong>is</strong>t a products <strong>of</strong> the unrecognized<br />

social relations between laborers will necessarily be considered “mysterious” or “as being<br />

endowed with their own life” since their origins are obscured through a false understanding<br />

<strong>of</strong> the nature <strong>of</strong> commodities. Less, because there really <strong>is</strong> no mystery about the origins <strong>of</strong><br />

the mystery component <strong>of</strong> commodities. It derives from the laborer himself and from the<br />

social relationships which make the production <strong>of</strong> the commodity possible.<br />

Hans: Excellent answer. Only one quibble with it: the conclusion about black holes which you describe <strong>is</strong> a<br />

second-order conclusion. Th<strong>is</strong> <strong>is</strong> not what Marx <strong>is</strong> doing here with the mysteriousness <strong>of</strong> the commodity. A second<br />

order conclusion about the mysterious commodity would be: the commodity must be mysterious because everyone<br />

looking at commodities has a baffled expression in their face. (Th<strong>is</strong> <strong>is</strong> <strong>of</strong> course a joke but I hope you get the point.)


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 129<br />

Marx does not use arguments like th<strong>is</strong>. He <strong>is</strong> digging into the commodity and trying to catch a glimpse <strong>of</strong> the<br />

mystery before it becomes too smooth, to soph<strong>is</strong>ticated, where one can no longer see how it <strong>is</strong> functioning.<br />

Next Message by Emma <strong>is</strong> [261].<br />

<strong>Exam</strong> <strong>Question</strong> 132 <strong>is</strong> 125 in 1995WI, 102 in 1995ut, 139 in 1997WI, 143 in 1997sp, 135<br />

in 1997ut, 185 in 2002fa, and 253 in 2011fa:<br />

<strong>Exam</strong> <strong>Question</strong> 132 Why <strong>is</strong> it surpr<strong>is</strong>ing that Marx states, in the last Section <strong>of</strong> Chapter<br />

One <strong>of</strong> Capital, that the commodity <strong>is</strong> “mysterious”?<br />

[204] TOAD: Mysterious It <strong>is</strong> supr<strong>is</strong>ing because he spent so much <strong>of</strong> the first part giving<br />

h<strong>is</strong> theory which explains the commodity.<br />

He gives two examples, one <strong>of</strong> the eye and how the eye and the object it sees are two<br />

separate things. He relates these to the commodity form and the value relation <strong>of</strong> the products<br />

<strong>of</strong> labor within which it appears. Meaning that the commodity and its value are two separate<br />

things. The commodity <strong>is</strong> produced by labor and the price <strong>of</strong> the commodity <strong>is</strong> placed on it<br />

by society. They are two separate steps, yet we associate them as one thing.<br />

The second example that he gives <strong>is</strong> that <strong>of</strong> religion and how man’s brain <strong>is</strong> given life<br />

and man <strong>is</strong> able to interact as one, inseparable. He relates th<strong>is</strong> also to the commodity stating<br />

that as soon as it <strong>is</strong> produced as a commodity it <strong>is</strong> inseparable from the labor that went into<br />

producing it.<br />

Th<strong>is</strong> <strong>is</strong> why I think that he continues to label the commodity as mysterious. Because no<br />

matter how well he explains it the commodity and the price it has are inseparable. I think he<br />

fills that it <strong>is</strong> a mystery <strong>of</strong> human nature to tag an item with a price and not to see price and<br />

commodity as two separate things. Human nature <strong>is</strong> the mystery not the commodity.<br />

Hans: Your first sentence <strong>is</strong> right, but your interpretations <strong>of</strong> the analogies <strong>of</strong> the eye and religion are quite different<br />

than what Marx had in mind.<br />

Message [204] referenced by [226]. Next Message by TOAD <strong>is</strong> [314].<br />

[226] Franz: Toad TOAD wrote in [204]:<br />

Meaning that the commodity and its value are two separate things. The<br />

commodity <strong>is</strong> produced by labor and the price <strong>of</strong> the commodity <strong>is</strong> placed<br />

on it by society.<br />

the price <strong>of</strong> a commodity <strong>is</strong> determined through supply and demand.<br />

Because no matter how well he explains it the commodity and the price it<br />

has are inseparable. I think he fills that it <strong>is</strong> a mystery <strong>of</strong> human nature to<br />

tag an item with a price and not to see price and commodity as two separate<br />

things. Human nature <strong>is</strong> the mystery not the commodity.<br />

it <strong>is</strong> likely your grade will benefit if you e-mail Dr. Ehrbar before he grades and change:<br />

to<br />

tag an item with a price and not to see price and commodity<br />

tag an item with a price and not to see value<br />

130 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Next Message by Franz <strong>is</strong> [228].<br />

<strong>Question</strong> 133 <strong>is</strong> 122 in 1995WI, 99 in 1995ut, 144 in 1997sp, and 136 in 1997ut:<br />

<strong>Question</strong> 133 Someone says: “It <strong>is</strong> not the commodity which <strong>is</strong> mysterious, it <strong>is</strong> only the<br />

explanation Marx gives <strong>of</strong> it, and Marx should not make the commodity responsible for the<br />

mystical and irrational explanations he <strong>is</strong> coming up with.” Do you agree?<br />

[218] Dunny: Is the commodity mysterious? “It <strong>is</strong> not the commodity which <strong>is</strong> mysterious,<br />

it <strong>is</strong> only the explanation Marx gives <strong>of</strong> it, and Marx should not make the commodity<br />

responsible for the mystical and irrational explanations he <strong>is</strong> coming up with.” True or False?<br />

I am going to say True. You can find great mystery in everything you put a lot <strong>of</strong> thought<br />

into. Isn’t that what life <strong>is</strong> all about. I find it a mystery how the toilet flushes in the opposite<br />

direction on the other side <strong>of</strong> the world. I experienced that “down-under”. To a physic<strong>is</strong>t,<br />

th<strong>is</strong> mystery <strong>of</strong> mine might seem silly to him because he understands the laws <strong>of</strong> nature that<br />

would cause the water to travel in the opposite direction. Not to make light <strong>of</strong> the situation,<br />

I believe Marx <strong>is</strong> headed in the right direction and I give him credit for the thought that he <strong>is</strong><br />

putting into the commodity so that he can have a greater understanding <strong>of</strong> it. I feel that the<br />

social and the material side <strong>of</strong> a commodity come more as a “given” and do not need to be<br />

tested or debated as mysterious.<br />

Hans: I am inferring from your last sentence (and I may be wrong, but I want to say it anyway for didactical<br />

reasons) that you understood Marx better than you want to admit, and that your d<strong>is</strong>agreement with h<strong>is</strong> method <strong>is</strong><br />

really a d<strong>is</strong>agreement with h<strong>is</strong> results. Marx definitely did not consider the commodity relation as something given,<br />

he saw the very undesirable consequences it had in capital<strong>is</strong>m, and he was very concerned about whether the bad<br />

parts <strong>of</strong> capital<strong>is</strong>m were already contained in the commodity form. Th<strong>is</strong> <strong>is</strong> why he <strong>is</strong> so probing, so testing, so<br />

debating, so critical.<br />

Next Message by Dunny <strong>is</strong> [306].<br />

[242] VanHalen: Stop the digging I found it interesting that question 133 posed the idea<br />

that the commodity <strong>is</strong> not mysterious but Marx’s analys<strong>is</strong> <strong>of</strong> the commodity <strong>is</strong> the mystery.<br />

As I’ve been reading through the text for our class, I’ve thought th<strong>is</strong> many times. The<br />

basic principles that Marx <strong>is</strong> talking about seem for the most part understandable and are<br />

enlightening. However sometimes I think Marx may think too much and in the process <strong>of</strong><br />

digging deeper to find meanings, he digs the foundation from under arguements he <strong>is</strong> trying<br />

to make. Sometimes in h<strong>is</strong> explanations and justifications he seems to suffocate the point he<br />

<strong>is</strong> trying to make.<br />

The mystery <strong>of</strong> the commodity was one <strong>of</strong> those times for me.<br />

I didn’t want to submit th<strong>is</strong> as one <strong>of</strong> my graded questions because it kind <strong>of</strong> seemed like<br />

a trick question. I was curious though if anyone else felt the same way I do about some <strong>of</strong><br />

Marx explanations??<br />

Next Message by VanHalen <strong>is</strong> [256.1].<br />

<strong>Question</strong> 134 <strong>is</strong> 123 in 1995WI, 137 in 1997ut, 164 in 2000fa, 186 in 2002fa, 194 in<br />

2003fa, 221 in 2004fa, 242 in 2007fa, 249 in 2008SP, 247 in 2008fa, 260 in 2011fa, and<br />

272 in 2012fa:<br />

<strong>Question</strong> 134 Whether the commodity <strong>is</strong> “mysterious” or not <strong>is</strong> a value judgment which<br />

can neither be proved nor d<strong>is</strong>proved. Do you agree? <strong>What</strong> would Marx say about th<strong>is</strong>?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 131<br />

[184] Karl: Solved, or unsolved mystery? First <strong>of</strong>f the question asks that I make a<br />

subjective response on if I think that a commodity’s mysterious nature can be proved or d<strong>is</strong>proved.<br />

In my estimation it <strong>is</strong> an uneducated person who would assume that something could<br />

not be proven. Take for instance an electromagnetic wave, just because it has a quiescent<br />

nature does not mean we cannot prove it’s ex<strong>is</strong>tence. The same lies true for the commodity.<br />

The very fact that we can see something “mysterious” about the commodity makes me think<br />

it can be further proved and studied. Tying in my example <strong>of</strong> the unseen electromagnetic<br />

wave, we see it’s results as we watch TV, or l<strong>is</strong>ten to the radio. Before Einstein’s General<br />

theory the world assumed time and space to be constant factors. It <strong>is</strong> a matter <strong>of</strong> delving in<br />

and using our abstract capabilities to prove, or attempt to prove unseen things.<br />

Marx said that at first glance the commodity seems “trivial and obvious.” It therefore<br />

needs a further look into what lies within the commodity to get us closer to making theories<br />

about it’s mysterious nature. Speaking <strong>of</strong> the commodity, and the mystery behind it<br />

Marx said, “It <strong>is</strong> difficult to analyze th<strong>is</strong> form. The d<strong>is</strong>tinct determinations contained in it<br />

are hidden, undeveloped, abstract, and it requires therefore a certain effort <strong>of</strong> our abstractive<br />

capabilities to d<strong>is</strong>tingu<strong>is</strong>h and grasp them.” In answer to the second part <strong>of</strong> the question, it <strong>is</strong><br />

obvious that Marx believed that the mystery <strong>of</strong> the commodity was possible, although “difficult”<br />

to uncover. From th<strong>is</strong> statement we can also see that like Einstein, Marx had definite<br />

d<strong>is</strong>tinct ideas <strong>of</strong> what <strong>is</strong> or <strong>is</strong> not “mysterious” about the commodity. In my opinion Marx<br />

may have gained a grasp for proving mysterious things in h<strong>is</strong> years as a student <strong>of</strong> theology<br />

in Germany. In the text Marx starts unearthing the mysterious attributes <strong>of</strong> the commodity.<br />

He uses the technique <strong>of</strong> elimination to theorize what exactly constitutes mystery in the<br />

commodity. Here we see again Marx’s belief that there <strong>is</strong> an answer, but it requires deep,<br />

abstract thought. He eliminates “use value” because he finds nothing mysterious in a human<br />

ability to make a transformation <strong>of</strong> substance into a useful thing. Which then leads him to<br />

value, and eventually he finds that it <strong>is</strong> the “form” itself that <strong>is</strong> mysterious. We may not<br />

have arrived fully at all ot the mysterious attributes <strong>of</strong> the commodity, but by the use <strong>of</strong> axioms<br />

Marx has moved us closer to seeing what constitutes the mysterious nature <strong>of</strong> the the<br />

commodity.<br />

Hans: Your anser <strong>is</strong> good, but you m<strong>is</strong>sed one important aspect <strong>of</strong> the <strong>Question</strong>, namely: would the “mysteriousness”<br />

<strong>of</strong> the commodity not automatically be d<strong>is</strong>qualified from being provable because it <strong>is</strong> a value statement?<br />

Next Message by Karl <strong>is</strong> [187].<br />

[200] Punani: The fet<strong>is</strong>h-like character <strong>of</strong> the commodity and its secrets A commodity<br />

comes into ex<strong>is</strong>tence as an extremely obvious,frivolous thing. But in examining it, it shows<br />

that it <strong>is</strong> a bizarre thing, filled with “metaphysical subtleties and theological niceties.” As a<br />

use-value, there <strong>is</strong> nothing incomprehensive about it. It <strong>is</strong> doubtlessly obvious that human<br />

activities change the form <strong>of</strong> materials in nature so that it <strong>is</strong> useful to man. For example the<br />

form <strong>of</strong> wood. Wood <strong>is</strong> modified if a chair <strong>is</strong> made out <strong>of</strong> it. But the chair <strong>is</strong> still wood. As<br />

soon as it appears as a commodity, it changes into a thing which surpasses sensuousness.<br />

Thus, the mystical character <strong>of</strong> the goods does not ar<strong>is</strong>e from its use-value. Just as little<br />

does it result from the nature <strong>of</strong> the determinants <strong>of</strong> vlaue. As Marx states “ The mysterious<br />

character <strong>of</strong> the commodity-form cons<strong>is</strong>ts therefore simply in the fact that the commodity<br />

reflects the social character<strong>is</strong>tics <strong>of</strong> men’s own labour as objective character<strong>is</strong>tics <strong>of</strong> the<br />

products <strong>of</strong> labour themselves, as the socio-natural properties <strong>of</strong> these things.”<br />

132 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Hans: You are not addressing the <strong>Question</strong> at all, and everything you said <strong>is</strong> contained, in a better, more prec<strong>is</strong>e<br />

form, in [188].<br />

Next Message by Punani <strong>is</strong> [218.1].<br />

<strong>Question</strong> 136 <strong>is</strong> 126 in 1995WI, 138 in 1996ut, 143 in 1997WI, 147 in 1997sp, and 139 in<br />

1997ut:<br />

<strong>Question</strong> 136 Why does Marx emphasize, and mainstream economics deny, the mysterious<br />

character <strong>of</strong> the commodity?<br />

[197] Super: Mysterious character <strong>of</strong> the commodity Mainstream econom<strong>is</strong>ts would<br />

argue that a commodity has only use value. And the production and exchange <strong>of</strong> a commodity<br />

<strong>is</strong> strictly enforced by it’s demand. They would describe th<strong>is</strong> thought <strong>of</strong> commodities<br />

having a mysterious character as irrational. Marx <strong>is</strong> describing the social relationships between<br />

producers in an exchange setting. The social character<strong>is</strong>tics within their commodities<br />

take form during th<strong>is</strong> exchange relation. The productive activities which took place in the<br />

production <strong>of</strong> a commodity, the labor inputs, come out as a shadow <strong>of</strong> the laborer’s talents<br />

and abilities and has social form. Th<strong>is</strong> social form <strong>is</strong> what d<strong>is</strong>tinqu<strong>is</strong>hes a commodity from<br />

another. The unique human labor input for th<strong>is</strong> commodity represents the value <strong>of</strong> the final<br />

product. Th<strong>is</strong> mysterious character <strong>is</strong> seen in the social exchange relationship between these<br />

producers who see the commodities social relation with eachother. Marx <strong>is</strong> saying here that<br />

the value <strong>of</strong> a commodity <strong>is</strong> subject to one’s aesthetic sense <strong>of</strong> value. One can see the labor<br />

effort and content that goes into a commodity. One then makes a value judgement upon that.<br />

Hans: I looked at your answer again, and although I still think what you say about Marx <strong>is</strong> wrong (look at <strong>Question</strong><br />

160 about that), I like your characterization <strong>of</strong> mainstream economics, and I also like what you write with the<br />

“shadows”. It was some original thinking and it was close to how Marx was thinking. The grade I had given you<br />

for it previously was unfair, and I apologize.<br />

Message [197] referenced by [198]. Next Message by Super <strong>is</strong> [206.2].<br />

[198] Hans: Super has it all backwards Super’s [197] did not even get close to answering<br />

th<strong>is</strong> <strong>Question</strong>, due to some basic m<strong>is</strong>understandings. First <strong>of</strong> all, he thinks the proportionality<br />

<strong>of</strong> prices with labor content <strong>is</strong> enforced by the buyers <strong>of</strong> the commodities in the following<br />

way:<br />

One can see the labor effort and content that goes into a commodity. One<br />

then makes a value judgement upon that.<br />

Such a tenuous behavioral assumption <strong>is</strong> not necessary for the labor theory <strong>of</strong> value.<br />

All one needs <strong>is</strong> mobility <strong>of</strong> labor and, in the case <strong>of</strong> simple commodity production, the<br />

assumption that (direct or indirect) labor costs outweigh all other costs. (In capital<strong>is</strong>m, it <strong>is</strong><br />

not labor but both the stock and flow <strong>of</strong> capital necessary). As long as demand <strong>is</strong> so high in<br />

a certain industry that prices r<strong>is</strong>e above labor content, labor will migrate into that industry,<br />

and th<strong>is</strong> will re-establsh prices in line with labor values.<br />

Super himself finds h<strong>is</strong> behavioral assumption “mysterious”, and he apparently thinks<br />

th<strong>is</strong> <strong>is</strong> the mystery Marx talks about in the Commodity Fet<strong>is</strong>h<strong>is</strong>m Section. Super thinks that<br />

commodity producers mysteriously<br />

see the commodities social relation with each other.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 133<br />

If one has everything backwards, it <strong>is</strong> obviously possible to read the text without noticing<br />

that something <strong>is</strong> wrong.<br />

Next Message by Hans <strong>is</strong> [211].<br />

<strong>Question</strong> 137 <strong>is</strong> 141 in 1997ut:<br />

<strong>Question</strong> 137 Skip forward to Subsection 1.4.4, pp. 169:2-172:0, and describe the social<br />

role played by th<strong>is</strong> “physiological truth” in the Robinson example and the other examples<br />

<strong>of</strong> different societies given there.<br />

[185] Lamma: social roles The social role played by th<strong>is</strong> ‘physiological truth’ leads us<br />

find that each commdity <strong>is</strong> produced by a single man’s labor power. It represents an article<br />

<strong>of</strong> utility. Therefore commodities can not be compared to each other and determines thier<br />

value. Each one <strong>is</strong> a separate useful thing when no exchange takes place and no value <strong>is</strong><br />

placed upon them.<br />

However, as commodities are produced by a group on a social level, they represent a<br />

commodity with exchange as its purpose and not to fulfill the makers needs only. These<br />

have value. The group brings its labor powers together in a social form. or a ‘homogenous<br />

mass’. Even though the labor each person produces <strong>is</strong> still only individual labor power,<br />

it <strong>is</strong> a function <strong>of</strong> human organ<strong>is</strong>m. Whether it be for personal use or for exchange the<br />

commodities made may still be from the same idividual labor power. The difference occurs<br />

when the social role takes th<strong>is</strong> labor power, brings it together, and gives it he properties <strong>of</strong><br />

exchange and thus a value and not just a use value. So that <strong>is</strong> the social role that takes place<br />

here.<br />

Hans: You are saying things have value whenever they are produced socially, but not when they are produced<br />

individually. But if you were to go through the different examples <strong>of</strong> societies, you would see that in some societies<br />

it <strong>is</strong> not the abstract labor in the things that <strong>is</strong> counted by society, but the concrete labor. See my points alpha in the<br />

Annotations after each <strong>of</strong> the examples.<br />

Next Message by Lamma <strong>is</strong> [249].<br />

<strong>Question</strong> 138 <strong>is</strong> 128 in 1995WI, 105 in 1995ut, 142 in 1997ut, and 242 in 2007SP:<br />

<strong>Question</strong> 138 Compare the one function <strong>of</strong> labor time in the Robinson example, p. R169:2/o,<br />

with the two functions <strong>of</strong> labor time in the example <strong>of</strong> an “association <strong>of</strong> free men,” i.e., <strong>of</strong> a<br />

commun<strong>is</strong>t society given on p. R171:2/o in Subsection 1.4.4.<br />

[216] VanHalen: Both Robinson Crusoe and the freemen have needs to sat<strong>is</strong>fy.<br />

Crusoe being only one man with only 24 hours in a day must economize h<strong>is</strong> time as he<br />

sees fit. Of the many different production functions Crusoe prioritizes h<strong>is</strong> activities according<br />

to as he sees fit. Everything Crusoe makes benefits him. He puts in all the time to make<br />

everything and he reaps all the benefits <strong>of</strong> h<strong>is</strong> labor time. Thus labor time serves the function<br />

<strong>of</strong> time, how much time should be spent in various productive activities.<br />

The free men society and their labor time serves two functions. First, like Crusoe, labor<br />

time <strong>is</strong> divided up into time consuming activities that will benefit the society and work to<br />

sat<strong>is</strong>fy their needs. The second function <strong>is</strong> that labor time measures the participation <strong>of</strong> each<br />

individual in the society and consequently rewards the participant with a share <strong>of</strong> the total<br />

product that <strong>is</strong> set aside for the consumption <strong>of</strong> the society.<br />

134 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

In comparing the two examples, Crusoe and the freeman share the first function <strong>of</strong> labor<br />

time; maintaining the correct proportion between the different functions <strong>of</strong> labor. Crusoe’s<br />

products were made and used/consumed only by him (until Friday came on the scene). The<br />

products <strong>of</strong> the free men society were social products which introduced the second function<br />

<strong>of</strong> labor time. Since there are more people in the free man society, (versus one Crusoe) labor<br />

time developes a new dimension, that <strong>of</strong> being a measure <strong>of</strong> how much a person put into the<br />

common labor pool and hence what they will receive from the total product <strong>of</strong> the society.<br />

Hans: Very good answer.<br />

Message [216] referenced by [2007SP:437]. Next Message by VanHalen <strong>is</strong> [242].<br />

<strong>Question</strong> 139 <strong>is</strong> 129 in 1995WI, 106 in 1995ut, 147 in 1997WI, 151 in 1997sp, and 143 in<br />

1997ut:<br />

<strong>Question</strong> 139 Describe in your own words the difference between social[1] and social[2],<br />

and give examples. Hint: it <strong>is</strong> not correct to say that some relations are social[1] and some<br />

are social[2]!<br />

[220] Scott: One meaning util<strong>is</strong>ed by Marx for social, seems to be in the context <strong>of</strong><br />

the exchange relations between two commodities. It appears as “social relations between<br />

objects” in various sections <strong>of</strong> the readings.<br />

Another meaning for social appears to be as used in the context <strong>of</strong> interpersonal relations<br />

between individuals in the performance <strong>of</strong> labour. I guess in determining div<strong>is</strong>ions <strong>of</strong> labour.<br />

It feels as if I’m not delving into these d<strong>is</strong>tinctions on the higher levels <strong>of</strong> Marx or for<br />

that matter even the anotations. I haven’t made the leap from Hans’ annotated definitions:<br />

social {1} to designate the web <strong>of</strong> relationships on level {1} in which people<br />

find themselves.<br />

social {2} to designate the direct interpersonal interactions and contact on<br />

level {2} by which these relations are sustained.<br />

to the social(s) as used in the text. Not very well, I’m afraid keeps coming to mind!<br />

Hans: You don’t have to feel bad if you haven’t d<strong>is</strong>covered it yourself that the word “social” <strong>is</strong> used here in two<br />

meanings. It <strong>is</strong> not easy to see because we brought up in a tradition <strong>of</strong> methodological individual<strong>is</strong>m, which does<br />

not make the difference between social[1] and social[2]. I would recommend that you go back to the Annotations<br />

and try to understand th<strong>is</strong> difference. You may want to consult the Bhaskar reference given in the Annotations<br />

(Possibility <strong>of</strong> Natural<strong>is</strong>m).<br />

Next Message by Scott <strong>is</strong> [302].<br />

<strong>Question</strong> 141 <strong>is</strong> 131 in 1995WI, 108 in 1995ut, 149 in 1997WI, 154 in 1997sp, 147 in<br />

1997ut, 246 in 2007SP, 256 in 2008fa, and 298 in 2010fa:<br />

<strong>Question</strong> 141 <strong>What</strong> <strong>is</strong> a relation <strong>of</strong> production? Explain carefully whether or not value <strong>is</strong> a<br />

relation <strong>of</strong> production.<br />

[180] Bandit: A relation <strong>of</strong> production has two meanings. First, it <strong>is</strong> the relation <strong>of</strong><br />

the laborer’s character<strong>is</strong>tics manifested in the commodity itself. Second, it <strong>is</strong> the laborer’s<br />

own character<strong>is</strong>tics compared to the total social labor. In a nutshell, the first definition <strong>is</strong> the<br />

laborer’s own character<strong>is</strong>tics reflected in the product/commodity they produced (relationship


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 135<br />

between laborer and product). The second, <strong>is</strong> where the product/commodity stand up aga<strong>is</strong>nt<br />

all <strong>of</strong> the other social labor put into their products/commoditys (relationship between product<br />

and other products).<br />

Value <strong>is</strong> a relation <strong>of</strong> production. It <strong>is</strong> on the laborer’s side <strong>of</strong> the production <strong>of</strong> the<br />

commodity. Marx says in 172:2, that these products are treated as values because capital<strong>is</strong>m<br />

<strong>is</strong> a society <strong>of</strong> producers.<br />

Message [180] referenced by [181]. Next Message by Bandit <strong>is</strong> [266].<br />

[181] Hans: Relations <strong>of</strong> and in production Bandit’s answer [180] <strong>is</strong> not bad, but I<br />

would have liked him to make a connection to the definition <strong>of</strong> relations <strong>of</strong> production given<br />

at the beginning <strong>of</strong> Appendix A, which <strong>is</strong> also part <strong>of</strong> the assigned readings th<strong>is</strong> week. But<br />

I like Bandit’s d<strong>is</strong>tinction between concrete labor, which <strong>is</strong> a relation between the producer<br />

and the product, and abstract labor, which <strong>is</strong> a relation between the different producers in<br />

society.<br />

I think there <strong>is</strong> a m<strong>is</strong>understanding in Bandit’s last sentence:<br />

Marx says in 172:2, that these products are treated as values because capital<strong>is</strong>m<br />

<strong>is</strong> a society <strong>of</strong> producers.<br />

When Marx talks about a society <strong>of</strong> commodity producers, he does not mean with th<strong>is</strong><br />

that commodity producers are especially productive, but th<strong>is</strong> reflects h<strong>is</strong> general belief that<br />

the relations <strong>of</strong> production are the most basic social relations, therefore one can characterize<br />

a society by its relations <strong>of</strong> production.<br />

Next Message by Hans <strong>is</strong> [195].<br />

<strong>Question</strong> 144 <strong>is</strong> 134 in 1995WI, 111 in 1995ut, 146 in 1996ut, 159 in 1998WI, 166 in<br />

1999SP, 187 in 2001fa, 201 in 2002fa, 208 in 2003fa, 236 in 2004fa, 231 in 2005fa,<br />

251 in 2007SP, 256 in 2007fa, 261 in 2008fa, 275 in 2009fa, 303 in 2010fa, and 277 in<br />

2011fa:<br />

<strong>Question</strong> 144 How does Marx’s use <strong>of</strong> the term “fet<strong>is</strong>h<strong>is</strong>m” compare with its modern dictionary<br />

definition?<br />

[156] MUCHO: “Fet<strong>is</strong>h<strong>is</strong>m” According to modern dictionary(Webster’s Dictionary), the<br />

word “fet<strong>is</strong>h<strong>is</strong>m” was defined as; 1. belief in magical fet<strong>is</strong>hes. 2. extravagant irrational<br />

devotion. On the other hand, Marx defines the term as “the world <strong>of</strong> commodities with the<br />

products <strong>of</strong> men’s hands.” Marx also mentions that the fet<strong>is</strong>h<strong>is</strong>m attaches itself to the products<br />

<strong>of</strong> labor as soon as they are produced as commodities, and <strong>is</strong> therefore inseparable from<br />

the production <strong>of</strong> commodities. He makes strong connection between the term fet<strong>is</strong>h<strong>is</strong>m<br />

and commodities. He uses th<strong>is</strong> term for the peculiar social character <strong>of</strong> the labor which<br />

produces commodities. I think the main difference <strong>of</strong> using the term fet<strong>is</strong>h<strong>is</strong>m between the<br />

Marx’s way and in general <strong>is</strong>; in general, the term was commonly used for describing mental<br />

situations. However, the way Marx uses th<strong>is</strong> term <strong>is</strong> more <strong>of</strong> the material or physical situations.(I’m<br />

sorry for whoever happened to read th<strong>is</strong>, it might not make good sense to you. I<br />

don’t think I wrote exactly what I wanted to say because <strong>of</strong> my vocabulary problem.)<br />

Message [156] referenced by [177]. Next Message by MUCHO <strong>is</strong> [166.1].<br />

136 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[164] MsMarx: Fet<strong>is</strong>h<strong>is</strong>m Marx’s use <strong>of</strong> the term “fet<strong>is</strong>h<strong>is</strong>m” <strong>is</strong> quite different from the<br />

modern dictionary definition. Webster defines fet<strong>is</strong>h<strong>is</strong>m as a worship <strong>of</strong> an object or image<br />

superstitiously invested with divine or demoniac power, invested with reverence. Marx does<br />

not intend it to mean th<strong>is</strong> excessive devotion to material goods.<br />

Marx’s meaning <strong>of</strong> the “fet<strong>is</strong>h character” <strong>of</strong> the commodity arose because the source <strong>of</strong><br />

its value, the social labor <strong>of</strong> man working in interdependence, was transmuted in capital<strong>is</strong>m<br />

into an objective character <strong>of</strong> the product, into a price. That interdependence was <strong>is</strong>olated<br />

and indifferent; it could not straightforwardly assign value to the sat<strong>is</strong>faction <strong>of</strong> needs, but<br />

only to sales on the market, the only place where private labors became social.<br />

H<strong>is</strong> concept <strong>of</strong> fet<strong>is</strong>h implies the inversion <strong>of</strong> persons and things. The fet<strong>is</strong>h<strong>is</strong>m <strong>of</strong> commodities<br />

has its origin in the peculiar social character <strong>of</strong> the labor that produces them. Commodity<br />

fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> the belief that goods possess value just as they have weight, as an inherent<br />

property. To the unmystified mind, it <strong>is</strong> clear that a commodity has exchange value only<br />

because it stands in certain relations to human labor and human needs. In the bewitched<br />

world <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m, goods appear to exchange at a certain rate because <strong>of</strong> their<br />

inherent values.<br />

Hans does a good job <strong>of</strong> explaining that fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> in part the illusion that commodities,<br />

money, and capital have properties and powers <strong>of</strong> their own. However, whether people are<br />

aware or not <strong>of</strong> the social origin <strong>of</strong> the quasi-physical properties <strong>of</strong> the commodity, they<br />

must treat the commodities as beings with supranatural properties if they want to survive<br />

in a commodity society. It <strong>is</strong> easy to think that commodities really do have supernatural<br />

properties. Most <strong>of</strong> the people most <strong>of</strong> the time forget that the powers <strong>of</strong> the things which<br />

they are trying to take advantage <strong>of</strong> originate in their own activity, but nobody <strong>is</strong> forced to see<br />

the commodity th<strong>is</strong> way. Th<strong>is</strong> false consciousness implies Marx’s meaning <strong>of</strong> “fet<strong>is</strong>h<strong>is</strong>m.”<br />

Message [164] referenced by [177]. Next Message by MsMarx <strong>is</strong> [169.1].<br />

[177] Hans: MUCHO’s and MsMarx’s answers MsMarx’s [164] <strong>is</strong> a very good answer;<br />

I would only reformulate the last sentence as:<br />

Marx means th<strong>is</strong> false consciousness when he uses the word “fet<strong>is</strong>h<strong>is</strong>m.”<br />

MUCHO’s [156] has many more problems. He writes<br />

Marx defines the term as “the world <strong>of</strong> commodities with the products <strong>of</strong><br />

men’s hands.”<br />

Th<strong>is</strong> does not make any sense. Did you omit part <strong>of</strong> the sentence here? The next thing<br />

Mucho writes <strong>is</strong> not a definition <strong>of</strong> fet<strong>is</strong>h<strong>is</strong>m but one <strong>of</strong> its properties:<br />

Marx also mentions that the fet<strong>is</strong>h<strong>is</strong>m attaches itself to the products <strong>of</strong> labor<br />

as soon as they are produced as commodities, and <strong>is</strong> therefore inseparable<br />

from the production <strong>of</strong> commodities<br />

Th<strong>is</strong> may be relevant for the bridge to the dictionary definition, but Mucho does not make<br />

th<strong>is</strong> connection. The sentence


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 137<br />

He uses th<strong>is</strong> term for the peculiar social character <strong>of</strong> the labor which produces<br />

commodities.<br />

<strong>is</strong> strictly speaking wrong. Marx <strong>is</strong> seeking the origin <strong>of</strong> fet<strong>is</strong>h<strong>is</strong>m in the peculiar social<br />

character <strong>of</strong> commodity-producing labor, but he does not identify fet<strong>is</strong>h<strong>is</strong>m with th<strong>is</strong>. I get<br />

the impression MUCHO <strong>is</strong> just throwing Marx quotes at us, f<strong>is</strong>hing for points. Th<strong>is</strong> won’t<br />

work in th<strong>is</strong> class. If I see someone building a coherent argument, th<strong>is</strong> will be rewarded. The<br />

next sentence has something like an argument:<br />

I think the main difference <strong>of</strong> using the term fet<strong>is</strong>h<strong>is</strong>m between the Marx’s<br />

way and in general <strong>is</strong>; in general, the term was commonly used for describing<br />

mental situations. However, the way Marx uses th<strong>is</strong> term <strong>is</strong> more <strong>of</strong> the<br />

material or physical situations.<br />

Th<strong>is</strong> <strong>is</strong> true for the fet<strong>is</strong>h-like character <strong>of</strong> the commodity, which <strong>is</strong> an objective fact.<br />

It <strong>is</strong> not material or physical but social—social relations can be as real as brick walls, and<br />

although they are <strong>of</strong>ten based on what people have in their brains, they also have material<br />

carriers, such as guns, police cars, pr<strong>is</strong>ons, schools, and electronic databases. Fet<strong>is</strong>h<strong>is</strong>m<br />

itself <strong>is</strong> mental. I developed that argument in the Annotations.<br />

Next Message by Hans <strong>is</strong> [178].<br />

[194] Hobbes: question 144 I would like to expand on the d<strong>is</strong>cussion <strong>of</strong> fet<strong>is</strong>h<strong>is</strong>m proposed<br />

by MUCHO and MsMarx. The dictionary definition <strong>of</strong> fet<strong>is</strong>h<strong>is</strong>m has be clearly identified<br />

as a belief in magical fet<strong>is</strong>hes or an extravagant irrational devotion. MarxUs use <strong>of</strong> the<br />

term fet<strong>is</strong>h<strong>is</strong>m has elements <strong>of</strong> both definition within it.<br />

MsMarx brought up the point that fet<strong>is</strong>h<strong>is</strong>m grants supernatural properties to commodities.<br />

In todayUs society there <strong>is</strong> no clearer example <strong>of</strong> th<strong>is</strong> point than telev<strong>is</strong>ion ads. Almost<br />

every product that <strong>is</strong> advert<strong>is</strong>ed has be endowed with super powers, we can conquer our<br />

social problem if equipped with the right deodorant, beer turns the desert into a beach full<br />

<strong>of</strong> beautiful, scantily clad women and shaving cream that instantly attracts members <strong>of</strong> the<br />

opposite sex. These products have been given powers exceeding our own, and we rush out<br />

and purchase them to posses these powers.<br />

Fet<strong>is</strong>h<strong>is</strong>m, as addressed by Marx has elements <strong>of</strong> both belief in magical items and extravagant<br />

irrational devotion. We believe in the magical properties <strong>of</strong> the products we seek<br />

to posses and our extravagant irrational devotion <strong>is</strong> our willingness to rush out and buy the<br />

latest fad, which <strong>is</strong> something we do not need in the first place.<br />

Message [194] referenced by [195].<br />

[195] Hans: Trying to get the social powers back from the commodity Marx criticizes<br />

the commodity relation because people hand over their social powers to things, instead <strong>of</strong><br />

exerc<strong>is</strong>ing them directly. The advert<strong>is</strong>ements in Hobbes’s [194] feed on th<strong>is</strong> commodity<br />

fet<strong>is</strong>h<strong>is</strong>m: since things seem so powerful to people, people long to benefit from the social<br />

powers <strong>of</strong> their possessions. There <strong>is</strong> a clear difference to commodity fet<strong>is</strong>h<strong>is</strong>m proper: Marx<br />

would say that the car was sexy, was <strong>wealth</strong>y, or had a great social life, whereas advert<strong>is</strong>ers<br />

suggest that such properties would accrue to the owner <strong>of</strong> the car.<br />

Next Message by Hans <strong>is</strong> [198].<br />

138 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[219] Kalle: Fet<strong>is</strong>h<strong>is</strong>m Fet<strong>is</strong>h<strong>is</strong>m, the definition from dictonary, stated belief in magical<br />

fet<strong>is</strong>hes, means an object <strong>is</strong> believed among primitive peolpe to have magical power to protect<br />

or aid its owner, broadly an object regarded with superststions or extravagant trust or<br />

reverence.<br />

Marx stated that fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> that the commodity-form cons<strong>is</strong>t simply in the fact that the<br />

commodity reflects teh social caracter<strong>is</strong>tics <strong>of</strong> men’ s own labor as objective caracter<strong>is</strong>tics<br />

<strong>of</strong> the products <strong>of</strong> labor themselves, as the socio-natural properties <strong>of</strong> theses things. The<br />

commodity form, and teh value relation <strong>of</strong> the products <strong>of</strong> labor within which it appers, have<br />

no connection with teh physical nature <strong>of</strong> the commodity and the material relations ar<strong>is</strong>ing<br />

out <strong>of</strong> th<strong>is</strong>. In order to find an analogy we must take flight into the m<strong>is</strong>ty realm <strong>of</strong> religion.<br />

Therethe products <strong>of</strong> the human brain appear as autonomous figures endowed with a life <strong>of</strong><br />

their own, which enter into relations both with eachother and with the human race. So it<br />

<strong>is</strong> in the world <strong>of</strong> commodities with the product <strong>of</strong> hand, which calls th<strong>is</strong> <strong>is</strong> fet<strong>is</strong>h<strong>is</strong>m, and<br />

fet<strong>is</strong>h<strong>is</strong>m attaches itself to the products <strong>of</strong> labor as soon as they are produced as commodities,<br />

and <strong>is</strong> inseparable from the production <strong>of</strong> commodities.<br />

Also, objects <strong>of</strong> utility become commodities only because they are the products <strong>of</strong> labor <strong>of</strong><br />

individuals who work independently, and the sum <strong>of</strong> total <strong>of</strong> the labor <strong>of</strong> all private individuals<br />

forms the aggregate labor <strong>of</strong> society. The labor <strong>of</strong> the private individuals manifests itself<br />

as an element <strong>of</strong> the total labor <strong>of</strong> society through the relations which the act <strong>of</strong> exchange<br />

between the products and their mediation between the producers. So, as the commodityform<br />

<strong>is</strong> teh most general and the most undeveloped form <strong>of</strong> bourgeo<strong>is</strong> production, it makes<br />

its appearence at an eraly date, though not in the same predominant and caracter<strong>is</strong>tic manner<br />

as nowadays. Hence, its fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> still easy to penetrate.<br />

Hans: Sorry, but just copying Marx without a word <strong>of</strong> interpretation will not give you a good grade.<br />

Next Message by Kalle <strong>is</strong> [293].<br />

<strong>Question</strong> 145 <strong>is</strong> 135 in 1995WI, 112 in 1995ut, 152 in 1997WI, 159 in 1997sp, 152 in<br />

1997ut, 202 in 2002fa, 209 in 2003fa, 237 in 2004fa, 232 in 2005fa, 257 in 2007fa, 264<br />

in 2008SP, 278 in 2011fa, and 291 in 2012fa:<br />

<strong>Question</strong> 145 Modern advert<strong>is</strong>ing special<strong>is</strong>ts know that consumers <strong>of</strong>ten buy a certain<br />

product not because they need th<strong>is</strong> particular article, but because they are trying to compensate<br />

for other unmet needs. These compensatory demands are important for the economy<br />

because they are insatiable. Advert<strong>is</strong>ing addresses them whenever it suggests that social<br />

recognition, happiness, etc. are connected with the possession <strong>of</strong> a certain object.<br />

Is th<strong>is</strong> what Marx meant by “commodity fet<strong>is</strong>h<strong>is</strong>m,” or does it contradict it, or would Marx’s<br />

theory give r<strong>is</strong>e to amendments <strong>of</strong> th<strong>is</strong> theory?<br />

[212] Femme: Advert<strong>is</strong>er’s try to create compensatory demand to sat<strong>is</strong>fy unmet needs <strong>is</strong><br />

not what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m”. Fet<strong>is</strong>h<strong>is</strong>m as defined in the dictionary <strong>is</strong><br />

a stated belief in magical fet<strong>is</strong>hes, which means an object believed among primitive people<br />

to have magical power to protect or aid its owner; broadly: a material object regarded with<br />

superstitions or extravagant trust or reverence. Fet<strong>is</strong>h<strong>is</strong>m has to do with people’s false consciouseness<br />

in reference to commodities. People attempt to control commodities as if they<br />

had a life <strong>of</strong> their own, what they fail to relaize <strong>is</strong> they themselves gave the commodities


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 139<br />

the power <strong>of</strong> life. In capatal<strong>is</strong>m individuals see their social relations reflected back to them<br />

as material properties <strong>of</strong> their products. Marx’s theory <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m would be<br />

in agreement with the advert<strong>is</strong>ing example because individuals do exhibit false consciousness<br />

by thinking that by wearing the right name brand clothing and driving the right cars<br />

will compensate for some unmet need. Th<strong>is</strong> could be thought <strong>of</strong> as Marxian fet<strong>is</strong>h<strong>is</strong>m in the<br />

sense that people’s own products are taking on a social aspect. So in conclusion the advert<strong>is</strong>ing<br />

example may not be exactly equivalent to what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m”,<br />

advert<strong>is</strong>ers do take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and individual’s fet<strong>is</strong>h<strong>is</strong>m to sell their<br />

products.<br />

Hans: I fully agree with what you say in your summary statement at the end.<br />

Message [212] referenced by [344.1], [392.2], [399.3], and [457.4]. Next Message by Femme <strong>is</strong> [259].<br />

[339.1] Wight: Advert<strong>is</strong>ers trying to create compensatory demand to sat<strong>is</strong>fy unmet needs<br />

<strong>is</strong> not what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m”. Readers in the modern USA <strong>of</strong>ten interpret<br />

the term “commodity fet<strong>is</strong>h<strong>is</strong>m” to mean an excessive devotion to material goods.<br />

There <strong>is</strong> no evidence that Marx ever used it in th<strong>is</strong> way. Today, overemphas<strong>is</strong> <strong>of</strong> material<br />

goods derives from the fet<strong>is</strong>h-like character <strong>of</strong> commodities. Material possessions become<br />

too important because they are the individual’s only link to society: conspicuous consumption<br />

compensates for the paucity <strong>of</strong> direct social relations. Fet<strong>is</strong>h<strong>is</strong>m has to do with people’s<br />

false consciousness in reference to commodities. People attempt to control commodities as<br />

if they had a life <strong>of</strong> their own. <strong>What</strong> people fail to realize <strong>is</strong> that they gave the commodities<br />

the power <strong>of</strong> life. In capital<strong>is</strong>m, individuals see their social relations and value reflected<br />

back to them as material properties <strong>of</strong> their products. Marx’s theory <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m<br />

would be in agreement with the advert<strong>is</strong>ing example, because individuals do exhibit false<br />

consciousness by thinking that by wearing the right clothes and driving the nicest cars th<strong>is</strong><br />

will compensate for some unmet needs. Th<strong>is</strong> could be thought <strong>of</strong> as Marxian fet<strong>is</strong>h<strong>is</strong>m, in<br />

the sense that people’s own products are taking on a social aspect. In summary, the advert<strong>is</strong>ing<br />

example may not be exactly equivalent to what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m”,<br />

but advert<strong>is</strong>ers do take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and the individual’s fet<strong>is</strong>h<strong>is</strong>m to<br />

sell their products.<br />

Hans: You are quoting the right places, but the quotes contradict each other and give several competing explanations.<br />

In one sentence you say it <strong>is</strong> in agreement, in another that it <strong>is</strong> not exactly in agreement, etc.<br />

Next Message by Wight <strong>is</strong> [340.1].<br />

[342.1] Panacea: Advert<strong>is</strong>ements addressing social recognition, personal appearance,<br />

etc. show (in my opinion) that an amendment to Marx’s concept <strong>of</strong> “fet<strong>is</strong>h<strong>is</strong>m” <strong>is</strong> necessary,<br />

rather than a contradiction. Consumers have “unmet needs” <strong>of</strong> a social nature which are<br />

not logically directly solveable through, nor direct result <strong>of</strong> <strong>wealth</strong> - be it too much or too<br />

little. Yet society begins slowly to identify desired (or undesired) attributes with certain<br />

commodities...the commodities become the means to an end with which the have inherently<br />

nothing whatsoever to do with, and consequently th<strong>is</strong> “fet<strong>is</strong>h<strong>is</strong>m” <strong>of</strong> commodities result<br />

in the commodities becoming ends in themselves. “If I drink th<strong>is</strong> Miller Beer (TM, All<br />

rights reserved) it will make me sexy and desirable.” Sexiness or desirability are not inherent<br />

properties <strong>of</strong> the beer, but rather are attributes impressed upon the beer through advert<strong>is</strong>ing<br />

and are not natural.<br />

I believe there should be an advert<strong>is</strong>ing “amendment” because Marx could not have foreseen<br />

the effect, the level <strong>of</strong> control available through the media.<br />

140 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Hans: Your argument begins as follows:<br />

Consumers have “unmet needs” <strong>of</strong> a social nature which are not logically directly solveable<br />

through, nor direct result <strong>of</strong> <strong>wealth</strong> - be it too much or too little.<br />

You show that you are under the influence <strong>of</strong> market categories since you are thinking <strong>of</strong> <strong>wealth</strong> in quantitative<br />

terms. But th<strong>is</strong> <strong>is</strong> a minor side remark. My main complaint at th<strong>is</strong> point <strong>is</strong> that in the next sentence you do as if<br />

these needs <strong>of</strong> a “social nature” were the needs to have certain desirable attributes. I d<strong>is</strong>agree. The identification<br />

<strong>of</strong> the need for social connectedness with the need to be more attractive to others <strong>is</strong> the error <strong>of</strong> competition and <strong>of</strong><br />

methodological individual<strong>is</strong>m.<br />

Yet society begins slowly to identify desired (or undesired) attributes with certain commodities...the<br />

commodities become the means to an end with which the have inherently nothing<br />

whatsoever to do with, and consequently th<strong>is</strong> “fet<strong>is</strong>h<strong>is</strong>m” <strong>of</strong> commodities result in the commodities<br />

becoming ends in themselves. “If I drink th<strong>is</strong> Miller Beer (TM, All rights reserved)<br />

it will make me sexy and desirable.” Sexiness or desirability are not inherent properties <strong>of</strong> the<br />

beer, but rather are attributes impressed upon the beer through advert<strong>is</strong>ing and are not natural.<br />

I also d<strong>is</strong>agree with th<strong>is</strong> last sentence: advert<strong>is</strong>ement can only fool people into thinking that certain objects <strong>of</strong><br />

consumption (beer) have wide ranging social powers because people live in a society in which objects do have<br />

magical powers <strong>of</strong> social origin.<br />

I believe there should be an advert<strong>is</strong>ing “amendment” because Marx could not have foreseen<br />

the effect, the level <strong>of</strong> control available through the media.<br />

As I tried to make clear in my last remark, the media technology <strong>is</strong> not the deepest cause <strong>of</strong> it. Advert<strong>is</strong>ement<br />

exploits the d<strong>is</strong>torted view <strong>of</strong> society and self which people inherit from their participation in a market economy.<br />

I am glad that you are taking th<strong>is</strong> Economics course. It <strong>is</strong> not possible to understand the cultural <strong>is</strong>sues without<br />

understanding the economic base <strong>of</strong> it.<br />

Next Message by Panacea <strong>is</strong> [371].<br />

[344.1] VanHalen: My in class answer has the right idea, but I’ll try and be more prec<strong>is</strong>e in<br />

what I mean. The statement in question 145 <strong>is</strong> not exactly what Marx meant by “commodity<br />

fett<strong>is</strong>h<strong>is</strong>m.” However the example <strong>of</strong> the advert<strong>is</strong>ers does give an example <strong>of</strong> how advert<strong>is</strong>ers<br />

take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and individual fet<strong>is</strong>h<strong>is</strong>m. I think Marx could build<br />

on the example in Q 145 to explain h<strong>is</strong> commodity fet<strong>is</strong>h<strong>is</strong>m.<br />

The commodity fet<strong>is</strong>h<strong>is</strong>m I think refers to a false consciouseness that people have about<br />

the commodity. An example to illustrate my point I hope follows Marxs idea: There <strong>is</strong> an<br />

exciting, formal party and the people coming to the party all wear formal attire. All the<br />

people are there and in walks a lady with a very expensive dress, the one that <strong>is</strong> advert<strong>is</strong>ed at<br />

only the most elite store. All the people at the party gasp to themselves because <strong>of</strong> the dress.<br />

People at the party want to be seen with th<strong>is</strong> lady and be associated with the dress because<br />

<strong>of</strong> the power the dress gives <strong>of</strong>f.<br />

Commodity fet<strong>is</strong>h<strong>is</strong>m I think refers to people giving social power to things instead <strong>of</strong> to<br />

the people who really gave the things the power. In our example <strong>of</strong> the formal party, the<br />

lady’s dress seems to be what came to the party not the lady, the dress <strong>is</strong> what people are<br />

admiring not the lady. The dress becomes the bas<strong>is</strong> for the social relationship. People’s<br />

things are the bas<strong>is</strong> for social relationships, and different things will qualify you to be in<br />

different social circles. Cars, boats, clothes, are all claims to social cirlces and relationships.<br />

By acquiring the dress, the lady now has claim to the power <strong>of</strong> the dress. Things seem to<br />

rule the people.<br />

Advert<strong>is</strong>ers know th<strong>is</strong> very well and advert<strong>is</strong>e at great expense to “capitalize” on th<strong>is</strong> false<br />

perception or consciouseness <strong>of</strong> people.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 141<br />

Femme [212] gives a good conclusion....“the advert<strong>is</strong>ing example may not be exactly<br />

equivalent to what Marx means by ‘commodity fet<strong>is</strong>h<strong>is</strong>m’, advert<strong>is</strong>ers do take advantage <strong>of</strong><br />

commodity fet<strong>is</strong>h<strong>is</strong>m and individual’s fet<strong>is</strong>h<strong>is</strong>m to sell their products.”<br />

Hans: I almost like your in-class exam better. Your resubm<strong>is</strong>sion was not more “prec<strong>is</strong>e” as you say. There <strong>is</strong> much<br />

in the printout <strong>of</strong> the answers which needs to be made more prec<strong>is</strong>e, but do not seem aware <strong>of</strong> these gaps (or maybe<br />

you thought it was too r<strong>is</strong>ky to come up with your own thoughts?). Is the example with the expensive party dress<br />

an illustration <strong>of</strong> Marx’s original commodity fet<strong>is</strong>h<strong>is</strong>m, or <strong>of</strong> that what consumers, goaded by their advert<strong>is</strong>ers, are<br />

trying to make out <strong>of</strong> it? It <strong>is</strong> a non-sequitur if you write:<br />

By acquiring the dress, the lady now has claim to the power <strong>of</strong> the dress. Things seem to rule<br />

the people.<br />

The lady <strong>is</strong> one step beyond being ruled by things, or maybe one can say she <strong>is</strong> doubly enslaved by things, in her<br />

efforts to take advantage <strong>of</strong> the power things have in th<strong>is</strong> society. People try to instrumentalize everything for their<br />

purposes, even their own commodity fet<strong>is</strong>h<strong>is</strong>m.<br />

Next Message by VanHalen <strong>is</strong> [345.3].<br />

[392.2] Brumbys: Advert<strong>is</strong>ers try to create compensatory demand to sat<strong>is</strong>fy unment needs<br />

that <strong>is</strong> not what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m.” Fet<strong>is</strong>h<strong>is</strong>m as defined in the dictionary<br />

<strong>is</strong> a stated belief in magical fet<strong>is</strong>hes, which means an object believed among primitive<br />

people to have magaical power to protect or aid its owner; broadly , a material object regarded<br />

with superstitions or extravagant trust or reverence. Fet<strong>is</strong>h<strong>is</strong>m has to with people’s<br />

false consiousness in reference to commodities. People attempt to control commodities as if<br />

they ahd a life <strong>of</strong> their own, what they fial to realize <strong>is</strong> they themselves gace the commoditites<br />

the power <strong>of</strong>life in capital<strong>is</strong>m individuals see their social relations reflected back to them<br />

as material properites <strong>of</strong> their products. Marx’s theory <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m would be in<br />

agreement with the advert<strong>is</strong>ing example because individuals do exhibit false cousiousness by<br />

thinking that by wearing the right name brand clothing and driving the right cars will compensate<br />

for some unmet needs. Th<strong>is</strong> could be thought <strong>of</strong> as Marxian fet<strong>is</strong>h<strong>is</strong>m in the sense<br />

that people’s own products are taking on a social aspect. So in conclusion the advert<strong>is</strong>ing<br />

example may not be exactly equivalent to what Marx means by “commodity fet<strong>is</strong>h<strong>is</strong>m,” advert<strong>is</strong>ers<br />

do take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and individual’s fet<strong>is</strong>h<strong>is</strong>m to sell their<br />

products.<br />

Hans: Th<strong>is</strong> <strong>is</strong> a literal copy <strong>of</strong> Femme’s [212] from the collection <strong>of</strong> <strong>Question</strong>s and Answers. Although you copied<br />

it twice, once in class and once in your resubm<strong>is</strong>sion, you apparently did not notice the contradictory statements in<br />

[212] and the general vagueness <strong>of</strong> the argument.<br />

Next Message by Brumbys <strong>is</strong> [415].<br />

[399.3] Femme: Advert<strong>is</strong>er’s attempts to create compensatory demand to sat<strong>is</strong>fy unmet<br />

needs <strong>is</strong> not exactly what Marx meant by “commodity fet<strong>is</strong>h<strong>is</strong>m”. Fet<strong>is</strong>h<strong>is</strong>m has to do with<br />

people’s false consciousness in regards to commodities. People attempt to control objects<br />

or commodities as if they were alive and had a life <strong>of</strong> their own, what they don’t relaize<br />

<strong>is</strong> that it <strong>is</strong> they themselves who gave the commodities th<strong>is</strong> supernmatural power. So in<br />

capital<strong>is</strong>m people see their social relations reflected back to them as material properties <strong>of</strong><br />

their products.<br />

Marx’s theory <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m would be somewhat/<strong>is</strong> in agreement with the advert<strong>is</strong>ing<br />

example in the sense that people do exhibit false consciousness by thinking that<br />

wearing the right clothing will compensate for some unmet need. Th<strong>is</strong> could also be thought<br />

<strong>of</strong> as Marxian fet<strong>is</strong>h<strong>is</strong>m in the sense that people’s own products are taking on a very social<br />

142 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

aspect. So while the advert<strong>is</strong>ing example may not be exactly what Marx meant by “commodity<br />

fet<strong>is</strong>h<strong>is</strong>m”, advert<strong>is</strong>ers do take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and people’s fet<strong>is</strong>h<strong>is</strong>m<br />

to sell their products.<br />

Hans: Your in-class text <strong>is</strong> the same as your original answer [212]: you first said that those advert<strong>is</strong>ing tricks are<br />

not the same as Marx’s fet<strong>is</strong>h<strong>is</strong>m, then you said that it <strong>is</strong> the same, and then you said that it <strong>is</strong> not exactly the<br />

same. In your resubm<strong>is</strong>sion you changed your first “not the same” into “not exactly the same” and the second “it<br />

<strong>is</strong> the same” into “it <strong>is</strong> somewhat in agreement”. At least you noticed that something was wrong with your original<br />

subm<strong>is</strong>sion, but the changes you made are only cosmetic changes; you did not see any need to make the reasoning<br />

itself more prec<strong>is</strong>e.<br />

Next Message by Femme <strong>is</strong> [505].<br />

[401.5] Homer: The use <strong>of</strong> the term “commodity fet<strong>is</strong>h<strong>is</strong>m” as defined in the advert<strong>is</strong>ing<br />

example <strong>is</strong> related to what Marx meant, but it <strong>is</strong> not quite the same.<br />

<strong>What</strong> Marx meant by the term was the tendency <strong>of</strong> people to reify commodities, to treat<br />

what are in fact social relations between humans as if they were relations between things.<br />

The advert<strong>is</strong>er prom<strong>is</strong>es that the owner <strong>of</strong> the products will be viewed as smart and sexy.<br />

Th<strong>is</strong> <strong>is</strong> different in that the advert<strong>is</strong>er wants people to think that their social status and social<br />

relations will be improved through the possession <strong>of</strong> certain commodities. The item gives<br />

the possessor these desirable qualities. There are, however some similarities in use <strong>of</strong> the<br />

term, “commodity fet<strong>is</strong>h<strong>is</strong>m.” One way in which advert<strong>is</strong>ers approach Marx’s definition <strong>is</strong><br />

when commercials say that a car has “sexy curves” <strong>of</strong> the cut <strong>of</strong> a dress <strong>is</strong> “smart and sassy.”;<br />

here the commodities themselves are talked about as though they were humans rather than<br />

just giving these qualities to the owners.<br />

Hans: Your in-class exam was clearer, you watered it down in your resubm<strong>is</strong>sion.<br />

Next Message by Homer <strong>is</strong> [406].<br />

[457.4] Ramb<strong>is</strong>: In her [212] response to th<strong>is</strong> question, Femme states that th<strong>is</strong> advert<strong>is</strong>ing<br />

example <strong>is</strong> “not...exactly equivalent to what Marx means by ‘commodity fet<strong>is</strong>h<strong>is</strong>m’, (yet)<br />

advert<strong>is</strong>ers do take advantage <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and individual’s fet<strong>is</strong>h<strong>is</strong>m to sell their<br />

products.” In order to understand how th<strong>is</strong> <strong>is</strong> and the relationship to commodity fet<strong>is</strong>h<strong>is</strong>m it<br />

<strong>is</strong> important to understand these elements as what they are. Due to time constraints, I will<br />

borrow heavily from what <strong>is</strong> written in the Study Guide and in the Answers booklet.<br />

First <strong>of</strong> all, commodity fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> “the belief that goods possess value just as they have<br />

weight or other inherent properties.” Due to th<strong>is</strong> intrinsic property, “goods appear to exchange<br />

at a certain rate because <strong>of</strong> their inherent values.” Fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> the illusion that “commodities<br />

have properties and powers <strong>of</strong> their own.” It <strong>is</strong> the reifying <strong>of</strong> the abstract entity<br />

known as a “commodity.” When Marx uses the word fet<strong>is</strong>h<strong>is</strong>m, he means th<strong>is</strong> type <strong>of</strong> “false<br />

consciousness [in reference to commodities].” Fet<strong>is</strong>h<strong>is</strong>m itself <strong>is</strong> totally mental.<br />

As far as the unmet needs are concerned, society attaches a certain “power” to commodities<br />

which can be used to ‘compensate’ for the perceived unmet wants or needs <strong>of</strong> the<br />

individual. With the right s<strong>of</strong>t drink, for example, one can become a stellar athlete, or with<br />

the right cologne or clothing one <strong>is</strong> suddenly desirable to the opposite sex. “Since things<br />

seem so powerful to people, they long to benefit from the social powers <strong>of</strong> their possessions.”<br />

Th<strong>is</strong> <strong>is</strong> the process advert<strong>is</strong>ers use when appealing to individual’s fet<strong>is</strong>h<strong>is</strong>m but <strong>is</strong> not<br />

exactly what Marx means by commodity fet<strong>is</strong>h<strong>is</strong>m.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 143<br />

Hans: You had it all there, but then you did not draw the conclusions quite clearly enough. Instead <strong>of</strong> iterating in<br />

your last sentence the vague “not exactly”, you would have been able to explain, based on your previous argument,<br />

that the advert<strong>is</strong>ers take the Marxian commodity fet<strong>is</strong>hsim as given, the power which goods seem to have, and try<br />

to give the consumer the illusion that he can use th<strong>is</strong> power for h<strong>is</strong> own ends.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [457.5].<br />

[475.4] Emma: Marx understood commodities to be social products, that they owe their<br />

value not primarily to the estimation <strong>of</strong> their utility by consumers, but to the ex<strong>is</strong>tene <strong>of</strong><br />

social relations which constitute the “fabric <strong>of</strong> society and which make the production <strong>of</strong>the<br />

commodity possible in the first place.” Marx believed that when people worked for one<br />

another their labor automatically assumed social form. But people don’t comprehend that<br />

social aspect <strong>of</strong> the commodity and are thus alienated from their own products. Society has<br />

unfortunately come to act socially only in the exchange process and has m<strong>is</strong>sed altogether to<br />

opportunity to recognize the social implications within the production <strong>of</strong> the commodity itself.<br />

It <strong>is</strong> th<strong>is</strong> confusion about the nature <strong>of</strong> the commodity and what it embodies <strong>of</strong> society’s<br />

relations that <strong>is</strong> the mystery <strong>of</strong> commodities. The passage about the advert<strong>is</strong>ers pandering to<br />

the transient needs <strong>of</strong> people through their acqu<strong>is</strong>itiveness further illustrates the alienation<br />

<strong>of</strong> people in a capital<strong>is</strong>t society who believe that social relations come from possessions, I<br />

suppose. But th<strong>is</strong> <strong>is</strong> not what Marx had in mind about commodity fet<strong>is</strong>h<strong>is</strong>m, in my opinion.<br />

Marx’s theory would, I suspect, perhaps add deeper understanding to the phenomenon <strong>of</strong> the<br />

“shopper” as evidence <strong>of</strong> the m<strong>is</strong>sed opportunity in capital<strong>is</strong>m for developing social relations<br />

during the production <strong>of</strong> the commodity, not after, or during the market exchange process.<br />

Hans: Resubm<strong>is</strong>sion <strong>is</strong> good, unfortunately your in-class exam was not so good.<br />

Next Message by Emma <strong>is</strong> [476].<br />

[504.1] Gottlieb: The attempt by consumers to find some sort <strong>of</strong> fulfillment from a commodity<br />

<strong>is</strong> definately in agreement with Marx’s idea <strong>of</strong> “commodity Fet<strong>is</strong>h<strong>is</strong>m.” Fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong><br />

having an excessive or unusual interest in something. Commodity fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> giving commodities<br />

human or social traits and attributes. When the commodity has these attributes,<br />

then the consumer thinks that they can obtain these attributes by consuming the commodity.<br />

The “trait” <strong>of</strong> the commodity <strong>is</strong> somehow transferred to the consumer.<br />

Let us say that someone in Beverly Hills <strong>is</strong> m<strong>is</strong>sing a desired attribute. They want everyone<br />

to think that they are very very rich. Because they are not perceived th<strong>is</strong> way right<br />

now, they must somehow obtain th<strong>is</strong> attribute. If they buy a ring with a large rock on it,<br />

everyone with think, “That <strong>is</strong> a large diamond...diamonds are worth a lot <strong>of</strong> money...because<br />

they have that diamond, they must be worth a lot <strong>of</strong> money.” Society has given the diamond<br />

a trait “worth,” and th<strong>is</strong> trait was transferred to the consumer. Marx argues that there really<br />

<strong>is</strong> not trait to be transferred, but the fet<strong>is</strong>h<strong>is</strong>m makes th<strong>is</strong> happen.<br />

Advert<strong>is</strong>ers can take advantage <strong>of</strong> th<strong>is</strong> Commodity Fet<strong>is</strong>h<strong>is</strong>m and with it make lots <strong>of</strong><br />

money. For instance, Advert<strong>is</strong>ers pick a trait that they want the commodity to have, and<br />

somehow must convey that trait to the commodity. Advert<strong>is</strong>ers want NIKE shoes to be<br />

“geil” so they portray all people who wear these shoes as being “geil.” These are really cool<br />

shoes! Young people watch th<strong>is</strong> on the tele and some feel that they are lacking th<strong>is</strong> trait <strong>of</strong><br />

being “cool.” They buy th<strong>is</strong> shoe and they inherit th<strong>is</strong> trait. They are suddenly cool!<br />

I am not sure if Marx thinks that th<strong>is</strong> transfference actually occurs, but there <strong>is</strong> no doubt<br />

that it does happen. The cool kids in high school are the ones who had “cool” clothes. If<br />

144 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

you are lacking many traits, usually those conveyed upon you by society, you can obtain it<br />

through a commodity.<br />

Hans: Good examples, but the relationship with Marx’s commodity fet<strong>is</strong>h<strong>is</strong>m <strong>is</strong> not worked out well enough.<br />

Next Message by Gottlieb <strong>is</strong> [505.1].<br />

[617.6] Pizza: Pizza did not resubmit h<strong>is</strong> exam. The exam itself was very good. He said<br />

that people <strong>of</strong>ten buy things so that they have a symbol <strong>of</strong> the participation in the American<br />

dream, to which they feel entitled. Unfortunately he did not say how th<strong>is</strong> related to Marx’s<br />

theory.<br />

First Message by Pizza <strong>is</strong> [96].<br />

<strong>Question</strong> 146 <strong>is</strong> 258 in 2007fa, 263 in 2008fa, and 305 in 2010fa:<br />

<strong>Question</strong> 146 Mark Blaug writes on p. 268:2 <strong>of</strong> h<strong>is</strong> Economic Theory in Retrospect, fourth<br />

edition, Cambridge <strong>University</strong> Press 1985: “Commodity ‘fet<strong>is</strong>h<strong>is</strong>m’ refers to the tendency<br />

to reify commodities, to treat what are in fact social relations between men as if they were<br />

relations between things.” Right or wrong?<br />

[221] Homer: Is Blaug right? Blaug’s statement <strong>is</strong> correct. The mode <strong>of</strong> commodity<br />

production causes d<strong>is</strong>tortions in the minds <strong>of</strong> people. Because <strong>of</strong> strict div<strong>is</strong>ions <strong>of</strong> labor,<br />

people are very dependent on each other. It would be impossible for everyone to grow all<br />

their own food, make their own cars, houses, etc. Yet, at the same time, people have illusions<br />

<strong>of</strong> individual<strong>is</strong>m and self-reliance. These contradictions cause people to view exchanges<br />

that are really relations between people as relations between themselves and objects. Blaug<br />

writes, “...to treat what are in fact social relations between men as if they were relations<br />

between things.” When a mason creates a dozen bricks and exchanges them for a violin,<br />

he looks at the situation as the relation between the commodities, when in reality he <strong>is</strong><br />

exchanging some <strong>of</strong> h<strong>is</strong> labor with the labor <strong>of</strong> the violin maker.<br />

Message [221] referenced by [2007fa:123], [2007fa:128], [2007fa:205], [2007fa:283], [2008fa:287], and [2008fa:299].<br />

Next Message by Homer <strong>is</strong> [221.1].<br />

<strong>Question</strong> 148 <strong>is</strong> 138 in 1995WI, 115 in 1995ut, 150 in 1996ut, 155 in 1997WI, 162 in<br />

1997sp, 155 in 1997ut, 267 in 2008SP, 265 in 2008fa, 307 in 2010fa, and 294 in 2012fa:<br />

<strong>Question</strong> 148 Make a thought experiment comparing two situations. In situation a, you are<br />

an art<strong>is</strong>an producing something for sale. In situation b, you are also an art<strong>is</strong>an, but you<br />

know the people who will use the things you are producing, and these are the same people<br />

who are producing the things you are consuming. Would you act differently in situation a<br />

than in situation b? Would, over time, the use value <strong>of</strong> your product and the technology <strong>of</strong><br />

your labor evolve differently in situation a than in situation b?<br />

[215] Slacker: In situation (a) you would produce at maximum output in an effort to<br />

maximize returns. In situation (b) you would produce at a level that would provide you<br />

with a quantity <strong>of</strong> goods that sat<strong>is</strong>fy your need as well as a surplus to cover the costs <strong>of</strong> the<br />

exchanges that you make with your fellow traders. Th<strong>is</strong> situation <strong>is</strong> a compar<strong>is</strong>on <strong>of</strong> trades<br />

<strong>of</strong> value = value (situation [a]) and trades <strong>of</strong> value = use value (situation [b]).<br />

In situation (a) you would make advancments in technology at a more rapid pace in an<br />

attempt to further maximize returns. In situation (b) you would be content to produce with


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 145<br />

the current technology as long as it meet demand. In situation (a) the producer would attempt<br />

to see into the the current market and look for other ways in which to modify h<strong>is</strong> commodity<br />

(commodity and not product because it <strong>is</strong> produced for sale not consumption) to meet some<br />

new need, and thus have a new use value.<br />

Hans: Often people are idealizing situation (b). I am glad that you are not doing that.<br />

Next Message by Slacker <strong>is</strong> [305].<br />

<strong>Question</strong> 151 <strong>is</strong> 141 in 1995WI, 118 in 1995ut, 158 in 1997WI, 167 in 1998WI, 174 in<br />

1999SP, and 195 in 2001fa:<br />

<strong>Question</strong> 151 <strong>What</strong> does it matter whether exploitation follows from alienation, or alienation<br />

follows from exploitation? (Define those terms.)<br />

[171] Caren: Alienation The people who do the work in capital<strong>is</strong>m own none <strong>of</strong> the<br />

means (machines and raw materials, for example) that they use in their work. These are<br />

owned by the capital<strong>is</strong>ts, to whom workers must sell their “labor power,” or ability to do<br />

work, in return for wage. Th<strong>is</strong> system <strong>of</strong> labor d<strong>is</strong>plays four relations that lie at the core<br />

<strong>of</strong> Marx’s theory <strong>of</strong> alienation. The worker <strong>is</strong> alienated from h<strong>is</strong> or her productive activity,<br />

having no control over what to do or how to do it. The worker <strong>is</strong> alienated from the product<br />

<strong>of</strong> that activity, having no control over what <strong>is</strong> made or what becomes <strong>of</strong> it. The worker<br />

<strong>is</strong> alienated from the product <strong>of</strong> that activity, having no control over what <strong>is</strong> made or what<br />

becomes <strong>of</strong> it. The worker <strong>is</strong> alienated from other human beings, with competition and<br />

mutual indifference replacing most forms <strong>of</strong> cooperation. Finally, the worker <strong>is</strong> alienated<br />

from the d<strong>is</strong>tinctive potential inherent in the notion <strong>of</strong> human being.<br />

The severing <strong>of</strong> these relationships leaves on one side a seriously dimin<strong>is</strong>hed individual–<br />

physically weakened, mentally confused and mystified, <strong>is</strong>olate and virtually powerless. On<br />

the other side <strong>of</strong> th<strong>is</strong> separation are products and ties with other people, outside the control<br />

and lost to the understanding <strong>of</strong> the worker. In the marketplace the worker’s products pass<br />

from one hand to another, changing names and form along the way–value, commodity, capital,<br />

pr<strong>of</strong>it, interest, rent, wage– eventually reentering the worker’s daily life as the landlord’s<br />

house, the grocer’s food, the boss’s factory, and the various laws and customs that prescribe<br />

relations with other people. The world that the worker has made and lost reappears in the<br />

m<strong>is</strong>understood form <strong>of</strong> private property to serve as the necessary conditions for reproducing<br />

h<strong>is</strong> or her own alienation. Only in capital<strong>is</strong>m <strong>is</strong> the d<strong>is</strong>tribution <strong>of</strong> what <strong>is</strong> produced a<br />

function <strong>of</strong> market and prices. On the separation <strong>of</strong> the worker from h<strong>is</strong> or her means <strong>of</strong><br />

production and the sale <strong>of</strong> h<strong>is</strong> or her labor power that th<strong>is</strong> separation makes necessary. As a<br />

result <strong>of</strong> th<strong>is</strong> separation, all the things that workers produce become available for exchange.<br />

“Value” <strong>is</strong> the general social form taken by all the products <strong>of</strong> alienated labor. Such products<br />

could only sell and serve in the ways that express and contribute to th<strong>is</strong> alienation.<br />

Message [171] referenced by [179]. Next Message by Caren <strong>is</strong> [181.1].<br />

[179] Hans: Alienation and Exploitation Caren’s answer [171] <strong>is</strong> a spruced-up version<br />

<strong>of</strong> her [37]. That means, she had the answer before the <strong>Question</strong>, and although her essay<br />

fits here ten times better than for <strong>Question</strong> 67, it still does not fit completely. Caren shows<br />

that people who are exploited are also alienated, and the commodity relation, which Caren<br />

limits to the things the worker has to buy, leaving out the capital<strong>is</strong>t’s investments, merely<br />

reproduce th<strong>is</strong> alienation.<br />

146 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

From Caren’s essay one can infer (and she should have made th<strong>is</strong> inference more explicit)<br />

that alienation follows from exploitation. However in the commodity fet<strong>is</strong>h<strong>is</strong>m section,<br />

Marx talks about alienation on the bas<strong>is</strong> <strong>of</strong> commodity production alone, before we even<br />

know about wage labor and surplus value. Th<strong>is</strong> seems to suggest that alienation <strong>is</strong> the more<br />

basic concept, and exploitation follows from it. Which interpretation <strong>is</strong> right?<br />

And finally, coming to what <strong>Question</strong> 131 really asked: does it matter which interpretation<br />

<strong>is</strong> right, or <strong>is</strong> that just idle philosophizing about other people’s m<strong>is</strong>ery?<br />

Next Message by Hans <strong>is</strong> [181].<br />

[545] Skippy: <strong>What</strong> comes first? To exploit a worker means not to properly compensate<br />

him/her for their efforts. Th<strong>is</strong> <strong>is</strong> a key in capital<strong>is</strong>m. To under pay an employee so the<br />

employer can make more for himself <strong>is</strong> now the American way.<br />

To alienate a worker <strong>is</strong> to keep them away from parts <strong>of</strong> the production process. Also too<br />

keep them away from dec<strong>is</strong>ions which concern what to produce, and what to do with it once<br />

produced. The workers are also alienated from each other to keep communications down.<br />

When a worker <strong>is</strong> alienated from the most <strong>of</strong> the production process, he loses touch with<br />

what <strong>is</strong> being produced. The utility that he had once received from h<strong>is</strong> larger role in the<br />

production process, <strong>is</strong> now lower if not gone.<br />

The personal sat<strong>is</strong>facation will be replaced by working harder for the same, or maybe for<br />

less rewards.<br />

Th<strong>is</strong> <strong>is</strong> how alienation proceeds exploitation.<br />

If it were the other way around, then the worker would worker harder<br />

for the same benefits and then be shut out <strong>of</strong> production dec<strong>is</strong>ions. That does not make<br />

sence.<br />

Hans: Your are taking the “follows from” too literally, as a time sequence. The question was meant as: which <strong>is</strong><br />

the more basic ill <strong>of</strong> our society?<br />

Next Message by Skippy <strong>is</strong> [545.1].<br />

<strong>Question</strong> 152 <strong>is</strong> 142 in 1995WI, 119 in 1995ut, 159 in 1997WI, 166 in 1997sp, and 159 in<br />

1997ut:<br />

<strong>Question</strong> 152 Describe cooperative situations in which the participants do not use and<br />

serve each other as means to obtain their individual goals.<br />

[199] Chocolate: Re: Means to obtain a goal. Individuals who work on an assembly<br />

line (let’s say to produce a vehicle) do not use and serve each other as means to obtain their<br />

individual goals, but in fact they are dependent on each other’s working efforts to fin<strong>is</strong>h<br />

building a common product. In th<strong>is</strong> case a vehicle, which <strong>is</strong> owned by an individual and/or<br />

a group <strong>of</strong> individuals whom the worker’s are not in contact with throughout the production<br />

process.<br />

Each worker who <strong>is</strong> on the assembly line must depend on the individual working before<br />

him/her. For example, the individual who installs the windshield wipers cannot do so without<br />

the individual in front <strong>of</strong> him/her to install the windshield.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 147<br />

Even though the employees are being used by a capatil<strong>is</strong>t to produce a commodity that<br />

will benefit solely the capatil<strong>is</strong>t, the employees must still depend on each other to produce<br />

that commodity. Therefore the participants(worker’s) do not use and serve each other as<br />

means to obtain their individual goals, but in fact to obtain the goals <strong>of</strong> another individual.<br />

Message [199] referenced by [206]. Next Message by Chocolate <strong>is</strong> [252].<br />

[206] Gilligan: cooperatives (fwd) Its funny that there <strong>is</strong> a question like th<strong>is</strong> because I<br />

deal with th<strong>is</strong> type <strong>of</strong> situation everyday. I work in a warehouse putting together machines<br />

that enable a person to put stuffed items or flowers inside <strong>of</strong> 18” balloons. there are numerous<br />

pieces that go into the making <strong>of</strong> a machine that <strong>is</strong> called a Classy Wrap system. So you can<br />

sy that we have a process <strong>of</strong> building the system that resembles an assembly line. There are<br />

different people in different locations in the warehouse that assemble the different parts that<br />

go into creating the machine. I work at the end <strong>of</strong> the production process and receive the<br />

machine whenit <strong>is</strong> completely assembled. I test the machine to make sure it <strong>is</strong> functioning<br />

properly and then clean it and package it for shipping. If the machine <strong>is</strong>n’t working correctly<br />

I must fix it and get it working. But I look at the beginning <strong>of</strong> the whole process and see a<br />

motor, a backcover, a chamber, a lid assembly, a checkvalve, several different gaskets, and a<br />

few more items that make up the machine, each item put together by a different person, and<br />

then I receive it as a completed unit that functions and does what each person was preparing.<br />

We don’t work to create a motor, checkvalve, and all the other items separately for the benefit<br />

<strong>of</strong> ourselves rather we work to obtain the final product which <strong>is</strong> the classy wrap system itself.<br />

So its not working for our own personal goals rather the goal as a whole <strong>of</strong> creating a system<br />

that works and can be shipped for use. We work for someone who tells us what and how<br />

things will be done, a classic example <strong>of</strong> the capital<strong>is</strong>t system. there are no personal goals<br />

only the goal <strong>of</strong> the owner who makes all the money!!!<br />

Hans: A very similar example was already Chocolate’s [199], th<strong>is</strong> depressed your grade.<br />

Next Message by Gilligan <strong>is</strong> [206.1].<br />

<strong>Question</strong> 157 <strong>is</strong> 163 in 1997WI, 170 in 1997sp, 172 in 1998WI, 179 in 1999SP, 190 in<br />

2000fa, 200 in 2001fa, 214 in 2002fa, 222 in 2003fa, 252 in 2004fa, 267 in 2007SP,<br />

272 in 2007fa, 278 in 2008SP, 290 in 2009fa, 318 in 2010fa, 296 in 2011fa, and 309 in<br />

2012fa:<br />

<strong>Question</strong> 157 Why does value not have it branded on its forehead what it <strong>is</strong>?<br />

[230] Super: Different social roles within the products themselves determine what type<br />

<strong>of</strong> value the social product has. The value <strong>of</strong> these products can then be seen as a social<br />

communication between them. The social product communicates the levels <strong>of</strong> labor value<br />

which was put into the product and also determines it’s utility. Th<strong>is</strong> <strong>is</strong> a hidden message<br />

within the social product and that <strong>is</strong> why value does not have it branded on its forehead <strong>of</strong><br />

what it <strong>is</strong>.<br />

Next Message by Super <strong>is</strong> [280].<br />

<strong>Question</strong> 160 <strong>is</strong> 173 in 1997sp, 165 in 1997ut, 194 in 2000fa, 205 in 2001fa, 219 in<br />

2002fa, 227 in 2003fa, 257 in 2004fa, 252 in 2005fa, 272 in 2007SP, 277 in 2007fa, 283<br />

in 2008SP, 281 in 2008fa, 323 in 2010fa, 302 in 2011fa, and 315 in 2012fa:<br />

<strong>Question</strong> 160 Commodity producers do not exchange their products because they consider<br />

these products as the materials shells <strong>of</strong> homogeneous human labor. Marx claims that,<br />

148 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

on the contrary, the market interactions induce them to unknowingly equalize their labors.<br />

Describe the process by which they equalize their labor, and the goals which they pursue in<br />

th<strong>is</strong> process.<br />

[209] Reidar: Equalization <strong>of</strong> Labor Commodity producers equalize their labor by<br />

first putting labor into the production <strong>of</strong> commodities which will give them more exchange<br />

value, I.E., if a farmer has a choice <strong>of</strong> producing two different kinds <strong>of</strong> crops which require<br />

the same amount <strong>of</strong> labor, he/she would choose the crop which has a greater exchange value.<br />

The farmer will also find ways to make the labor expended on the commodity production<br />

he/she has chosen more efficient. I.E., He/She will utilize the accepted forms <strong>of</strong> production,<br />

say a mechanized combine. He/She will find the most updated and efficient method to<br />

produce the commodities they have chosen.<br />

All other producers <strong>of</strong> these commodities will attempt to do the same, and they thereby<br />

equalize their labor.<br />

The producers take the exchange value <strong>of</strong> the commodity as a fixed amount, independent<br />

<strong>of</strong> the labor involved. They therefore maintain a goal <strong>of</strong> producing a greater quantity <strong>of</strong><br />

a commodity which will give them greater returns. Hans stated that through th<strong>is</strong> process,<br />

“they give their labor the qualitative character..<strong>of</strong> value-creating labor.”<br />

Hans: Very good.<br />

Next Message by Reidar <strong>is</strong> [210].<br />

<strong>Question</strong> 161 <strong>is</strong> 150 in 1995WI, 127 in 1995ut, 163 in 1996ut, 174 in 1997sp, 220 in<br />

2002fa, 228 in 2003fa, 258 in 2004fa, 273 in 2007SP, 278 in 2007fa, 284 in 2008SP, 282<br />

in 2008fa, 303 in 2011fa, and 317 in 2012fa:<br />

<strong>Question</strong> 161 Someone says: The law <strong>of</strong> value cannot hold. We are free people, we do what<br />

we want. We are not forced to price our commodities by their labor content. Do you agree?<br />

[214] Chacci: The Law <strong>of</strong> Value I do not agree with th<strong>is</strong> statement. In a commodity<br />

producing society producers are cons<strong>is</strong>tently seeking to obtain the use value he or she needs<br />

at the most valuable terms. Th<strong>is</strong> <strong>is</strong> one aspect <strong>of</strong> why whoever said th<strong>is</strong> was incorrect. Since,<br />

in th<strong>is</strong> kind <strong>of</strong> society, producers ‘channel their labors into branches <strong>of</strong> production which the<br />

market rewards best for their effort’, those who try to break the law <strong>of</strong> value will not be able<br />

to exchange their commodities on the market because their ‘prices’ will be to high. And<br />

since their competitors are always looking for ways to gain advantage over their competitors<br />

those who try to break the law <strong>of</strong> value will be out priced by their competitors, who are<br />

valuing their commodities by the human labor power expended on them.<br />

Hans: Your argument only goes through if everybody else follows the law <strong>of</strong> value and one producer tries to charge<br />

higher prices. To make the argument right, you need the mobility <strong>of</strong> labor into those branches in which prices are<br />

higher than values, and everybody’s attempts to improve production (which <strong>is</strong> also an attempt to circumvent the<br />

law <strong>of</strong> value) which leads to an equalization <strong>of</strong> labor. Marx said: by trying to circumvent the law <strong>of</strong> value, people<br />

end up enforcing it.<br />

Next Message by Chacci <strong>is</strong> [214.3].<br />

[227] MUCHO: The law <strong>of</strong> value I have different point <strong>of</strong> view from what Chacci wrote<br />

regarding the question 161. According to Chacci’s subm<strong>is</strong>sion, he or she d<strong>is</strong>agree with<br />

the statement. However, there <strong>is</strong> a certain sentence in the question I want to agree with.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 149<br />

The sentence states that “We are not forced to price our commodities by their labor content.”<br />

Even though we do price our commodities by labor content in real life. I still don’t think that<br />

<strong>is</strong>n’t such a good idea. We really should not include labor content to price the commodities.<br />

The commodities should be priced depending upon its necessity. If the demand <strong>of</strong> certain<br />

commodity goes up, price <strong>of</strong> the commodity also goes up under the normal circumstances.<br />

But if we avoid including labor content, the price <strong>of</strong> the commodity won’t be as high as we<br />

include the labor content.<br />

Next Message by MUCHO <strong>is</strong> [244].<br />

<strong>Question</strong> 163 <strong>is</strong> 151 in 1995WI, 128 in 1995ut, 169 in 1997ut, 223 in 2002fa, 261 in<br />

2004fa, 276 in 2007SP, and 305 in 2011fa:<br />

<strong>Question</strong> 163 Why can empiric<strong>is</strong>m, the starting with and clinging to facts, only come to<br />

conclusions which affirm ex<strong>is</strong>ting social relations?<br />

[207] Ramb<strong>is</strong>: empiric<strong>is</strong>m If the individual sets out from a point <strong>of</strong> tenaciously holding<br />

pre-set beliefs or positions, then s/he only will see the evidence collected through the<br />

spectacles <strong>of</strong> personal bias and “seeing what you want to see, and hearing what you want to<br />

hear.” Just about any survey, public opinion poll, or data-specific study can be used (or ‘manipulated’)<br />

to bolster a person’s previous position if given the right tw<strong>is</strong>t or if approached<br />

from the right angle. Instead <strong>of</strong> forming an opinion from what the data gathered infers or<br />

from the light that the study seems to shed on the particular subject, empiric<strong>is</strong>m when used<br />

self-servingly acts only as a rubber-stamp approval to what the individual purports from the<br />

beginning. I think the prime example <strong>of</strong> th<strong>is</strong> in contemporary society <strong>is</strong> how people approach<br />

political <strong>is</strong>sues and politics in general.<br />

Message [207] referenced by [211] and [2007SP:239]. Next Message by Ramb<strong>is</strong> <strong>is</strong> [427].<br />

[211] Hans: <strong>Question</strong> 163 was meant to be provocative Ramb<strong>is</strong>’s [207] re-interpreted<br />

th<strong>is</strong> <strong>Question</strong> to mean that it <strong>is</strong> possible to massage the facts until they seem to confirm one’s<br />

pre-set beliefs. Th<strong>is</strong> <strong>is</strong> not the problem Marx was addressing in the text where <strong>Question</strong> 163<br />

was asked. <strong>Question</strong> 163 <strong>is</strong> very provocative and was meant to be so – after all, what else<br />

should one base science on if not on facts?<br />

Next Message by Hans <strong>is</strong> [247].<br />

<strong>Exam</strong> <strong>Question</strong> 167 <strong>is</strong> 157 in 1995WI, 134 in 1995ut, 227 in 2002fa, 235 in 2003fa, 260<br />

in 2005fa, 280 in 2007SP, 285 in 2007fa, 290 in 2008SP, 302 in 2009fa, 330 in 2010fa,<br />

and 309 in 2011fa:<br />

<strong>Exam</strong> <strong>Question</strong> 167 Why does Marx call Ricardo’s exchange between primitive f<strong>is</strong>herman<br />

and primitive hunter a “Robinson Crusoe story”?<br />

[182] MUCHO: “Robinson Crusoe Stories” According to Marx, some <strong>of</strong> the Ricardo’s<br />

ideas are similar to the political econom<strong>is</strong>ts’ ideas. Especially, the way these two think about<br />

exchange-value <strong>is</strong> very simple. In the book, it says that as political econom<strong>is</strong>ts are found <strong>of</strong><br />

Robinson Crusoe stories. Then the book explains how simple the political econom<strong>is</strong>ts think<br />

about the exchange-value by illustrating Robinson Crusoe story. Despite the diversity <strong>of</strong><br />

their productive functions, political econom<strong>is</strong>ts know that they are only different mode <strong>of</strong><br />

human labor. The reason why Marx made fun <strong>of</strong> Ricardo <strong>is</strong> that h<strong>is</strong> concept <strong>of</strong> ideas tend to<br />

150 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

be too simple. Immediate exchange <strong>of</strong> commodity <strong>is</strong> not going to work for real economy. It<br />

<strong>is</strong> important to consider the labor-time which <strong>is</strong> materialized in exchange-value.<br />

Hans: Good try. You recognized that Marx did not mean the “Robinson Crusoe stories” literally. Robinson Crusoe<br />

does not serve here as a symbol for simplicity, but for some other, <strong>of</strong>ten unrecognized, property <strong>of</strong> market<br />

economies.<br />

Message [182] referenced by [475.2]. Next Message by MUCHO <strong>is</strong> [227].<br />

[475.2] Skippy: Marx did not want us to think <strong>of</strong> “Robinson Cursoe Stories” directly. The<br />

exchange value was just put into words to refere to “Robinson Cursoe.” Richardo made th<br />

m<strong>is</strong>take <strong>of</strong> being too simplified, according to Marx. The concept <strong>of</strong> immeadiate exchange<br />

<strong>is</strong> not feesible in reality. Labor time must be recognized to achieve a true exchange value.<br />

“robinson Cursoe Stories” <strong>is</strong> trying to get another concept accross besides simplicity.<br />

Hans: You are trying to make sense <strong>of</strong> MUCHO’s [182] and my response to it. In your in-class exam you wrote<br />

that you did not know which other concept I meant. Perhaps you should have realized that before the exam when<br />

you had the time to figure it out.<br />

Next Message by Skippy <strong>is</strong> [482].<br />

<strong>Question</strong> 174 <strong>is</strong> 164 in 1995WI, 141 in 1995ut, 183 in 1997WI, 182 in 1997ut, 235 in<br />

2002fa, 244 in 2003fa, 274 in 2004fa, 269 in 2005fa, 289 in 2007SP, 299 in 2008SP, 297<br />

in 2008fa, 311 in 2009fa, 339 in 2010fa, 318 in 2011fa, and 332 in 2012fa:<br />

<strong>Question</strong> 174 Is there a connection between Chr<strong>is</strong>tianity and the commodity relation?<br />

[208] KALISPEL: Chr<strong>is</strong>tianity and the commodity relation. Marx believed that people<br />

have freed themselves from the incubus <strong>of</strong> religion by relegating it to the personal sphere,<br />

cut <strong>of</strong>f from competition. In th<strong>is</strong> separation he saw alienation <strong>of</strong> man from man, making it<br />

impossible for the individual to be a full human being. He considered Chr<strong>is</strong>tianty, with its<br />

focus on individual man and soul, as a creed most apopriate to an economy <strong>of</strong> commodity<br />

exchange. There are some people who believe that predestination or the premortal life <strong>is</strong> a<br />

root in the success or failure in the capital<strong>is</strong>tic system.<br />

Marx wondered whether Chr<strong>is</strong>tian doctrine could <strong>of</strong>fer an alternative to commun<strong>is</strong>m. He<br />

believed that Chr<strong>is</strong>tianity <strong>of</strong>fered cowardly subm<strong>is</strong>sion when what the working class really<br />

needed was courage and self-respect.<br />

Chr<strong>is</strong>tianity <strong>is</strong> nice because even the lowest strata, the d<strong>is</strong>inherited, can indulge in unrealizable<br />

dreams <strong>of</strong> an ideal world <strong>of</strong> the future, in the spirit <strong>of</strong> Chr<strong>is</strong>tianity.<br />

In Rome, among mass m<strong>is</strong>ery, with no hope <strong>of</strong> material relief, people learned to turn thier<br />

thoughts to spiritual salvation. People learned to blame their sinfulness as a “good” reason<br />

for their lot in life. The atonement was the only thing that could <strong>of</strong>fer deliverance. These<br />

Chr<strong>is</strong>tian teachings <strong>of</strong> atonement reflect the impotence, feeling <strong>of</strong> doom, and helplessness<br />

<strong>of</strong> the oppressed working masses. Chr<strong>is</strong>tianity has the effect <strong>of</strong> retarding the political and<br />

intellectual process <strong>of</strong> emancipation.<br />

While th<strong>is</strong> <strong>is</strong> true for the working class, there may indeed be two Chr<strong>is</strong>ts; that <strong>of</strong> the<br />

ruling and that <strong>of</strong> the working class. Chr<strong>is</strong>ts’s character<strong>is</strong>tics, though the same for each<br />

class, are applied differently in each social structure. And even though, Chr<strong>is</strong>tianity does<br />

oppress people in some ways it can also emancipate them. For example, Chr<strong>is</strong>tianity has


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 151<br />

been able to help develop an economic system <strong>of</strong> equality and fairness through the principle<br />

<strong>of</strong> consecration.<br />

The commodity relation <strong>is</strong> closely related to Chr<strong>is</strong>tianity. Labor in commodity relations<br />

appears to producers as their own private labor, instead <strong>of</strong> social labor. In Chr<strong>is</strong>tianity it<br />

focuses on the individual sinfulness <strong>of</strong> the individual and not the society as a whole. Commodity<br />

labor <strong>is</strong> expended independently <strong>of</strong> society as a whole to meet private wants and<br />

needs through exchange. Through div<strong>is</strong>ion <strong>of</strong> labor human beings are reduced to impersonal<br />

and uncontrollable market forces. The producers, see themselves as ex<strong>is</strong>ting in world <strong>of</strong><br />

things, the commodities. The commodity form makes private labor social as products are<br />

exchanged and fragments social labor into private labor. The confusion <strong>of</strong> relations between<br />

people with relations to things <strong>is</strong> the basic contradiction <strong>of</strong> commodity production.<br />

Chr<strong>is</strong>tianity, does the same thing by having workers focus individually. The most important<br />

social relations are subservient to the after life or some type <strong>of</strong> predestination. Th<strong>is</strong><br />

leads to alienation and despair; social and personal. On the one hand you can never be equal<br />

with a transcendental God and on the other hand if you do not try you will burn in hell. To<br />

put social relations above “salvation” would contradict your own beliefs. Result: People<br />

suffer from alienation in commodity fet<strong>is</strong>h<strong>is</strong>m and Chr<strong>is</strong>tianity helps make th<strong>is</strong> possible.<br />

Hans: Very deep!<br />

Message [208] referenced by [2002fa:128]. Next Message by KALISPEL <strong>is</strong> [240].<br />

<strong>Question</strong> 183 <strong>is</strong> 173 in 1995WI, 150 in 1995ut, 196 in 1997WI, 203 in 1997sp, 295 in<br />

2004fa, 318 in 2008SP, 316 in 2008fa, 358 in 2010fa, 337 in 2011fa, and 352 in 2012fa:<br />

<strong>Question</strong> 183 Explain in your own words Marx’s phrase that the commodity owners’ will<br />

“resides” in the objects which are h<strong>is</strong> property.<br />

Is th<strong>is</strong> a good thing or not? Where does it have its limits in our society? Where should it<br />

have its limits?<br />

[273] Peaches: Th<strong>is</strong> <strong>is</strong> what I interpret Marx to be saying <strong>of</strong> commodity owners’ will<br />

residing in the objects which are h<strong>is</strong> property. Let’s say a an olympic gymnast practices<br />

once a day for three hours. She has a commodity, a skill, that she <strong>is</strong> selling to the market<br />

in exchange for something <strong>of</strong> value to her, fame, money, etc. She resides her will in h<strong>is</strong><br />

commodity, skill, which <strong>is</strong> important to her. How am I doing? Then th<strong>is</strong> commodity becomes<br />

overly important and she begins to practice five hours a day, and gradually increases it to<br />

more than eight hours a day. Nothing else matters except th<strong>is</strong> commodity so she has become<br />

a slave to th<strong>is</strong> commodity. Is th<strong>is</strong> the correct interpretation?<br />

Th<strong>is</strong> <strong>is</strong> not a good thing because eventually nothing else will matter and she will be come<br />

addicted to th<strong>is</strong> commodity. Then gradually she will want to increase its exchange value.<br />

Isn’t th<strong>is</strong> how we start competition, ra<strong>is</strong>ing prices, etc. Where does it have its limits? She,<br />

her trainer, will eventually have to set limits. Is th<strong>is</strong> where he government laws become<br />

applicable? In effect, th<strong>is</strong> will affect our economy either by inflation/deflation or boom/bust,<br />

etc. <strong>What</strong>’s he saying about having a good thing can’t last for long before it eventually loses<br />

its value?<br />

Hans: Excellent, very deep example. It <strong>is</strong> somewhat a metaphor, because attending an athletic competition <strong>is</strong> not<br />

quite the same as exchanging a commodity. But your example shows clearly that the concept <strong>of</strong> private property <strong>is</strong><br />

harmful even if one applies it to one’s own body.<br />

152 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Message [273] referenced by [299]. Next Message by Peaches <strong>is</strong> [314.3].<br />

[299] Wight: When Marx states that the commodity owner’s will resides in the commodity<br />

he <strong>is</strong> making an interesting comment about the capital<strong>is</strong>t system. Marx <strong>is</strong> trying to illustrate<br />

how obsessed we are as a society with consumption. With many people, it gets to the point<br />

were commodities control their life. They are motivated and controlled by an unending need<br />

for more “things”. By stating that the commodity owners’ will resides in the commodity,<br />

Marx <strong>is</strong> implying that the commodities take on a life <strong>of</strong> their own. The owners believe<br />

that they benefit from acqu<strong>is</strong>ition <strong>of</strong> more commodities, but what they don’t realize <strong>is</strong> that<br />

commodities end <strong>of</strong> controlling their lives. A case in point <strong>is</strong> someone witha beautiful,<br />

expensive home, new Porsche 911, and a home entertainment system that would blow the<br />

neighbors away. Th<strong>is</strong> person may believe that these items inprove h<strong>is</strong> standard <strong>of</strong> living, not<br />

to mention status (image <strong>is</strong> everything), but what he/she will eventually realize <strong>is</strong> that they<br />

have subjugated their will in these commodities. The commodities now control their life i.e.<br />

they work long hours to pay bills, don’t ever see their kids, <strong>of</strong> take vacations, they even work<br />

on Sundays now. Marx <strong>is</strong> making a strong statment about the quest for things that people<br />

are consumed with in a capital<strong>is</strong>t society. Eventually, people lose control <strong>of</strong> their lives and<br />

become slaves to the commodities.<br />

Although people may see the possession <strong>of</strong> lots <strong>of</strong> commodities as good, in reality it <strong>is</strong><br />

a bad relationahip. People lose control <strong>of</strong> their lives and chances are live more stressed out<br />

lives without as much carefree fun. The only limit in our society <strong>is</strong> your own individual<br />

purchasing power or your limit on all 3 <strong>of</strong> your V<strong>is</strong>a cards. People with commodities are<br />

viewed as successful or <strong>of</strong> higher status many times by their piers. Everyone wants to have<br />

nice, new cars to look good in. Where these limits really should be in a good question and<br />

probably a moot point. Obviously, to be economically and ecologically conscious, we should<br />

in theory only consume what we require as individuals to survive. But, what each individual<br />

interprets as what they need to survive <strong>is</strong> another thing. In another economics class, I learned<br />

an interesting stat<strong>is</strong>tic in terms <strong>of</strong> the amount <strong>of</strong> consumption in the United States verses<br />

population. Roughly, the United States has less than 10% <strong>of</strong> the world’s population, but we<br />

consume 30-35% <strong>of</strong> the world’s resources. We are a society consumed with consumption.<br />

Hans: I would have liked to hear from you how your answer relates to Peaches’s [273]. You concentrate on the<br />

commodities the individual buys and consumes, while Peaches concentrated on the commodities the individual has<br />

to sell.<br />

Next Message by Wight <strong>is</strong> [312].<br />

<strong>Question</strong> 184 <strong>is</strong> 175 in 1995WI, 151 in 1995ut, 186 in 1996ut, 205 in 1998WI, 211 in<br />

1999SP, 222 in 2000fa, 235 in 2001fa, and 359 in 2010fa:<br />

<strong>Question</strong> 184 Is there anything wrong with private property?<br />

[251] Wolfie: Private property In Marx’s eyes private property <strong>is</strong> a fallacy. He talks about<br />

an individuals will residing in an object. However how can someone reside in a hammer?<br />

Private property <strong>is</strong> a way in which the capital<strong>is</strong>t society has enabled capital<strong>is</strong>m to function.<br />

without private property whomever held the physical object would thus be the owner <strong>of</strong> the<br />

object. However objects have become the private property <strong>of</strong> a person thus they have made<br />

laws to protect an ownership <strong>of</strong> something they may not physically control. Th<strong>is</strong> meaning


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 153<br />

the capital<strong>is</strong>t who lives in New York who owns a manufacturing plant in Detroit considers<br />

the plant h<strong>is</strong> private property and would prosecute anyone who thinks otherw<strong>is</strong>e.<br />

In Marx’s view things could be controlled by public which would mean the workers in<br />

a factory would work on the machines as they saw fit. However Private property does have<br />

the qualities that hold the capital<strong>is</strong>tic society together. Private property gives incentives for<br />

people to work to obtain more and more private property. Private property <strong>is</strong> the backbone<br />

<strong>of</strong> a capital<strong>is</strong>t society. If there was no private property the capital<strong>is</strong>t would have no way <strong>of</strong><br />

getting capital.<br />

Hans: Kevin said it all. The d<strong>is</strong>tinction between private and personal property <strong>is</strong> a very important d<strong>is</strong>tinction,<br />

which you should try to remember. It <strong>is</strong> one <strong>of</strong> those things the capital<strong>is</strong>ts don’t want people to learn about.<br />

Message [251] referenced by [254].<br />

[254] Kevin: Re: Private property Wolfie wrote in [251]:<br />

In Marx’s eyes private property <strong>is</strong> a fallacy. He talks about an individuals<br />

will residing in an object. However how can someone reside in a hammer?<br />

Private property <strong>is</strong> a way in which the capital<strong>is</strong>t society has enabled capital<strong>is</strong>m<br />

to function. without private property whomever held the physical<br />

object would thus be the owner <strong>of</strong> the object. However objects have become<br />

the private property <strong>of</strong> a person thus they have made laws to protect<br />

an ownership <strong>of</strong> something they may not physically control. Th<strong>is</strong> meaning<br />

the capital<strong>is</strong>t who lives in New York who owns a manufacturing plant in<br />

Detroit considers the plant h<strong>is</strong> private property and would prosecute anyone<br />

who thinks otherw<strong>is</strong>e.<br />

Th<strong>is</strong> <strong>is</strong> only private property in the means <strong>of</strong> production. A common m<strong>is</strong>interpretation <strong>of</strong><br />

Marx <strong>is</strong> that he had a problem with all private property: from homes to toothbrushes. Th<strong>is</strong><br />

<strong>is</strong> not true, only property relations which are used to exploit someone.<br />

In Marx’s view things could be controlled by public which would mean the<br />

workers in a factory would work on the machines as they saw fit.<br />

Th<strong>is</strong> <strong>is</strong> a little vague, as Marx looked more towards giving worker’s the power to keep<br />

alienation to a minimum. Thus in today’s time Marx would probably favor giving worker’s a<br />

choice to completely mechanize their plant, in order to increase free time for themselves, and<br />

the rest <strong>of</strong> society. Marx would also see that worker’s had admin<strong>is</strong>trative power to elect their<br />

superv<strong>is</strong>ors, rotate positions, end speedups, and educate themselves on the overall picture<br />

<strong>of</strong> the factory (or modern service industry workplace) rather than being confined to a small<br />

series <strong>of</strong> menial and tedious tasks.<br />

Next Message by Kevin <strong>is</strong> [313].<br />

[263] MUCHO: private property? Basically, I don’t think there <strong>is</strong> any problem with<br />

private property. However, under the capital<strong>is</strong>t mode <strong>of</strong> production, “The way which th<strong>is</strong><br />

analys<strong>is</strong> <strong>of</strong> capital and capital<strong>is</strong>m hinges on the institution <strong>of</strong> private property has <strong>of</strong>ten been<br />

m<strong>is</strong>understood or m<strong>is</strong>represented, both by critics and by d<strong>is</strong>ciples <strong>of</strong> Marx” accordance <strong>of</strong><br />

the book. <strong>What</strong> Marx really wanted to argue was that economical point <strong>of</strong> view. He did<br />

not have any intention <strong>of</strong> the meaning for ideologically and juridical point <strong>of</strong> views. In<br />

economical point <strong>of</strong> view, he <strong>is</strong> opposed to private property based on labor. Because under<br />

154 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

the capital<strong>is</strong>t mode <strong>of</strong> production, relationship between buyer and seller will be ambiguous.<br />

In addition, anybody who works for capital<strong>is</strong>t’s private owner always be a worse <strong>of</strong>f in the<br />

real economy.<br />

Hans: You did some additional readings and tried to bring something into the d<strong>is</strong>cussion which Ernest Mandel, a<br />

famous Marx<strong>is</strong>t, wrote in h<strong>is</strong> introduction to Capital on p. 57. (It would have been nice <strong>of</strong> you to give the page<br />

number.) But your explanation, how (according to Mandel) the role <strong>of</strong> private property has been m<strong>is</strong>understood, <strong>is</strong><br />

not prec<strong>is</strong>e enough. You write<br />

<strong>What</strong> Marx really wanted to argue was that economical point <strong>of</strong> view. He did not have any<br />

intention <strong>of</strong> the meaning for ideologically and juridical point <strong>of</strong> views.<br />

Which economic aspect <strong>of</strong> private property was argued by Marx? Your next few sentences try to say that:<br />

In economical point <strong>of</strong> view, he <strong>is</strong> opposed to private property based on labor. Because under<br />

the capital<strong>is</strong>t mode <strong>of</strong> production, relationship between buyer and seller will be ambiguous. In<br />

addition, anybody who works for capital<strong>is</strong>t’s private owner always be a worse <strong>of</strong>f in the real<br />

economy.<br />

Th<strong>is</strong> has only a dim resemblance to Mandel’s argument. Mandel writes, in italics, that the point <strong>of</strong> concern to<br />

Marx was not private property in general but the economic fact that “social labor has been fragmented into private<br />

labors conducted independently from each other.” Mandel argues that the relationship between worker and capital<strong>is</strong>t<br />

obtains an exploitative dimension because <strong>of</strong> th<strong>is</strong>, instead <strong>of</strong> being a relationship between “producers and<br />

admin<strong>is</strong>trators” or “producers and accumulators.”<br />

Next Message by MUCHO <strong>is</strong> [264].<br />

[264] MUCHO: Basically, I have an almost same idea <strong>of</strong> what Wolfie has stated for the<br />

question 184. I would like to add a few more thing to what Wolfie had to say.<br />

According to Marx, the institution <strong>of</strong> private property has <strong>of</strong>ten been m<strong>is</strong>understood or<br />

m<strong>is</strong>represented by both d<strong>is</strong>ciples <strong>of</strong> Marx and critics. <strong>What</strong> Marx really wanted to argue was<br />

that economical point <strong>of</strong> view for the institution <strong>of</strong> private property. He had no intention <strong>of</strong><br />

h<strong>is</strong> idea leading to ideological and juridical point <strong>of</strong> views.<br />

I also want to mention that I think under the capital<strong>is</strong>t mode <strong>of</strong> production, relationship<br />

between buyer(the owner <strong>of</strong> private property) and seller(worker for the private property) will<br />

be ambiguous.<br />

Next Message by MUCHO <strong>is</strong> [345].<br />

[283] Lamma: privae property That he feels that without private property the capital<strong>is</strong>ts<br />

would have no way to obtain their <strong>wealth</strong>. However, I would like to look at it in a different<br />

light. Look at the definition <strong>of</strong> provate property...simply put it means an object owned exclusivley<br />

by an individual. I would like to submit that there <strong>is</strong> no pure form <strong>of</strong> privte property.<br />

Whether a good <strong>is</strong> produced in a factory or in someones basement, the good eventually effects<br />

more than one person. For example: a man makes a pipe to smoke out <strong>of</strong> and produces<br />

it in h<strong>is</strong> own shop. Even though he <strong>is</strong> the only one who will own th<strong>is</strong> pipe, the good <strong>is</strong> not<br />

private because it was made with tools that were purchased elsewhere, and e may end up<br />

smoking near other people where the smoke may get to them...ect. So can a good be private<br />

in the purest sense? I would say not due to the fact that it will eventually affect other people<br />

in some form.<br />

Hans: Unlike Kalle in [293], I do see a connection between your answer and the <strong>Question</strong>: apparently the thing<br />

which you find wrong with private property <strong>is</strong> that private property <strong>is</strong> usually not private enough. You do not<br />

want anyone to interfere in your love affair with material objects. Of course, th<strong>is</strong> <strong>is</strong> not Marx’s critique <strong>of</strong> private<br />

property, and you say that th<strong>is</strong> <strong>is</strong> not your goal. Fair enough. It <strong>is</strong> not a critique <strong>of</strong> private property at all, and it <strong>is</strong><br />

probably also not meant as such. It <strong>is</strong> implicitly a critique <strong>of</strong> the other members <strong>of</strong> the society you are living in,<br />

who spoil your fun <strong>of</strong> smoking, and who are especially obnoxious because you depend on them, they are producing


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 155<br />

the things which you are using. Even if you try to produce things for yourself, you still depend on tools made by<br />

others. Yikes.<br />

By the way, the first line <strong>of</strong> your answers d<strong>is</strong>appears because you start your paragraph with the Pseudo-header<br />

like word ::lamma: My computer thinks th<strong>is</strong> <strong>is</strong> a new type <strong>of</strong> pseudoheader and eats the rest <strong>of</strong> the line. You<br />

do not need anything to indicate your pseudonym, my computer derives that from your return address. The only<br />

pseudoheader you need <strong>is</strong> the one indicating the <strong>Question</strong> number.<br />

Message [283] referenced by [293]. Next Message by Lamma <strong>is</strong> [284].<br />

[286] Sunshine: private property <strong>Question</strong>ing the right <strong>of</strong> wrongness <strong>of</strong> private property<br />

<strong>is</strong> a trick question. Marx <strong>of</strong>fers a critic <strong>of</strong> capital<strong>is</strong>m and in going so he lays open all aspects<br />

<strong>of</strong> capital<strong>is</strong>m including private property. Private property and all that it encompasses <strong>is</strong> a key<br />

aspect <strong>of</strong> capital<strong>is</strong>m and Marx in h<strong>is</strong> critic <strong>is</strong> showing us how capital<strong>is</strong>m works not that it <strong>is</strong><br />

wrong or right. I understand capital<strong>is</strong>m and its private property to be a needed step, one may<br />

say a necessity, in the procession towards a social<strong>is</strong>t state. With th<strong>is</strong> in mind how can one<br />

pass a somewhat moral judgement on the right <strong>of</strong> wrongness <strong>of</strong> private property?<br />

Private property <strong>is</strong> necessary for the social relations <strong>of</strong> both commodities and commodity<br />

owners. The concept <strong>of</strong> private property locks commodity owners into exchange relationships.<br />

It fools owners into believing that they are in control <strong>of</strong> their ex<strong>is</strong>tence when in fact<br />

they are being controlled. Individuals who own private property and desire to apropriate the<br />

private property <strong>of</strong> another must acknowledge the overriding importance <strong>of</strong> the concept private<br />

property. Th<strong>is</strong> importance subverts all other interests and will lead to denial <strong>of</strong> human<br />

needs.<br />

Message [286] referenced by [291].<br />

[290] Pizza: In review <strong>of</strong> question 184, I did not feel the question was adquately addressed<br />

by the other subm<strong>is</strong>sions so heres my bit.<br />

The concept <strong>of</strong> private property <strong>is</strong> a social form used by individuals to survive. Marx<br />

states the perception <strong>of</strong> individual ownership <strong>of</strong> property as a manifestation <strong>of</strong> freedom <strong>is</strong><br />

false. The bait <strong>is</strong> the perception <strong>of</strong> the voluntary act <strong>of</strong> exchanging that blankets the social<br />

forms <strong>of</strong> society. It <strong>is</strong> the social forms which limit your freedom. You identify freedom with<br />

the commodity and with more commodities comes more freedom. Your choices however,<br />

are narrow in focus as your framework for interpretation <strong>of</strong> freedom focuses on what to<br />

do with my commodities, exchange? consume? protect? I begin only to relate to society<br />

through my commodities. The commodities start to dictate my relations to society, defining<br />

who and what I am in society. Who <strong>is</strong> in control, the commodity or the individual? When we<br />

define a successful person, do we look at the individual or do we look to their <strong>wealth</strong>? If we<br />

start to value each other in the eyes <strong>of</strong> the commodity then we have lost our freedom as the<br />

concept <strong>of</strong> private property <strong>is</strong> false. We then realize social form <strong>of</strong> private property frames,<br />

defines and limits an individuals freedom as you accept the socials forms accompanied by<br />

private property.<br />

Hans: Excellent! Th<strong>is</strong> <strong>is</strong> the best answer. You are saying:<br />

It <strong>is</strong> the social forms which limit your freedom.<br />

It might have been good to say more explicitly what about th<strong>is</strong> social form it <strong>is</strong> which <strong>is</strong> limiting freedom. You are<br />

hinting at it in the following sentence a little later:<br />

I begin only to relate to society through my commodities. The commodities start to dictate my<br />

relations to society.<br />

156 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Th<strong>is</strong> <strong>is</strong> not only the psychological question <strong>of</strong> how we see ourselves, but also a very tangible economic question <strong>of</strong><br />

how we produce what we need.<br />

Next Message by Pizza <strong>is</strong> [321.1].<br />

[291] Hans: Fact-Value D<strong>is</strong>tinction and Teleology both Wrong Marx does not make<br />

such a strict d<strong>is</strong>tinction between facts and values as Sunshine does in [286]; in Marx’s mind,<br />

understanding capital<strong>is</strong>m and criticizing it <strong>is</strong> one and the same thing.<br />

And it seems Sunshine <strong>is</strong> not too far away from Marx in th<strong>is</strong> respect. Her second paragraph<br />

<strong>is</strong> very critical indeed; she <strong>is</strong> using words like “subverts” and “denial” which have<br />

value connotations. For modern philosophical arguments why the fact-falue d<strong>is</strong>tinction <strong>is</strong><br />

wrong, look at Bhaskar.<br />

Other than the fact-value d<strong>is</strong>tinction, another argument Sunshine brings <strong>is</strong>: since capital<strong>is</strong>m<br />

<strong>is</strong> a necessary step towards social<strong>is</strong>m, how can it be bad? Th<strong>is</strong> <strong>is</strong> a teleological argument.<br />

Teleology <strong>is</strong> the belief that h<strong>is</strong>tory works itself towards a good end. Teleology <strong>is</strong> wrong and<br />

dangerous. Capital<strong>is</strong>m can easily lead to the destruction <strong>of</strong> the environment or to nuclear<br />

holocaust. We have to get rid <strong>of</strong> capital<strong>is</strong>m in order to get social<strong>is</strong>m.<br />

Next Message by Hans <strong>is</strong> [307].<br />

[293] Kalle: Private Property (respons to Lamma’s 184) Th<strong>is</strong> <strong>is</strong> not only an answer to<br />

<strong>Question</strong> 184, but also a response to Lamma’s subm<strong>is</strong>sion [283]. Maybe I am m<strong>is</strong>sing a few<br />

points, but I can not find a relevant connection to the question asked. The question at hand<br />

<strong>is</strong> not whether private property ex<strong>is</strong>ts in a “true” form or not. <strong>What</strong> <strong>is</strong> asked, <strong>is</strong> if anything<br />

<strong>is</strong> wrong with private property. (When answering th<strong>is</strong> question I assume we are asked to<br />

interpret Marx own d<strong>is</strong>cussion about private property and not introduce our own opinions<br />

and feelings.)<br />

The main problem Marx identifies about private property <strong>is</strong> that people are fooled to<br />

believe that ownership over commodities will provide them with some kind <strong>of</strong> freedom they<br />

otherw<strong>is</strong>e not would have. <strong>What</strong> actually happens <strong>is</strong> that people become slaves <strong>of</strong> the things<br />

they take possession over. Because people must allocate so much energy and importance to<br />

things they own, freedom they enjoy actually decreases. <strong>What</strong> I think <strong>is</strong> important to note <strong>is</strong><br />

that Marx <strong>is</strong> not saying that the concept <strong>of</strong> private property <strong>is</strong> wrong, but that private property<br />

does not come entirely without negative side effects. One <strong>of</strong>ten hear the phrase that some<br />

people are merely driven by material things and that some people just can not get Enoch<br />

possessions. That we believes th<strong>is</strong> <strong>is</strong> wrong illustrates what Marx says about becoming<br />

slaves <strong>of</strong> our possessions. Another thing that illustrates the relationship between possessions<br />

and freedom how Native Americans viewed the land they lived on. They believed they<br />

belonged to the land, and not vica versa. Marx would view these people as more free than<br />

people who believe they own the land they live on.<br />

Hans: Lamma did address the <strong>Question</strong>: according to him, what <strong>is</strong> wrong with private property <strong>is</strong> that it <strong>is</strong> not<br />

private enough. Nevertheless I appreciate your responding to the contributions <strong>of</strong> the others. Unfortunately you did<br />

not refer to the very good contribution <strong>of</strong> Pizza, which was posted two hours prior to yours, and which would have<br />

been more relevant to your own argument.<br />

In the following sentence I like it that you write: people must allocate:<br />

Because people must allocate so much energy and importance to things they own, freedom<br />

they enjoy actually decreases.<br />

But why must they? Because their private possessions are their only link to society. Th<strong>is</strong> <strong>is</strong> an aspect which I should<br />

have stressed more in my Annotations.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 157<br />

Message [293] referenced by [283]. Next Message by Kalle <strong>is</strong> [371.1].<br />

[296] Snowman: question 184 The ownership <strong>of</strong> private property <strong>is</strong> a two edged sword<br />

such that the owner <strong>is</strong> afforded the luxury <strong>of</strong> complete control <strong>of</strong> h<strong>is</strong>/her property and the<br />

right to exclude the use <strong>of</strong> that property to anyone he or she w<strong>is</strong>hs, but by the same token th<strong>is</strong><br />

owner can also be excluded from all the property belonging to others. Th<strong>is</strong> <strong>is</strong> so because the<br />

ability to own any thing requires that there be a mutual agreement <strong>of</strong> the community such<br />

that all those in the community respect and adhere to the idea <strong>of</strong> ownership, thus respecting<br />

what others also own and their rights as inherent there in. There for by willingly accept<br />

the requirements <strong>of</strong> ownership one also accepts the idea <strong>of</strong> exclusion from the benefits <strong>of</strong><br />

property owned by others. If everything that it was possible to own was owned privately,<br />

including food and and the basic needs then there would be the possibility <strong>of</strong> owners being<br />

perfectly exclusive <strong>of</strong> the rights to everything that they own, regardless <strong>of</strong> the needs <strong>of</strong> others.<br />

There for it would be possible for one to be excluded from the ownership, or at least use <strong>of</strong><br />

various things that are required for living. It <strong>is</strong> for th<strong>is</strong> reason that the ownership <strong>of</strong> very basic<br />

necessities should be left to the community as a whole. Such things as the basic amount <strong>of</strong><br />

food that <strong>is</strong> required for living as well as the shelter and clothing should at least be available<br />

through some sort <strong>of</strong> communal <strong>of</strong>ferings, but on the same token there are some things that<br />

should be owned by the individual. Things such as tools used for production in their trade,<br />

and land, or any luxuries that pecuniary emulation, or conspicuous consumption, may dictate<br />

as desirable. <strong>What</strong> <strong>is</strong> needed and what <strong>is</strong> frivolous <strong>is</strong> left to the demands <strong>of</strong> the communitiy<br />

and should there for be judged by that community so as to determine what should and can<br />

be owned as opposed to what should be communal or availible without exclusion. Th<strong>is</strong> <strong>is</strong><br />

because the needs change from one community to the other and the ones that are best situated<br />

to judge what <strong>is</strong> a need as opposed to what <strong>is</strong> a want, are those that are in the community,<br />

for instance in the U.S.A there may be a strong argument that cars are a requirement, while<br />

on a small <strong>is</strong>land in the South Pacific th<strong>is</strong> may not be the case.<br />

Message [296] referenced by [318], [352], [369], and [607]. Next Message by Snowman <strong>is</strong> [313.1].<br />

[297] Femme: I agree with Kalle, I would like to add a few more comments. People<br />

do become slaves to their private properties. Man controls other men politically through the<br />

politics <strong>of</strong> the bourgeo<strong>is</strong> state-the protection and enforcement <strong>of</strong> the right to private property.<br />

“The right <strong>of</strong> man to private property <strong>is</strong>, the right to enjoy one’s property and to d<strong>is</strong>pose <strong>of</strong><br />

it at one’s d<strong>is</strong>cretion without regard to other men, independently <strong>of</strong> society, the right <strong>of</strong> self<br />

interest. It makes every man see in other men not the realization <strong>of</strong> h<strong>is</strong> own freedom, but the<br />

barrier to it” (Marx). Th<strong>is</strong> quote reaffirms Marx’s view that private property <strong>is</strong> the destroyer<br />

<strong>of</strong> civil society. Marx states that the right <strong>of</strong> private property allows individual capatal<strong>is</strong>ts to<br />

harm society by pursuing their own interest in private property. An example <strong>of</strong> th<strong>is</strong> <strong>is</strong> when<br />

the tobacco industry pays token lobby<strong>is</strong>t to influence laws which will help the company, but<br />

not neccesarily the society.<br />

The ideology <strong>of</strong> capital<strong>is</strong>t society feeds the belief in the natural right <strong>of</strong> private property.<br />

I’ll repeat what other students have wrote; Marx says that what <strong>is</strong> bad about money <strong>is</strong> that<br />

it d<strong>is</strong>torts our perception <strong>of</strong> ourselves and others. The more <strong>wealth</strong>ier individual <strong>is</strong> able to<br />

purchase the apropriate influence to get laws that help him earn more pr<strong>of</strong>it, while the poor<br />

worker has little influence to affect these laws that help set the rich fellows destiny. So you<br />

ask if someone <strong>is</strong> more <strong>wealth</strong>ier than another (has more private property), <strong>is</strong> he a better<br />

158 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

person? I don’t think so; I’m all for owning toy’s but the person with the most toys <strong>is</strong>n’t<br />

a better person. So a society that feeds the idea that the rich man <strong>is</strong> more worthy <strong>is</strong> only<br />

boldening the lines between the classes and <strong>is</strong>olating individuals. According to Marx, the<br />

gap will get larger as man alienates man causing more problems for society; th<strong>is</strong> <strong>is</strong> why I<br />

think Marx feels private property <strong>is</strong> not a good thing.<br />

Hans: Your Marx quote <strong>is</strong> excellent (please add a prec<strong>is</strong>e citation next time you give a quote like th<strong>is</strong>), but I am less<br />

enthusiastic about your second paragraph. It emphasizes the sociological and psychological dimensions, instead<br />

<strong>of</strong> the economics, although in Marx’s view, the economy <strong>is</strong> the bas<strong>is</strong> to which the psychology and sociology must<br />

correspond. Secondly, you sound as if capital<strong>is</strong>m was the fault <strong>of</strong> greedy individuals. Do you know how Marx’s<br />

position differs from th<strong>is</strong>?<br />

Next Message by Femme <strong>is</strong> [332].<br />

[309] Wolf: private property Private property and the concept there <strong>of</strong> was the main<br />

catal<strong>is</strong>t for a transition <strong>of</strong> communities from being tribal to eventually becoming a capital<strong>is</strong>t<br />

economy. With th<strong>is</strong> in mind, private property <strong>is</strong> a means <strong>of</strong> survival and a way <strong>of</strong> keeping<br />

things constant. An example <strong>of</strong> th<strong>is</strong> <strong>is</strong> when societies/tribes made a move to capital<strong>is</strong>m. An<br />

argument that has been proposed by Marx and F. Engles alike <strong>is</strong> that once private came about<br />

men could force women to monogamous relationships = marriage so that they, the owners<br />

<strong>of</strong> private property could pass on their accumulated possessions to their children <strong>of</strong> which<br />

they were certain to be <strong>of</strong> their blood line. With out private property, Women would still<br />

run everything. Women would not be tied to men due to private property, they could have<br />

children with whom ever they wanted and get what they wanted. Marriage and monogamy<br />

may not even ex<strong>is</strong>t with out private property.<br />

Private property facilitates monogamy=¿marriage=¿inheritance. And thus leading to 90%<br />

<strong>of</strong> all civil court cases in the form <strong>of</strong> divorces and inheritance d<strong>is</strong>putes. Based on th<strong>is</strong> abstraction<br />

concerning private property I see it, as being nothing more than a waste and foundation<br />

for laws and codes facilitating sex<strong>is</strong>m, greed, and alienation.<br />

Hans: You are assigning the following positive effects to private property:<br />

(1) it helped mankind to develop from tribal<strong>is</strong>m to capital<strong>is</strong>m,<br />

(2) it <strong>is</strong> a means <strong>of</strong> survival,<br />

(3) it <strong>is</strong> a way <strong>of</strong> keeping things constant (how do you reconcile th<strong>is</strong> with (1)?)<br />

(4) it prevents women from running everything, having children with whomever they want, and get whatever<br />

they want<br />

(5) it <strong>is</strong> a condition for marriage and monogamy.<br />

If you see private property th<strong>is</strong> way, I do not understand how you come to the assessment:<br />

I see it, as being nothing more than a waste and foundation for laws and codes facilitating<br />

sex<strong>is</strong>m, greed, and alienation.<br />

Is th<strong>is</strong> because <strong>of</strong> the civil court cases about divorce and inheritance d<strong>is</strong>putes?<br />

Next Message by Wolf <strong>is</strong> [317.1].<br />

[318] Hans: The Pitfalls <strong>of</strong> Unradical Critique Snowman’s thinking in h<strong>is</strong> answer [296]<br />

<strong>is</strong> very logical. And since Snowman starts with an insufficiently radical critique <strong>of</strong> private<br />

property, h<strong>is</strong> inexorable logic gives a nice schoolbook example <strong>of</strong> the absurdities you end up<br />

with if you try to criticize something without penetrating down to its basic contradictions.<br />

Can you see why the following sentence <strong>is</strong> not a very radical critique <strong>of</strong> private property?<br />

The ownership <strong>of</strong> private property <strong>is</strong> a two edged sword such that the owner<br />

<strong>is</strong> afforded the luxury <strong>of</strong> complete control <strong>of</strong> h<strong>is</strong>/her property and the right


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 159<br />

to exclude the use <strong>of</strong> that property to anyone he or she w<strong>is</strong>hes, but by the<br />

same token th<strong>is</strong> owner can also be excluded from all the property belonging<br />

to others.<br />

Snowman <strong>is</strong> not deploring that private property draws fences across society, he <strong>is</strong> only<br />

deploring that one may end up on the wrong side <strong>of</strong> the fence. I.e., from the right side,<br />

fences are ok.<br />

Snowman sees very clearly the dangers <strong>of</strong> private property: it allows to exclude people<br />

from resources which they need, and what <strong>is</strong> h<strong>is</strong> answer? Welfare.<br />

It <strong>is</strong> for th<strong>is</strong> reason that the ownership <strong>of</strong> very basic necessities should be<br />

left to the community as a whole. Such things as the basic amount <strong>of</strong> food<br />

that <strong>is</strong> required for living as well as the shelter and clothing should at least<br />

be available through some sort <strong>of</strong> communal <strong>of</strong>ferings,<br />

Again not a very radical solution, since th<strong>is</strong> solution assumes that poverty pers<strong>is</strong>ts in<br />

society. Snowman uses the rest <strong>of</strong> h<strong>is</strong> answer to debate where to draw the poverty line.<br />

Marx’s solution <strong>is</strong> more radical: he <strong>is</strong> saying that we only have to give people food if they<br />

cannot produce it themselves, and the root cause <strong>of</strong> poverty <strong>is</strong> the fact that the means <strong>of</strong><br />

production are privately owned, therefore people are not allowed to produce the things for<br />

themselves which they need.<br />

Message [318] referenced by [607]. Next Message by Hans <strong>is</strong> [319].<br />

[352] Franz: the Snowman’s “willingness” Snowman wrote in [296]:<br />

The ownrship <strong>of</strong> private property <strong>is</strong> a two edged sword such that the owner<br />

<strong>is</strong> afforded the luxury <strong>of</strong> complete control <strong>of</strong> h<strong>is</strong>/her property and the right<br />

to exclude the use <strong>of</strong> that property to anyone he or she w<strong>is</strong>hs, but by the<br />

same token th<strong>is</strong> owner can also be excluded from all the property belonging<br />

to others.<br />

yes, I can be excluded from working in Jon Huntsman’s chemical factory in the same way<br />

I can exclude Jon Huntsman from riding my bicycle.<br />

so what?<br />

Th<strong>is</strong> <strong>is</strong> so because the ability to own any thing requires that there be a<br />

mutual agreement <strong>of</strong> the community such that all those in the community<br />

respect and adhere to the idea <strong>of</strong> ownership, thus respecting what others<br />

also own and their rights as inherent there in.<br />

the ability to own requires “mutual agreement” – what? ? ?<br />

Jon Huntsman (and other capital<strong>is</strong>ts) give money to: 1) make sure that <strong>Utah</strong> lawmakers<br />

protect h<strong>is</strong> property rights 2) make sure the <strong>Utah</strong> Police will pun<strong>is</strong>h those who trespass h<strong>is</strong><br />

property.<br />

where <strong>is</strong> it that I “mutually agreed” to the ownership <strong>of</strong> property?<br />

160 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

There for by willingly accept the requirements <strong>of</strong> ownership one also accepts<br />

the idea <strong>of</strong> exclusion from the benefits <strong>of</strong> property owned by others.<br />

you are saying that we are “willing” to accept property rights because we live in the USA<br />

. . . th<strong>is</strong> seems a rather strange definition <strong>of</strong> “willingness.”<br />

Message [352] referenced by [369] and [414]. Next Message by Franz <strong>is</strong> [353].<br />

[369] Snowman: the Snowman’s reply to Franz I had written in [296]:<br />

The ownership <strong>of</strong> private property <strong>is</strong> a two edged sword such that the owner<br />

<strong>is</strong> afforded the luxury <strong>of</strong> complete control <strong>of</strong> h<strong>is</strong>/her property and the right<br />

to exclude the use <strong>of</strong> that property to anyone he or she w<strong>is</strong>hs, but by the<br />

same token th<strong>is</strong> owner can also be excluded from all the property belonging<br />

to others.<br />

Franz answered to th<strong>is</strong> in [352]:<br />

yes, I can be excluded from working in Jon Huntsman’s chemical factory<br />

in the same way I can exclude Jon Huntsman from riding my bicycle.<br />

so what?<br />

Franz what you fail to see here because you are an owner <strong>of</strong> property and live nowhere<br />

near the poverty line <strong>is</strong> that the exclusion that I refer to here <strong>is</strong> the right <strong>of</strong> exclusion, not<br />

a required practice <strong>of</strong> exclusion. under the laws <strong>of</strong> capital<strong>is</strong>m it <strong>is</strong> possible for the whole<br />

system to implode on its self, for the sake <strong>of</strong> saving the idea <strong>of</strong> property ownership. <strong>What</strong><br />

<strong>is</strong> failed to be realized <strong>is</strong> that we in our country have the idea that we are pure capital<strong>is</strong>ts,<br />

and th<strong>is</strong> <strong>is</strong> not the case, there are various mechan<strong>is</strong>ms built into our government that prevent<br />

complete exclusion, such as taxes and welfare. These systems are social<strong>is</strong>tic in nature and<br />

something that people m<strong>is</strong>takingly take for granted as a part <strong>of</strong> pure capital<strong>is</strong>m.<br />

Again, here <strong>is</strong> another excerpt from my earlier message:<br />

Th<strong>is</strong> <strong>is</strong> so because the ability to own any thing requires that there be a<br />

mutual agreement <strong>of</strong> the community such that all those in the community<br />

respect and adhere to the idea <strong>of</strong> ownership, thus respecting what others<br />

also own and their rights as inherent there in.<br />

Franz remarked about th<strong>is</strong>:<br />

the ability to own requires “mutual agreement” – what? ? ?<br />

Jon Huntsman (and other capital<strong>is</strong>ts) give money to: 1) make sure that <strong>Utah</strong><br />

lawmakers protect h<strong>is</strong> property rights 2) make sure the <strong>Utah</strong> Police will<br />

pun<strong>is</strong>h those who trespass h<strong>is</strong> property.<br />

Not to answer a question with a question but do you readily agree to ride “your” bike,<br />

and in that agreement while riding your bike do you carry the right and want to keep other<br />

random people form riding your bike? If your answer <strong>is</strong> yes then do you also feel th<strong>is</strong> to be<br />

fair and expect the same <strong>of</strong> others on their bike? Again if the answer <strong>is</strong> yes then <strong>is</strong> there not<br />

an inherent agreement that by claiming the bike to be yours that you have also claimed the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 161<br />

right to exclude the use <strong>of</strong> that bike from others, and also respect the same qualifications for<br />

what others may do with their bike or what ever they may own.<br />

where <strong>is</strong> it that I “mutually agreed” to<br />

the ownership <strong>of</strong> property?<br />

Here <strong>is</strong> a third excerpt;<br />

There for by willingly accept the requirements <strong>of</strong> ownership one also accepts<br />

the idea <strong>of</strong> exclusion from the benefits <strong>of</strong> property owned by others.<br />

Franz commented:<br />

you are saying that we are “willing” to accept property rights because we<br />

live in the USA . . . th<strong>is</strong> seems a rather strange definition <strong>of</strong> “willingness.”<br />

Willingness <strong>is</strong> not always blatant and <strong>is</strong> <strong>of</strong>ten implied in the actions <strong>of</strong> living.<br />

Message [369] referenced by [414]. Next Message by Snowman <strong>is</strong> [369.5].<br />

[414] Franz: SNOWMAN (from FRANZIE) Snowman wrote in [369]:<br />

the exclusion that I refer to <strong>is</strong> the right <strong>of</strong> exclusion, not a required practice<br />

<strong>of</strong> exclusion.<br />

while riding your bike do you want to keep other random people from riding your bike?<br />

Snowman, IMHO, th<strong>is</strong> <strong>is</strong> far from the response Dr. E was looking for. When I wrote “so<br />

what?” in [352] I was hoping your response would save your answer before Dr. E graded it.<br />

I was trying to get you to see that there <strong>is</strong> a big difference between<br />

1) owning something like a bike (consumption good) C-M-C<br />

and<br />

2) ownership over the means <strong>of</strong> production (production good) M-C-M’<br />

because <strong>of</strong> 2), you get M’ – surplus value. . .<br />

when Dr. E asks “Is there anything wrong with Private Property?” he <strong>is</strong> referring to<br />

number 2), not 1).<br />

Had you written something like: It <strong>is</strong> only through the ownership <strong>of</strong> the means <strong>of</strong> production<br />

(private property) that the capital<strong>is</strong>t <strong>is</strong> able to bleed h<strong>is</strong>/her workers – I think you would<br />

have received a grade <strong>of</strong> A.<br />

<strong>What</strong> <strong>is</strong> failed to be realized <strong>is</strong> that we in our country have the idea that we<br />

are pure capital<strong>is</strong>ts, and th<strong>is</strong> <strong>is</strong> not the case, there are various mechan<strong>is</strong>ims<br />

built into our government that prevent complete exclusion, such as taxes<br />

and welfare. These systems are social<strong>is</strong>tic in nature and something that<br />

people m<strong>is</strong>takingly take for granted as a part <strong>of</strong> pure capital<strong>is</strong>m.<br />

social<strong>is</strong>tic? I doubt it. I say these are tools <strong>of</strong> the Capital<strong>is</strong>t – used to “buy <strong>of</strong>f” the truly<br />

downtrodden who might otherw<strong>is</strong>e revolt.<br />

162 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I see them much more as a “Capital<strong>is</strong>t safety net” than some sort <strong>of</strong> benevolent/social<strong>is</strong>tic<br />

aspect <strong>of</strong> our society.<br />

¿ and also respect the same qualfications for what others may do with their<br />

bike or what ever they may own.<br />

why should we “respect” the capital<strong>is</strong>ts who use their property right to bleed the working<br />

class?<br />

under the laws <strong>of</strong> capital<strong>is</strong>m it <strong>is</strong> possible for the whole system to implode<br />

on its self, for the sake <strong>of</strong> saving the idea <strong>of</strong> property ownership.<br />

? ? ?<br />

Next Message by Franz <strong>is</strong> [416].<br />

[607] Snowman: Re: The Pitfalls <strong>of</strong> Unradical Critique Hans wrote in [318]<br />

Snowman’s thinking in h<strong>is</strong> answer [296] <strong>is</strong> very logical. And since Snowman<br />

starts with an insufficiently radical critique <strong>of</strong> private property, h<strong>is</strong><br />

inexorable logic gives a nice schoolbook example <strong>of</strong> the absurdities you<br />

end up with if you try to criticize something without penetrating down to<br />

its basic contradictions.<br />

Can you see why the following sentence <strong>is</strong> not a very radical critique <strong>of</strong><br />

private property?<br />

The ownrship <strong>of</strong> private property <strong>is</strong> a two edged sword such that the owner<br />

<strong>is</strong> afforded the luxury <strong>of</strong> complete control <strong>of</strong> h<strong>is</strong>/her property and the right<br />

to exclude the use <strong>of</strong> that property to anyone he or she w<strong>is</strong>hs, but by the<br />

same token th<strong>is</strong> owner can also be excluded from all the property belonging<br />

to others.<br />

Snowman <strong>is</strong> not deploring that private property draws fences across society,<br />

he <strong>is</strong> only deploring that one may end up on the wrong side <strong>of</strong> the fence.<br />

I.e., from the right side, fences are ok.<br />

While it <strong>is</strong> late to defend what I have previously written I feel it <strong>is</strong> required now for the argument<br />

that i gave was what I and intended I do not think that I was thorough enough. <strong>What</strong><br />

I lacked, which immediately drew the attention <strong>of</strong> all those that read my answer was that I<br />

hate fences <strong>of</strong> any sort that block the access <strong>of</strong> others for no other reason than exclusion.<br />

Th<strong>is</strong> <strong>is</strong> something that I have in grained in myself to the extent that when writting the argument<br />

I made the cardinal m<strong>is</strong>take <strong>of</strong> assumption. To me it <strong>is</strong> not that being on the “wrong<br />

side <strong>of</strong> the fence that <strong>is</strong> the trouble” but rather that the potential for there to be completely<br />

exclusive fences around that which contains potential for public good on the whole that <strong>is</strong><br />

the trouble. The problem that I see with th<strong>is</strong> <strong>is</strong> the good <strong>of</strong> the community/society usually<br />

leads to the good <strong>of</strong> the individual, and because ownership <strong>of</strong> certain goods inhibits th<strong>is</strong> I<br />

feel that the good <strong>of</strong> the individual and the whole <strong>is</strong> comprim<strong>is</strong>ed no matter the side <strong>of</strong> the<br />

fence one finds themself.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 163<br />

Snowman sees very clearly the dangers <strong>of</strong> private property: it allows to<br />

exclude people from resources which they need, and what <strong>is</strong> h<strong>is</strong> answer?<br />

Welfare.<br />

It <strong>is</strong> for th<strong>is</strong> reason that the ownership <strong>of</strong> very basic necessities should be<br />

left to the community as a whole. Such things as the basic amount <strong>of</strong> food<br />

that <strong>is</strong> required for living as well as the shelter and clothing should at least<br />

be available through some sort <strong>of</strong> communal <strong>of</strong>ferings,<br />

Again not a very radical solution, since th<strong>is</strong> solution assumes that poverty<br />

pers<strong>is</strong>ts in society. Snowman uses the rest <strong>of</strong> h<strong>is</strong> answer to debate where<br />

to draw the poverty line. Marx’s solution <strong>is</strong> more radical: he <strong>is</strong> saying<br />

that we only have to give people food if they cannot produce it themselves,<br />

and the root cause <strong>of</strong> poverty <strong>is</strong> the fact that the means <strong>of</strong> production are<br />

privately owned, therefore people are not allowed to produce the things for<br />

themselves which they need.<br />

The other confusion which I have allowed <strong>is</strong> the lack <strong>of</strong> clarity for that which should<br />

or should not be owned. I would say that the goods invloved with the perpetuation <strong>of</strong> the<br />

individual in reproduction or what ever means one finds to perpetuate their ex<strong>is</strong>tence should<br />

be owned in such a way so as not to be exclusive in any manner, such that no one finds<br />

them selves lacking what <strong>is</strong> needed. <strong>What</strong> I do think can be owned by a person with out<br />

comprim<strong>is</strong>e <strong>is</strong> that which <strong>is</strong> consumed as an end product by the individual in such a way so<br />

as to remove it from the market as a commodity, or as an instrument <strong>of</strong> production for the<br />

individual producing commodities.<br />

First Message by Snowman <strong>is</strong> [48].<br />

<strong>Question</strong> 186 <strong>is</strong> 174 in 1995WI, 153 in 1995ut, 206 in 1997sp, 207 in 1998WI, 292 in<br />

2005fa, 312 in 2007SP, 322 in 2008SP, 320 in 2008fa, and 356 in 2012fa:<br />

<strong>Question</strong> 186 Which legal relations must ex<strong>is</strong>t between producers so that they can exchange<br />

their products as commodities? Describe groups or societies in which individuals do not<br />

have these relations.<br />

[282] Gottlieb: privatization and human needs The legal relations that must ex<strong>is</strong>t<br />

between producers so that they can exchange their products as commodities are very clear.<br />

There must be a law that a producer’s right to private ownership takes precedence over all<br />

other rights <strong>of</strong> the society or other individuals. The needs <strong>of</strong> other individuals must take a<br />

back seat to the commodities’ owners. The starving child in the slums must be allowed to<br />

become ill and die in order for the store owner to retain h<strong>is</strong> right <strong>of</strong> ownership; even if he<br />

chooses to throw away the food the child needs so badly.<br />

Though th<strong>is</strong> way <strong>of</strong> thinking seems rather extreme, it <strong>is</strong> the bas<strong>is</strong> <strong>of</strong> the rights most people<br />

have today. Just as important, however, <strong>is</strong> the need for other people to respect the rights <strong>of</strong><br />

ownership held by other individuals. It takes compliance <strong>of</strong> all <strong>of</strong> the individuals. Even<br />

though most <strong>of</strong> us comply to these rules automatically, Marx claims that th<strong>is</strong> <strong>is</strong> against the<br />

natural human will. Th<strong>is</strong> way <strong>of</strong> behaving <strong>is</strong> learned.<br />

164 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Early settlements in the state <strong>of</strong> <strong>Utah</strong> were forced to set aside rights <strong>of</strong> ownership in order<br />

to survive. In order for the individual to prosper the group or settlement as a whole had to<br />

flour<strong>is</strong>h as well. Settlers were given stewardship over particular areas or ‘areas <strong>of</strong> specialty’<br />

and produced for the whole settlement. Some settlements in Southern <strong>Utah</strong> lasted for years<br />

with th<strong>is</strong> sort <strong>of</strong> relationship. All eventually succumbed to the rule <strong>of</strong> private ownership.<br />

Message [282] referenced by [326], [2012fa:423], and [2012fa:1314]. Next Message by Gottlieb <strong>is</strong> [498].<br />

[314] TOAD: The legal relationship that must ex<strong>is</strong>t <strong>is</strong> that <strong>of</strong> a contract.<br />

A group or society were th<strong>is</strong> may not ex<strong>is</strong>t <strong>is</strong> that <strong>of</strong> a free trade society. In th<strong>is</strong> form <strong>of</strong><br />

a society individuals would use there skills or talents to produce that which they are capable<br />

<strong>of</strong>. Th<strong>is</strong> <strong>is</strong> done in hope that someone would want there product and pay for it with some<br />

other good that was <strong>of</strong> use to them.<br />

Also in a society such as the one we live in where things are exchanged for money. I<br />

personaly don’t have any contracts with any clothing producers nor do any <strong>of</strong> my friends or<br />

family. However th<strong>is</strong> dosen’t stop the clothing manufactures from producing clothes. They<br />

procude the clothing to be in compliance with the contracts they may have with the retailers,<br />

but the retailers only carry clothing in there store in hopes that a consumer will purchase<br />

those clothes. Not because it <strong>is</strong> in a consumers contract to purchase a set amount <strong>of</strong> clothing<br />

to keep the manufacturer in business, but because it <strong>is</strong> in the consumers wants to purchase<br />

clothing.<br />

Message [314] referenced by [326]. Next Message by TOAD <strong>is</strong> [394.3].<br />

[326] Hans: Legal Background <strong>of</strong> Commodity Trade Of the two answers received for<br />

th<strong>is</strong> <strong>Question</strong>, Gottlieb’s [282] <strong>is</strong> right on target. Gottlieb gives an “extreme” but accurate<br />

description <strong>of</strong> the sin<strong>is</strong>ter underside <strong>of</strong> modern exchange relations. He writes:<br />

There must be a law that a producer’s right to private ownership takes precedence<br />

over all other rights <strong>of</strong> the society or other individuals. The needs <strong>of</strong><br />

other individuals must take a back seat to the commodities’ owners.<br />

Such a law will only then be considered just and can therefore only then be enforced if<br />

people consider each other as strangers. The only thing that <strong>is</strong> m<strong>is</strong>sing in Gottlieb’s answer<br />

<strong>is</strong> the explicit recognition that these undesirable consequences come from the fact that people<br />

in a commodity society treat each other as strangers.<br />

TOAD’s answer [314] <strong>is</strong> somewhat <strong>of</strong> a puzzle. Apparently TOAD concluded from<br />

Marx’s text preceding <strong>Question</strong> 186 that the right answer to the <strong>Question</strong> <strong>is</strong> “a contract”.<br />

Therefore he states th<strong>is</strong>, but then, both <strong>of</strong> h<strong>is</strong> examples <strong>of</strong> societies in which these legal<br />

relations do not ex<strong>is</strong>t are commodity-producing societies! He did not comment on the incons<strong>is</strong>tency<br />

that in h<strong>is</strong> view certain commodity-producing societies do not have the social<br />

relations necessary for the products to be exchanged as commodities.<br />

Next Message by Hans <strong>is</strong> [327].<br />

<strong>Question</strong> 187 <strong>is</strong> 176 in 1995WI, 154 in 1995ut, 189 in 1996ut, 200 in 1997WI, 207 in<br />

1997sp, 199 in 1997ut, 208 in 1998WI, 228 in 2000fa, 241 in 2001fa, 273 in 2003fa, 330<br />

in 2008SP, 328 in 2008fa, 342 in 2009fa, 349 in 2011fa, and 365 in 2012fa:<br />

<strong>Question</strong> 187 Why are commodities not interested in each other’s use values?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 165<br />

[244] MUCHO: commodities not interested in each other’s use value The main reason<br />

for th<strong>is</strong> question would be a different use value. Each commodities has different use value.<br />

Because, each commodities has produced in different way. I think it <strong>is</strong> also important to<br />

mention that each commodities has different labor. To be more specific, different labor time,<br />

power, and skills. According to the book, use value <strong>is</strong> something that make the commodities<br />

useful. Therefore, commodities are depending on use value in some sense. On the other<br />

hand, use value <strong>is</strong> independent. Under these circumstances, it <strong>is</strong> hard to say that each commodities’<br />

use value are related. They must be separated in order to make each commodities<br />

useful.<br />

Hans: I am a little puzzled why you wanted to answer th<strong>is</strong> question, although you did not have a clue how to<br />

answer it.<br />

Message [244] referenced by [269]. Next Message by MUCHO <strong>is</strong> [263].<br />

[258] Gilligan: use values are boring Let’s say one day I created a widget, and that<br />

widget was something that meant a lot to me and it actually gave me utility. I would use the<br />

widget each day and it would be very beneficial to me throughout the day, but for some reason<br />

everybody around thought that the widget was irrelevent and had no use. They just didn’t<br />

see the utility that the widget created and therefore was socially unaccepted. As something<br />

<strong>is</strong> created there <strong>is</strong> always some use value involved and therefore each item produced has use<br />

value, it <strong>is</strong> a universal thing. So for something to be so common it would be rather boring.<br />

Think about everyone in the world having one exact thing in common, you really wouldn’t<br />

think about that certain thing let alone be interested in it. When something has use value its<br />

a common bond among most everything, but what sets something apart from other things <strong>is</strong><br />

exchangeability. When we create something or have something that has exchange value then<br />

it creates an interest and the whole form <strong>of</strong> the commodity has come together. If something<br />

has use value and exchange value th it can be qualified as a commodity because it has been<br />

socially accepted. So when we think <strong>of</strong> use values its something that may interestaa person<br />

or thing but it has no bearance on other commodities and it <strong>is</strong> rather useless. If somethn <strong>is</strong><br />

produced and no one wants it or <strong>is</strong> interested in it , like my widget than its a waste <strong>of</strong> time<br />

and labor. Use values are boring without exchaange value.<br />

Message [258] referenced by [269] and [547.1]. Next Message by Gilligan <strong>is</strong> [308].<br />

[269] Hans: Why are commodities bored with their use values? MUCHO, in h<strong>is</strong><br />

[244], was completely in the dark about th<strong>is</strong> <strong>Question</strong>, but Gilligan’s [258] had some right<br />

elements. Nevertheless, in the next exam it will still count as wrong if you repeat Gillign’s<br />

[258]. Gilligan has some valid thinking, and I will emphasize th<strong>is</strong> here in my comments,<br />

because it seems more important to me whether what you say <strong>is</strong> valid, than to stick too<br />

literally to the <strong>Question</strong>. But one <strong>of</strong> the reasons [258] <strong>is</strong> wrong <strong>is</strong> that Gilligan acted as if<br />

Marx had said that use values are boring, although he merely said that use values are boring<br />

to the commodities. The question <strong>is</strong> therefore still open, and further subm<strong>is</strong>sions are invited.<br />

On the other hand, Marx did say elsewhere that use values do not fall into the purview <strong>of</strong><br />

Economics. There are some cases when they do, but usually they don’t. Why not? because<br />

the use values are a private affair, they are not social enough. Gilligan gives th<strong>is</strong> argument<br />

in h<strong>is</strong> answer; my widget <strong>is</strong> useful to me but not necessarily to anybody else.<br />

Gilligan gives a second argument why a look at use values as such will not lead to economic<br />

insights:<br />

166 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

As something <strong>is</strong> created there <strong>is</strong> always some use value involved and therefore<br />

each item produced has use value, it <strong>is</strong> a universal thing. So for something<br />

to be so common it would be rather boring. Think about everyone<br />

in the world having one exact thing in common, you really wouldn’t think<br />

about that certain thing let alone be interested in it.<br />

Marx argues along these same lines. He says: if one wants to understand what <strong>is</strong> specific<br />

about capital<strong>is</strong>m, one cannot start with the general character<strong>is</strong>tics <strong>of</strong> production and<br />

consumption, because they are shared by all economies.<br />

In th<strong>is</strong> light, Gilligan’s next sentence <strong>is</strong> almost right, although the thrust <strong>of</strong> it needs a little<br />

adjustment: the exchange value <strong>is</strong> interesting not because it sets the commodity apart, but<br />

because it sets capital<strong>is</strong>m apart:<br />

When something has use value its a common bond among most everything,<br />

but what sets something apart from other things <strong>is</strong> exchangeability. When<br />

we create something or have something that has exchange value then it<br />

creates an interest and the whole form <strong>of</strong> the commodity has come together.<br />

In the rest <strong>of</strong> h<strong>is</strong> subm<strong>is</strong>sion, Gilligan <strong>is</strong> acting too much as if exchange was the only way<br />

to establ<strong>is</strong>h a social link between the producers. Marx goes exactly in the opposite direction:<br />

he argues that it <strong>is</strong> not the only way to organize production, and moreover that it <strong>is</strong> not a very<br />

good way to organize production.<br />

Message [269] referenced by [547.1]. Next Message by Hans <strong>is</strong> [270].<br />

[271] Caren: the commodity exchange For Marx, the commodity first appears as the<br />

unity <strong>of</strong> exchange-value and use-value. As a simple product <strong>of</strong> labor the commodity immediately<br />

appears in it tangible form as a set <strong>of</strong> physical attributes that, having been fashioned<br />

from nature by a set <strong>of</strong> concrete labors, constitute it as a socially recognized use-value. Yet<br />

for the producer/seller <strong>of</strong> th<strong>is</strong> commodity these attributes are <strong>of</strong> no immediate concern except<br />

for the fact that they may serve to command other commodities with other use-value in<br />

exchange. For the producer/seller <strong>of</strong> the commodity what <strong>is</strong> <strong>of</strong> interest <strong>is</strong> not so much the<br />

use-value <strong>of</strong> the commodity - in fact for her the commodity <strong>is</strong> not a use-value but a non-usevalue<br />

- but the commodity as an exchange-value: that <strong>is</strong>, its potential to be exchanged for it<br />

<strong>is</strong> not. According to the text (Annotations to Karl Marx’s ’capital’) on page 113;<br />

“The commodities do not care about their use values. Instead, they are eager to act out<br />

the relations which they have as commodities. They are produced privately, and if they do<br />

not find someone who needs them, the labor that went into them <strong>is</strong> wasted. Th<strong>is</strong> makes them<br />

like hot coal in the hands <strong>of</strong> their producers. Since they are the products <strong>of</strong> private labor<br />

which needs validation as social labor, their purpose in life <strong>is</strong> exchange. It <strong>is</strong> the labor inside<br />

them which gives them desire. Commodities are willing to exchange themselves against any<br />

other product <strong>of</strong> labor that crosses their way, which has a different use value than their own.<br />

Th<strong>is</strong> <strong>is</strong> all that <strong>is</strong> needed for them to express their value,”.<br />

The exchange-value <strong>of</strong> a commodity stands in mutual opposition to its use-value and<br />

th<strong>is</strong> opposition can only be overcome through the act <strong>of</strong> exchange. With exchange the usevalue<br />

<strong>of</strong> the commodity becomes realized in the hands <strong>of</strong> its recipient owner who consumes


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 167<br />

it; while the exchange-value <strong>of</strong> the commodity becomes realized when its producer/seller<br />

obtains her desired other use-values.<br />

If a commodity <strong>is</strong> to exchange with other commodities then, to the degree that such<br />

an exchange <strong>is</strong> not random or accidental, the commodity must have something that <strong>is</strong> in<br />

common with all other commodities with which it may exchange. It must have something<br />

that makes it commensurate with other commodities. While the different use-values that<br />

ar<strong>is</strong>e from the varying physical and natural attributes <strong>of</strong> different kinds <strong>of</strong> commodities make<br />

commodity exchange necessary they do not serve to make systematic commodity exchange<br />

possible. For Marx, the exchange <strong>of</strong> commodities <strong>is</strong> evidently an act character<strong>is</strong>ed by a<br />

total abstraction from use-value. Having d<strong>is</strong>m<strong>is</strong>sed use-value as th<strong>is</strong> common something we<br />

come to exchange-value. But exchange-value as such immediately appears only in terms <strong>of</strong><br />

multiplicity <strong>of</strong> other use-value that the commodity can command in exchange, and, as such,<br />

appears as being both external and accidental to the commodity itself.<br />

Message [271] referenced by [272] and [281]. Next Message by Caren <strong>is</strong> [357.3].<br />

[272] Skyler: question 187 I liked what was said in th<strong>is</strong> statement; “the commodity<br />

considers every other commodity only as the form <strong>of</strong> appearance <strong>of</strong> its own value.” Commodities<br />

are not interested in their different use-value. Their interested in expressing their<br />

value regardless <strong>of</strong> which use-value <strong>is</strong> used to represent its value. A commodity <strong>is</strong> separate<br />

from its owner in that it wants to express its value, and its owner wants to exchange the<br />

commodity through its use-value.<br />

“Products <strong>of</strong> private labor need validation as social labor;” meaning that the act <strong>of</strong> exchange<br />

<strong>is</strong> the central process for a commodity to express its value. Marx’s sexual analogy<br />

<strong>is</strong> very good in saying that procreation takes two, but the individuals goals or desires are<br />

their own. The commodities and commodity owners purpose <strong>is</strong> the same but their individual<br />

goals are their own and different.<br />

Hans: Taken by itself, youranswer <strong>is</strong> not bad. I would have liked you to give references for your quotes (I do<br />

not require th<strong>is</strong> in the in-class exams, since you do not have enough time, but I do require it in your homework<br />

subm<strong>is</strong>sions), and I would have liked you to explain some <strong>of</strong> the things in your quotes which you are taking for<br />

granted. It <strong>is</strong> quite remarkable and deserves some explanation that Marx does as if the commodities had their own<br />

mind which <strong>is</strong> different from that <strong>of</strong> their owners.<br />

But your answer was posted to the l<strong>is</strong>t five hours after Caren’s [271], which says quite similar things as your<br />

message, although in a different way. Your grade suffered because you ignored [271].<br />

Message [272] referenced by [383.13]. Next Message by Skyler <strong>is</strong> [383.13].<br />

[281] Hans: Nitpicking about Caren Caren’s answer [271] <strong>is</strong> excellent. I will take <strong>is</strong>sue<br />

with some <strong>of</strong> her formulations here, and some subtle <strong>is</strong>sues, which are m<strong>is</strong>understood by<br />

many Marx<strong>is</strong>ts.<br />

For Marx, the commodity first appears as the unity <strong>of</strong> exchange-value and<br />

use-value.<br />

Marx started Chapter One <strong>of</strong> Capital with the observation that the commodity has two<br />

different aspects, use value and exchange value, and he investigates these two aspects separately.<br />

In Contribution, Marx calls the commodity the “immediate unity” <strong>of</strong> these two<br />

aspects. The word “immediate” <strong>is</strong> important here; it means “without mediation.” These<br />

aspects are packed together in the same thing, but they are by no means reconciled in the<br />

168 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

commodity. Marx rather stresses how much these two aspects cleave apart and fight each<br />

other (and Caren says the same thing further down in her contribution).<br />

As a simple product <strong>of</strong> labor the commodity immediately appears in it tangible<br />

form as a set <strong>of</strong> physical attributes that, having been fashioned from<br />

nature by a set <strong>of</strong> concrete labors, constitute it as a socially recognized usevalue.<br />

Why do you call these use values socially recognized? The problem with private production<br />

<strong>is</strong> exactly that these use values may be perfectly good in their own terms, but there may<br />

be nobody in society who needs such a use value. The “social recognition” <strong>is</strong> exactly what<br />

<strong>is</strong> still m<strong>is</strong>sing. The rest <strong>of</strong> the paragraph <strong>is</strong> excellent:<br />

Yet for the producer/seller <strong>of</strong> th<strong>is</strong> commodity these attributes are <strong>of</strong> no immediate<br />

concern except for the fact that they may serve to command other<br />

commodities with other use-value in exchange. For the producer/seller <strong>of</strong><br />

the commodity what <strong>is</strong> <strong>of</strong> interest <strong>is</strong> not so much the use-value <strong>of</strong> the commodity<br />

- in fact for her the commodity <strong>is</strong> not a use-value but a non-usevalue<br />

- but the commodity as an exchange-value: that <strong>is</strong>, its potential to be<br />

exchanged for it <strong>is</strong> not.<br />

In the sentence after your quote from my Annotations I would see things a little bit differently.<br />

Caren writes:<br />

The exchange-value <strong>of</strong> a commodity stands in mutual opposition to its<br />

use-value and th<strong>is</strong> opposition can only be overcome through the act <strong>of</strong> exchange.<br />

First <strong>of</strong> all, Marx says that real contradictions cannot be solved, they can only be given a<br />

“form <strong>of</strong> motion” but th<strong>is</strong> does not mean that they d<strong>is</strong>appear. Chapter 2 shows that the direct<br />

barter <strong>of</strong> products <strong>is</strong> very contradictory too, and if one introduces money, one gets a whole<br />

slew <strong>of</strong> new contradictions.<br />

Secondly, Caren’s sentence sounds as if the exchange process ex<strong>is</strong>ts in order to overcome<br />

the contradictions in the commodity. I am not sure if th<strong>is</strong> <strong>is</strong> right, maybe it <strong>is</strong>. I would settle<br />

for a less ambitious claim: in the act <strong>of</strong> exchange, the contradiction between the two aspects<br />

<strong>of</strong> the commodity asserts itself. (Th<strong>is</strong> contradiction <strong>is</strong> the reason why we are not bartering<br />

directly but why we sell and buy with money.)<br />

Nothing wrong with the next sentence:<br />

With exchange the use-value <strong>of</strong> the commodity becomes realized in the<br />

hands <strong>of</strong> its recipient owner who consumes it; while the exchange-value<br />

<strong>of</strong> the commodity becomes realized when its producer/seller obtains her<br />

desired other use-values.<br />

In the next sentence, I would again put the emphas<strong>is</strong> a little differently:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 169<br />

If a commodity <strong>is</strong> to exchange with other commodities then, to the degree<br />

that such an exchange <strong>is</strong> not random or accidental, the commodity must<br />

have something that <strong>is</strong> in common with all other commodities with which<br />

it may exchange.<br />

You can either say (as Marx says in Section 1 <strong>of</strong> Chapter One): obviously, commodities<br />

are systematically exchanged, and from th<strong>is</strong> we can conclude that they must have something<br />

in common. Or you can say (as in Section 3 <strong>of</strong> Chapter One): commodities are the product<br />

<strong>of</strong> abstract labor, and the exchange <strong>is</strong> the social form in which their equality as abstract<br />

labor <strong>is</strong> expressed. I.e., the investigator has to start with the exchange, because th<strong>is</strong> <strong>is</strong> v<strong>is</strong>ible<br />

on the surface. But in the logical structure <strong>of</strong> capital, production <strong>is</strong> primary. Caren on the<br />

other hand acts as if exchange was primary and as if value was a device to make exchange<br />

possible.<br />

It must have something that makes it commensurate with other commodities.<br />

While the different use-values that ar<strong>is</strong>e from the varying physical<br />

and natural attributes <strong>of</strong> different kinds <strong>of</strong> commodities make commodity<br />

exchange necessary they do not serve to make systematic commodity exchange<br />

possible.<br />

To repeat, I d<strong>is</strong>agree with th<strong>is</strong>, because it takes the exchange as the ontologically most<br />

basic category, while Marx considered production more basic and derived exchange from the<br />

character <strong>of</strong> production. Bhaskar would probably consider Caren’s error here an example <strong>of</strong><br />

the “ep<strong>is</strong>temic fallacy”.<br />

The next sentence <strong>is</strong> due to an unfortunate m<strong>is</strong>translation in the Moore-Aveling translation<br />

<strong>of</strong> R127:4:<br />

For Marx, the exchange <strong>of</strong> commodities <strong>is</strong> evidently an act character<strong>is</strong>ed<br />

by a total abstraction from use-value.<br />

Marx did not mean th<strong>is</strong>. A more prec<strong>is</strong>e translation <strong>is</strong>:<br />

The exchange relation <strong>of</strong> commodities <strong>is</strong> evidently character<strong>is</strong>ed by a total<br />

abstraction from use-value.<br />

The exchange relation <strong>is</strong> the proportion in which commodities are exchangeable. There<br />

are many more exchange relations than there are ectual exchanges. In the actual act <strong>of</strong><br />

eschange, the traders certainly look at the use values too and do not abstract from them (see<br />

Chapter Two).<br />

Having d<strong>is</strong>m<strong>is</strong>sed use-value as th<strong>is</strong> common something we come to exchangevalue.<br />

But exchange-value as such immediately appears only in terms <strong>of</strong><br />

multiplicity <strong>of</strong> other use-value that the commodity can command in exchange,<br />

and, as such, appears as being both external and accidental to the<br />

commodity itself.<br />

170 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Well, now Caren gets into Marx’s impasse without resolving it, see <strong>Question</strong> 40. And<br />

besides, th<strong>is</strong> <strong>is</strong> quite irrelevant for the <strong>Question</strong> at hand, it only described how Marx was<br />

investigating the commodity, it <strong>is</strong> an ep<strong>is</strong>temological question, not an ontological one.<br />

Next Message by Hans <strong>is</strong> [291].<br />

[335.2] Positive: The value a commodity gets after it has been produced and exchanged,<br />

and <strong>is</strong> being used by the consumer, <strong>is</strong> called used-value. The use-value which one commodity<br />

has <strong>is</strong> different from another if we assume the commodities are different products. If<br />

commodities are made at the same time, in the same way, and in general under the same circumstances,<br />

the products will have the excactually same value. One commodity to another<br />

does not need to depend on each other. Even if they did, their use-value <strong>is</strong> not the same.<br />

The use-value <strong>is</strong> determined by how and why the consumer uses its commodities the way he<br />

does. Let us assume we have the commodities A and B. There <strong>is</strong> no need for either A or B to<br />

be interested in each others value. The value <strong>is</strong> set by the market. The value the commodities<br />

have been exchanged for <strong>is</strong> the exchange-value, which <strong>is</strong> indirectely the use-value. Actually,<br />

the use-value <strong>is</strong> set by the consumer. It <strong>is</strong> therefore up to the consumer to determine what<br />

the specifically commodities are worth to him. The consumer <strong>is</strong> to keep h<strong>is</strong> goods, and h<strong>is</strong><br />

goal <strong>is</strong> to use them. They are not for sale. Th<strong>is</strong> <strong>is</strong> why commodities do not care about each<br />

others use-values. The commodities A and B can together make the use-value C, but they<br />

do not neccessary need to be linked to be determined their value.<br />

Hans: There <strong>is</strong> one correct element in your answer; use value <strong>is</strong> relative, it <strong>is</strong> a relationship between the commodity’s<br />

properties and the user. Other than that, th<strong>is</strong> answer does not show much understanding <strong>of</strong> Marx’s arguments.<br />

Next Message by Positive <strong>is</strong> [335.7].<br />

[335.4] Jake: Commodities do not care about their use values. Instead, they are eager<br />

to act out the relations which they have as commodities. They are produced privately. If<br />

they do not find someone who needs them, the labor into them <strong>is</strong> wasted. The commodities<br />

are more concerned with there relative exchange values. The use values can be the same or<br />

completely different, the exchange value <strong>is</strong> what <strong>is</strong> important in the trade. The use value <strong>is</strong><br />

only realized by the recipient owner who receives the traded product. Commodities then do<br />

not care what other commodities use values are. <strong>What</strong> person A does with the good produced<br />

by person B <strong>is</strong> unimportant. The importance was the value expressed in the exchange.<br />

Hans: Ok, the only thing m<strong>is</strong>sing <strong>is</strong> an explanation why Marx portrays commodities here as living things.<br />

Next Message by Jake <strong>is</strong> [442].<br />

[336.1] MsMarx: Why commodities are not interested in each other’s use-value Marx<br />

started Chapter One <strong>of</strong> Capital with the observation that the commodity has two different<br />

aspects, use value and exchange value, and he investigates these two aspects separately. In<br />

Contribution, Marx calls the commodity the “immediate unity” <strong>of</strong> those two aspects. “Immediate”<br />

means “without mediation.” These aspects are packaged together in the same thing,<br />

but they are by no means reconciled in the commodity. Marx stresses how much these two<br />

aspects cleave apart and fight each other. As a simple product <strong>of</strong> labor the commodity immediately<br />

appears in it’s tangible form as a set <strong>of</strong> physical attributes that have been fashioned<br />

from nature by a set <strong>of</strong> concrete labors.<br />

With private production, use values may be perfectly good in their own terms, but there<br />

may be nobody in society who needs such a use value. For the producer/seller <strong>of</strong> a commodity,<br />

the attributes are <strong>of</strong> no immediate concern except for the fact that they may serve<br />

to command other commodities with other use-value exchange. For the producer/seller <strong>of</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 171<br />

the commodity, what <strong>is</strong> <strong>of</strong> interest <strong>is</strong> not so much the use-value <strong>of</strong> the commodity (in fact<br />

for him/her the commodity <strong>is</strong> not a use-value but a non-use-value), but the commodity as an<br />

exchange-value: that <strong>is</strong>, its potential to be exchanged for it <strong>is</strong> not.<br />

The real contradictions cannot be solved, they can only be given a “form <strong>of</strong> motion.”<br />

But th<strong>is</strong> does not mean thay they d<strong>is</strong>appear. In direct bartering, there <strong>is</strong> th<strong>is</strong> contradiction,<br />

and if one introduces money one gets a whole slew <strong>of</strong> new contradictions. In the act <strong>of</strong><br />

exchange, the contradiction between the two aspects <strong>of</strong> the commodity asserts itself. With<br />

exchange the use-value <strong>of</strong> the commodity becomes realized when its producer/seller obtains<br />

h<strong>is</strong>/her desired other use-values. Commodities are systematically exchanged, and from th<strong>is</strong><br />

we can conclude that they must have something in common. Commodities are the product<br />

<strong>of</strong> abstract labor, and the exchange <strong>is</strong> the social form in which their equality as abstract<br />

labor <strong>is</strong> expressed. Marx derived exchange from the character <strong>of</strong> production. The exchange<br />

relation <strong>of</strong> commodities <strong>is</strong> evidently characterized by a total abstraction from use-value. The<br />

exchange relation <strong>is</strong> the proportion in which commodities are exchangeable. There are more<br />

exchange relations than there are actual exchanges.<br />

In the actual act <strong>of</strong> exchange, the traders certainly look at the use-values too and do not<br />

abstract from them. Having d<strong>is</strong>m<strong>is</strong>sed use-value as th<strong>is</strong> common something, we come to<br />

exchange-value. But exchange-value as such immediately appears only in terms <strong>of</strong> multiplicity<br />

<strong>of</strong> other use-value that the commodity can command in exchange, and, as such,<br />

appears as being both external and accidental to the commodity itself.<br />

The commodities do not care about their use-values. Instead, they are eager to act out the<br />

relations which they have as commodities. They are produced privately, and if they do not<br />

find someone who needs them, the labor that went into them <strong>is</strong> wasted. Th<strong>is</strong> makes them like<br />

hot coal in the hands <strong>of</strong> their producers. Since they are the products <strong>of</strong> private labor which<br />

needs validation as social labor, their purpose in life <strong>is</strong> exchange. It <strong>is</strong> the labor inside them<br />

which gives them th<strong>is</strong> desire. Commodities are willing to exchange themselves against any<br />

other produt <strong>of</strong> labor that crosses their way, which has a different use value than their own.<br />

Th<strong>is</strong> <strong>is</strong> all that <strong>is</strong> needed for them to express their values.<br />

Hans: The only thing that <strong>is</strong> wrong in your encyclopaedic answer <strong>is</strong> the following sentence:<br />

But exchange-value as such immediately appears only in terms <strong>of</strong> multiplicity <strong>of</strong> other usevalue<br />

that the commodity can command in exchange, and, as such, appears as being both<br />

external and accidental to the commodity itself.<br />

No, on the contrary. The multiplicity <strong>of</strong> the exchange relations reveals that it <strong>is</strong> not something accidental and<br />

relative, but that the equivalents signal something about the given commodity itself.<br />

I would also recommend that you try to condense your answers more. They are very stretched out, and I think<br />

their inner connection and logic would win if you tried to pull them together more.<br />

Next Message by MsMarx <strong>is</strong> [337].<br />

[341.3] KALISPEL: For Marx, the commodity first appears as the unity <strong>of</strong> exchange<br />

value and use-value. Yet for the producer/seller <strong>of</strong> th<strong>is</strong> commodity these attributes are <strong>of</strong> no<br />

immediate concern except for the part that they may serve to command other commodities<br />

with other use-value in exchange. For the producer/seller <strong>of</strong> the commodity what <strong>is</strong> <strong>of</strong><br />

interest <strong>is</strong> not so much the use-value <strong>of</strong> the commodity, in fact, for her the commodity <strong>is</strong><br />

not a use-value but a non-use-value, but the commodity as as an exchange value: that <strong>is</strong>, its<br />

172 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

potential to be exchanged for it <strong>is</strong> not. According to the text (annotations to Karl Marx’s’<br />

Capital) on page 113:<br />

“The commodities do not care about their use values. Instead, they are eager to act out<br />

the relations which they have as commodities. They are produced privately, and if they do<br />

not find someone who needs them, the labor that went into them <strong>is</strong> wasted. Th<strong>is</strong> makes them<br />

like hot coal in the hands <strong>of</strong> their producers. Since they are the products <strong>of</strong> private labor<br />

which needs validation as social labor. It <strong>is</strong> the labor inside them which gives them desire.<br />

Commodities are willing to exchange themselves against any other product <strong>of</strong> labor that<br />

crosses their way, which has a different use value than thier own. Th<strong>is</strong> <strong>is</strong> all that <strong>is</strong> needed<br />

for them to express their value”.<br />

Obviously, commodities are systemically exchanged, and from th<strong>is</strong> we can conclude that<br />

they must have something in common. The exchange relations <strong>of</strong> commodities evidently<br />

character<strong>is</strong>ed by a total abstraction from use-value.<br />

Hans: Only a brief remark about your first two sentences:<br />

For Marx, the commodity first appears as the unity <strong>of</strong> exchange value and use-value. Yet for<br />

the producer/seller <strong>of</strong> th<strong>is</strong> commodity these attributes are <strong>of</strong> no immediate concern except for<br />

the part that they may serve to command other commodities with other use-value in exchange.<br />

You say that the attributes are <strong>of</strong> no immediate concern, but the rest <strong>of</strong> your sentence shows how thoroughly they<br />

use both attributes: they use the exchange value <strong>of</strong> their commodity to obtain the use value which they need.<br />

Next Message by KALISPEL <strong>is</strong> [341.6].<br />

[344.2] Kia: Marx stated that the commodity first appears as the unity <strong>of</strong> exchange value<br />

and use value. As a simple product <strong>of</strong> labor the commodity immediately appears in the<br />

tangible form as a set <strong>of</strong> physcial attributes that have been fashioned from nature by a set<br />

<strong>of</strong> concrete labors. Also constitue it as a socially recognized use value. The problem with<br />

private production <strong>is</strong> exactly that these use vlues maybe perfectly good in their own terms,<br />

but there maybe nobody in society who needs such a use value. Yet for producers and<br />

seller <strong>of</strong> th<strong>is</strong> commodity these attributes are <strong>of</strong> no immediate concern except for the fact that<br />

they may serve to command other commodities with other use value in exchange. For the<br />

producer and seller <strong>of</strong> the commodity what <strong>is</strong> <strong>of</strong> interest <strong>is</strong> not so much the use value <strong>of</strong> the<br />

commodity, in fact the commodity <strong>is</strong> not a use value but a non use value. But the commodity<br />

as an exchange value. That <strong>is</strong>, its potential to be exchaged for it <strong>is</strong> not.<br />

The exchage value <strong>of</strong> a commodity can not be solved, they can only be given a some<br />

kind <strong>of</strong> motion. However, they do not d<strong>is</strong>appear. If one <strong>of</strong>fers money, other gets whole new<br />

ideas <strong>of</strong> contradictions. Th<strong>is</strong> <strong>is</strong> the reason why we do not barter, but why we sell and buy<br />

with the money. With it exchange the use value <strong>of</strong> the commodity becomes realized in the<br />

hands <strong>of</strong> its recipient owner who consumes it. On other hand the exchange value <strong>of</strong> the<br />

commodity becomes realized when its producers and seller gets her desired other use value.<br />

From th<strong>is</strong> reasoning we can say that commodities are exchanged regularily, thus it must<br />

have something in common. The exchane relation <strong>of</strong> commodities <strong>is</strong> evidently character<strong>is</strong>ed<br />

by a total abstraction from use value. There are many more exchange relation than actual<br />

exchange. In real sense traders <strong>of</strong>ten look at the use value too and do not abstract from them.<br />

Hans: Your answer <strong>is</strong> a collage <strong>of</strong> sentences from the Collection <strong>of</strong> Answers. Not all <strong>of</strong> these sentences make<br />

sense because there are words or parts m<strong>is</strong>sing. Sometimes the sentences are connected in an illogical way. And<br />

not all <strong>of</strong> your sentences are relevant to the topic. I have the impression <strong>of</strong> l<strong>is</strong>tening to a computer or a parrot, not a<br />

person who <strong>is</strong> explaining me something.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 173<br />

Next Message by Kia <strong>is</strong> [344.3].<br />

[345.1] MUCHO: To exchange the commodity’s use-value won’t be variable for anybody.<br />

Because the relation changes constantly with time and place. Hence, exchange-value appears<br />

to be something accidental and purely relative, and consequently an intrinsic value.<br />

Hans: I am completely mystified by your resubm<strong>is</strong>sion. It <strong>is</strong> illogical and has nothing to do with the <strong>Question</strong><br />

asked or your in-class exam, which made much more sense. Please see me in my <strong>of</strong>fice during my <strong>of</strong>fice hours<br />

Tuesday Thursday 10-11 or make an appointment.<br />

To exchange the commodity’s use-value won’t be variable for anybody. Because the relation<br />

changes constantly with time and place. Hence, exchange-value appears to be something<br />

accidental and purely relative, and consequently an intrinsic value.<br />

Next Message by MUCHO <strong>is</strong> [345.2].<br />

[357.4] Karl: It <strong>is</strong> important that you should not take th<strong>is</strong> question literally. Some go to<br />

the extreme <strong>of</strong> personifying the commodity. For example the shovel(commodity A) cannot<br />

be interested in bread(commodity B) because it <strong>is</strong> an inanimate object.<br />

However it should be looked at in the following way. If I make linen I have no use for it.<br />

I want to exchange only what <strong>is</strong> superfluous to me as well. It <strong>is</strong> a two part interaction. Th<strong>is</strong><br />

<strong>is</strong> because a commodity needs a “social labor validation” according to Marx. The other part<br />

<strong>is</strong> the beginning step <strong>of</strong> the commodity as it <strong>is</strong> used for personal subs<strong>is</strong>tence or consumption.<br />

Thus the commodity <strong>is</strong> not validated until it <strong>is</strong> sold at “exchange value” in the market. It<br />

<strong>is</strong> then that the commodity realizes it’s value , thus use value becomes uninteresting and<br />

obsolete. Marx said, “As a simple product <strong>of</strong> labor, the commodity immediatly appears in<br />

it’s tangible form, having fashioned from nature by a set <strong>of</strong> concrete labors, constituting it<br />

as a socially recognized use value.”<br />

It’s as if the commodities behave with minds <strong>of</strong> their own, d<strong>is</strong>regarding use value. Marx<br />

used a sexual analogy to explain th<strong>is</strong> phenomena. Marx explained in the readings that two<br />

people have their own interests, but serve a common goal <strong>of</strong> procreation without realizing it.<br />

Such <strong>is</strong> the nature <strong>of</strong> the commodity as it relates to ignoring it’s use value.<br />

Hans: You are answering the part <strong>of</strong> the <strong>Question</strong> which most others d<strong>is</strong>regard. Good try.<br />

Next Message by Karl <strong>is</strong> [358].<br />

[368.1] Chocolate: First <strong>of</strong> all the commodities first appear as both exchange value and<br />

use-value. The use value <strong>of</strong> the commodity <strong>is</strong> not as important as it’s exchange value. Marx’s<br />

states that “ the commodities do not care about their use values. Instead they are eager to act<br />

out the relations which they have as commodities.”<br />

He also states that “since they are the products <strong>of</strong> private labor which needs validation as<br />

social labor, their purpose in life <strong>is</strong> exchange. It <strong>is</strong> the labor inside them which gives them<br />

desire.” All that <strong>is</strong> needed by a commodity to express their value <strong>is</strong> how they express their<br />

usefulness once they are compared to another commodity. The commodity must posses<br />

something whithin it that will allow it to have an exchange value. Something that <strong>is</strong> in<br />

common with the commodity it <strong>is</strong> being exhanged with.<br />

Use value <strong>of</strong> a commodity may be good and valueble, but what if no-one (including<br />

yourself) has any-use for that particular commodity anymore? <strong>What</strong> will one do with it then?<br />

Obviously that individual cannot exchange it for another commodity since no-one else has<br />

any use for it. And, since that individual no longer has any use for it either, the commodity <strong>is</strong><br />

left untouched, unused and collecting dust. But, if the commodity were to have an exchange<br />

174 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

value and the owner <strong>of</strong> the commodity no-longer has any use for it. He/she can simply<br />

exchange it for a different commodity that will be usefull to him/her.<br />

For example, suppose I am a farmer who only ra<strong>is</strong>e chickens, if one day chickens became<br />

a bad thing for people to eat and own because <strong>of</strong> a fatal desiese that can only be found in<br />

chickens, then no-one (including myself) will have any use for them anymore. I will then be<br />

stuck with a lot <strong>of</strong> chicken and nothing to do with them. But, if nothing bad will ever come<br />

from eating or owning chickens then I can easily find another farmer (or individual) to trade<br />

my chickens with if I no-longer have any use for them.<br />

Hans: In the Annotations, only the large print <strong>is</strong> from Marx, the small print <strong>is</strong> my annotations.<br />

Your last example <strong>is</strong> not an example <strong>of</strong> the typical and pervasive d<strong>is</strong>proportions <strong>of</strong> demand and supply (in which<br />

chickens would still be edible, but there are already enough chicken on the market for everyone who wants them<br />

and canafford them), but one in which a whole class <strong>of</strong> former use values <strong>is</strong> suddenly no longer a use value.<br />

Next Message by Chocolate <strong>is</strong> [374.1].<br />

[369.6] Snowman: Commodities are not interested in each other’s use values because<br />

as commodities their relation to one another <strong>is</strong> based in exchange relations. Exchange <strong>is</strong><br />

their purpose, without exchange they are not commodities. Their use-value, a commodities,<br />

<strong>is</strong> what makes them different from one another and thus also allows them to be exchanged<br />

for one another, for you do not exchange or trade in the market for identical things, rather<br />

exchange <strong>is</strong> facilitated for the want <strong>of</strong> different commodities. Therefor the exchange relation<br />

that a commodity has with another commodity <strong>is</strong> what quantifies the value contained in<br />

the first commodity in relation to the second. The use value only states that if there <strong>is</strong> a<br />

difference then there <strong>is</strong> the potential for trade, and as such <strong>is</strong> <strong>of</strong> no interest to a commodity<br />

in terms <strong>of</strong> exchange for if there <strong>is</strong> to be an exchange then it <strong>is</strong> assumed that it <strong>is</strong> <strong>of</strong> different<br />

commodities. A commodities need for social validation <strong>is</strong> sat<strong>is</strong>fied by its exchange value,<br />

which <strong>is</strong> represented in quantitative terms which relate the different amounts <strong>of</strong> abstract<br />

labor in the commodities. These different amounts <strong>of</strong> labor are what determine the value for<br />

the commodity in terms <strong>of</strong> exchange and value, and there for <strong>is</strong> why the commodities are not<br />

concerned with the use values, as use values are not what their social value <strong>is</strong> measured by.<br />

Hans: You are a little confused about how to reconcile the fact that differences in use value are needed for the<br />

exchange with the claim that commodities are not interested in use values. In every actual exchange, both use value<br />

and exchange value have to be considered. But the concerns about the use vale are so much in contradiction with<br />

the concerns about the exchange value that it <strong>is</strong> as if the exchange dec<strong>is</strong>ion was not made by one poerson, but by<br />

a m<strong>is</strong>-matched team <strong>of</strong> two, the commodity owner who <strong>is</strong> only interested in use value, and the commodity who <strong>is</strong><br />

only interested in exchange value.<br />

<strong>What</strong> you wrote <strong>is</strong> more a reformulation <strong>of</strong> the <strong>Question</strong> than an answer, i.e., a step towards the answer but not<br />

the answer itself.<br />

Next Message by Snowman <strong>is</strong> [449].<br />

[370.1] Peaches: For an owner, h<strong>is</strong> commodity possesses no direct use-value. It has usevalue<br />

for others, but for himself, its only direct use-value <strong>is</strong> as a bearer <strong>of</strong> exchange-value or<br />

a means <strong>of</strong> exchange. The owner <strong>of</strong> a commodity <strong>is</strong> prepared to part with it only in return<br />

for other commodities whose use-value sat<strong>is</strong>fies h<strong>is</strong> own need. According to Marx, p. 113<br />

Annotations, “the commodities do not care about their use-value. Instead, they are eager to<br />

act out the relations which they have as commodities. They are produced privately, and if<br />

they do not find someone who needs them, the labor that went into them <strong>is</strong> wasted. Th<strong>is</strong><br />

makes them like hot coal in the hands <strong>of</strong> their producers. Since they are the products <strong>of</strong><br />

private labor which needs validation as social labor, their purpose in life <strong>is</strong> exchange. It <strong>is</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 175<br />

the labor inside them which gives them th<strong>is</strong> desire. Commodities are willing to exchange<br />

themselves against any other product <strong>of</strong> labor that crosses their way, which has a different<br />

use value than their own. Th<strong>is</strong> <strong>is</strong> all that <strong>is</strong> needed for them to express their values.”<br />

Hans: First <strong>of</strong> all, the passage on p. 113 Annotations <strong>is</strong> from me, not from Marx. It <strong>is</strong> relevant for the <strong>Question</strong> but<br />

I would have liked you to explain how Marx uses the literary device <strong>of</strong> attributing its own will to the commodity in<br />

order to describe th<strong>is</strong> situation.<br />

Next Message by Peaches <strong>is</strong> [385].<br />

[371.1] Kalle: A commodity <strong>is</strong> different from it’s owner in that it wants to express it’s<br />

value (exchange value), while the owner <strong>is</strong> interested in what a commodity can do for<br />

him/her (use value.) Commodities are produced for exchange and their m<strong>is</strong>sion in life <strong>is</strong><br />

to be exchanged on the market. It does not matter to the commodity what use value it <strong>is</strong><br />

exchanged for, but rather the relative or equivalent value it represents in an exchange situation.<br />

To Marx, the exchange <strong>of</strong> commodities <strong>is</strong> an act totally abstracted from use value if one<br />

takes the commodity’s point <strong>of</strong> view. When two commodities change hands on the market,<br />

the owners get the use value they wanted, but are not a concern to the commodities involved.<br />

Hans: I like it. You are spinning on your thoughts in the right direction. By the way, you made a few slight changes<br />

in your resubm<strong>is</strong>sion, but none <strong>of</strong> them was an improvement! These changes were something like a watering-down;<br />

your in-class text was more eloquent.<br />

Next Message by Kalle <strong>is</strong> [371.2].<br />

[383.13] Skyler: “The commodity considers every other commodity only as the form <strong>of</strong><br />

appearance <strong>of</strong> its own value.” Commodities are not interested in their different use-values.<br />

They are interested in expressing their value regardless <strong>of</strong> which use-value <strong>is</strong> used to represent<br />

its value. A commodity <strong>is</strong> separate from its owner in that its wants to express its value,<br />

and its owner wants to exchange the commodity through its use-value. Commodities are<br />

willing to exchange themselves against any other product <strong>of</strong> labor that crosses their way,<br />

which has a different use-value than their own.<br />

Th<strong>is</strong> <strong>is</strong> all that <strong>is</strong> necessary for them to express their value. The producer <strong>of</strong> the commodity,<br />

the physical attributes <strong>of</strong> the commodity are <strong>of</strong> no immediate concern except for the fact<br />

that they may serve to command other commodities with other use-value in exchange. The<br />

producer/owner <strong>of</strong> the commodity <strong>is</strong> interested in exchangability or exchange value on the<br />

market. The exchange process helps the consumer <strong>of</strong> the commodity to realize the use-value<br />

<strong>of</strong> the new commodity. The exchange-value <strong>is</strong> realized when its producer receives h<strong>is</strong>/her<br />

desired other use-values. Marx uses sexual analogy to explain th<strong>is</strong> concept between the desires<br />

<strong>of</strong> the owner and commodity. The process <strong>of</strong> pro-creation takes two species. although<br />

the goals or desires in the act may be different for the two species. The exchange relation <strong>of</strong><br />

commodities <strong>is</strong> evidently character<strong>is</strong>ed by a total abstraction from use-value.<br />

Hans: Sorry to say, I like your [272] less well now than when I first graded it, and [383-13] seems to have only<br />

cosmetic changes without any essential progress. Your argument does not hang together sufficiently, it <strong>is</strong> unclear<br />

what the sexual analogy <strong>is</strong> supposed to say, and I also see no attempt on your part to give a better explanation why<br />

Marx pretends commodities had their own mind, something I asked you about in my remarks to [272].<br />

Message [383-13] referenced by [383.13]. Next Message by Skyler <strong>is</strong> [395].<br />

[394.3] TOAD: They are not interested in each others use value because they cannot use<br />

each other. For example a shovel <strong>is</strong> not concerned with the use it will receive from a loaf<br />

<strong>of</strong> bread, neither <strong>is</strong> a loaf <strong>of</strong> bread concearned in the number <strong>of</strong> ditches that a shovel can<br />

dig. Therefore they are interested in the exchange value, the exchange value <strong>is</strong> what gives<br />

them value. Since they are privetly produced there exchange value <strong>is</strong> only validated if they<br />

176 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

are found on the market by someone that needs them, if they are not found the production<br />

that went into them <strong>is</strong> wasted. There sole purpose in life <strong>is</strong> exchange they need to exchange<br />

themselves with any other product <strong>of</strong> labor that has a different use value in order to express<br />

there value.<br />

Hans: They can’t use each other because they are just things. By the same argument one could say they are not<br />

interested in their exchange values either. The whole thing <strong>is</strong> metaphorical, and the answer to the <strong>Question</strong> depends<br />

on figuring out what it <strong>is</strong> a metaphor <strong>of</strong>.<br />

Next Message by TOAD <strong>is</strong> [394.4].<br />

[394.2] Caren: The exchange has two purposes that are to real<strong>is</strong>e commodities as usevalues<br />

and values. All commodities are non-use-values for their owners, and use-values for<br />

their non-owners. Consequently, they must all change hands. But th<strong>is</strong> change <strong>of</strong> hands <strong>is</strong><br />

what constitutes their exchange, and the latter puts them in relation with each other as values,<br />

and real<strong>is</strong>es them as values. Hence commodities must be real<strong>is</strong>ed as values before they can<br />

be real<strong>is</strong>ed as use-values. Every owner <strong>of</strong> a commodity w<strong>is</strong>hes to part with in exchange<br />

only for those commodities whose use-value sat<strong>is</strong>fies some want <strong>of</strong> h<strong>is</strong>. Exchange <strong>is</strong> for<br />

him simply a private transaction. On the other hand, he desires to real<strong>is</strong>e the value <strong>of</strong> h<strong>is</strong><br />

commodity, to convert it into any other suitable commodity <strong>of</strong> equal value, irrespective <strong>of</strong><br />

whether h<strong>is</strong> commodity has or has not any use-value for the owner <strong>of</strong> the other. From th<strong>is</strong><br />

point <strong>of</strong> view, exchange <strong>is</strong> for him a social transaction <strong>of</strong> a general character. But one and<br />

the same set <strong>of</strong> transactions cannot be simultaneously for all owners <strong>of</strong> commodities both<br />

exclusively private and exclusively social and general. Value <strong>is</strong> basically the property <strong>of</strong><br />

commodities requiring them to exchange. For example, the expression, “20 yards <strong>of</strong> linen<br />

worth 1 coat”, shows that the expression <strong>of</strong> the value <strong>of</strong> the commodity linen in terms <strong>of</strong><br />

coats means nothing but the request to exchange linen for coat. The use-value <strong>of</strong> a coat<br />

<strong>is</strong> chosen by the owner <strong>of</strong> linen as a desirable object in which to real<strong>is</strong>e the value <strong>of</strong> linen<br />

by exchange. The request to exchange linen for the coat by placing linen in the position<br />

<strong>of</strong> the relative form <strong>of</strong> value <strong>is</strong> not certain to be real<strong>is</strong>ed, since the owner <strong>of</strong> a coat which<br />

<strong>is</strong> passively chosen as the equivalent, may not want linen. The specificity <strong>of</strong> the use-value<br />

<strong>of</strong> linen restrict the real<strong>is</strong>ation <strong>of</strong> its value. So far as a coat <strong>is</strong> wanted as the equivalent <strong>of</strong><br />

linen, the owner <strong>of</strong> a coat can directly exchange h<strong>is</strong> commodity with linen if ever he w<strong>is</strong>hes.<br />

the direct exchangeability given to the equivalent form can thus be understood easily from<br />

the basic nature <strong>of</strong> the value expression as the request for exchange. The value <strong>of</strong> linen can<br />

be expressed in terms <strong>of</strong> various use-values <strong>of</strong> commodities. The nature <strong>of</strong> value <strong>is</strong> shown<br />

more d<strong>is</strong>tinctly from that <strong>of</strong> use-value. The quantity <strong>of</strong> value <strong>of</strong> linen, which <strong>is</strong> relatively<br />

expressed in the requested ratios <strong>of</strong> exchange with other commodities, must still be more or<br />

less subjectively and individual<strong>is</strong>tically stated by its owners. The commodities do not care<br />

about their use values. Commodities are willing to exchange themselves against any other<br />

product <strong>of</strong> labor that crosses their way, which has a different use value than their own. Th<strong>is</strong><br />

<strong>is</strong> all that <strong>is</strong> needed for them to express their values.<br />

Hans: There are some good things in your answer, but also many things that have nothing to do with the <strong>Question</strong>.<br />

I w<strong>is</strong>h you would focus yoru answers more.<br />

Next Message by Caren <strong>is</strong> [396].<br />

[396.2] Wolf: The purpose <strong>of</strong> a commodity <strong>is</strong> to be exchanged and thererfore they must<br />

be willing to do so. It may be the case that the other product <strong>of</strong> labor that they exchange<br />

themselves for has a different or the same use value but it makes no difference, use value <strong>of</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 177<br />

other products do not serve to make systematic commodity exchange possible. However one<br />

need not d<strong>is</strong>m<strong>is</strong>s use values all together because it does character<strong>is</strong>e commodity exchange<br />

(to some degree), but it <strong>is</strong> still not 100% responsible for the production and exchange <strong>of</strong><br />

commodities.<br />

Use values are like billboards on the capital<strong>is</strong>t market freeway that one just ignores while<br />

driving as fast as they can to be exchanged. After the exchange takes place, it then facilitates<br />

the d<strong>is</strong>covery <strong>of</strong> the use value <strong>of</strong> the commodity upon both <strong>of</strong> the acts <strong>of</strong> CONSUMPTION<br />

for the consumer and EXCHANGE for the producer ( when they exchange for other use<br />

values).<br />

Hans: Original thoughts, especially also in your in-class quiz, and some <strong>of</strong> them are quite good. Like th<strong>is</strong> one:<br />

Commoditiers are not interested in use values because<br />

use value <strong>of</strong> other products do not serve to make systematic commodity exchange possible.<br />

Next Message by Wolf <strong>is</strong> [398.2].<br />

[401.3] Pinky: Marx introduced chapter 1 <strong>of</strong> capital specifying that the commodity has 2<br />

different sides/aspects: use value and exchange value. Marx (in contribution) states that the<br />

commodity <strong>is</strong> the “immediate unity” <strong>of</strong> these two aspects. Though they are parts <strong>of</strong> the same<br />

thing, Marx notes how the two tend to oppose each other. For the producer/seller, these<br />

attributes are <strong>of</strong> no immediate concern except for the fact that they are parts <strong>of</strong> the same<br />

thing, Marx notes how the two tend to oppose each other. For the producer/seller, these<br />

attributes are <strong>of</strong> no immediate concern except for the fact that they may serve to command<br />

other commodities in their exchange. For the producer/seller, <strong>is</strong> what Marx calls a “formal<br />

use value” essentially; a non use-value to him/her. Exchange value <strong>is</strong> the seller’s focus. In<br />

the act <strong>of</strong> exchange, the contradiction between the two aspects asserts itself. With exchange,<br />

the use-value <strong>of</strong> the commodity becomes realized in the hands <strong>of</strong> the buyer, and exchangevalue<br />

becomes realized when seller (because <strong>of</strong> the exchange) obtains use values he desires.<br />

The exchange relation <strong>of</strong> commodities <strong>is</strong> evidently character<strong>is</strong>ed by a total abstraction from<br />

use-value. The exchange relation <strong>is</strong> the proportion in which commodities are exchangeable.<br />

Marx states that the “...commodity considers every other commodity only as the form <strong>of</strong><br />

appearance <strong>of</strong> its own value....it <strong>is</strong> always ready to exchange not only soul, but body, with<br />

each and every other commodity, even if it <strong>is</strong> more repulsive than Maritornes herself.” Commodities<br />

are only related with one another on the market as exchange values. That <strong>is</strong> all that<br />

matters.<br />

Hans: Good thoughts.<br />

Next Message by Pinky <strong>is</strong> [402.1].<br />

[402] Dunny: Commodities’ lack <strong>of</strong> interest If I produce some sort <strong>of</strong> commodity like<br />

linen and go to the market to exchange it for something else, my object <strong>is</strong> not in the use-value<br />

if my linen but instead I am most anxious to get the most <strong>of</strong> the exchange. The exchange<br />

value <strong>is</strong> the big determinant between the buyer and the seller.<br />

Marx said that commodities are produced privately and if no one needs or wants that<br />

commodity, then the labor and the work that went into producing that commodity was all<br />

in vain. You can imagine the pressure the producer feels when entering the market with the<br />

product <strong>of</strong> use-value that in a sense <strong>is</strong> useless if it <strong>is</strong> not wanted. At th<strong>is</strong> point it <strong>is</strong> easy to<br />

see the necessity <strong>of</strong> exchange brought on by th<strong>is</strong> uncertainty. After the commodity has been<br />

178 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

exchanged and the buyer holds th<strong>is</strong> commodity as h<strong>is</strong>/her own, it now takes on use-values<br />

for him/her.<br />

Next Message by Dunny <strong>is</strong> [405].<br />

[547.1] Gilligan: for Marx, the commodity first appears as the unity <strong>of</strong> exchange value<br />

and use use value. One <strong>of</strong> the main reasons why commodities aren’t interested in each<br />

others use values <strong>is</strong> because use values maybe perfectly good in their own terms, but there<br />

maybe nobody in society who needs that specific use value. I can create a widget that<br />

generates utility for me and therefore has use value, but if I take that widget and show other<br />

people and they think the widget <strong>is</strong> worthless, then it hasn’t been socially accepted and<br />

it won’t become a commodity because without he social acceptance I wouldn’t be able to<br />

put a value on the widget. As something <strong>is</strong> created there <strong>is</strong> always use value involved and<br />

therefore each item produced has use value, it <strong>is</strong> a universal character<strong>is</strong>tic. so for something<br />

to be so common it would be rather boring. Think about everyone in the world having<br />

one exact thing in common, you really wouldn’t think about that certain thing let alone be<br />

interested in it. When something has use value its a common bond among most everything,<br />

but what sets something apart from the rest <strong>is</strong> exchangeability. When we create something<br />

or have something that has exchange value then it creates an interest and the whole form<br />

<strong>of</strong> the commodity comes together. With exchange the use value <strong>of</strong> the commodity becomes<br />

realized in the hands <strong>of</strong> its recepient owner who consumes it; while the exchange value <strong>of</strong> the<br />

commodity becomes realized when its producer/seller obtains her desired other use values.<br />

Therefore use values don’t create the key factor that would have commodities interested in<br />

one another.<br />

Hans: it seems you were taken my critic<strong>is</strong>ms [269] to your original [258] into account.<br />

Next Message by Gilligan <strong>is</strong> [547.2].<br />

[584.2] Lamma: Commodities do not care about one anothers use values because it <strong>is</strong><br />

not the use value that drives them in the market. Before any form <strong>of</strong> exchange takes place,<br />

commodities are independant <strong>of</strong> one another. Thier use value at th<strong>is</strong> point <strong>is</strong> only important<br />

to the producer <strong>of</strong> them. Commodities are more concerned with thier value as an exchange<br />

item. It <strong>is</strong> the exchange that allows them to obtian thier value. So therefore, before the<br />

exchange the commodity has use value but it <strong>is</strong> not important to other commodities due to<br />

the fact that use value <strong>is</strong> pertinant to exhange.<br />

Hans: You are groping in the dark. Some <strong>of</strong> the sentences in your answer are clearly wrong, and others are<br />

questionable.<br />

Next Message by Lamma <strong>is</strong> [585].<br />

[617.7] Chuck: Chuck did not resubmit h<strong>is</strong> exam. He said the reason was that each<br />

commodity has a different use value according to who <strong>is</strong> using it. Good thinking.<br />

First Message by Chuck <strong>is</strong> [58].<br />

[617.8] Fox: Fox did not resubmit h<strong>is</strong> exam. The in-class exam was ok, but I would have<br />

liked him to use h<strong>is</strong> own words.<br />

First Message by Fox <strong>is</strong> [315.1].<br />

[617.9] Dunny: Dunny did not resubmit h<strong>is</strong> exam. The in-class exam was very good.<br />

Next Message by Dunny <strong>is</strong> [617.10].<br />

<strong>Question</strong> 188 <strong>is</strong> 177 in 1995WI, 155 in 1995ut, and 190 in 1996ut:<br />

<strong>Question</strong> 188 a) Why do commodity producers exchange their commodities?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 179<br />

b) <strong>What</strong> <strong>is</strong> their motivation to exchange their commodities?<br />

You should come up with two widely divergent aspects <strong>of</strong> the same process.<br />

[266] Bandit: Assignment 5 The reason commodity producers exchange their commodities<br />

<strong>is</strong> to sat<strong>is</strong>fy their needs in other areas which their own personal commodity cannot<br />

sat<strong>is</strong>fy. The motivation <strong>of</strong> the producer <strong>is</strong> the sat<strong>is</strong>faction the producer gets in seeing the use<br />

value that the commodity can be exchanged for.<br />

The difference between the two answers <strong>is</strong> that the first, the producer looks at the “material”<br />

exchange as a way to obtain h<strong>is</strong> “material” needs. The second answer <strong>is</strong> more an<br />

“egot<strong>is</strong>tical” fulfillment the producer receives from seeing the value h<strong>is</strong> commodity has.<br />

Message [266] referenced by [270]. Next Message by Bandit <strong>is</strong> [267].<br />

[270] Hans: Bandit’s answer Bandit’s [266] goes in the right direction. If I understand<br />

h<strong>is</strong> argument right, it <strong>is</strong> similar to the following: the reason why we eat <strong>is</strong> because we need<br />

the nutrients <strong>of</strong> the food. The motivation for our eating however <strong>is</strong> the taste <strong>of</strong> the food and<br />

our feelings <strong>of</strong> hunger.<br />

Regarding the exchange, I wanted you to find a reason which <strong>is</strong> more specifically social,<br />

while the motivation <strong>is</strong> on an individual level.<br />

Next Message by Hans <strong>is</strong> [281].<br />

[301] VanHalen: “For the owner, h<strong>is</strong> commodity possesses no direct use-value. Otherw<strong>is</strong>e,<br />

he would not bring it to the market....It has use-value for others.....He therfore makes<br />

up h<strong>is</strong> mind to sell it in return for commodities whose use-value <strong>is</strong> <strong>of</strong> service to him.” Commodity<br />

producers spend time producing things that have no use value to the producer. To<br />

stockpile many shovels wouldn’t do the producer any good, one shovel <strong>is</strong> enough unless it<br />

breaks and then he would need another shovel so he might keep two shovels. But after keeping<br />

the second shovel the 3,4,....shovels wouldn’t do the producer any good. But he knows<br />

that other people need shovels, so he produces them and exchanges them for things he may<br />

need.<br />

I like how Bandit put h<strong>is</strong> response when he said, the motivation <strong>of</strong> the producer <strong>is</strong> the<br />

sat<strong>is</strong>faction the producer gets in seeing the use value that the commodity can be exchanges<br />

for. I would agree.<br />

I would also add that the exchange process <strong>of</strong> finding a substitutable value for h<strong>is</strong> shovel<br />

makes th<strong>is</strong> producer part <strong>of</strong> the social process <strong>of</strong> exchange as there are many things on the<br />

market that th<strong>is</strong> man could exchange for h<strong>is</strong> shovel. Value for value. However, the motivation<br />

for the exchange, <strong>is</strong> the self<strong>is</strong>h, individual process <strong>of</strong> seeking what use value he can exchage<br />

h<strong>is</strong> non-use-value commodity for. One process <strong>is</strong> individual and the other social.<br />

Hans: You are pointing out, correctly, that the exchange process <strong>is</strong> a social process. People engage in it for purely<br />

individual<strong>is</strong>tic motivations, but it <strong>is</strong> a social process, and therefore it makes sense to look for the reason for th<strong>is</strong><br />

social process in the social sphere. But you have not identified such a reason.<br />

Message [301] referenced by [353]. Next Message by VanHalen <strong>is</strong> [344.1].<br />

[353] Franz: VanHalen, meet Mick Jagger VanHalen wrote in [301]:<br />

But after keeping the second shovel the 3,4,....shovels wouldn’t do the producer<br />

any good. But he knows that other people need shovels, so he produces<br />

them and exchanges them for things he may need.<br />

180 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I like how Bandit put h<strong>is</strong> response when he said, the motivation <strong>of</strong> the<br />

producer <strong>is</strong> the sat<strong>is</strong>faction the producer gets in seeing the use value that<br />

the commodity can be exchanges for. I would agree.<br />

Mrs. Marriot don’t work. . .she spends her day lounging in whirlpool and feeling the<br />

warm touch <strong>of</strong> her personal masseur. . . for exerc<strong>is</strong>e, she might drive her Rolls to Deer<br />

Valley for a private lesson from Stein Erickson. . .<br />

You are saying that she will clean the rooms in her hotel instead – because she takes<br />

pleasure in changing dirtied bedsheets?<br />

Its like Mick Jagger says:<br />

FIND SOME LOSER, FIND SOME JERK<br />

– TO DO THE DIRTY WORK<br />

Next Message by Franz <strong>is</strong> [354].<br />

<strong>Question</strong> 189 <strong>is</strong> 178 in 1995WI, 156 in 1995ut, 202 in 1997WI, 201 in 1997ut, 265 in<br />

2002fa, 278 in 2003fa, 337 in 2008SP, and 375 in 2012fa:<br />

<strong>Question</strong> 189 Which contradictions do commodity owners face if they want to barter their<br />

products (as opposed to buying and selling them)? Make up imaginary dialogs on the market<br />

place in which these contradictions are expressed.<br />

[262] MsMarx: Contradictions in bartering Marx says, “the owner <strong>of</strong> a commodity <strong>is</strong><br />

prepared to part with it only in return for other commodities whose use values sat<strong>is</strong>fy h<strong>is</strong> own<br />

need.” He also “desires to realize h<strong>is</strong> commodity as a value, i.e. in any other commodity <strong>of</strong><br />

the same value which suits him regardless <strong>of</strong> whether h<strong>is</strong> own commodity has any use value<br />

for the owner <strong>of</strong> the other commodity or not.” Exchange for him <strong>is</strong> a general social process.<br />

There <strong>is</strong> also the social-individual aspect <strong>of</strong> bartering. As soon as the trader has decided<br />

on the use value he wants in return, then it <strong>is</strong> a matter between him and the seller <strong>of</strong> that use<br />

value what the exchange proportions should be.<br />

In other words, it <strong>is</strong> hard for the producer to find someone who produces what he wants<br />

and wants what he produces (the double coincidence <strong>of</strong> wants):<br />

Merchant 1: I am looking for some sandals. Do you have any?<br />

Merchant 2: No, I do not have sandals. I just have flowers which I would like to sell or<br />

trade.<br />

Merchant 1: But I do not need flowers. I have a beautiful garden with all the flowers I<br />

might ever need. My feet are sore and tired, I need sandals.<br />

Merchant 3: I have sandals for you, but I need grain because I am very hungry and have<br />

gone without food for days. Do you have grain?<br />

Merchant 1: No, I am sorry, I only have linen to trade with.<br />

Merchant 3: But these sandals are valuable. I spent much time on them and I make the<br />

best sandals in th<strong>is</strong> land.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 181<br />

Merchant 1: I can’t take them just because they are valuable. I may as well just keep my<br />

linen because it <strong>is</strong> valuable too.<br />

(In modern terms, th<strong>is</strong> <strong>is</strong> similar to an optometr<strong>is</strong>t who might need a furnace and heating<br />

system. The furnace and heating man might not need $10,000 worth <strong>of</strong> glasses. He <strong>is</strong> the<br />

only one in h<strong>is</strong> family who wears glasses).<br />

A second contradiction in bartering <strong>is</strong> that one person might think that h<strong>is</strong> wares are worth<br />

more than the other person’s wares. The second person might be asking an outrageous price<br />

for h<strong>is</strong> goods. It <strong>is</strong> a matter between him and the seller <strong>of</strong> that use value <strong>of</strong> what the exchange<br />

proportions should be.<br />

Merchant 1: I have finally found a merchant who has sandals to trade in exchange for my<br />

linen. Sir I am willing to give you 3 yards <strong>of</strong> linen for that one pair <strong>of</strong> sandals.<br />

Merchant 3: I’m sorry, I cannot take 3 yards <strong>of</strong> linen for these sandals. I have worked for<br />

days and days to make these sandals. You will have to give me 50 yards <strong>of</strong> linen before I<br />

will trade th<strong>is</strong> pair <strong>of</strong> sandals with you.<br />

(In modern day terms, it <strong>is</strong> as if the optometr<strong>is</strong>t says, “I will give you th<strong>is</strong> one pair <strong>of</strong><br />

glasses, if you install an entire heating system in my home for me.” He faces the same<br />

dilemma <strong>of</strong> deciding on the use value and what the exchange proportions should be.)<br />

Message [262] referenced by [268], [274], and [288]. Next Message by MsMarx <strong>is</strong> [274].<br />

[268] Hans: MsMarx’s answer MsMarx opens her answer [262] with the right Marx<br />

quotes:<br />

Marx says, “the owner <strong>of</strong> a commodity <strong>is</strong> prepared to part with it only<br />

in return for other commodities whose use values sat<strong>is</strong>fy h<strong>is</strong> own need.”<br />

He also “desires to realize h<strong>is</strong> commodity as a value, i.e. in any other<br />

commodity <strong>of</strong> the same value which suits him regardless <strong>of</strong> whether h<strong>is</strong><br />

own commodity has any use value for the owner <strong>of</strong> the other commodity or<br />

not.” Exchange for him <strong>is</strong> a general social process.<br />

But then, MsMarx seems to say, there <strong>is</strong> also something else:<br />

There <strong>is</strong> also the social-individual aspect <strong>of</strong> bartering.<br />

Th<strong>is</strong> <strong>is</strong> not something else. <strong>What</strong> <strong>is</strong> called here the “social-individual aspect” (my not very<br />

fortunate formulation from the study guide) <strong>is</strong> the contradiction between the first and second<br />

function <strong>of</strong> the barter represented by the two Marx quotes. The first Marx quote means that<br />

bartering has a very private dimension, because it <strong>is</strong> up to the individuals to decide whether<br />

or not they want a given use value. The second Marx quote means that bartering also has<br />

a social dimension: in addition to finding the right use value, one also has to make sure<br />

that one does not “give away the farm” for it, but that one barters only for things which<br />

roughly have the same value. If one does not, one will run out <strong>of</strong> things to <strong>of</strong>fer to others<br />

before one has acquired what one needs to survive. Marx says that these two functions are<br />

so contradictory that they cannot be performed by the same act. Why not? Th<strong>is</strong> dilemma <strong>is</strong><br />

exemplified by MsMarx’s next sentence, which again comes from my Annotations (there <strong>is</strong><br />

182 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

nothing wrong with quoting my Annotations, MsMarx, I only want to make sure that they<br />

are understood correctly):<br />

As soon as the trader has decided on the use value he wants in return, then<br />

it <strong>is</strong> a matter between him and the seller <strong>of</strong> that use value what the exchange<br />

proportions should be.<br />

In other words, if the trader takes the individual function <strong>of</strong> the barter seriously and goes<br />

to that one out-<strong>of</strong>-the way store which has exactly the lamp that perfectly fits into h<strong>is</strong> living<br />

room, then he has no longer any bargaining power left. Then the exchange proportions are<br />

no longer socially determined, but it <strong>is</strong> a matter between him and th<strong>is</strong> one seller to determine<br />

what the exchange proportion should be. If the trader wanted to realize the full social value<br />

<strong>of</strong> h<strong>is</strong> product, he would have to <strong>of</strong>fer it to everybody (and not just to th<strong>is</strong> one lamp maker),<br />

in order to find out how “socially necessary” the labor was he put into h<strong>is</strong> product.<br />

Next MsMarx says that th<strong>is</strong> dilemma <strong>is</strong> nothing other than the double coincidence <strong>of</strong><br />

wants:<br />

In other words, it <strong>is</strong> hard for the producer to find someone who produces<br />

what he wants and wants what he produces (the double coincidence <strong>of</strong><br />

wants):<br />

It was my contention that the conundra pointed out by Marx go beyond that what <strong>is</strong><br />

generally understood by the phrase “double coincidence <strong>of</strong> wants.” Mainstream economics<br />

does not know what it means to “realize the value” <strong>of</strong> the commodity, because it does not<br />

have a concept <strong>of</strong> value separate from the commodity’s use value.<br />

Now let us look at MsMarx’s dialogue:<br />

Merchant 1: I am looking for some sandals. Do you have any?<br />

Merchant 2: No, I do not have sandals. I just have flowers which I would<br />

like to sell or trade.<br />

Merchant 1: But I do not need flowers. I have a beautiful garden with all<br />

the flowers I might ever need. My feet are sore and tired, I need sandals.<br />

Merchant 3: I have sandals for you, but I need grain because I am very<br />

hungry and have gone without food for days. Do you have grain?<br />

Merchant 1: No, I am sorry, I only have linen to trade with.<br />

So far it <strong>is</strong> ok. But now MsMarx confuses the roles <strong>of</strong> her actors:<br />

Merchant 3: But these sandals are valuable. I spent much time on them and<br />

I make the best sandals in th<strong>is</strong> land.<br />

Merchant 1: I can’t take them just because they are valuable. I may as well<br />

just keep my linen because it <strong>is</strong> valuable too.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 183<br />

Merchant 3 does not need to argue for the value <strong>of</strong> h<strong>is</strong> sandals, since Merchant 1 already<br />

said that he wanted sandals. MsMarx should have written instead:<br />

Merchant 1: But my linen <strong>is</strong> valuable. I spent much time on it and I make<br />

the best linen in th<strong>is</strong> land.<br />

Merchant 3: I can’t take the linen just because it <strong>is</strong> valuable. I may as well<br />

just keep my sandals because they are valuable too.<br />

Sorry, MsMarx, that I am so critical. I do not mean it personally. But I also d<strong>is</strong>agree with<br />

your assessment in the next sentence:<br />

In modern terms, th<strong>is</strong> <strong>is</strong> similar to an optometr<strong>is</strong>t who might need a furnace<br />

and heating system. The furnace and heating man might not need $10,000<br />

worth <strong>of</strong> glasses. He <strong>is</strong> the only one in h<strong>is</strong> family who wears glasses.<br />

Th<strong>is</strong> <strong>is</strong> an indiv<strong>is</strong>ibility <strong>is</strong>sue. Indiv<strong>is</strong>ibility <strong>is</strong> an <strong>is</strong>sue, but a different one than the one<br />

illustrated in your dialogue.<br />

The next <strong>is</strong>sue <strong>is</strong> only an <strong>is</strong>sue if one tries to combine the social and individual aspects in<br />

one act:<br />

A second contradiction in bartering <strong>is</strong> that one person might think that h<strong>is</strong><br />

wares are worth more than the other person’s wares. The second person<br />

might be asking an outrageous price for h<strong>is</strong> goods. It <strong>is</strong> a matter between<br />

him and the seller <strong>of</strong> that use value <strong>of</strong> what the exchange proportions should<br />

be.<br />

Merchant 1: I have finally found a merchant who has sandals to trade in<br />

exchange for my linen. Sir I am willing to give you 3 yards <strong>of</strong> linen for that<br />

one pair <strong>of</strong> sandals.<br />

Merchant 3: I’m sorry, I cannot take 3 yards <strong>of</strong> linen for these sandals. I<br />

have worked for days and days to make these sandals. You will have to give<br />

me 50 yards <strong>of</strong> linen before I will trade th<strong>is</strong> pair <strong>of</strong> sandals with you.<br />

If Merchant 1 could <strong>of</strong>fer h<strong>is</strong> linen to the highest bidder, he may end up with f<strong>is</strong>h instead<br />

<strong>of</strong> a living room lamp, but he will have a good chance to realize the full value <strong>of</strong> h<strong>is</strong> linen.<br />

Someone to whom the linen <strong>is</strong> not worth much will be outbid by those who have a more<br />

urgent need for the linen.<br />

Message [268] referenced by [288] and [2008SP:422]. Next Message by Hans <strong>is</strong> [269].<br />

[274] MsMarx: Bartering contradictions today The private and social bartering contradictions<br />

in [262] which Marx presents and other contradictions, are somewhat taken care <strong>of</strong><br />

in today’s modern bartering systems. It still has a private dimension because the individuals<br />

themselves decide if they want a given use value. Perhaps people don’t separate value and<br />

use value <strong>of</strong> a commodity. However, today people are <strong>is</strong>sued trade credits for their goods<br />

which allow them to exchange their goods or services for something they need, when they<br />

need it, and from a variety <strong>of</strong> different sources. Th<strong>is</strong> eliminates the indiv<strong>is</strong>iblity <strong>is</strong>sue. Trade<br />

group brokers market a wide range <strong>of</strong> products, so that if you are trading dental services,<br />

184 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

you would receive trade credits which would enable you to receive printing services, airline<br />

travel, garbage pickup, or a vast array <strong>of</strong> possibilites. But more than likely, there would be<br />

a good or service available which would suit your needs. Most traders receive a fair market<br />

price for their goods and services and pay in exchange a full retail price for the goods or<br />

services they receive. The trade broker won’t accept someone’s goods in trade if the prices<br />

are inflated.<br />

Next Message by MsMarx <strong>is</strong> [330].<br />

[288] Chocolate: Re: Bartering. In our society today their can be many different contradictions<br />

that commodity owners face if they want to barter their products. These contradictions<br />

ar<strong>is</strong>e and vary depending on the product that they want to barter. For example, suppose<br />

your neighbor has created a new gadget that can paint your entire house in less than an hour,<br />

as opposed to the usual two and half hours it usually takes for you to do it before. But h<strong>is</strong>/her<br />

service fee <strong>of</strong> painting your house <strong>is</strong> either five-hundred dollars or you can mow h<strong>is</strong> entire<br />

yard, which would take at least seven-hours. Obviously you would end up paying a large<br />

fee to have your house painted by your neighbor’s new gadget or end up working more than<br />

twice as long (mowing the lawn) to equall the exchange values or not go along with the<br />

barter at all. Unless the neighbor can lower h<strong>is</strong> service fee and/or h<strong>is</strong> labor fee (mowing the<br />

lawn), not everyone will be willing to barter with him/her. Th<strong>is</strong> <strong>is</strong> a simple contradiction<br />

that the neighbor faces when trying to barter h<strong>is</strong> product. Because he/she has put time and<br />

money in creating a product that would not bring him/her much returns and/or interest from<br />

other’s.<br />

Hans: After MsMarx’s [262] and my [268] you cannot expect a grood grade for th<strong>is</strong>.<br />

Next Message by Chocolate <strong>is</strong> [368.1].<br />

<strong>Question</strong> 190 <strong>is</strong> 179 in 1995WI, 157 in 1995ut, 203 in 1997WI, 210 in 1997sp, and 211 in<br />

1998WI:<br />

<strong>Question</strong> 190 How does that what Marx says conform with or contradict the common saying<br />

that money <strong>is</strong> an instrument to overcome the requirement <strong>of</strong> the “double coincidence <strong>of</strong><br />

wants.”<br />

[304] KALISPEL: money as a double coincidence <strong>of</strong> wants In Marx, money <strong>is</strong> a general<br />

equivalent <strong>of</strong> value, a form in which the value <strong>of</strong> commodities appears as pure exchange<br />

value. The money form <strong>of</strong> value <strong>is</strong> inherent in the commodity form <strong>of</strong> production organized<br />

by exchange. In Exchange a definite quantity <strong>of</strong> one commodity <strong>is</strong> equated to a different<br />

commodity. For example, 1 coat=20yards <strong>of</strong> linen. Any commodity can serve as the equivalent.<br />

Money <strong>is</strong> a general social equivalent. Commodities emerge in social reality to play the<br />

role <strong>of</strong> general equivalent, and excludes all other commodities. Any produced commodity,<br />

in principle, could serve as money. The money form <strong>is</strong> latent in and ar<strong>is</strong>es directly from<br />

the commodity form <strong>of</strong> production. Wherever the commodity form <strong>of</strong> production appears<br />

money as a form <strong>of</strong> value will tend to develop as well. The most fundamental property <strong>of</strong><br />

money in Marx’s theory <strong>is</strong> its function as the measure <strong>of</strong> value <strong>of</strong> commodities. In th<strong>is</strong> role,<br />

the general equivalent need not be physically present, since it <strong>is</strong> possible to express the price<br />

<strong>of</strong> a commodity in money without actually exchanging money. Once a commodity emerges


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 185<br />

as a socially accepted general equivalent, quantities <strong>of</strong> the money come to be used as price.<br />

The government <strong>of</strong>ten plays a role in regulating and manipulating prices.<br />

Since the commodity <strong>is</strong> a produced commodity its value <strong>is</strong> determined by the same laws<br />

that determine the value <strong>of</strong> other commodities. If we abstract from all those factors that may<br />

make commodities exchange at ratios different from the ratios <strong>of</strong> abstract labor contained in<br />

them, an amount <strong>of</strong> the money commodity containing one hour <strong>of</strong> abstract labor will buy a<br />

quanitity <strong>of</strong> any other commodity that also embodies one hour <strong>of</strong> abstract labor. The value<br />

<strong>of</strong> the money commodity changes continually as production changes. Thus, although, prices<br />

can be regulated, the value <strong>of</strong> money cannot be regulated. Th<strong>is</strong> <strong>is</strong> the third conundrum<br />

in the annotations. Even if there <strong>is</strong> a double coincidence <strong>of</strong> wants, and the two comodity<br />

traders agree on an exchange, they cannot know whether they arrived at the “right” exchange<br />

proportions.<br />

For example, I want to buy a pig and someone else needs shoes that I make. We both<br />

want what the other person has so we barter. We decide that 1 pig=20 shoes. The problem <strong>is</strong><br />

that th<strong>is</strong> relation <strong>is</strong> not possible in society. We must not trade in shoes or pigs to get the right<br />

abstract labor, but in the third form, the socially accepted form, money. Marx implies that<br />

the commodities do not have a social form <strong>of</strong> value. By giving commodities a social form<br />

<strong>is</strong> a framework to manipulate outcomes to meet society’s needs. Therefore, commodities do<br />

not confront each other, as commodities, but as products or use values only.<br />

Marx, makes an important point R143:3/0. If the theoretical mind comes to an unresolvable<br />

contradiction, practical man can keep on going: by creating the social forms which<br />

resolve these dilemmas. However, here I d<strong>is</strong>agree with Marx. Th<strong>is</strong> concept would mean that<br />

capital<strong>is</strong>m will work out fine because we have instituted ways to resolve dilemmas through<br />

social programs such as welfare and unemployment compensation. Capital<strong>is</strong>m has many<br />

unresolvable contradictions and so does Marx<strong>is</strong>m. How can Marx<strong>is</strong>m support th<strong>is</strong> logic in<br />

light <strong>of</strong> h<strong>is</strong> own problems? Maybe someone else in the class can answer th<strong>is</strong>?<br />

The circulation <strong>of</strong> money permits and requires the formation <strong>of</strong> hoards, stocks <strong>of</strong> money<br />

held either to facilitate circulation <strong>of</strong> commodities, or to accumulate the crystallized abstract<br />

labour <strong>of</strong> the society as an end in itself. Money <strong>is</strong> the end result in capital<strong>is</strong>m. Th<strong>is</strong> <strong>is</strong> wrong<br />

because, I believe that th<strong>is</strong> <strong>is</strong> not a good end to achieve. Money should be a means to an end.<br />

Money should be a means to produce happiness and well being for everyone in the society.<br />

Money should not be an end in itself. Th<strong>is</strong> “end” <strong>is</strong> a major flaw in the capital<strong>is</strong>t system. If<br />

we shoot for the wrong goal we are sure to m<strong>is</strong>s the target.<br />

In response to the question. Marx agrees that money <strong>is</strong> an instrument for the “double<br />

coincidence <strong>of</strong> wants”.<br />

Message [304] referenced by [307] and [2008SP:422]. Next Message by KALISPEL <strong>is</strong> [321].<br />

[307] Hans: Can the contradictions <strong>of</strong> capital<strong>is</strong>m be resolved? As always, KALISPEL’s<br />

answer [304] <strong>is</strong> very deep. Here are a few scattered remarks, trying to put the many thoughts<br />

contained in [304] a little more into perspective.<br />

In th<strong>is</strong> class, we have not d<strong>is</strong>cussed the function <strong>of</strong> money as measure <strong>of</strong> value (although<br />

I mentioned it somewhere in my responses). But the following passage from KALISPEL’s<br />

answer <strong>is</strong> a good description what it means to be a measure <strong>of</strong> value:<br />

186 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Even if there <strong>is</strong> a double coincidence <strong>of</strong> wants, and the two comodity traders<br />

agree on an exchange, they cannot know whether they arrived at the “right”<br />

exchange proportions. For example, I want to buy a pig and someone else<br />

needs shoes that I make. We both want what the other person has so we<br />

barter. We decide that 1 pig=20 shoes. The problem <strong>is</strong> that th<strong>is</strong> relation <strong>is</strong><br />

not possible in society. We must not trade in shoes or pigs to get the right<br />

abstract labor, but in the third form, the socially accepted form, money.<br />

Marx implies that the commodities do not have a social form <strong>of</strong> value.<br />

But they can get a social form <strong>of</strong> value if confronted with money. Th<strong>is</strong> <strong>is</strong> the most basic<br />

function <strong>of</strong> money, money as a measure <strong>of</strong> value.<br />

Next, KALISPEL makes an interesting connection:<br />

Marx, makes an important point R143:3/0. If the theoretical mind comes to<br />

an unresolvable contradiction, practical man can keep on going: by creating<br />

the social forms which resolve these dilemmas. However, here I d<strong>is</strong>agree<br />

with Marx. Th<strong>is</strong> concept would mean that capital<strong>is</strong>m will work out fine because<br />

we have instituted ways to resolve dilemmas through social programs<br />

such as welfare and unemployment compensation.<br />

You are drawing a very good parallel here. The answer to your objection lies in the<br />

meaning <strong>of</strong> the word “resolve”. On 198:2, Marx stresses that, in general, real contradictions<br />

cannot be resolved by abol<strong>is</strong>hing them, but merely by providing a form in which they can<br />

move. And in a famous passage on p. 208:2/o Marx shows that even with the development<br />

<strong>of</strong> money, the contradictions <strong>of</strong> the barter are still there, but they take a different form now.<br />

I hope that th<strong>is</strong> will give you more confidence that Marx<strong>is</strong>m <strong>is</strong> indeed a powerful enough<br />

theory to guide us in our quest for a better society.<br />

In the following passage you are trying to make the transition from simple commodity<br />

circulation to capital<strong>is</strong>m by saying: circulation <strong>of</strong> commodities leads to hoards, and hoards<br />

lead to capital<strong>is</strong>m.<br />

The circulation <strong>of</strong> money permits and requires the formation <strong>of</strong> hoards,<br />

stocks <strong>of</strong> money held either to facilitate circulation <strong>of</strong> commodities, or to<br />

accumulate the crystallized abstract labour <strong>of</strong> the society as an end in itself.<br />

Money <strong>is</strong> the end result in capital<strong>is</strong>m.<br />

Marx’s transition at the beginning <strong>of</strong> Chapter Four <strong>is</strong> a little different. He says: Circulation<br />

leads to the breakup <strong>of</strong> direct barter into the two acts C-M-C, but the elements C-M and<br />

M-C can also be put together in the “wrong” order M-C-M, and th<strong>is</strong> <strong>is</strong> capital<strong>is</strong>m.<br />

Finally, coming back to <strong>Question</strong> 190, KALISPEL writes:<br />

In response to the question. Marx agrees that money <strong>is</strong> an instrument for<br />

the “double coincidence <strong>of</strong> wants”.<br />

Th<strong>is</strong> <strong>is</strong> wrong, but perhpas it <strong>is</strong> merely a semantic question about what it means to be an<br />

instrument. At the beginning <strong>of</strong> h<strong>is</strong> answer, KALISPEL had shown very clearly a different


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 187<br />

interpretation: that money <strong>is</strong> the development <strong>of</strong> something that <strong>is</strong> already inherent in the<br />

commodity. Th<strong>is</strong> <strong>is</strong> different from being an instrument, by which Marx means some external<br />

“trick”.<br />

Next Message by Hans <strong>is</strong> [311].<br />

<strong>Question</strong> 191 <strong>is</strong> 180 in 1995WI, 204 in 1997WI, 211 in 1997sp, 203 in 1997ut, 221 in<br />

1999SP, 231 in 2000fa, 279 in 2003fa, 313 in 2004fa, 328 in 2007SP, 338 in 2008SP, 352<br />

in 2009fa, 381 in 2010fa, 363 in 2011fa, 377 in 2012fa, and 191 in Answer:<br />

<strong>Question</strong> 191 Which “deed” <strong>is</strong> Marx referring to here?<br />

[278] Pinky: The deed Marx <strong>is</strong> referring here to the “social deed” applied to remedy<br />

the contradictions <strong>of</strong> commodity exchange. A system <strong>of</strong> exchange <strong>of</strong> expanded forms <strong>of</strong><br />

value having equivalent forms that are mutually exclusive <strong>is</strong> not feasible. The value <strong>of</strong> the<br />

commodities that would have to be exchanged will almost always be subjective. Therefore,<br />

a universal equivalent to enable exchange <strong>is</strong> needed. Th<strong>is</strong> social equivalent <strong>is</strong> money. Money<br />

implies a social form <strong>of</strong> value upon the commodities it purchases.<br />

Hans: Very good.<br />

Message [278] referenced by [317]. Next Message by Pinky <strong>is</strong> [362].<br />

[317] Panacea: <strong>Exam</strong>ining ‘Logos’ Pinky already shed quite a bit <strong>of</strong> light on th<strong>is</strong> <strong>is</strong>sue<br />

with h<strong>is</strong>/her posting [278], but I thought about the question in an entirely different way, being<br />

a literature major rather than an economics major. I want to focus a bit on the ‘subjectivity’<br />

<strong>is</strong>sue Pinky mentions:<br />

A system <strong>of</strong> exchange <strong>of</strong> expanded forms <strong>of</strong> value having equivalent forms<br />

that are mutually exclusive <strong>is</strong> not feasible. The value <strong>of</strong> the commodities<br />

that would have to be exchanged will almost always be subjective.<br />

Goethe’s Faust <strong>is</strong> such an epic piece <strong>of</strong> literature, I think we can only do Marx’s quote justice<br />

if we look at Goethe’s text. In the scene, a convuluted mirroring <strong>of</strong> Faust’s contemperary<br />

Martin Luther <strong>is</strong> attempted - Faust <strong>is</strong> seeking inspiration and knowledge by translating the<br />

Gospel <strong>of</strong> John from Greek into German. The steps lend themself very well to Marx’s three<br />

conundrums (I take th<strong>is</strong> from the version translated by Walter Arndt):<br />

“In the beginning there was the Word”(1) - thus runs the text. Who helps me on? Already<br />

I’m perplexed! I cannot grant the word such soveriegn merit, I must translate it in a different<br />

way If I’m indeed illuminated by the Spirit. “In the beginning was the Sense.”(2) But stay!<br />

Reflect on th<strong>is</strong> first sentence well and truly Lest the pen be hurrying unduly! Is sense in fact<br />

all action’s spur and source? It should read: “In the beginning there was the Force!”(3) Yet<br />

as I write it down, some warning sense Alerts me that it, too, will give <strong>of</strong>fense. The Spirit<br />

speaks! And lo, the way <strong>is</strong> freed, I calmly write: “In the beginning there was the Deed.”(4)<br />

We have here four different (and all correct I might add) translations <strong>of</strong> the Greek “logos”<br />

- Word/Wort, Sense?Sinn, Force/Kraft, Deed/Tat. Faust translation <strong>of</strong> “deed” represents<br />

h<strong>is</strong> search in the drama: he has studied and studied all there <strong>is</strong> to study, yet finds himself<br />

impotent intellectually because <strong>of</strong> h<strong>is</strong> lack <strong>of</strong> experience - h<strong>is</strong> lack <strong>of</strong> action, <strong>of</strong> Deeds.<br />

Goethe’s source may very well have been h<strong>is</strong> contempary philosopher named Fichte, who<br />

in h<strong>is</strong> “W<strong>is</strong>sensschaftslehre” wrote, and forgive my translation: “experience, consciousness,<br />

188 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

even LIFE ITSELF begins only when the ‘self’ portrays itself through action.” Maybe th<strong>is</strong><br />

seems very abstract in reference to Marx - but then, why does he make th<strong>is</strong> particular quote<br />

while dealing with h<strong>is</strong> three conundrums?<br />

In Goethe’s quote above, (1) could represent the beginning, the very simple starting point<br />

from which to analyze owner/commodity relations. (It <strong>is</strong> also Fausts way <strong>of</strong> saying Luther<br />

<strong>is</strong> simple and naive, since th<strong>is</strong> <strong>is</strong> how Luther translates the verse) “The Word” <strong>is</strong> not enough,<br />

and in th<strong>is</strong> case decieving for Marx as well as us. Th<strong>is</strong> moves us to (2), which could be<br />

construed as Marx’s first conundrum, having to do with the owner’s intentions to accrue<br />

‘use value’ - for Goethe: Sense or Feeling? - which would be directly opposed to (3), the<br />

second conundra, the exchange value - for Goethe: Force or Strength. These two conundrum<br />

conflict - I like Hans’s analogy <strong>of</strong> the refrigerators and the flowers. The implication <strong>of</strong> th<strong>is</strong><br />

conflict reflects the subjectivity, the individuality <strong>of</strong> the forces at play - neither the use-value<br />

nor the exchange value have inherent and absolute ‘social forms’. <strong>What</strong> <strong>is</strong> worth a hundred<br />

roses to one may be worth only ninety-five to another - or absolutely useless to a third.<br />

Goethe’s (4) - the transformation/ substitution <strong>of</strong> ‘word’ with ‘deed’ <strong>is</strong> reflective <strong>of</strong><br />

Marx’s third conundrum, and obviously why he used the quote at th<strong>is</strong> point in the text rather<br />

than earlier or not at all. Marx has come to a similar conclusion as Faust: “In their difficulties<br />

our commodity owners think like Faust: ‘In the beginning was the deed.’ They have<br />

therefore already acted before thinking.” (Marx) Commodity owners have the third conuncrum<br />

as a illusionary (in my opinion) solution: they give social forms or structures to their<br />

exchanges in order to somehow regulate them. The first two only create confusion, so they<br />

apply a third, simpler idea: “they do not confront each other as commodoties, but as products<br />

or use-values only.” (Marx) They create the illusion that their values have social objectivity,<br />

rather than simply individual subjectivity. Scary.<br />

The whole point, to me, seems to simply be Marx’s observation - they act before thinking.<br />

They are wrong in doing th<strong>is</strong>, just as Faust was wrong in h<strong>is</strong> translation, but continue th<strong>is</strong><br />

strange phenomenon.<br />

I’m interested in a response from fellow students as well as Hans.<br />

Panacea “...no one seems to know ’bout the death-w<strong>is</strong>h that they’ve signed...” Beautiful<br />

South<br />

Hans: Being an Engl<strong>is</strong>h major does not excuse you from understanding Marx’s argument, and your contribution<br />

shows that you still have some m<strong>is</strong>understandings! Try to read! Isn’t that what Engl<strong>is</strong>h majors are supposed to be<br />

able to do?<br />

Message [317] referenced by [Answer:15], [328], and [2011fa:383]. Next Message by Panacea <strong>is</strong> [333].<br />

[328] Hans: Goethe, Marx, Bhaskar Thank you, Panacea, for your very stimulating<br />

contribution [317]. Here <strong>is</strong> my attempt at interpreting Faust’s monologue, right now without<br />

recourse to chapter Two in Marx. D<strong>is</strong>claimer: I have not studied that stuff, I do not know<br />

the many interpretations <strong>of</strong> Goethe’s Faust, therefore I do not really know what I am talking<br />

about. Which does not dimin<strong>is</strong>h my pleasure in saying it. Here I go:<br />

“In the beginning there was the Word” - thus runs the text. Who helps me<br />

on? Already I’m perplexed! I cannot grant the word such sovereign merit,<br />

I must translate it in a different way If I’m indeed illuminated by the Spirit.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 189<br />

Faust <strong>is</strong> on the search for the first principles, for “was die Welt im innersten zusammenhaelt”<br />

(can you supply an appropriately poetic Engl<strong>is</strong>h translation <strong>of</strong> th<strong>is</strong> line, Panacea?).<br />

He rejects the “word”. Why? An alternative and perhaps clearer translation <strong>of</strong> the third line<br />

above would be: “I cannot possibly hold the word in such high esteem” (Ich kann das Wort<br />

so hoch unmoeglich schaetzen). The word cannot possibly have such an important task as<br />

to be what holds the world together. Therefore he goes on with h<strong>is</strong> search:<br />

“In the beginning was the Sense.” But stay! Reflect on th<strong>is</strong> first sentence<br />

well and truly Lest the pen be hurrying unduly! Is sense in fact all action’s<br />

spur and source?<br />

Everything hinges here on the translation <strong>of</strong> “sense”, in German “Sinn”. It does clearly<br />

not mean “perception” or “feeling,” here you went down the wrong path, Panacea. “Sinn”<br />

and “Gefuehl” are not synonymous at all! I think it should be translated with something like<br />

“meaning”, “notion”, “idea”, “logic”, “thought”. I will use “idea” in what follows. Faust<br />

wants to find something that <strong>is</strong> deeper than the word, and therefore he goes over to that<br />

which the word signifies, and that <strong>is</strong> the idea. Words are expressions <strong>of</strong> ideas. Th<strong>is</strong> <strong>is</strong> why<br />

so many philosophies (like the Hegelian, and BTW Hegel called Goethe a “good authority”)<br />

end up thinking the world <strong>is</strong> populated by ideas. Marx sees where the error lies in th<strong>is</strong>. In<br />

h<strong>is</strong> Introduction to Grundr<strong>is</strong>se, mecw28, p. 38, Marx writes:<br />

The whole, as it appears in the head as a whole based on thoughts, <strong>is</strong> a product<br />

<strong>of</strong> the thinking head, which appropriates the world in the only way open<br />

to it, and which differs from the art<strong>is</strong>tic, religious, or practical-intellectual<br />

appropriation <strong>of</strong> th<strong>is</strong> world.<br />

Since my translation differs a lot from the prettified but unintelligible text in mecw, I am<br />

supplying here also the German:<br />

Das Ganze, wie es im Kopfe als Gedankenganzes erscheint, <strong>is</strong>t ein Produkt<br />

des denkenden Kopfes, der sich die Welt in der ihm einzig moeglichen<br />

We<strong>is</strong>e aneignet, einer We<strong>is</strong>e, die verschieden <strong>is</strong>t von der kuenstler<strong>is</strong>chen,<br />

religioesen, prakt<strong>is</strong>ch-ge<strong>is</strong>tigen Aneignung dieser Welt.<br />

In other words, we think the world <strong>is</strong> populated with ideas because our head can conceive<br />

<strong>of</strong> the world only in terms <strong>of</strong> ideas. Th<strong>is</strong> <strong>is</strong> not quite as deep as Bhaskar, who continues<br />

to ask: if logical thinking allows us to make conclusions about the world, then th<strong>is</strong> tells<br />

us something about the world. But Marx does notice here something which Bhaskar calls<br />

the “ep<strong>is</strong>temic fallacy”: we should not confuse the world with what we are thinking about<br />

the world. Clearly th<strong>is</strong> <strong>is</strong> the motivation for Faust’s next step, the transition from logical<br />

necessity to natural necessity:<br />

It should read: “In the beginning there was the Force!”<br />

Force <strong>is</strong> what Bhaskar would call the “generative mechan<strong>is</strong>ms.” Yet Faust <strong>is</strong> still not<br />

sat<strong>is</strong>fied:<br />

190 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Yet as I write it down, some warning sense Alerts me that it, too, will give<br />

<strong>of</strong>fense.<br />

Why will it give <strong>of</strong>fense? Because it <strong>is</strong> reification. A force must always be the force <strong>of</strong><br />

something, it cannot float in thin air. Bhaskar says, generative mechan<strong>is</strong>ms are always the<br />

ways <strong>of</strong> things to act, see RTS2, pp. 49/50, and he has an interesting argument to support it:<br />

because forces are not always active. Also Faust arrives at the action (which presupposes an<br />

actor, although Faust does not say th<strong>is</strong> here):<br />

The Spirit speaks! And lo, the way <strong>is</strong> freed, I calmly write: “In the beginning<br />

there was the Deed.”<br />

By the way, Faust’s trek out <strong>of</strong> h<strong>is</strong> study room into the world <strong>of</strong> deeds reminds me <strong>of</strong><br />

Bhaskar’s extension <strong>of</strong> philosophy from its traditional realms into new areas, in h<strong>is</strong> “Dialectic”.<br />

No wonder the philosophers whom he left behind are p<strong>is</strong>sed <strong>of</strong>f.<br />

Now what <strong>is</strong> the connection <strong>of</strong> all th<strong>is</strong> with the three conundra <strong>of</strong> the exchange process in<br />

Chapter Two <strong>of</strong> Capital? In their aftermath, Marx writes:<br />

In their dilemma our commodity-owners think like Faust: ‘In the beginning<br />

was the deed.’ They have therefore already acted before thinking.<br />

Our mental appropriation <strong>of</strong> the exchange process has led us into irreconcilable contradictions.<br />

But now we should remind ourselves <strong>of</strong> the differences between the brain and the<br />

real social forces: the brain can only think, but the real social forces can act, they can create<br />

new conditions. And the condition which they created <strong>is</strong>: they have selected one commodity<br />

as the general equivalent. Th<strong>is</strong> allows the exchange process to go on without being thwarted<br />

by its contradictions.<br />

Message [328] referenced by [Answer:15]. Next Message by Hans <strong>is</strong> [346].<br />

[342] Panacea: Goethe and Marx Hans, you criticize yourself needlessly - your knowledge<br />

<strong>of</strong> secondary literature dwarfs mine, putting me necessarily on the defensive - yet I<br />

differ with you on a few points and w<strong>is</strong>h to clarify a few others. Much <strong>of</strong> th<strong>is</strong> may seem<br />

trivial to other members <strong>of</strong> the class, but let me continue:<br />

“In the beginning there was the Word” - thus runs the text. Who helps me<br />

on? Already I’m perplexed! I cannot grant the word such sovereign merit,<br />

I must translate it in a different way If I’m indeed illuminated by the Spirit.<br />

Faust <strong>is</strong> on the search for the first principles, for “was die Welt im innersten<br />

zusammenhaelt” (can you supply an appropriately poetic Engl<strong>is</strong>h translation<br />

<strong>of</strong> th<strong>is</strong> line, Panacea?).<br />

I’m glad you pulled th<strong>is</strong> out, Hans. It <strong>is</strong> a very interesting line, and <strong>of</strong>fers another clue as<br />

to why Marx saw relevance. The Norton translation by Walter Arndt <strong>is</strong> rather clumsy: “...the<br />

inmost force / that bonds the very universe,...” I would translate it more as “...that inner force<br />

which holds the world together...”, which <strong>is</strong> perhaps less poetic yet more exact - but then I<br />

am no pr<strong>of</strong>essional.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 191<br />

Is th<strong>is</strong> not that after which Marx himself seeks - the inner force which holds Capital<strong>is</strong>m<br />

together? Marx <strong>is</strong>, in th<strong>is</strong> light, a Faustian figure - even more so when we recognize (now<br />

th<strong>is</strong> <strong>is</strong> blatantly my opinion) the relation with the ‘salvation through sin’ topos <strong>of</strong> Goethean<br />

tragedy - we can find social salvation through wading through capital<strong>is</strong>t moral sin (fairly<br />

blatant, eh?). But th<strong>is</strong> <strong>is</strong> all tertiary, unimportant.<br />

Everything hinges here on the translation <strong>of</strong> “sense”, in German “Sinn”. It<br />

does clearly not mean “perception” or “feeling,” here you went down the<br />

wrong path, Panacea. “Sinn” and “Gefuehl” are not synonymous at all!<br />

OK, Hans - th<strong>is</strong> <strong>is</strong> where I win. For years critics have found a base similarity in some<br />

usage between the two, ‘Sinn’ and ‘Feeling’, most especially in th<strong>is</strong> passage. Cyrus Hamlin<br />

draws an analogue to th<strong>is</strong> from line 3465 - in Engl<strong>is</strong>h for our non-german speakers, “Feeling<br />

<strong>is</strong> all!” Whereas the contemporary religions accept Luthers ‘Am Anfang war das Wort’,<br />

Faust cannot accept names for God, nor can language attempt to explain God - th<strong>is</strong> ‘feeling’<br />

<strong>is</strong> then used in an almost identical form - and leads necessarily to ‘Kraft’ or power in the<br />

next lines. And Hans, what after all <strong>is</strong> “Gefuehl” wenn nicht ein “Sinn”?<br />

I think it should be translated with something like “meaning”, “notion”,<br />

“idea”, “logic”, “thought”. I will use “idea” in what follows. Faust wants<br />

to find something that <strong>is</strong> deeper than the word, and therefore he goes over<br />

to that which the word signifies, and that <strong>is</strong> the idea. Words are expressions<br />

<strong>of</strong> ideas. Th<strong>is</strong> <strong>is</strong> why so many philosophies (like the Hegelian, and<br />

BTW Hegel called Goethe a “good authority”) end up thinking the world <strong>is</strong><br />

populated by ideas.<br />

Again, I think we are simply saying the same thing, only not understanding each other.<br />

Why will it give <strong>of</strong>fense? Because it <strong>is</strong> reification. A force must always be<br />

the force <strong>of</strong> something, it cannot float in thin air. Bhaskar says, generative<br />

mechan<strong>is</strong>ms are always the ways <strong>of</strong> things to act, see RTS2, pp. 49/50,<br />

and he has an interesting argument to support it: because forces are not<br />

always active. Also Faust arrives at the action (which presupposes an actor,<br />

although Faust does not say th<strong>is</strong> here):<br />

The Spirit speaks! And lo, the way <strong>is</strong> freed, I calmly write: “In the beginning<br />

there was the Deed.”<br />

Did you perhaps notice the circular argument here, Hans? <strong>What</strong> ‘power’ shows him the<br />

way to h<strong>is</strong> ‘senses’? - “The Spirit SPEAKS!” Thus, without Faust evidently realizing it, we<br />

are back to Luther’s translation: In the beginning was the Word, and here <strong>is</strong> where the real<br />

reification appears in my humble opinion - in both Goethe’s text and in all <strong>of</strong> Chr<strong>is</strong>tianity.<br />

More <strong>of</strong> Goethe’s ambivilence.<br />

Now what <strong>is</strong> the connection <strong>of</strong> all th<strong>is</strong> with the three conundra <strong>of</strong> the exchange<br />

process in Chapter Two <strong>of</strong> Capital? In their aftermath, Marx writes:<br />

192 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

In their dilemma our commodity-owners think like Faust: ‘In the beginning<br />

was the deed.’ They have therefore already acted before thinking.<br />

Acted before thinking - because commodity owners automatically and subconsciously<br />

judge the value <strong>of</strong> our commodities in reference to two <strong>of</strong>ten diametricly opposed conditions<br />

- 1) the use value the owner can squeeze out <strong>of</strong> the commodity he owns, and 2) the<br />

exchange value he can squeeze out <strong>of</strong> it if he sells it on the market. The headache enters the<br />

picture when we realize that fifteen different people view the same commodity with potentially<br />

fifteen different use and exchange values because each <strong>of</strong> us have different and varied<br />

needs/desires. To solve th<strong>is</strong> headache we use MONEY, and I love the first quote Marx uses<br />

in reference to th<strong>is</strong>, although I find it considerable strained - Revelations 13:17 and 17:13.<br />

Beautiful - Money <strong>is</strong> the Beast!<br />

But now we should remind ourselves <strong>of</strong> the differences between the brain<br />

and the real social forces: the brain can only think, but the real social forces<br />

can act, they can create new conditions.<br />

Hans, just one more point considering the bewildering conundra: two quotes from Goethe<br />

which underly, arguably, everyone <strong>of</strong> h<strong>is</strong> works. More specifacly, I think they address exactly<br />

that <strong>of</strong> which you write: the differences between the brain and social forces surrounding<br />

us. I really hope these two quotes appear somewhere later in Marx’s text. They moreover<br />

stress the ambivelence which Goethe so dearly loved:<br />

“Only by making the riches <strong>of</strong> others our own do we bring anything great into being.”<br />

-and- “<strong>What</strong> can we in fact call our own except the energy, the force, the will!”<br />

Two very capital<strong>is</strong>t approaches to human nature - on the one hand advocating exploitation<br />

in the name <strong>of</strong> creation, and on the other recognizing the one thing each man can really own:<br />

h<strong>is</strong>/her own labour power. <strong>What</strong> then should we exploit in others? Eachother’s labour power,<br />

naturally. Unlike Goethe’s friend and companion, the younger radical Schiller, Goethe was<br />

a life long advocate <strong>of</strong> the Bourgiousie, and forever an upholder <strong>of</strong> classical ar<strong>is</strong>tocratic<br />

traditions. Schade, na? Der alte Spiesser, der schoen dichten konnte.<br />

Panacea “...to be honest, I don’t hold much respect for ‘words’ or ‘thoughts’. For me, the<br />

only value lies in ‘things’...” Siddhartha Hermann Hesse (my translation)<br />

Next Message by Panacea <strong>is</strong> [342.1].<br />

<strong>Question</strong> 192 <strong>is</strong> 182 in 1995WI, 160 in 1995ut, 209 in 1997WI, 205 in 1997ut, 214 in<br />

1998WI, 233 in 2000fa, 312 in 2005fa, 343 in 2008SP, 343 in 2008fa, 368 in 2011fa, and<br />

382 in 2012fa:<br />

<strong>Question</strong> 192 Why <strong>is</strong> the occasional exchange <strong>of</strong> surplus products between tribes not an<br />

exchange <strong>of</strong> “commodities” but one <strong>of</strong> “products”?<br />

[279] Chacci: Immediate Product Exchange The occasional exchange <strong>of</strong> surplus products<br />

between tribes in not an exchange <strong>of</strong> commodities. The definition <strong>of</strong> a commodity <strong>is</strong><br />

something that <strong>is</strong> produced for sale or exchange. The tribe produced the product to sat<strong>is</strong>fy<br />

needs <strong>of</strong> the tribe not for the explicit intention <strong>of</strong> sale or exchange. During the production,<br />

if a surplus <strong>is</strong> produced, the tribe has no use for it, so it can be traded to another tribe that


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 193<br />

may have desire for the item. To quote Hans ‘The immediate product exchange <strong>is</strong> a mutual<br />

giving away <strong>of</strong> products based on the mutual desire <strong>of</strong> the owners to exchange them.’ The<br />

two conditions for immediate product exchange are met. First, since the product <strong>is</strong> a surplus,<br />

the tribe has no need for the use value they intend to exchange. Second, both the tribes<br />

recognize that each other <strong>is</strong> the private owners <strong>of</strong> what they intend to exchange. Thus they<br />

must be an exchange <strong>of</strong> products, not an exchange <strong>of</strong> commodities.<br />

Hans: Very good. I have nothing to add.<br />

Message [279] referenced by [294]. Next Message by Chacci <strong>is</strong> [405.5].<br />

[280] Super: When the exchange <strong>of</strong> products are described as just “products” they are seen<br />

for only their use-value. People in tribal communities percieve these products as something<br />

they need for survival. Once the product <strong>is</strong> looked upon for not only it’s use-value but also<br />

for it’s exchange value it becomes a commodity. A portion <strong>of</strong> the commodity <strong>is</strong> produced<br />

for the reason <strong>of</strong> exchange with another commodity which has equivalent exchange value.<br />

These commodities are in a movable form so that the owner can transport it, for the reason<br />

<strong>of</strong> exchange, to other d<strong>is</strong>tant communities.<br />

Hans: The difference does not just lie in the way people see their products. Production for the exchange <strong>is</strong> a<br />

different social organization <strong>of</strong> production than production for immediate use by the tribe.<br />

Another error in your answer: things can be exchanged even if they cannot be transported (houses).<br />

Message [280] referenced by [294]. Next Message by Super <strong>is</strong> [395.1].<br />

[294] Jake: Tribal Trade For a commodity to be considered a product, Marx first talks<br />

about owners <strong>of</strong> commodities and how they relate their commodities with certain equivalents<br />

<strong>of</strong> other commodities. Since all commodities exchange with each other in the market, there<br />

<strong>is</strong> no commodity that acts as the universal equivalent. The commodities confront each other<br />

as products. The only real meaning <strong>of</strong> exchange being their use-values.<br />

When a tribe exchanges goods or products with another tribe, the gain from the exchange<br />

<strong>is</strong> purely in the use-value that each tribe receives from the exchange. If they didn’t make the<br />

exchange, it can be considered that the goods not exchanged would probably go to waste.<br />

Th<strong>is</strong> principal <strong>of</strong> the goods being considered products and not commodities can be explained<br />

by the tribe possessing the excess goods. Excess goods lose value because <strong>of</strong> the lack <strong>of</strong><br />

purpose for them. As the good gains potential use-value then it becomes a product. If the<br />

tribes original purpose <strong>of</strong> the over production <strong>of</strong> the good was strictly for exchange, then it<br />

<strong>is</strong> still considered a commodity because the production <strong>of</strong> it was for the intented purpose <strong>of</strong><br />

exchange. Because the tribe occasionally trades with the other tribe, one might think <strong>of</strong> the<br />

surplus resulting from a good harvest year or something similar to that. The potential <strong>is</strong> still<br />

there that the excess product won’t be exchanged. Th<strong>is</strong> <strong>is</strong> then not considered a loss because<br />

the good wasn’t produced for trade.<br />

Hans: The word “product” comes from “produce,” it <strong>is</strong> something that <strong>is</strong> produced. A “good” <strong>is</strong> a thing with a use<br />

value (whether produced or not). You are grappling with the right <strong>is</strong>sues, and you found another quote where Marx<br />

speaks <strong>of</strong> the exchange <strong>of</strong> products (as opposed to exchange <strong>of</strong> commodities). But analytically I do not see you<br />

going beyond Chacci’s [279] or Super’s [280].<br />

Next Message by Jake <strong>is</strong> [334].<br />

<strong>Question</strong> 197 <strong>is</strong> 185 in 1995WI, 163 in 1995ut, 199 in 1996ut, 218 in 1997sp, 210 in<br />

1997ut, 229 in 1999SP, and 391 in 2010fa:<br />

<strong>Question</strong> 197 Why does a general equivalent become necessary as the number and differentiation<br />

<strong>of</strong> commodities increases?<br />

194 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[303] Homer: question 197 Simple exchange, bartering, <strong>is</strong> one product being directly<br />

exchanged for another product. Primitive societies were used to bartering the same products<br />

and had traditional and sometimes ritual procedures to govern these exchanges. These procedures<br />

made the exchanges easy and were adequate for the situation. With the development<br />

<strong>of</strong> generalized commerce, the situation became much more complex. Instead <strong>of</strong> a single<br />

product exchanged for other products (one tribe’s surplus for anothers); a large number <strong>of</strong><br />

commodities are exchanged for many different commodities. Instead <strong>of</strong> one craft measuring<br />

the labor time invested in a commodity with the labor time <strong>of</strong> another craft; dozens, or perhaps<br />

more, crafts have to compare their respective productive efforts. In addition, the owner<br />

<strong>of</strong> commodity “A” has to find a buyer who has commodities that are wannted by the owner<br />

<strong>of</strong> “A”. For smooth exchanges based on equivalence to take place, a commodity in which<br />

all other commodities can express their respective exchange values <strong>is</strong> needed. Th<strong>is</strong> need <strong>is</strong><br />

sat<strong>is</strong>fied by the universal equivalent commodity.<br />

Hans: Good answer to an easy <strong>Question</strong>. I like your mention <strong>of</strong> the exchange rituals. Apparently even in the<br />

absence <strong>of</strong> a general equivalent, barter was not an individual act but was given social form. Any anthropolog<strong>is</strong>ts<br />

out there who might be able to fill us in on the details?<br />

Next Message by Homer <strong>is</strong> [401.4].<br />

<strong>Question</strong> 199 <strong>is</strong> 188 in 1995WI, 221 in 1998WI, 350 in 2008SP, and 375 in 2011fa:<br />

<strong>Question</strong> 199 Why could the idea to use land as money ar<strong>is</strong>e only when capital<strong>is</strong>m was<br />

already developed?<br />

[295] Karl: Land as money In my estimation, it <strong>is</strong> important to look at h<strong>is</strong>torical evidences<br />

<strong>of</strong> why th<strong>is</strong> question makes sense. Delving into the mercantil<strong>is</strong>t era before a real<br />

capital<strong>is</strong>tic structure we see that they did not use land as a means <strong>of</strong> exchange, <strong>wealth</strong> or<br />

money. They were primarily dealing in precious metals(ie: gold, silver). There universal<br />

equivalent form was based upon a nomadic lifestyle, which according to the text, was when<br />

the need for an equivalent form <strong>of</strong> commodities usually takes place. The mercantil<strong>is</strong>t did not<br />

operate in a real capital<strong>is</strong>tic market, and therefore land was not “viewed” as being an item <strong>of</strong><br />

exchange, or a means to acquiring <strong>wealth</strong>. Th<strong>is</strong> came in the reaction against the mercantil<strong>is</strong>t.<br />

In the 1700’s the physiocrats developed the ideology that land itself could be exchanged as<br />

a money form. The ideologies <strong>of</strong> Quesnay for instance did not start to take hold until a more<br />

capital<strong>is</strong>tic system evolved. Th<strong>is</strong> <strong>is</strong> where Marx steps in to say that th<strong>is</strong> can only happenin a<br />

“bourgeo<strong>is</strong> society”, th<strong>is</strong> <strong>is</strong> the case <strong>of</strong> the French ar<strong>is</strong>tocrats during the start towards a more<br />

defined capital<strong>is</strong>t system.<br />

Th<strong>is</strong> ties in directly to what Marx said regarding private property, or the ability to own<br />

land. Marx said, “Property (such as land), <strong>is</strong> not assigned to you...” He goes on to mention<br />

that it <strong>is</strong> only when people consent to land being a private exchangable commodity that it<br />

actually takes place. In a command economy any land <strong>is</strong> not owned privately. In primitive<br />

societies there tends to be a lack <strong>of</strong> ownership concept. For example, the ex<strong>is</strong>tence <strong>of</strong> the<br />

ownership <strong>of</strong> private property was not held by the American Indians prior to the settlements<br />

by the European capital<strong>is</strong>ts, which caused a great faction. These ideas were introduced in<br />

the peak <strong>of</strong> capatil<strong>is</strong>m by such people as John Locke. From the text we also see that Locke<br />

was wrong in believing that gold as a money form held an imaginary value. Th<strong>is</strong> <strong>is</strong> the<br />

illusion that only capital<strong>is</strong>m can create, as I d<strong>is</strong>cussed primitive and command economies


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 195<br />

do not create th<strong>is</strong> deception. Th<strong>is</strong> capital<strong>is</strong>tic idea even penetrated itself into the American<br />

Bill <strong>of</strong> Rights, “life, liberty, and property.” You see, capital<strong>is</strong>m relies on th<strong>is</strong> created concept<br />

that we can own land. It <strong>is</strong> only in the frame <strong>of</strong> capital<strong>is</strong>m that we can blindly accept the<br />

fact that land <strong>is</strong> owned, and th<strong>is</strong> <strong>is</strong> what allows it to possess all the attributes <strong>of</strong> the universal<br />

equivalent form, or <strong>of</strong> the money form.<br />

Hans: Your last sentence says it best, and the idea <strong>is</strong> throughout your subm<strong>is</strong>sion, but you should have thought it<br />

through and formulated it a little more cripsly. Land <strong>is</strong> the most basic condition <strong>of</strong> life. The general equivalent <strong>is</strong><br />

the most “liquid” commodity, the one which most easily changes hands. Only under capital<strong>is</strong>m, when people are<br />

generally uprooted and separated from their means <strong>of</strong> sustenance, will it occur to them to use land as money.<br />

Next Message by Karl <strong>is</strong> [325].<br />

<strong>Question</strong> 200 <strong>is</strong> 189 in 1995WI, 166 in 1995ut, 214 in 1997WI, 221 in 1997sp, 213 in<br />

1997ut, 290 in 2003fa, 327 in 2004fa, 321 in 2005fa, 342 in 2007SP, 352 in 2008SP, and<br />

377 in 2011fa:<br />

<strong>Question</strong> 200 Explain in your own words the meaning <strong>of</strong> the sentence: “Although gold and<br />

silver are not by nature money, money <strong>is</strong> by nature gold and silver.”<br />

[285] Panacea: Goldie Hawn and Long John Silver Whether or not gold or silver<br />

have inherent properties ( z.B.: general degree <strong>of</strong> scarcity, yet relatively well d<strong>is</strong>tributed<br />

throughout the world, etc.) would not seem to be the point here, for there are better natural<br />

commodities in ex<strong>is</strong>tence which could be used. In addition, it would seem that gold/silver’s<br />

scarcity paired together with its use as ‘money’ <strong>is</strong> in contradiction to Marx’s LVT. Then why<br />

silver and gold?<br />

Another way to look at the question <strong>is</strong> from the stand point <strong>of</strong> ‘origin’. It <strong>is</strong> difficult to<br />

find the beginning <strong>of</strong> it’s use in h<strong>is</strong>tory as negotiable tender; the Bible <strong>is</strong> replete with examples<br />

<strong>of</strong> their use. Then which came first: the “bullion perception” or gold/silver, or in<br />

other words, did humans create the value <strong>of</strong> gold/silver, or does gold/silver inherently have<br />

“money-value”, yet another kind <strong>of</strong> value with mysterious properties all its own? I personally<br />

see very obvious religious implications - that the h<strong>is</strong>tory <strong>of</strong> chr<strong>is</strong>tianity, especially,<br />

seems to be intertwined around the h<strong>is</strong>tory <strong>of</strong> gold value <strong>is</strong> to me, suspect. Are their ‘divine’<br />

reasons for gold’s value to man, real or imagined? A naive thought, but there may be something<br />

to it. I’ve heard arguments like “God made it to adorn the beauty <strong>of</strong> man and women”<br />

repeat ad nauseum.<br />

For Marx, as I understand the <strong>is</strong>sue, the question <strong>is</strong> reduced to the term ‘fet<strong>is</strong>h’ - the<br />

case in which “social properties <strong>of</strong> commodities do not come from society but from nature,”<br />

as Hans has said before. Considering Marx’s attitude towards religion, I believe he would<br />

agree that religion <strong>is</strong> a very important catalyst for th<strong>is</strong> fet<strong>is</strong>h. The h<strong>is</strong>tory <strong>of</strong> man’s fet<strong>is</strong>h<br />

with gold and silver would certainly read as a comedy for other-worldly archeolog<strong>is</strong>ts come<br />

to excavate our culture twenty thousand years from now.<br />

Panacae “...if you want to reach the American Dream, you’ll need a trampoline...” Beautiful<br />

South<br />

Hans: You understand that the <strong>Question</strong> <strong>is</strong> about: why have gold and silver (and not some other commodities)<br />

been selected as the money material? But you are ignoring Marx’s very puzzling formulation: “money <strong>is</strong> by nature<br />

gold and silver.” Why would Marx say something like th<strong>is</strong>? An important part <strong>of</strong> your answer to the question <strong>is</strong>:<br />

There are better natural commodities in ex<strong>is</strong>tence [than silver and gold] which could be used.<br />

196 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I doubt th<strong>is</strong>, and I would be curious which commodities you mean. Since you do not see a logical reason why gold<br />

and silver were selected, it makes sense to look at the h<strong>is</strong>torical origin <strong>of</strong> th<strong>is</strong> convention. But I am very suspicious<br />

about your concept <strong>of</strong> “money-value,” th<strong>is</strong> does not seem to fit into a Marxian framework.<br />

Next Message by Panacea <strong>is</strong> [287].<br />

<strong>Question</strong> 202 <strong>is</strong> 191 in 1995WI, 217 in 1997WI, 216 in 1997ut, 226 in 1998WI, 236 in<br />

1999SP, 280 in 2002fa, 294 in 2003fa, 331 in 2004fa, 346 in 2007SP, 356 in 2008SP, 371<br />

in 2009fa, 401 in 2010fa, 383 in 2011fa, and 397 in 2012fa:<br />

<strong>Question</strong> 202 Explain the sentence: “The exchange process gives the commodity which it<br />

turns into money not its value, but its specific form <strong>of</strong> value.” Which specific value form does<br />

Marx mean here?<br />

[323] Peaches: Extra Credit A commodity’s specific value-form <strong>is</strong> that form <strong>of</strong> value<br />

which will be associated with that commodity’s use value alone. Remember, use value <strong>is</strong><br />

that physical property or appearance which makes it a useful thing. Value <strong>is</strong> that property <strong>of</strong><br />

things which gives them weight on the market. I interpret Marx’ meaning as such: a model<br />

<strong>is</strong> normally pretty, slim, and “healthy” (relatively speaking). She has a commodity, “looks”<br />

that she sells on the market. Her use value <strong>is</strong> her “talent.” The market has given each <strong>of</strong><br />

many models a specific value-form depending on what other talents they possess, ie. Cindy<br />

Crawford vs. Bette Midler. Cindy Crawford graduated from college and Bette Midler has<br />

a beautiful voice. So each sell for their own “qualities.” So Marx would say that each has<br />

its specific form <strong>of</strong> value from somewhere else than where it got its value. Does that make<br />

sense or am I completely <strong>of</strong>f the hook?<br />

Message [323] referenced by [324]. Next Message by Peaches <strong>is</strong> [370.1].<br />

[324] Hans: Peaches <strong>is</strong> answering a different <strong>Question</strong> Peaches’s answer [323] <strong>is</strong>,<br />

as she herself suspected, completely <strong>of</strong>f. Her answer would have been justified had the<br />

<strong>Question</strong> been: the market gives every commodity a specific form <strong>of</strong> use value (instead <strong>of</strong><br />

value). Th<strong>is</strong> could also be justified: product differentiation makes things easier to sell, see<br />

<strong>Question</strong> 64 about that.<br />

<strong>Question</strong> 202 refers to a specific sentence written by Marx, and Peaches should have<br />

worked through the text in the neighborhood <strong>of</strong> <strong>Question</strong> 202 in order to understand the<br />

flow <strong>of</strong> Marx’s argument.<br />

Next Message by Hans <strong>is</strong> [326].<br />

<strong>Question</strong> 206 <strong>is</strong> 172 in 1995ut:<br />

<strong>Question</strong> 206 <strong>What</strong> <strong>is</strong> the magic <strong>of</strong> money? Explain it as a higher developed form <strong>of</strong> the<br />

fet<strong>is</strong>h-like character <strong>of</strong> the commodity.<br />

[292] Emma: Magic <strong>of</strong> Money That money <strong>is</strong> magical <strong>is</strong> virtually taken for granted in<br />

our capital<strong>is</strong>t/market society. It’s interesting to look more deeply at the “why’s.”<br />

First, the direct answer to the question seems to be that the magic <strong>of</strong> money lies in its<br />

ability to instantly take on the character<strong>is</strong>tics <strong>of</strong> human labor and become “the direct incarnation<br />

<strong>of</strong> all human labor.” Further, money becomes the manifestation <strong>of</strong> the social relations<br />

<strong>of</strong> production through objectified form which <strong>is</strong> “beyond their [people’s] control and independent<br />

<strong>of</strong> their conscious striving...” Before going any farther, I would just say that I believe


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 197<br />

Marx <strong>is</strong> wrong in maintaining that money as the objectifiable for <strong>of</strong> social relations <strong>is</strong> beyond<br />

people’s control. It <strong>is</strong> clearly the consent <strong>of</strong> society that allows the phenomenon to occur.<br />

That it happens without conscious thought individually <strong>is</strong> true enough, but that <strong>is</strong> more the<br />

result <strong>of</strong> its successful application and generally successful results in market circumstances<br />

than some conspiracy to alienatae people from their labors. Were money ever to not fulfill its<br />

purpose as a medium <strong>of</strong> convenient exchange and solution to the “double instance” problem,<br />

society would quickly make the process conscious and change it. Marx seem to be implying<br />

that there are forces working without society’s consent, which I don’t think <strong>is</strong> the case.<br />

I do find Marx’ description <strong>of</strong> the properties necessary for a commodity to become money<br />

very interesting. Marx <strong>is</strong> right on the money (pun intended) when he says “money form<br />

comes to ‘be attached’ to the most important articles <strong>of</strong> exchange...” Or to the “object <strong>of</strong><br />

utility which forms the chief element <strong>of</strong> indigenous alienable <strong>wealth</strong>, for example cattle.”<br />

It’s interesting to note other forms <strong>of</strong> money used especially in extreme situations when<br />

conventional forms were not available. For example, cigarettes were used in Europe during<br />

WWII and in the POW camps as currency. Although I suppose one could argue that<br />

cigarettes possess some “indigenous alienable <strong>wealth</strong>,” they were for the most part symbols<br />

<strong>of</strong> <strong>wealth</strong>. And th<strong>is</strong> brings up another point. The same could be said for paper money. I<br />

don’t completely understand Marx’s contention that money <strong>is</strong> not merely a symbol. It seems<br />

clear that in some instances that <strong>is</strong> just what it <strong>is</strong>, especially since we are no longer on the<br />

gold standard. Did Marx anticipate our situation without the gold standard in h<strong>is</strong> theory?<br />

From last week’s d<strong>is</strong>cussion in class one might have gotten the impression that capital<strong>is</strong>ts<br />

everywhere were “collecting” money for its own sake. Th<strong>is</strong> would seem to be an example<br />

<strong>of</strong> money fet<strong>is</strong>h<strong>is</strong>m. The claim <strong>is</strong> also untrue. Most people, even capital<strong>is</strong>ts, know that<br />

money <strong>is</strong> inherently useless, that its power <strong>is</strong> derivative in today’s capital<strong>is</strong>m. But the notion<br />

<strong>is</strong> not without some h<strong>is</strong>torical precedent. With the mercantil<strong>is</strong>ts, money was power, as if<br />

money could <strong>of</strong> itself effect something. Well, Adam Smith and other showed them to be<br />

wrong. Still, there do seem to be some capital<strong>is</strong>ts who seem to be collecting money for no<br />

other purpose than to have more. For them, the accumulation <strong>of</strong> money beomes an end.<br />

But that doesn’t remove the fet<strong>is</strong>h like character <strong>of</strong> the behavior, or legitimize it. <strong>What</strong> <strong>is</strong><br />

<strong>of</strong>ten m<strong>is</strong>taken as the pure fet<strong>is</strong>h<strong>is</strong>m <strong>of</strong> collecting money <strong>is</strong> really the pursuit <strong>of</strong> what money<br />

represents, that <strong>is</strong>, food, clothing, shelter, etc.<br />

The fet<strong>is</strong>h like character <strong>of</strong> money <strong>is</strong> also seen in the notion <strong>of</strong> financial capital and money.<br />

Money a capital <strong>is</strong> <strong>of</strong>ten believed, incorrectly, to contain some magical inherent quality to<br />

grow without a relation to the labor process. Th<strong>is</strong> <strong>is</strong> seen in the interest and interest rate<br />

components <strong>of</strong> depositing capital in interest bearing accounts. The faultiness <strong>of</strong> th<strong>is</strong> thinking<br />

<strong>is</strong> best seen in the extreme example <strong>of</strong> the results that would attend to everyone’s investing<br />

their capital at the same time with the same expectations <strong>of</strong> growth. Obviously without the<br />

labor process component the capital <strong>is</strong> just going to sit there.<br />

Message [292] referenced by [311]. Next Message by Emma <strong>is</strong> [376].<br />

[311] Hans: Emma’s objections against Marx Emma’s answer [292] to <strong>Question</strong> 206<br />

has some arguments against Marx. I am glad someone <strong>is</strong> bringing such arguments (and I<br />

am encouraging others to do the same). Since I think that Emma <strong>is</strong> not the only participant<br />

198 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

in class who has some objections against Marx’s theory, I will reply publicly with possible<br />

Marx<strong>is</strong>t responses to Emma.<br />

Emma’s first objection <strong>is</strong>:<br />

I believe Marx <strong>is</strong> wrong in maintaining that money as the objectifiable for<br />

<strong>of</strong> social relations <strong>is</strong> beyond people’s control. It <strong>is</strong> clearly the consent <strong>of</strong><br />

society that allows the phenomenon to occur. That it happens without conscious<br />

thought individually <strong>is</strong> true enough, but that <strong>is</strong> more the result <strong>of</strong> its<br />

successful application and generally successful results in market circumstances<br />

than some conspiracy to alienatae people from their labors. Were<br />

money ever to not fulfill its purpose as a medium <strong>of</strong> convenient exchange<br />

and solution to the “double instance” problem, society would quickly make<br />

the process conscious and change it.<br />

My answer cons<strong>is</strong>ts <strong>of</strong> three parts:<br />

(1) For Marx, the central economic function <strong>of</strong> money was not that <strong>of</strong> means <strong>of</strong> circulation,<br />

and the “double coincidence <strong>of</strong> wants” <strong>is</strong> for Marx not the only <strong>is</strong>sue complicating the<br />

direct exchange. But th<strong>is</strong> <strong>is</strong> only a side note in the present context.<br />

(2) In Section 3 <strong>of</strong> Chapter One, Marx develops the general equivalent as the most appropriate<br />

“form <strong>of</strong> value”. In my view, th<strong>is</strong> Section <strong>is</strong> so relevant for modern times because<br />

nowadays, money <strong>is</strong> very much a creation <strong>of</strong> policy, and the goal <strong>of</strong> monetary policy <strong>is</strong><br />

exactly to ensure that money <strong>is</strong> a good external represenation <strong>of</strong> the value inherent in the<br />

economy. Subject my point (1), that it <strong>is</strong> not the function <strong>of</strong> money as means <strong>of</strong> circulation,<br />

but its function as measure <strong>of</strong> value (i.e., the stability <strong>of</strong> the value <strong>of</strong> the dollar), I agree here<br />

with Emma.<br />

(3) Where <strong>is</strong> then the point where people are not in control <strong>of</strong> their social relations? Our<br />

economy needs money (with all the bad things coming from it) because production <strong>is</strong> done<br />

privately, and the products will find their social “validation” only afterwards, on the market.<br />

Marx basically says that th<strong>is</strong> <strong>is</strong> a very odd way to run the economy. If you try to run the<br />

economy in th<strong>is</strong> way, then it <strong>is</strong> not you who <strong>is</strong> running the economy but the economy <strong>is</strong><br />

running you.<br />

Next I want to comment on a point Emma brings in her contribution which <strong>is</strong> not an<br />

objection to Marx. She writes:<br />

Although I suppose one could argue that cigarettes possess some “indigenous<br />

alienable <strong>wealth</strong>,” they were for the most part symbols <strong>of</strong> <strong>wealth</strong>.<br />

I d<strong>is</strong>agree. It <strong>is</strong> a sad testimony <strong>of</strong> the addictive powers <strong>of</strong> nicotine that even in situations<br />

<strong>of</strong> severe economic hardship, those who smoked still needed cigarettes. Cigarettes served<br />

as money because they were the most demanded goods, they were not merely symbols <strong>of</strong><br />

<strong>wealth</strong>.<br />

Now comes Emma’s second objection to Marx:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 199<br />

I don’t completely understand Marx’s contention that money <strong>is</strong> not merely<br />

a symbol. It seems clear that in some instances that <strong>is</strong> just what it <strong>is</strong>, especially<br />

since we are no longer on the gold standard.<br />

Marx says that in its function as means <strong>of</strong> exchange, money can indeed be replaced by a<br />

symbol <strong>of</strong> itself. But the function <strong>of</strong> measure <strong>of</strong> value cannot be played by a symbol. Commodity<br />

money relies on the fact that money can be mined in the ground in order to ensure<br />

price stability. Nowadays other mechan<strong>is</strong>ms are used. But you need some real mechan<strong>is</strong>ms<br />

which have some clout behind them. In my view, the world-wide military superiority <strong>of</strong> the<br />

United states <strong>is</strong> the muscle which gives US monetary policy enough power to have a real<br />

economic impact.<br />

Emma’s third objection <strong>is</strong>:<br />

From last week’s d<strong>is</strong>cussion in class one might have gotten the impression<br />

that capital<strong>is</strong>ts everywhere were “collecting” money for its own sake. Th<strong>is</strong><br />

would seem to be an example <strong>of</strong> money fet<strong>is</strong>h<strong>is</strong>m. The claim <strong>is</strong> also untrue.<br />

As a reason why th<strong>is</strong> claim <strong>is</strong> untrue, Emma says that<br />

Most people, even capital<strong>is</strong>ts, know that money <strong>is</strong> inherently useless, that<br />

its power <strong>is</strong> derivative in today’s capital<strong>is</strong>m.<br />

My answer here <strong>is</strong>: despite the fact that the capital<strong>is</strong>ts know that the accumulation <strong>of</strong><br />

more and more <strong>wealth</strong> <strong>is</strong> an absurd goal (it would be absurd even in a monetary regime<br />

when money represents real value), they are forced to accumulate more and more, because<br />

otherw<strong>is</strong>e they would be driven out <strong>of</strong> business. <strong>What</strong> <strong>is</strong> worse, the economy <strong>is</strong> organized<br />

in such a way that it cannot function unless it “grows.” Here “growth” does not mean the<br />

prov<strong>is</strong>ion <strong>of</strong> <strong>wealth</strong> for the population, but the accumulation <strong>of</strong> monetary <strong>wealth</strong> in the hands<br />

<strong>of</strong> the few. Th<strong>is</strong> necessity <strong>of</strong> growth <strong>is</strong> a systemic “spell” built into the structure <strong>of</strong> the<br />

economy. It <strong>is</strong> not really wanted by anyone, but individuals are not in charge <strong>of</strong> the economy,<br />

not even the capitalsits are in charge <strong>of</strong> th<strong>is</strong> economy. Notwithstanding the obscene <strong>wealth</strong><br />

<strong>of</strong> a small minority <strong>of</strong> the population, the luxury consumption <strong>of</strong> the capitalsits <strong>is</strong> not the<br />

purpose <strong>of</strong> the capital<strong>is</strong>t economy either.<br />

Next Message by Hans <strong>is</strong> [318].<br />

<strong>Question</strong> 207 <strong>is</strong> 363 in 2008SP, 392 in 2011fa, and 406 in 2012fa:<br />

<strong>Question</strong> 207 Are people, by their atom<strong>is</strong>tic attitude towards each other, responsible for<br />

their lack <strong>of</strong> control over their own social relations?<br />

<strong>Question</strong> 208 <strong>is</strong> 363 in 2008SP, 392 in 2011fa, and 406 in 2012fa:<br />

<strong>Question</strong> 208 Is a person’s attitude towards other individuals the reason whether th<strong>is</strong> person<br />

ends up as a capital<strong>is</strong>t or a worker or what other position they will inhabit in capital<strong>is</strong>t<br />

social relations?<br />

[287] Panacea: Who <strong>is</strong> to blame? Perhaps the question could be reformulated as “do<br />

people have control over / responsibility for their social relations?” My answer to Marx<br />

200 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

would be ‘jaein’ - ja and nein. The German slang word for the capital<strong>is</strong>t who drives a giant<br />

mercedes and wears Boss suits <strong>is</strong> ‘Spiesser’ - literally, from the word ‘Spiess’, or spear, the<br />

word means ‘the one who spears things.’ The connotation <strong>is</strong> that the capital<strong>is</strong>t <strong>is</strong> much like<br />

a hunter, killing things around him.<br />

I write th<strong>is</strong> to explain a perspective on capital<strong>is</strong>m: it <strong>is</strong> a game <strong>of</strong> cat and mouse, with<br />

some <strong>of</strong> us being cats, some mice. There inevitably needs to be many more mice than there<br />

are cats, or else the cats will starve. The big ‘Fat Cat’ reaches h<strong>is</strong> physical position by eating<br />

a lot <strong>of</strong> mice, and <strong>is</strong> pra<strong>is</strong>ed for h<strong>is</strong> ability at ‘mousing’...<br />

Th<strong>is</strong> <strong>is</strong> one perspective <strong>of</strong> capital<strong>is</strong>m, whether we like it or not. Some will defend it with<br />

the old argumant “but the only mice who get eaten are the old and infirm. The cats keep us<br />

strong and smart” and other crap. Social Darwin<strong>is</strong>m. But th<strong>is</strong> doesn’t answer the question<br />

<strong>of</strong> ‘whose fault <strong>is</strong> the cat and mouse game in the first place?’<br />

Can we blame capital<strong>is</strong>ts for making lots <strong>of</strong> money? Marx seems to say no, and I agree.<br />

But are the labourers and blue collar workers <strong>of</strong> our nation responsible for their social status?<br />

Also no. The system has put them there, people are to a great extent born into a ‘caste’ in<br />

America (though many are able to break out <strong>of</strong> it, don’t think th<strong>is</strong> always means they move<br />

up in the class system. Many move down as well).<br />

On another level, all <strong>of</strong> us are responsible for allowing it to continue, and th<strong>is</strong> responsibility,<br />

I feel, <strong>is</strong> graduated depending on your ability to effect change. Whether the Spiesser<br />

continues spearing the lower class <strong>is</strong> h<strong>is</strong> responsibility.<br />

Panacea “...looking for the wings <strong>of</strong> angels in the den <strong>of</strong> a hawk...” Beautiful South<br />

Hans: It <strong>is</strong> easier for a capital<strong>is</strong>t to stop being a capital<strong>is</strong>t and become a worker than for a worker to stop being a<br />

worker and become a capital<strong>is</strong>t, but <strong>is</strong> th<strong>is</strong> the change we want? Capital<strong>is</strong>ts may have more resources to fight the<br />

system if they desire to do so, but they also have been brainwashed more, and if they succeed, they will deprive<br />

themselves <strong>of</strong> a livelihood. The upshot <strong>of</strong> these dilemmas <strong>is</strong> that we can only then effectively fight against the<br />

system if we organize, it cannot be done individually.<br />

Message [287] referenced by [2008SP:850] and [2011fa:401]. Next Message by Panacea <strong>is</strong> [317].<br />

<strong>Exam</strong> <strong>Question</strong> 210 <strong>is</strong> 197 in 1995WI, 176 in 1995ut, 227 in 1997WI, 280 in 1997ut, 299<br />

in 1999SP, 317 in 2000fa, 336 in 2001fa, 380 in 2003fa, 425 in 2004fa, 432 in 2007SP,<br />

443 in 2008fa, 459 in 2009fa, 496 in 2010fa, 506 in 2011fa, and 528 in 2012fa:<br />

<strong>Exam</strong> <strong>Question</strong> 210 Give examples for “advancing” and “expending” money.<br />

[306] Dunny: question 210 The “advancing” and “expending” <strong>of</strong> money. A woman takes<br />

her hard earned savings to buy an older house with the idea <strong>of</strong> fixing it up or refurb<strong>is</strong>hing it<br />

in some sort <strong>of</strong> way to improve the resale value <strong>of</strong> the home. She wants to get it done fast so<br />

that she can have a greater amount <strong>of</strong> money soon. Th<strong>is</strong> <strong>is</strong> an example <strong>of</strong> the “advancing”<br />

<strong>of</strong> money. Th<strong>is</strong> woman took her money (savings) and purchased a commodity. She had no<br />

desire to hang on to that commodity but her real desire was to get more money for the same<br />

house.<br />

Suppose the situation were a little different. Th<strong>is</strong> woman already owned a small home<br />

that she had lived in for quite some time. She realizes that the house <strong>is</strong> just to small for<br />

her needs so she sells her cute little house so that she can purchase a larger home that will


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 201<br />

sat<strong>is</strong>fy all <strong>of</strong> her needs and wants. To me th<strong>is</strong> <strong>is</strong> the “spending” <strong>of</strong> money. She was not in<br />

it for the money but simply wanted to sell her commodity for money so that she could buy<br />

another commodity. These two ideas can be compared to investment and consumption. The<br />

first <strong>of</strong> the two ladies was buying and selling a house as an investment opportunity while the<br />

latter was merely trying to sat<strong>is</strong>fy her own desires by consuming another commodity with<br />

no intention <strong>of</strong> selling it.<br />

Hans: A very good pair <strong>of</strong> examples. It <strong>is</strong> a good didactical device to make them as similar as possible in all<br />

respects except those that count.<br />

Message [306] referenced by [2005fa:1007]. Next Message by Dunny <strong>is</strong> [335.5].<br />

<strong>Question</strong> 211 <strong>is</strong> 211 in 1996ut, 288 in 1998WI, 300 in 1999SP, 337 in 2001fa, 366 in<br />

2002fa, 381 in 2003fa, 426 in 2004fa, 401 in 2005fa, 433 in 2007SP, 436 in 2007fa, 442<br />

in 2008SP, 460 in 2009fa, 497 in 2010fa, 530 in 2012fa, and 497 in Answer:<br />

<strong>Question</strong> 211 If someone first buys a car, and after two years trades it in for a new car, <strong>is</strong><br />

that C-M-C or M-C-M? If someone first buys a house, then after ten years decides to move<br />

and sells h<strong>is</strong> house for a pr<strong>of</strong>it, <strong>is</strong> th<strong>is</strong> C-M-C or M-C-M? If a farmer ra<strong>is</strong>es wheat, then<br />

at the end <strong>of</strong> the year sells h<strong>is</strong> crop and with the proceeds buys the materials to ra<strong>is</strong>e next<br />

year’s wheat, <strong>is</strong> that C-M-C or M-C-M?<br />

[289] Angela: C-M-C and M-C-M The first question, I think it <strong>is</strong> C-M-C. Because<br />

he buys first car and uses it. After tow years latter, he trades it for a new car. So at the<br />

beginning and the ending are both commodities. So I think that it <strong>is</strong> C-M-C. Besides, th<strong>is</strong><br />

behave <strong>is</strong> selling in order to buy and he holds money only temporarily. Moreover, I think<br />

that money serves as money, not capital, because in the circulation <strong>of</strong> C-M-C, money <strong>is</strong> in<br />

the end converted into a commodity which serves as use- value and money in here just spent<br />

one time and money did not incrment by selling a car. Because <strong>of</strong> these reasons, I think that<br />

th<strong>is</strong> behave <strong>is</strong> C-M-C.<br />

The second question, I think it <strong>is</strong> M-C-M. Because at the first he buys the house with<br />

money and after ten years he sell h<strong>is</strong> house for a pr<strong>of</strong>it. In th<strong>is</strong> behave, at the beginning<br />

and ending are both money and he also earns the pr<strong>of</strong>it with selling a house. But I was<br />

confused about one meaning for Marx’s explaination - He releases the money, but only<br />

with the cunning intention <strong>of</strong> getting it back again, and th<strong>is</strong> behave <strong>is</strong> M-C-M. But for th<strong>is</strong><br />

question, at the beginning, th<strong>is</strong> person buys a house for living not intention <strong>of</strong> getting money<br />

back. Just because after ten years he wants to move and sells a house with pr<strong>of</strong>it. So th<strong>is</strong><br />

<strong>is</strong> contradiction with th<strong>is</strong> idea or not. And I was confused about th<strong>is</strong> part. But I think it <strong>is</strong><br />

M-C-M because th<strong>is</strong> behave fits the another ideas which <strong>is</strong> holding commodities temporarily<br />

and money <strong>is</strong> not expended because money withdraws with selling a house.<br />

The third question, I think it <strong>is</strong> C-M-C. Because a farmer ra<strong>is</strong>es wheat which purpose <strong>is</strong><br />

selling in order to buy. But I think h<strong>is</strong> behave might be divided into tow parts. When he<br />

sells h<strong>is</strong> wheat with money, he might buys the materials to ra<strong>is</strong>e next year’s wheat with part<br />

<strong>of</strong> money and using the other part <strong>of</strong> money to buy h<strong>is</strong> needs. Anyway, no matter what kind<br />

<strong>of</strong> commodities he buys, at the beginning and ending are both commodities. Otherw<strong>is</strong>e, he<br />

holds money temporarily. So I think it <strong>is</strong> C-M-C.<br />

202 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

But I was still confused when I read the chapter 4. I think our trade behaves are not so<br />

easily to classify into C-M-C and M-C-M. I have some question: <strong>What</strong> <strong>is</strong> more important<br />

for the form <strong>of</strong> C-M-C and M-C-M or their contents <strong>of</strong> them. And do we have to think at<br />

first about the purposes <strong>of</strong> C-M-C and M-C-M. Or I m<strong>is</strong>understand about th<strong>is</strong> chapter. Or I<br />

think to much about them.<br />

Message [289] referenced by [319] and [320]. Next Message by Angela <strong>is</strong> [370].<br />

[315] Reidar: I would argue that in both the first two examples involving the purchase<br />

and resale <strong>of</strong> a car and home, bzw., both demonstrate M-C-M. Marx described the M-C-M<br />

process as an inverted process which d<strong>is</strong>places the commodity two times. The first time<br />

<strong>is</strong> when the commodity <strong>is</strong> bought with money, and the second time being when the buyer<br />

resells the commodity in return for money. Marx calls th<strong>is</strong>, “the tw<strong>of</strong>old d<strong>is</strong>placement <strong>of</strong> the<br />

same commodity causes the money to flow back to its initial point <strong>of</strong> departure.”<br />

One might argue that they purchased the car and house for their use value, and that the<br />

car’s sale value was dimin<strong>is</strong>hed through its use. However, the car and the house have been<br />

d<strong>is</strong>place twice, first when the person bought them, and second when they resold them. Although<br />

the car buyer trades the car in on a new car, he uses the money which he receives for<br />

th<strong>is</strong> second d<strong>is</strong>placement to finance the second car.<br />

In the third case which involves the sale <strong>of</strong> wheat, the farmer d<strong>is</strong>place the money twice.<br />

He/She <strong>is</strong> clearly involved in the C-M-C process. They first sell the wheat and gain money<br />

proceeds, and they expend the money on materials for next years crop.<br />

If the first two questions were asked as; If someone owns a house (car), and sells it<br />

and buys a new house (car)......? It could be understood that they are practicing the C-M-C<br />

process. The phrase, “If someone first buys”, implies that they buy with the intention already<br />

in mind to sell.<br />

Message [315] referenced by [320]. Next Message by Reidar <strong>is</strong> [356.1].<br />

[319] Hans: Angela’s answer I like the style <strong>of</strong> Angela’s [289]. If she gets in doubt or<br />

sees some ambiguities, she admits it. Th<strong>is</strong> opennness makes her answer a good bas<strong>is</strong> for<br />

further d<strong>is</strong>cussion.<br />

Angela <strong>is</strong> right that the “trading in” <strong>of</strong> a car <strong>is</strong> C-M-C. Most <strong>of</strong> the money for the new car<br />

will not come from the trade-in value, but from the buyer’s income, if he <strong>is</strong> a wage worker,<br />

most <strong>of</strong> th<strong>is</strong> transaction has therefore the form L-M-C (L stands for labor), and th<strong>is</strong> <strong>is</strong> the<br />

form in which most <strong>of</strong> us do C-M-C.<br />

With the house the situation <strong>is</strong> no longer so clearly cut, because houses are <strong>of</strong>ten sold with<br />

a pr<strong>of</strong>it. Nevertheless, I would argue that the primary motive <strong>of</strong> the home purchase <strong>is</strong> shelter<br />

for the family, therefore I would still count the house payments as L-M-C. Such houses also<br />

count as part <strong>of</strong> the savings for retirement, i.e., for final consumption, which <strong>is</strong> still not the<br />

same as a purely capital<strong>is</strong>t M-C-M.<br />

The farmer ra<strong>is</strong>es the wheat as a cash crop, therefore he <strong>is</strong> doing M-C-M. Again th<strong>is</strong> <strong>is</strong> not<br />

a pure form, since he <strong>is</strong> <strong>of</strong>ten also h<strong>is</strong> most industrious productive laborer, and the purpose<br />

<strong>is</strong> survival <strong>of</strong> the family, not growth as such.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 203<br />

These examples show that in real life, the forms C-M-C and M-C-M will <strong>of</strong>ten not be<br />

found in their pure manifestations. In the case <strong>of</strong> a mixed form, it <strong>is</strong> to some extent arbitrary<br />

which <strong>of</strong> the two groups they are assigned to, and therefore I do not claim that my<br />

classification <strong>is</strong> the only correct one.<br />

Message [319] referenced by [320]. Next Message by Hans <strong>is</strong> [320].<br />

[320] Hans: Ambiguities regarding C-M-C and M-C-M Reidar’s answer [315] was<br />

received on Monday before Angela’s [289], but it was not forwarded to the class because it<br />

had the wrong return address. Now Reidar resubmitted it unchanged, and I accepted it, but<br />

for all those who are preparing for the quiz I must warn you: in my view he got all three<br />

answers exactly wrong. It <strong>is</strong> a somewhat slippery terrain because the cases are ambiguous,<br />

and Reidar remarks on th<strong>is</strong>. But in the social sciences things are never as clear cut as in<br />

Mathematics, and the question what to do in an ambigous situation <strong>is</strong> a legitimate question.<br />

Reidar argues that buying a car and two years later trading it in, just as buying a home<br />

and after living in it for a period selling it for a gain are both M-C-M. H<strong>is</strong> reasoning <strong>is</strong>:<br />

Marx described the M-C-M process as an inverted process which d<strong>is</strong>places<br />

the commodity two times. The first time <strong>is</strong> when the commodity <strong>is</strong> bought<br />

with money, and the second time being when the buyer resells the commodity<br />

in return for money. Marx calls th<strong>is</strong>, “the tw<strong>of</strong>old d<strong>is</strong>placement <strong>of</strong><br />

the same commodity causes the money to flow back to its initial point <strong>of</strong><br />

departure.”<br />

But Reidar acknowledges that a different reasoning might give different results:<br />

One might argue that they purchased the car and house for their use value.<br />

Yes, yes, th<strong>is</strong> <strong>is</strong> the way to go. The essential difference <strong>is</strong> the motivation. I think Reidar<br />

likes th<strong>is</strong> d<strong>is</strong>placement criterion because it seems more objective, but subjectivity <strong>is</strong> not<br />

wrong here. The question <strong>is</strong>: was the purchase made in order to make money, or was it made<br />

for consumption. One might argue that it <strong>is</strong> both, but the consumption purpose <strong>is</strong> clearly<br />

the overwhelming reason, and the making <strong>of</strong> money <strong>is</strong> more a side effect. Th<strong>is</strong> <strong>is</strong> especially<br />

clear with the car, but I would also say th<strong>is</strong> <strong>is</strong> so with the house. Only in the third case I<br />

would say that the dividing line has been crossed, and I would classify it as making money,<br />

although the farmer <strong>is</strong> usually in it for h<strong>is</strong> own sustenance. But as I said in [319], others may<br />

want to draw the dividing line differently. If th<strong>is</strong> <strong>Question</strong> were on the exam, I would look<br />

at the argumentation at least as much as at the final answer.<br />

Next Message by Hans <strong>is</strong> [322].<br />

<strong>Exam</strong> <strong>Question</strong> 213 <strong>is</strong> 178 in 1995ut, 230 in 1997WI, 294 in 1997sp, 290 in 1998WI, 302<br />

in 1999SP, 339 in 2001fa, and 383 in 2003fa:<br />

<strong>Exam</strong> <strong>Question</strong> 213 Argue why C-M-C <strong>is</strong> an independent act, while M-C-M <strong>is</strong> a link in a<br />

chain.<br />

[267] Bandit: The reason C-M-C <strong>is</strong> an independent act <strong>is</strong> because after the process <strong>of</strong><br />

capital to money, the remaining stage <strong>is</strong> an independent act <strong>of</strong> the owner. The last stage can<br />

be used as money to buy another commodity or it can be left in the basic form <strong>of</strong> capital,<br />

204 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

as money. The reason M-C-M <strong>is</strong> a link in the chain <strong>is</strong> because it starts with money and<br />

returns to the basic form <strong>of</strong> capital, money, which the owner has no control over, but stays<br />

continuous throughout the loop. The main difference <strong>is</strong> the owner’s ability to change C-M-C<br />

into what he or she desires, whereas the M-C-M always returns to its former self.<br />

Hans: C means commodity, not capital! You cannot have read the assignments carefully at all to make such a<br />

m<strong>is</strong>take. I also do not see how the owner has no control over money. Nevertheless, the general idea <strong>of</strong> your answer<br />

<strong>is</strong> right.<br />

Message [267] referenced by [277], [305], [392.3], and [420.3]. Next Message by Bandit <strong>is</strong> [329].<br />

[277] Jupiter: Independent/link C-M-C <strong>is</strong> named as an independent act for the fact that<br />

within its frame work the end goal <strong>is</strong> to purchase a commodity for consumption. Th<strong>is</strong> <strong>is</strong> set<br />

up for the bearer <strong>of</strong> a certain commodity to sell h<strong>is</strong> commodity in the market for money in<br />

order to purchase another commodity which he or she has a use-value. The final goal has<br />

been met, the conclusion, each act <strong>of</strong> selling and buying on the market <strong>is</strong> independent <strong>of</strong><br />

another transaction. For example I will make a chair and sell it (because I have no use-value<br />

for it), with that money I will purchase another good for which I have a use-value (food),<br />

th<strong>is</strong> transaction <strong>is</strong> final my money well spent <strong>is</strong> gone and not mine any more, nor can I get it<br />

back, the goal <strong>is</strong> met. Th<strong>is</strong> <strong>is</strong> a cycle which all transactions are independent <strong>of</strong> one another,<br />

each with there own goal in mind.<br />

M-C-M, on the other hand <strong>is</strong> the complete opposite or inverse <strong>of</strong> the prior mentioned. The<br />

main difference in these two different movements <strong>is</strong> that C-M-C, has a final goal and M-C-<br />

M, does not have a final goal. Buying in order to sell <strong>is</strong> how the second works, a final goal if<br />

you will <strong>is</strong> to convert money into more money. There <strong>is</strong> no use-value for the “m<strong>is</strong>er”who <strong>is</strong><br />

seeking to get gains by converting money into more money (M-M). Th<strong>is</strong> <strong>is</strong> how we can say<br />

it <strong>is</strong> a link in the chain, it has no ends it <strong>is</strong> the capital<strong>is</strong>tic thought to constantly buy and sell,<br />

buy and sell... ,which never ends. There <strong>is</strong> no end goal, the movement never fades away.<br />

Hans: It was a review <strong>Question</strong>, i.e., one <strong>of</strong> the simpler <strong>Question</strong>s. Bandit’s [267] was at least partially right, but<br />

you did not refer to it. Your argument had a few flaws. You say that in C-M-C, “the final goal has been met.” If<br />

someone does M-C-M’ successfully, has he then not met h<strong>is</strong> final goal? You seem to say no, because money has no<br />

use value. Th<strong>is</strong> <strong>is</strong> not the same as Marx’s argument. It <strong>is</strong> also not right to characterize C-M-C as<br />

a cycle which all transactions are independent <strong>of</strong> one another, each with there own goal in<br />

mind.<br />

Message [277] referenced by [305] and [392.3]. Next Message by Jupiter <strong>is</strong> [346.1].<br />

[305] Slacker: Addition to 213 I think there <strong>is</strong> more to it than Bandit has addressed.<br />

C-M-C <strong>is</strong> independent in the sense that its motivation <strong>is</strong> to an specific end, the sale <strong>of</strong> one<br />

commodity for the purchase <strong>of</strong> another. Th<strong>is</strong> <strong>is</strong> done to sat<strong>is</strong>fy some want. M-C-M <strong>is</strong> a<br />

capital<strong>is</strong>t venture where the goal <strong>is</strong> to use X quanity <strong>of</strong> money to buy some commodity that<br />

you will sell for Y quantity <strong>of</strong> money. The goal <strong>is</strong> that Y ¿ X. Th<strong>is</strong> <strong>is</strong> the generation <strong>of</strong> pr<strong>of</strong>it<br />

and for the capital<strong>is</strong>t the reason for ex<strong>is</strong>tance. Th<strong>is</strong> <strong>is</strong> what makes it a link in the chain.<br />

Hans: Your explanation <strong>of</strong> C-M-C <strong>is</strong> better than Bandit’s, but Jupiter’s [277] has already said the same thing. On<br />

the other hand, Bandit’s [267] has a better explanation than yours why M-C-M <strong>is</strong> a link in a chain: simply because<br />

the second M looks exactly like the first, and it <strong>is</strong> ready to enter the same cycle over again.<br />

First Message by Slacker <strong>is</strong> [91].<br />

[346.1] Jupiter: C-M-C <strong>is</strong> an independent act because <strong>of</strong> the method in which the actions<br />

take place. Say a person enters the market with a commodity (that he or she has produced),<br />

th<strong>is</strong> commodity <strong>is</strong> then sold for money to a person who <strong>is</strong> seeking th<strong>is</strong> particular item to<br />

sat<strong>is</strong>fy a particular use.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 205<br />

Th<strong>is</strong> person who has sold the commodity has now money in their possession to go and<br />

purchase a item that they have a need for, th<strong>is</strong> item <strong>is</strong> them bought and consumed. The<br />

process has ended at th<strong>is</strong> particular time and the needs have been met by all those who<br />

participated in the transaction.<br />

The commodities have been used and the money <strong>is</strong> gone on into the hands <strong>of</strong> others, it <strong>is</strong><br />

irreversible, the money <strong>is</strong> no longer theirs. The process will go on in order to fill all needs, it<br />

<strong>is</strong> a cycle but not a repetitive cycle, a person will use th<strong>is</strong> regime to acquire commodities <strong>of</strong><br />

all sorts to sat<strong>is</strong>fy their needs, each with a independent goal in mind, these acts are indeed<br />

independent <strong>of</strong> one another.<br />

M-C-M, on the other hand, <strong>is</strong> a reversal <strong>of</strong> the above mentioned, it entails a person going<br />

to the market with the intention to purchase a commodity, then turning around to sell the<br />

same commodity for a hopeful gain or surplus in money. Th<strong>is</strong> <strong>is</strong> referred to as a a chain<br />

<strong>of</strong> events but the events are not independent as was C-M-C. The final goal in th<strong>is</strong> series <strong>of</strong><br />

events <strong>is</strong> to have money create more money through “working the market”. So as one can<br />

see there <strong>is</strong> really no end in th<strong>is</strong> process, the use value <strong>of</strong> the commodity <strong>is</strong> being perverted<br />

into a capital<strong>is</strong>t scheme in order to get gains, and th<strong>is</strong> will hurt or exploit those who are on<br />

either end <strong>of</strong> th<strong>is</strong> plan!<br />

Message [346-1] referenced by [457]. Next Message by Jupiter <strong>is</strong> [346.2].<br />

[356.3] Snake: c-m-c...m-c-m (commodity-money-commodity) c-m-c <strong>is</strong> the representation<br />

<strong>of</strong> direct barter. (money-commodity-money) m-c-m <strong>is</strong> a representation <strong>of</strong> capital<strong>is</strong>m.<br />

Where as, c-m-c motivation <strong>is</strong> to a specific end. In use in direct barter you have to have<br />

independent exchange among two individuals. Where the remaining stage <strong>is</strong> the independent<br />

act <strong>of</strong> the owner. m-c-m <strong>is</strong> a capital<strong>is</strong>t venture where the goal <strong>is</strong> to use A quainty <strong>of</strong><br />

money to buy some commodity that you will sell for B qaunity <strong>of</strong> money. Where B quanity<br />

<strong>of</strong> money <strong>is</strong> greater than A quanity <strong>of</strong> money. Which starts as money and then returns to the<br />

basic form <strong>of</strong> capital, money, in which the owner has no control over the situation. It stays<br />

continous throughout the loop.<br />

Hans: You are reproducing the m<strong>is</strong>understandings about th<strong>is</strong> <strong>Question</strong> in the past answers, without taking into<br />

consideration what I wrote in response to them. You did not think through the <strong>Question</strong> enough. See also my [457]<br />

for additional explanation.<br />

Next Message by Snake <strong>is</strong> [357.1].<br />

[356.1] Reidar: In the C-M-C process, the owner <strong>of</strong> a product or commodity sells h<strong>is</strong>/her<br />

product and receives money in return. He does th<strong>is</strong> in order to use the money he/she receives<br />

to purchase a commodity he wants, a commodity which holds a use-value for him. In th<strong>is</strong><br />

process the money he received <strong>is</strong> expended on the commodity he/she purchased. The process<br />

<strong>is</strong> over.<br />

In the explanation from Marx, if the owner initiates a second transaction by selling the<br />

same type <strong>of</strong> commodity and again spends the proceeds on a commodity which he wants,<br />

th<strong>is</strong> second transaction takes place independent <strong>of</strong> the first.<br />

Therefore, C-M-C transactions occur independently <strong>of</strong> one another. They conclude with<br />

the expenditure <strong>of</strong> the M, and a new C-M-C does not begin with the same commodity the<br />

owner has already sold.<br />

206 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

In the M-C-M process, the owner <strong>of</strong> money buys a commodity only in order to sell the<br />

commodity in exchange for M. You pointed out that Bandit said, “it starts with money”<br />

and returns again to money at the conclusion <strong>of</strong> the transaction. It <strong>is</strong> the same thing which<br />

the owner started with and <strong>is</strong> simply forwarded to the next M-C-M transaction. Therefore<br />

M-C-M <strong>is</strong> a continuous chain with money being forwarded.<br />

Hans: Very good.<br />

Next Message by Reidar <strong>is</strong> [356.2].<br />

[369.3] Camera: C-M-C <strong>is</strong> an independent act because the last step changes money to a<br />

commodity by a purchasing act by the holder. The same piece <strong>of</strong> money <strong>is</strong> d<strong>is</strong>placed twice.<br />

In M-C-M it <strong>is</strong> the commodity that <strong>is</strong> d<strong>is</strong>placed twice. C-M-C’s result <strong>is</strong> money converted to<br />

a use-value bearing commodity; the money <strong>is</strong> spent for the last time. The process ends there<br />

and does not lead to further market activity, therefore <strong>is</strong> an independent act. In M-C-M the<br />

money <strong>is</strong> laid out always with the intention <strong>of</strong> regaining it, so it <strong>is</strong> not spent but advanced<br />

with the future <strong>of</strong> being used in another market transaction. As a result, the “link in a chain”<br />

idea <strong>is</strong> establ<strong>is</strong>hed.<br />

Hans: Your answer summarizes the thrust <strong>of</strong> Marx’s argument better than my question does.<br />

Next Message by Camera <strong>is</strong> [369.4].<br />

[392.3] CaseWorker: c-m-c <strong>is</strong> named as an independent act for the fact that within its<br />

frame work the end goal <strong>is</strong> to purchase a commodity for consumption. Th<strong>is</strong> <strong>is</strong> set up for<br />

the bearer <strong>of</strong> a certain commodity to sell h<strong>is</strong> commodity in the market for money in order to<br />

purchase another commodity which he or she has a use value.<br />

The reason m-c-m <strong>is</strong> a link in the chain <strong>is</strong> because it starts with money and return to<br />

the basic form <strong>of</strong> capital(money), which the owner has no control over, but stays continuos<br />

throughout the loo<br />

Hans: You copied some relevant sentences from [277] and [267], but I would have poreferred you saying it in your<br />

own words.<br />

Next Message by CaseWorker <strong>is</strong> [398].<br />

[393.1] Angela: The C-M-C <strong>is</strong> an independent act because the last term <strong>is</strong> a commodity<br />

and money in here will be expended and the buyer will have a use-value for the commodity.<br />

And the M-C-M <strong>is</strong> a link in a chain, Because the commodity in here likes a medium to trade<br />

in the market in order to increase the money. So the money in here will not be expended<br />

but it will be increseing with selling the commodity. So the agent will repeat the buying the<br />

commodity and selling the same commodity to earn more money and the commodity in here<br />

has no use- value.<br />

Hans: I don’t like the last part <strong>of</strong> your last sentence:<br />

the commodity in here (in M-C-M) has no use-value.<br />

The C in M-C-M has the use value to increase itsw value. The fact that money has no use value <strong>of</strong> its own <strong>is</strong> <strong>is</strong> not<br />

what makes M-C-M a link in a chain.<br />

Next Message by Angela <strong>is</strong> [394].<br />

[395.2] Super: C-M-C <strong>is</strong> an independent act because the money in the end has changed to<br />

a commodity which <strong>is</strong> seen as use-value. Th<strong>is</strong> money therefore has been spent as a final act.<br />

The money was spent in exchange for a different commodity than what the owner previously<br />

had.<br />

In M-C-M the buyer intends on recovering the money at a later time with the sale <strong>of</strong> the<br />

commodity he purchased in the first step. The money <strong>is</strong> d<strong>is</strong>pensed into circulation with the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 207<br />

intention <strong>of</strong> recovering it again. The money in M-C-M <strong>is</strong>n’t spent, it <strong>is</strong> transformed into a<br />

commodity, then transformed back to money again. Th<strong>is</strong> <strong>is</strong> a continuous chain.<br />

Hans: Good.<br />

Next Message by Super <strong>is</strong> [404].<br />

[405.5] Chacci: C-M-C <strong>is</strong> an independent act because a commodity <strong>is</strong> traded for another<br />

commodity that has more use-value for the producer. The purpose <strong>of</strong> the C-M-C movement<br />

<strong>is</strong> to achieve use-value. Th<strong>is</strong> makes it independent because the commodity producer has<br />

achieved h<strong>is</strong> goal, more use value. The purpose <strong>of</strong> the M-C-M movement <strong>is</strong> to obtain more<br />

exchange-value. Th<strong>is</strong> means that the money-owner would gain the same qualitative as he<br />

started with. While the C-M-C movement has achieved a definite change in qualitative value.<br />

For example, I would take commodity A to the market because it had no use-value to me. I<br />

would trade it for money or for another commodity B, which has more use value for me. I<br />

have achieved my goal <strong>of</strong> obtaining something that has more use-value to me, and I would<br />

consume it. Th<strong>is</strong> follows the path C-M-C, which <strong>is</strong> an independent. If I was a money owner<br />

I would trade my money for a commodity. I would then put value into the commodity, by<br />

labor, then trade it for a higher exchange-value. Th<strong>is</strong> would follow the M-C-M movement.<br />

I would have more money, M’, to continue in the above fashion to obtain more exchange<br />

value. Thus the movement <strong>is</strong> only a link in a chain <strong>of</strong> events.<br />

Hans: Very good.<br />

Next Message by Chacci <strong>is</strong> [405.6].<br />

[420.3] Punani: C-M-C <strong>is</strong> named as an independent act for the fact that within its framework<br />

the end goal <strong>is</strong> to purchase a commodity for consumption. The reason M-C-M <strong>is</strong> a<br />

link in the chain <strong>is</strong> because it starts with money and returns to the basic form <strong>of</strong> commodity,<br />

which the owner has no control over, but stays continuous throughout the loop, thus it enters<br />

the same cycle over again. Another explanation <strong>of</strong> C-M-C <strong>is</strong> that C-M-C <strong>is</strong> independent in<br />

the sense that its motivation to an specific end, the sale <strong>of</strong> one commodity for the purchase<br />

<strong>of</strong> another. Th<strong>is</strong> purpose <strong>is</strong> to sat<strong>is</strong>fy wants.<br />

Hans: Why do you copy someone else’s sentence (from [267]) and then change a key word into its opposite,<br />

instead <strong>of</strong> formulating your own argument?<br />

Next Message by Punani <strong>is</strong> [420.4].<br />

[429.1] Scott: M-C-M’ <strong>is</strong> a link in a chain since it <strong>is</strong> self-propagating, such as a hermaphroditic<br />

plant reproduces. The M easily becomes M’, at a different quantity or it would be meaningless,<br />

(i.e. M cannot = M’), and the cycle continues. M’ has the appearance <strong>of</strong> M, but <strong>of</strong> a<br />

different quantity.<br />

C-M-C <strong>is</strong> usually independent, and cannot clearly propagate itself in many instances. For<br />

example, when the second C <strong>is</strong> consumed, the “act” <strong>is</strong> completed. C-M-C ends with a sale<br />

and thereby “falls out <strong>of</strong> circulation into consumption.” C-M-C <strong>is</strong> driven by sat<strong>is</strong>faction <strong>of</strong><br />

needs or use-values whereas M-C-M <strong>is</strong> driven by exchange-value.<br />

Hans: Excellent!<br />

Next Message by Scott <strong>is</strong> [430.1].<br />

[457] Hans: Jupiter’s answer I will bring here Jupiter’s test resubm<strong>is</strong>sion [346-1] together<br />

with my detailed comments, so that you can see how I would like th<strong>is</strong> question answered.<br />

Jupiter’s first sentence correctly identifies the method as that which makes C-M-C<br />

an independent act:<br />

208 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

C-M-C <strong>is</strong> an independent act because <strong>of</strong> the method in which the actions<br />

take place.<br />

By their purpose, the different acts C-M-C performed by the same simple commodity<br />

producer are usually not independent. They must provide for the continued living <strong>of</strong> the<br />

commodity producer. But since he tries to achieve th<strong>is</strong> through commodity production, he<br />

must to perform a series <strong>of</strong> <strong>is</strong>olated acts to achieve th<strong>is</strong> continuous end.<br />

Next Jupiter writes:<br />

Say a person enters the market with a commodity (that he or she has produced),<br />

th<strong>is</strong> commodity <strong>is</strong> then sold for money to a person who <strong>is</strong> seeking<br />

th<strong>is</strong> particular item to sat<strong>is</strong>fy a particular use. Th<strong>is</strong> person who has sold the<br />

commodity has now money in their possession to go and purchase a item<br />

that they have a need for, th<strong>is</strong> item <strong>is</strong> them bought and consumed. The process<br />

has ended at th<strong>is</strong> particular time and the needs have been met by all<br />

those who participated in the transaction.<br />

Th<strong>is</strong> <strong>is</strong> good, but there <strong>is</strong> an error in the last sentence. Not all participants have completed<br />

their tasks. Th<strong>is</strong> would be true in direct barter, but here the buyer <strong>of</strong> your commodity has<br />

fin<strong>is</strong>hed h<strong>is</strong> C-M-C, while the seller <strong>of</strong> the commodity you bought just has obtained money<br />

and therefore <strong>is</strong> in the middle <strong>of</strong> h<strong>is</strong> C-M-C (assuming that everyone involved does C-M-C,<br />

it <strong>is</strong> different if some do M-C-M). Th<strong>is</strong> interweaving <strong>of</strong> different half-fin<strong>is</strong>hed transactions<br />

contains the possibility <strong>of</strong> breakdown (cr<strong>is</strong><strong>is</strong>) which <strong>is</strong> not present in the direct barter.<br />

Jupiter goes on:<br />

The commodities have been used and the money <strong>is</strong> gone on into the hands<br />

<strong>of</strong> others, it <strong>is</strong> irreversible, the money <strong>is</strong> no longer theirs.<br />

Marx says th<strong>is</strong> in 250:2 in order to contrast it with the situation M-C-M, in which the end<br />

point, money, <strong>is</strong> immediately again the starting point for a new cycle. In C-M-C, the second<br />

commodity will be consumed, and the consumer has to produce a new commodity in order<br />

to start a new C-M-C. Th<strong>is</strong> <strong>is</strong> perhaps what Jupiter means with the next passage, but it <strong>is</strong> not<br />

very clear:<br />

The process will go on in order to fill all needs, it <strong>is</strong> a cycle but not a<br />

repetitive cycle, a person will use th<strong>is</strong> regime to acquire commodities <strong>of</strong> all<br />

sorts to sat<strong>is</strong>fy their needs, each with a independent goal in mind, these acts<br />

are indeed independent <strong>of</strong> one another.<br />

M-C-M, on the other hand <strong>is</strong> a reversal <strong>of</strong> the above mentioned, it entails a<br />

person going to the market with the intention to purchase a commodity, then<br />

turning around to sell the same commodity for a hopeful gain or surplus in<br />

money. Th<strong>is</strong> <strong>is</strong> referred to as a a chain <strong>of</strong> events but the events are not<br />

independent as was C-M-C.<br />

<strong>Question</strong> 213 asks you to argue why the first M-C-M and the second M-C-M depend on<br />

each other, while the first C-M-C and the second C-M-C are independent. Jupiter <strong>is</strong> confused


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 209<br />

about th<strong>is</strong>. He <strong>is</strong> talking about the dependence <strong>of</strong> the two halves M-C and C-M in the same<br />

M-C-M. Of course they are dependent, but in C-M-C, the first half C-M and the second half<br />

M-C depend on each other too.<br />

The final goal in th<strong>is</strong> series <strong>of</strong> events <strong>is</strong> to have money create more money<br />

through “working the market”. So as one can see there <strong>is</strong> really no end<br />

in th<strong>is</strong> process, the use-value <strong>of</strong> the commodity <strong>is</strong> being perverted into a<br />

capital<strong>is</strong>t scheme in order to get gains, and th<strong>is</strong> will hurt or exploit those<br />

who are on either end <strong>of</strong> th<strong>is</strong> plan!<br />

Jupiter <strong>is</strong> right, Marx will argue a little later in chapter Four that M-C-M <strong>is</strong> also by its<br />

intention an unlimited process. But here, around <strong>Question</strong> 213, Marx emphasizes that it <strong>is</strong><br />

also by its method much more susceptible to th<strong>is</strong> unlimited character. It does not take extra<br />

effort by the capital<strong>is</strong>t to make it unlimited, the continuation <strong>of</strong> th<strong>is</strong> process beyond the first<br />

M-C-M <strong>is</strong> quasi automatic, since the capaital<strong>is</strong>t already has the money in h<strong>is</strong> hands with<br />

which to re-start the process.<br />

Message [457] referenced by [356.3]. Next Message by Hans <strong>is</strong> [460].<br />

<strong>Question</strong> 216 <strong>is</strong> 198 in 1995WI, 216 in 1996ut, 233 in 1997WI, 297 in 1997sp, 286 in<br />

1997ut, 323 in 2000fa, 342 in 2001fa, 385 in 2003fa, 440 in 2007fa, and 515 in 2011fa:<br />

<strong>Question</strong> 216 <strong>What</strong> <strong>is</strong> capital?<br />

[300] Snake: capital Wealth by means <strong>of</strong> currency or property, which <strong>is</strong> owned or used by<br />

an individual or group association. Wealth, in what ever form used, to produce more <strong>wealth</strong>.<br />

Some key elements <strong>of</strong> capital could be the source <strong>of</strong> pr<strong>of</strong>its or benefit, assets, resources,<br />

energy and education. To make the most <strong>of</strong> capital in order to take advantage <strong>of</strong> for personal<br />

pr<strong>of</strong>it or power. Th<strong>is</strong> although does not include operating cost. It <strong>is</strong> purely an accumulated<br />

stock <strong>of</strong> such <strong>wealth</strong>.<br />

Hans: Instead <strong>of</strong> “<strong>wealth</strong>” it would be better to say “value”, because the value <strong>is</strong> what counts, not the use value.<br />

The use values are only the means to get more value. I also do not agree with the sentence:<br />

Some key elements <strong>of</strong> capital could be the source <strong>of</strong> pr<strong>of</strong>its or benefit, assets, resources, energy<br />

and education.<br />

Marx would not use a classification like th<strong>is</strong>; can you see whay? Finally I don’t understand what you mean with<br />

the following sentence:<br />

Th<strong>is</strong> although does not include operating cost. It <strong>is</strong> purely an accumulated stock <strong>of</strong> such<br />

<strong>wealth</strong>.<br />

Next Message by Snake <strong>is</strong> [356.3].<br />

<strong>Question</strong> 217 <strong>is</strong> 182 in 1995ut, 234 in 1997WI, 294 in 1998WI, 306 in 1999SP, 344 in<br />

2001fa, 373 in 2002fa, 387 in 2003fa, 442 in 2007SP, 445 in 2007fa, 452 in 2008SP, 455<br />

in 2008fa, and 474 in 2009fa:<br />

<strong>Question</strong> 217 Why does monetary <strong>wealth</strong> have the tendency to multiply itself?<br />

[316] Fox: We talked in class how the pure form <strong>of</strong> capital (gold, precious stones, money)<br />

<strong>is</strong> something that <strong>is</strong> always sought after more than other forms <strong>of</strong> capital because it can be<br />

used in every market. I believe that one reason that monetary <strong>wealth</strong> will multiply itself <strong>is</strong><br />

the barrier into the capital market. Monetary <strong>wealth</strong> lets you in the door <strong>of</strong> the capital<strong>is</strong>t<br />

210 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

world. There are hundreds <strong>of</strong> people that have great ideas to compete in different markets<br />

today, but they are kept out because <strong>of</strong> a lack <strong>of</strong> monetary <strong>wealth</strong>. How <strong>of</strong>ten have you heard<br />

people complain that they have a great idea for a product if they could only get the money<br />

to ge things started. There are some great “rags to riches” stories about how a very poor<br />

person makes it in the world and becomes <strong>wealth</strong>y, but at some point that person had to get<br />

the capital to start their big idea. The person with that capital <strong>is</strong> the one who had h<strong>is</strong> foot in<br />

the door and lets the individual with the idea come into the market.<br />

Message [316] referenced by [322]. Next Message by Fox <strong>is</strong> [617.5].<br />

[322] Hans: Down with the Fact-Value D<strong>is</strong>tinction! The argument in Fox’s [316] starts<br />

with the obverse side <strong>of</strong> the coin: that it <strong>is</strong> impossible to get rich without money, even if one<br />

<strong>is</strong> a hard worker and has good ideas. Why? Fox does not formulate it the way I am going to<br />

formulate it now, because he tries to stay value-neutral, but as I read it, a clear text version<br />

<strong>of</strong> h<strong>is</strong> answer <strong>is</strong>: the workers themselves cannot get rich from their ideas and their labor,<br />

because they do not have access to the means <strong>of</strong> production (Fox calls it the “barrier into the<br />

capital market”). Those who monopolize the means <strong>of</strong> production can therefore get rich <strong>of</strong>f<br />

the backs <strong>of</strong> the workers. In other words, money has the magical property <strong>of</strong> begetting more<br />

money because, due to private ownership <strong>of</strong> means <strong>of</strong> production, money allows you to take<br />

part in the exploitation <strong>of</strong> the workers. It <strong>is</strong> up to you to decide whether Fox’s value neutral<br />

description [136] or my value-explicit clear-text version <strong>is</strong> a more accurate characterization<br />

<strong>of</strong> what <strong>is</strong> really happening.<br />

Message [322] referenced by [2007SP:1048]. Next Message by Hans <strong>is</strong> [324].<br />

<strong>Question</strong> 221 <strong>is</strong> 200 in 1995WI, 186 in 1995ut, 221 in 1996ut, 238 in 1997WI, and 291 in<br />

1997ut:<br />

<strong>Question</strong> 221 D<strong>is</strong>cuss the social role <strong>of</strong> the capital<strong>is</strong>t. <strong>What</strong> role does greed play in capital<strong>is</strong>m?<br />

[276] Jupiter: make-up subm<strong>is</strong>sion The social role <strong>of</strong> a capital<strong>is</strong>t <strong>is</strong> to get gains, power,<br />

honor, property etc. The capital<strong>is</strong>t <strong>is</strong> a major player in the market he or she has to know<br />

the role that each product or commodity plays in the market, as well as knowing the usevalue<br />

<strong>of</strong> these commodities in order to sell them again to other buyers. Capital<strong>is</strong>ts have many<br />

different roles in society, the goal in which the ideology <strong>of</strong> a capital<strong>is</strong>t would (in my opinion)<br />

be to get to the top by exploiting others in order to get what best suits their needs, at that<br />

particular moment in time. Once they get to the top if they ever do, they will continue to<br />

exploit others, continue to strive for more power and property thinking th<strong>is</strong> will bring them<br />

honor. In one sentence, doing whatever it takes to get more gains (whatever form) at the<br />

least amount <strong>of</strong> cost.<br />

Greed as one can see <strong>is</strong> going to be enveloped in th<strong>is</strong> ideology. Living in a capital<strong>is</strong>tic<br />

society, we encounter it every day <strong>of</strong> our lives people can not be sat<strong>is</strong>fied with what they<br />

have. It begins to consume their thoughts and actions as to how to get more, to hoard all the<br />

commodities and sell them for more, to make a pr<strong>of</strong>it <strong>of</strong>f <strong>of</strong> them. Greed has evolved as a<br />

main interwoven thread that may or may not be seen, there are different levels <strong>of</strong> greed but<br />

with all capital<strong>is</strong>ts there <strong>is</strong> going to be certain amounts within their economic actions.<br />

Hans: Your first sentence <strong>is</strong>:<br />

The social role <strong>of</strong> a capital<strong>is</strong>t <strong>is</strong> to get gains, power, honor, property etc.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 211<br />

Th<strong>is</strong> <strong>is</strong> not the social function <strong>of</strong> the capital<strong>is</strong>t but perhaps h<strong>is</strong> individual motivation.<br />

Then you do give a social role: he has to know the market and has to do many <strong>of</strong> those tasks which would be<br />

done by a central planning <strong>of</strong>fice in a planned economy.<br />

The third function you give can be summarized in your last sentence:<br />

Doing whatever it takes to get more gains (whatever form) at the least amount <strong>of</strong> cost.<br />

Again, th<strong>is</strong> <strong>is</strong> a social function seen through the lenses <strong>of</strong> individual motivation. The social function <strong>is</strong> the one <strong>of</strong><br />

promoting M-C-M’ and while doing th<strong>is</strong> developing the productive forces.<br />

Had you read the three pages R738–741 more carefully, which were recommended in the Annotations for th<strong>is</strong><br />

<strong>Question</strong>, you would probably have understood the <strong>Question</strong> better.<br />

Next Message by Jupiter <strong>is</strong> [277].<br />

<strong>Question</strong> 224 <strong>is</strong> 199 in 1995WI, 189 in 1995ut, 305 in 1997sp, 294 in 1997ut, and 454 in<br />

2007SP:<br />

<strong>Question</strong> 224 Which other form does capital have besides money, and what d<strong>is</strong>tingu<strong>is</strong>hes<br />

the money form from the other form?<br />

[275] Positive: According to Marx, capital <strong>is</strong> predicted on the exchange <strong>of</strong> commodities,<br />

trade in commodities, but it may be formed at various stages <strong>of</strong> production. The other<br />

form <strong>of</strong> capital besides money <strong>is</strong> a commodity. Money cannot be a form <strong>of</strong> capital without<br />

commodities. Commodities possess the abstract-labor, and the use-value in which value <strong>is</strong><br />

based on. The d<strong>is</strong>tinction that money has from other capital <strong>is</strong> that it has no internal value<br />

(no abstract labor). Money has to be exchanged with something that has use-value to become<br />

<strong>of</strong> value itself.<br />

Hans: Reading your first sentence I could imagine that you possibly mean something right, but it <strong>is</strong> very poorly<br />

formulated. The difference between money and commodity <strong>is</strong> not that the commodity contains abstract labor and<br />

money does not, but that capital can increase its value only in commodity form . Th<strong>is</strong> <strong>is</strong> a big difference. See<br />

lamma’s [284] for a correct answer.<br />

Next Message by Positive <strong>is</strong> [335.2].<br />

[284] Lamma: make up question The thing that sets the two apart lies in the action <strong>of</strong><br />

the commodity. Money itself <strong>is</strong> simply money and <strong>is</strong> valued at its face value. However the<br />

commodity represents a means to reproduce itself and keep making money. Money acts as<br />

the starting point to identify itself. Commodities act as the means to creating more and then<br />

turning back into money. So money would be the start and the end <strong>of</strong> the cycle. It <strong>is</strong> th<strong>is</strong><br />

action that a commodity holds within itself that sets the two appart.<br />

Hans: Very good!<br />

Message [284] referenced by [275]. Next Message by Lamma <strong>is</strong> [368.3].<br />

<strong>Question</strong> 226 <strong>is</strong> 191 in 1995ut:<br />

<strong>Question</strong> 226 <strong>What</strong> <strong>is</strong> merchants’ capital? industrial capital? money-lending capital?<br />

[302] Scott: Mercantil<strong>is</strong>ts’ capital <strong>is</strong> “buying to sell dearer” which refers to speculative<br />

buying in regards to appreciation, refinement, or even transportation to the buyer by<br />

the seller. Home purchases and the turning over <strong>of</strong>, would be a good example in the last<br />

five years in the greater SL valley. Industrial<strong>is</strong>t capital defined by Marx as “money which<br />

has been changed into commodities and reconverted into more money by the sale <strong>of</strong> these<br />

commodities.” One example <strong>of</strong> th<strong>is</strong> would be <strong>of</strong> a cars’ production, whereas many <strong>of</strong> the<br />

components are purchased and assembled into a unit for sale. Money-lending capital or<br />

212 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

“money which <strong>is</strong> worth more money, value which <strong>is</strong> greater than itself ” refers to the timevalue<br />

<strong>of</strong> money in financial d<strong>is</strong>cussions. Obviously, interest bearing or the like. Money<br />

begets money.<br />

I am curious about the allusion to the Jews in the phrase “ The capital<strong>is</strong>t knows that<br />

all commodities, however” the condition, sic.... “are by faith and in truth money, are deep<br />

inside circumc<strong>is</strong>ed Jews”...... Is Marx referring to a h<strong>is</strong>toric Jew<strong>is</strong>h “shylock” or money<br />

lender here? If so why the analogy?<br />

Hans: Mercantile capital <strong>is</strong> not necessarily speculative. H<strong>is</strong>torically, merchants have made pr<strong>of</strong>its by buying products<br />

in one country below their value and selling them in another country above their value. They were mediators,<br />

not producers.<br />

Marx’s “definition” <strong>of</strong> industrial capital, which you quote, was meant by Marx to be a characterization from<br />

which the reader could see the communalities between industrial and mercantile capital.<br />

Marx’s “definition” <strong>of</strong> interest-bearing capital, which you also quote, was meant by Marx as an illustration how<br />

mystified the form <strong>of</strong> interest-bearing capital <strong>is</strong>: how can something be worth more than itself. “Time-value <strong>of</strong><br />

money” refers to an explanation <strong>of</strong> th<strong>is</strong> mysterious self-expansion <strong>of</strong> money which Marx does not share.<br />

Marx uses anti-semitic metaphors several times. He wants to say with th<strong>is</strong> that the commodities conform with<br />

the stereotype <strong>of</strong> a Jew, not that real Jews conform with th<strong>is</strong> stereotype.<br />

Next Message by Scott <strong>is</strong> [331].<br />

<strong>Question</strong> 227 <strong>is</strong> 205 in 1995ut and 227 in 1996ut:<br />

<strong>Question</strong> 227 How does Marx define the concept <strong>of</strong> necessary labor if the capital<strong>is</strong>t pays<br />

h<strong>is</strong> workers less than the value <strong>of</strong> the labor power? Is it the time they need to produce an<br />

equivalent <strong>of</strong> the value <strong>of</strong> their labor power, or <strong>is</strong> it the time the workers need to produce an<br />

equivalent <strong>of</strong> the wage they actually get?<br />

[337] MsMarx: Necessary labor According to Marx, the working day can be thought <strong>of</strong><br />

as divided into two parts. Neccessary labor time <strong>is</strong> that part <strong>of</strong> the day in which the worker<br />

recoups for the capital<strong>is</strong>t the value which the capital<strong>is</strong>t has paid in wages. The rest <strong>of</strong> the<br />

working day <strong>is</strong> surplus labor, in which the worker creates surplus-value.<br />

Therefore, the necessary labor <strong>is</strong> the length <strong>of</strong> time every day needed by the worker to<br />

produce an equivalent <strong>of</strong> h<strong>is</strong> or her wage, not the time needed to produce an equivalent <strong>of</strong><br />

the value <strong>of</strong> their labor power.<br />

Hans: Th<strong>is</strong> sounds like an reasonable interpretation.<br />

Next Message by MsMarx <strong>is</strong> [343].<br />

<strong>Question</strong> 228 <strong>is</strong> 206 in 1995ut, 280 in 1997WI, 346 in 1997sp, 345 in 1997ut, 355 in<br />

1998WI, 356 in 1999SP, 442 in 2000fa, and 468 in 2001fa:<br />

<strong>Question</strong> 228 Can one say that the question how th<strong>is</strong> geometric possibility might be turned<br />

into reality goes through the mind <strong>of</strong> every capital<strong>is</strong>t every day?<br />

[361] Karl: ABC’s The answer to th<strong>is</strong> question <strong>is</strong> obviously yes, it does go through every<br />

capital<strong>is</strong>t’s mind. Take the geometric example given in the readings, <strong>of</strong> A——B-C. The ray<br />

A-C representing the total working day. The ray A-B representing the necessary labor time,<br />

while B-C represents surplus labor. The goal <strong>of</strong> the capital<strong>is</strong>t <strong>is</strong> to always give the laborer<br />

less, and himself more surplus. It <strong>is</strong> a well known fact in Marx<strong>is</strong>m, and also neo-classical<br />

economics that the capital<strong>is</strong>t tries to maximize pr<strong>of</strong>its or surplus, or in th<strong>is</strong> case try to shift<br />

B toward A.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 213<br />

Let’s say that the work day <strong>of</strong> A-C <strong>is</strong> 10 hours long. The rate <strong>of</strong> the labor power in terms<br />

<strong>of</strong> dollar magnitude <strong>is</strong> $1/hr. The segment from A-B identifies 8 hours <strong>of</strong> labor or 8/per<br />

working day. Th<strong>is</strong> in symbolic terms identifies necessary labor time, or directly correlates<br />

it’s value to the laborer’s subs<strong>is</strong>tence consumption. The pr<strong>of</strong>it to the capital<strong>is</strong>t then becomes<br />

the surplus skimmed <strong>of</strong>f the laborer. Th<strong>is</strong> <strong>is</strong> simply derived by subtacting A-C(total work<br />

day) minus A-B(subs<strong>is</strong>tence consumption) to total the surplus that the capital<strong>is</strong>t receives.<br />

In th<strong>is</strong> case the capital<strong>is</strong>t receives 2 dollars. The goal <strong>of</strong> the capital<strong>is</strong>t operates on the pig<br />

principle more <strong>is</strong> prefered to less. The capital<strong>is</strong>t in h<strong>is</strong> head wants to make 3$-$10 surplus,<br />

but as we will see th<strong>is</strong> <strong>is</strong> sound mathematically to move B to A, taking in human subsitence<br />

th<strong>is</strong> <strong>is</strong> only the “w<strong>is</strong>hes <strong>of</strong> the capital<strong>is</strong>ts,” as Marx stated.<br />

Marx seems to agree that all capital<strong>is</strong>ts w<strong>is</strong>h to prolong the surplus labor, and shorten<br />

the necessary labor. Th<strong>is</strong> <strong>is</strong> not possible due to the fact that laborers need a necessary subs<strong>is</strong>tence<br />

to keep producing, which <strong>is</strong> represented by necessary labor. The key word here <strong>is</strong><br />

necessary, the laborer needs th<strong>is</strong> wage to survive, th<strong>is</strong> can only be shortened in the very short<br />

run. It <strong>is</strong> due to th<strong>is</strong> conflict <strong>of</strong> interests, that the capital<strong>is</strong>t will never realize the amount <strong>of</strong><br />

prolongation <strong>of</strong> surplus labor that <strong>is</strong> desired. The goal <strong>of</strong> the laborer <strong>is</strong> survival, and subs<strong>is</strong>tence.<br />

While the goal <strong>of</strong> the capital<strong>is</strong>t <strong>is</strong> altered with an incentive to cheat, by taking more<br />

than he himself put in. Therefore we can see in conclusion that the capital<strong>is</strong>t does want to<br />

change the geometric structure <strong>of</strong> A-C, but in the real world the faction between the two<br />

parties do not allow for th<strong>is</strong> to happen.<br />

Hans: Th<strong>is</strong> <strong>Question</strong> was meant to be a question about the capital<strong>is</strong>t’s consciousness; does he see h<strong>is</strong> role in th<strong>is</strong><br />

way? Most capital<strong>is</strong>ts do not even believe that their pr<strong>of</strong>its come from labor. But even if the capital<strong>is</strong>t does not think<br />

in terms <strong>of</strong> Marxian categories, he certainly considers the laborer’s revenue “cost” which he has to reduce like any<br />

other cost.<br />

Next Message by Karl <strong>is</strong> [494].<br />

<strong>Question</strong> 230 <strong>is</strong> 208 in 1995ut, 230 in 1996ut, 282 in 1997WI, 348 in 1997sp, 347 in<br />

1997ut, 357 in 1998WI, 358 in 1999SP, and 470 in 2001fa:<br />

<strong>Question</strong> 230 If the length <strong>of</strong> the working day <strong>is</strong> fixed, then surplus value can be increased<br />

in two ways: either one shortens the necessary labor by extending the surplus labor, or one<br />

extends the surplus labor by shortening the necessary labor. Which <strong>of</strong> these two possibilities<br />

<strong>is</strong> Marx d<strong>is</strong>cussing here?<br />

[345] MUCHO: surplus value According to the book, “Capital<strong>is</strong>t did not invent surplus<br />

labour”(pp. 344) It also states on the same page that “ the worker must add to the labour<br />

time necessary for h<strong>is</strong> own maintenance an extra quality time in order to produce the means<br />

<strong>of</strong> substance for the owner <strong>of</strong> the means <strong>of</strong> production” With these statements, I would think<br />

that Marx <strong>is</strong> trying to d<strong>is</strong>cuss the possibility <strong>of</strong> one extends the surplus labor by shortening<br />

the necessary labor. Because, Marx does not say that it <strong>is</strong> impossible to shorten the necessary<br />

labor (According to Hans). Surplus labor will be restricted by a more or less confined set <strong>of</strong><br />

needs.<br />

Hans: <strong>What</strong> <strong>is</strong> going on? Do you have language difficulties?<br />

Message [345] referenced by [346]. Next Message by MUCHO <strong>is</strong> [345.1].<br />

[346] Hans: Don’t let yourselves be confused by MUCHO’s answer Sometimes someone<br />

says something that <strong>is</strong> so completely <strong>of</strong>f the wall that one has to think: are you crazy or<br />

214 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

am I crazy? I just want to assure you that you are in the same boat as I if you cannot make<br />

sense <strong>of</strong> MUCHO’s answer [345].<br />

Mucho’s second quote from p. 344 has some typos, and neither <strong>of</strong> the two quotes has<br />

anything to do with the <strong>Question</strong>. The quote from my Annotations:<br />

Marx does not say that it <strong>is</strong> impossible to shorten the necessary labor<br />

goes in the opposite direction from what MUCHO <strong>is</strong> using it for, because MUCHO left<br />

out the following words which are: “by lengthening the surplus labor”. The following sentence<br />

Surplus labor will be restricted by a more or less confined set <strong>of</strong> needs.<br />

<strong>is</strong> also a quote, from p. 345, and in its original context it has again nothing to do with the<br />

<strong>Question</strong> at hand.<br />

Next Message by Hans <strong>is</strong> [355].<br />

[362] Pinky: increasing surplus value Marx made it plain that we are to assume that all<br />

commodities, including labor-power, are bought and sold at their full value. Therefore, one<br />

must conclude that as a result; the option <strong>of</strong> reducing the worker’s wage below the value <strong>of</strong><br />

h<strong>is</strong> labor-power <strong>is</strong> a violation <strong>of</strong> the law <strong>of</strong> value and thus, not feasible. Rather, the value <strong>of</strong><br />

the labor-power itself must decline. If such a decline takes place, it <strong>is</strong> no longer a violation<br />

<strong>of</strong> the law <strong>of</strong> value. When th<strong>is</strong> option <strong>is</strong> taken, because “...the same means <strong>of</strong> subs<strong>is</strong>tence<br />

formerly produced in 10 hours can now be produced in 9 hours.” it becomes obvious that the<br />

only way to accomidate for th<strong>is</strong> d<strong>is</strong>crepancy <strong>is</strong> in an increase in the productivity <strong>of</strong> labor.<br />

Message [362] referenced by [367] and [395]. Next Message by Pinky <strong>is</strong> [373].<br />

[367] Hans: Depression <strong>of</strong> wages below value <strong>of</strong> labor power <strong>is</strong> feasible Pinky’s answer<br />

[362] <strong>is</strong> correct, except for the words “not feasible” in the following sentence:<br />

the option <strong>of</strong> reducing the worker’s wage below the value <strong>of</strong> h<strong>is</strong> labor-power<br />

<strong>is</strong> a violation <strong>of</strong> the law <strong>of</strong> value and thus, not feasible.<br />

Marx was enough <strong>of</strong> a real<strong>is</strong>t to know that there are many situations in which capital<strong>is</strong>ts<br />

can get away with lowering the wage below the value <strong>of</strong> labor power. Everybody on a minimum<br />

wage <strong>is</strong> paid less than a “living wage”, i.e., less than the value <strong>of</strong> labor power. Marx’s<br />

argument <strong>is</strong> roughly the following: d<strong>is</strong>crepancies between price and value give additional<br />

icing on the cake for the capital<strong>is</strong>ts, but the cake itself, the bulk <strong>of</strong> exploitation, can be explained<br />

on the bas<strong>is</strong> <strong>of</strong> equal exchange. Marx first wants to study the cake before studying<br />

the icing <strong>of</strong> the cake.<br />

Next Message by Hans <strong>is</strong> [368].<br />

[395] Skyler: question 230 Marx started out by appealing to the capital<strong>is</strong>t point <strong>of</strong> view or<br />

what they would want to do. Then he looks at the method in reality senerio. Marx d<strong>is</strong>cusses<br />

increasing the surplus value by extending the surplus labor by shortening the necessary labor<br />

time. “The necessary labor time <strong>is</strong> the underlying force which determines the div<strong>is</strong>ion <strong>of</strong><br />

the working day.Surplus labor <strong>is</strong> the difference between the whole working-day and the<br />

necessary labor. If the working-day <strong>is</strong> constant, th<strong>is</strong> difference can only be changed by<br />

changing the necessary labor.” Quote out <strong>of</strong> annotations; p.141. On paper th<strong>is</strong> geomtrical<br />

method <strong>is</strong> possible, but in the real world the ability to shift b-b’ <strong>is</strong> not reality, even though


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 215<br />

that would be idle for capital<strong>is</strong>ts. Value <strong>of</strong> daily wage <strong>is</strong> determined by what the workers<br />

needs are. “The price <strong>of</strong> necessaries <strong>of</strong> life <strong>is</strong>, in fact the cost <strong>of</strong> producing labor.” [Mal 15.<br />

p.48 note] Two teams may look equal or very opposite stat<strong>is</strong>tically on paper, but the actual<br />

outcome <strong>of</strong> a game between the two could tell a very different story.<br />

Hans: Your answer <strong>is</strong> ok, but why did you write it after the perfectly sat<strong>is</strong>factory [362]?<br />

Next Message by Skyler <strong>is</strong> [395.3].<br />

<strong>Question</strong> 231 <strong>is</strong> 202 in 1995WI, 209 in 1995ut, 231 in 1996ut, and 283 in 1997WI:<br />

<strong>Question</strong> 231 Did the fixation <strong>of</strong> the lengh <strong>of</strong> the working day d<strong>is</strong>cussed in Chapter Ten<br />

place a lid on exploitation?<br />

[408] Chocolate: worker’s exploitation In my point <strong>of</strong> view, the worker’s wage in our<br />

economic system can never equall the amount <strong>of</strong> labor that the individual has put into making<br />

a product or working for a capatil<strong>is</strong>t. For example, suppose the workers on an assembly line<br />

(producing a car) are paid a wage <strong>of</strong> ten-dollars an hour. And throughout a course <strong>of</strong> a<br />

single day, the workers in the assembly line are able to produce at least one-hundred to twohundred<br />

cars. Each car <strong>is</strong> then sold for an amount <strong>of</strong> about ten to fifty thousand (sometimes<br />

more, sometimes less depending on the make and type <strong>of</strong> the car) dollars. But let’s suppose<br />

the cars on th<strong>is</strong> particular assembly line all sell for twenty-thousand dollars. If the factory<br />

produces one to two-hundred cars a day and eventually sell all <strong>of</strong> them, that would bring<br />

in a return (pr<strong>of</strong>it) much greater than what the worker <strong>is</strong> being paid to make these cars.<br />

The capital<strong>is</strong>t who owns and controls th<strong>is</strong> particular plant never lays a single hand into the<br />

production process. But, because <strong>of</strong> h<strong>is</strong>/her stature h<strong>is</strong> salary <strong>is</strong> at least ten times that <strong>of</strong> the<br />

workers, who actually produce the car. Therefore the workers in the assembly line are being<br />

exploited because they never receive (or benefit) a wage that equals the amount <strong>of</strong> work the<br />

put into producing a car.<br />

But if the hours worked were to be lowered and the wage were to ra<strong>is</strong>ed to a point where<br />

wage does in fact equall the amount labor applied to producing a certain product, then the<br />

worker, in a way <strong>is</strong> not being exploited. They are only exploited in the sense that they never<br />

receive the exact amount <strong>of</strong> what one has put into making that product. They lose a sense<br />

<strong>of</strong> unity with thier product that a painter has with h<strong>is</strong>/her own painting. The vehicle they<br />

produce can last an individual (buyer) anywhere from ten (sometimes shorter) to fifty years,<br />

(sometimes longer). But the wage they are given can only last an individual with a family a<br />

few years. Increasing the working day can only increase the amount <strong>of</strong> exploitation a worker<br />

goes through. Therefore no matter how much (or less) a worker <strong>is</strong> required to work he/she<br />

will always be exploited, because he/she never recieves the full amount <strong>of</strong> payment for the<br />

work one does.<br />

Hans: You see correctly that higher wages and shorter hours will not eliminate exploitation. <strong>What</strong> <strong>is</strong> also needed<br />

<strong>is</strong> that the workers have more say about their product and the labor process.<br />

Message [408] referenced by [463] and [575]. Next Message by Chocolate <strong>is</strong> [425].<br />

[463] MUCHO: exploitation... I absolutely agree with Chocolate’s subm<strong>is</strong>sion [408].<br />

Just fixing the length <strong>of</strong> the working day won’t place any lid on exploitation. The most<br />

important factor for the worker not to be exploited would be only under the wage change.<br />

Otherw<strong>is</strong>e the workers must be exploited. Because they need to get paid the equal amount<br />

216 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> the salary for what they acutely produced. However, I feel that it <strong>is</strong> almost impossible for<br />

the workers to work without exploited in today’s world.<br />

Message [463] referenced by [575]. Next Message by MUCHO <strong>is</strong> [464].<br />

[546] Skippy: Expoitation will never end. The exploitation <strong>of</strong> workers will never end<br />

in society. The working day <strong>is</strong> said to be 8 hours. Too bad that not every company follows<br />

these rules.<br />

A company that hires on a worker has him by h<strong>is</strong> throut. The well being <strong>of</strong> h<strong>is</strong> family<br />

depends on h<strong>is</strong> job. If the company tells him to work exxcessive hours, he will do it because<br />

he needs the support <strong>of</strong> the company to keep h<strong>is</strong> family together.<br />

The head <strong>of</strong> a company wants as much for himself as possible without the concern <strong>of</strong><br />

who <strong>is</strong> below him. They are always replaceable. To hurt the little guy <strong>is</strong> the American way.<br />

More for me <strong>is</strong> the ideals <strong>of</strong> the companies <strong>of</strong> today, no matter what the costs are.<br />

The more a company can exploit h<strong>is</strong> workers, the better <strong>of</strong>f he will be. The work day was<br />

a good try to help the working man out, but if it does not benifit the company, there will be<br />

other hours tacked on until the company <strong>is</strong> happy.<br />

Here in <strong>Utah</strong>, overtime <strong>is</strong> not paid until the working day exceeds 11 hours or 40 hours in<br />

a work week. Most other states will pay overtime for anything over 8 hours and double time<br />

for any hours greater than 12 in a day along with overtime for over a 40 hour work week.<br />

Th<strong>is</strong> <strong>is</strong> a great example <strong>of</strong> exploitation. The entire state agrees to exploit their workers,<br />

to go with there low wages. Th<strong>is</strong> should be the bend-over state.<br />

For exploitation to stop, the heads <strong>of</strong> the companies, and governments have got to stop<br />

thinking <strong>of</strong> themselves and open their eyes’ to the big picture. The little guy supports him.<br />

Without the little doing h<strong>is</strong> work for him, he <strong>is</strong> nothing. You must take care <strong>of</strong> those who<br />

take care <strong>of</strong> you.<br />

Message [546] referenced by [575]. Next Message by Skippy <strong>is</strong> [590].<br />

[575] Hans: Can there be an end to exploitation? Th<strong>is</strong> <strong>Question</strong> was asked with a very<br />

specific situation in mind. Although the working class could in protracted struggles push<br />

through a legal limitation <strong>of</strong> the working day in England in the 1850s, th<strong>is</strong> did not mean that<br />

exploitation stopped or dimin<strong>is</strong>hed. Chapter Twelve shows that even if the total length <strong>of</strong> the<br />

working day <strong>is</strong> fixed, exploitation can increase by the increase <strong>of</strong> relative surplus value. Th<strong>is</strong><br />

<strong>is</strong> an example how the capital<strong>is</strong>t system integrates reforms without losing its fundamental<br />

character.<br />

Many answers think capital<strong>is</strong>m <strong>is</strong> so resilient, it will stay here for ever. They take the<br />

<strong>Question</strong> therefore in a much broader sense, namely, saying that exploitation <strong>of</strong> the worker<br />

can never stop.<br />

Chocolate makes th<strong>is</strong> point not only in [408] but also in h<strong>is</strong> subm<strong>is</strong>sion to the d<strong>is</strong>cussion<br />

l<strong>is</strong>t [425]: Even under the highest wage, the workers will still be exploited because they<br />

cannot have the same sat<strong>is</strong>faction as say a painter, because the product does not belong<br />

to them. Marx agrees with th<strong>is</strong> particular point, although he does not draw the sin<strong>is</strong>ter<br />

conclusion that exploitation must be with us for ever. Marx says: there <strong>is</strong> no such thing as a<br />

fair wage, what the working class must fight for <strong>is</strong> the abolition <strong>of</strong> wage labor. Only if the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 217<br />

workers are no longer forced to sell their labor power to the highest bidder but can have a<br />

say over their own production process will exploitation cease.<br />

MUCHO’s [463] agrees with Chocolate that exploitation <strong>is</strong> probably here to stay. But to<br />

him, the most important thing <strong>is</strong> not a shorter working day or pride in the product but higher<br />

wages.<br />

Skippy’s [546] looks at the <strong>is</strong>sue in a slightly different light. First <strong>of</strong> all, he emphas<strong>is</strong>es<br />

that the limit on the working day may perhaps ex<strong>is</strong>t on paper, but it does not ex<strong>is</strong>t in reality,<br />

especially not here in <strong>Utah</strong>. A legal fixation <strong>is</strong> not yet a real fixation. In the last paragraph<br />

Skippy proposes the following remedy:<br />

For exploitation to stop, the heads <strong>of</strong> the companies, and governments have<br />

got to stop thinking <strong>of</strong> themselves and open their eyes’ to the big picture.<br />

The little guy supports him. Without the little doing h<strong>is</strong> work for him, he <strong>is</strong><br />

nothing. You must take care <strong>of</strong> those who take care <strong>of</strong> you.<br />

It seems, Skippy has also given up any hopes for an end to exploitation. Instead <strong>of</strong> calling<br />

for the abolition <strong>of</strong> exploitation, he <strong>is</strong> asking the bigshots to take better care <strong>of</strong> the little<br />

guys, because without the little guy doing the work for them they are nothing. Th<strong>is</strong> <strong>is</strong> a very<br />

tame form <strong>of</strong> critic<strong>is</strong>m, because in h<strong>is</strong> proposed kinder gentler capital<strong>is</strong>m there will still be<br />

bigshots and little guys.<br />

Next Message by Hans <strong>is</strong> [598].<br />

<strong>Exam</strong> <strong>Question</strong> 232 <strong>is</strong> 203 in 1995WI, 210 in 1995ut, 232 in 1996ut, 285 in 1997WI, 350 in<br />

1997sp, 349 in 1997ut, 359 in 1998WI, 360 in 1999SP, 472 in 2001fa, 511 in 2002fa, 529<br />

in 2003fa, 582 in 2004fa, 535 in 2005fa, 584 in 2007SP, 591 in 2008fa, 683 in 2010fa,<br />

703 in 2011fa, 732 in 2012fa, and 683 in Answer:<br />

<strong>Exam</strong> <strong>Question</strong> 232 <strong>What</strong> <strong>is</strong> relative surplus-value? Which whole new dimension, which<br />

was so far treated as a given constant, enters the d<strong>is</strong>cussion <strong>of</strong> relative surplus-value?<br />

[336] MsMarx: Relative surplus-value If something <strong>is</strong> relative, it <strong>is</strong> dependent on the<br />

relation to something else; it <strong>is</strong> not absolute. Relative surplus-value <strong>is</strong> “that surplus-value<br />

which ar<strong>is</strong>es from the shortening <strong>of</strong> the necessary labor-time, and from the corresponding<br />

alteration in the respective lengths <strong>of</strong> the two components <strong>of</strong> the working day.” In other<br />

words, relative surplus-value <strong>is</strong> the result <strong>of</strong> changes in the productivity <strong>of</strong> labor and can<br />

only be produced if productivity r<strong>is</strong>es. Surplus value <strong>is</strong> relative because it <strong>is</strong> an increase in<br />

the gap between the capital<strong>is</strong>t and laborer.<br />

The mode <strong>of</strong> production that has thus far been given, has been invariable, and only the<br />

duration <strong>of</strong> the labor process was prolonged. A whole new dimension <strong>is</strong> brought into the<br />

d<strong>is</strong>cussion <strong>of</strong> relative surplus-value as the technical and social conditions and consequently<br />

the mode <strong>of</strong> production <strong>is</strong> revolutionized. As the productivity <strong>of</strong> labor <strong>is</strong> increased, the value<br />

<strong>of</strong> labor power <strong>is</strong> lowered and the portion <strong>of</strong> the working day necessary for the reproduction<br />

<strong>of</strong> that value <strong>is</strong> shortened. An increase in productivity suggests the conditions <strong>of</strong> production<br />

<strong>of</strong> labor, the mode <strong>of</strong> production, and the labor process which would shorten the labor-time<br />

socially necessary for the production <strong>of</strong> a commodity and provide a given quantity <strong>of</strong> labor<br />

the power <strong>of</strong> producing a greater quantity <strong>of</strong> use-value.<br />

218 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Relative surplus-value <strong>is</strong> surplus-value that derives from a reduction in necessary labor<br />

time, d<strong>is</strong>tingu<strong>is</strong>hed from absolute surplus-value, which results from a lengthening <strong>of</strong> the<br />

working day. The terms “absolute” and “relative” apply to changes in the rate <strong>of</strong> surplusvalue<br />

from some initial position. If a capital<strong>is</strong>t froces h<strong>is</strong> workers to work longer hours,<br />

he benefits directly from the resulting (absolute) surplus-value. By contrast, the effect on<br />

surplus-valule <strong>of</strong> productivity increases (relative surplus-value) <strong>is</strong> more indirect.<br />

Surplus value as a total <strong>is</strong> determined first by its rate, and second by the mass <strong>of</strong> labor<br />

simultaneously employed at th<strong>is</strong> rate, or what amounts to the same, by the magnitude <strong>of</strong><br />

the variable capital. One <strong>of</strong> these factors, the rate <strong>of</strong> surplus value, r<strong>is</strong>es, and the other,<br />

the number <strong>of</strong> laborers, falls (relatively or absolutely). Inasmuch as the development <strong>of</strong> the<br />

productive forces reduces the paid portion <strong>of</strong> employed labor, it ra<strong>is</strong>es the surplus-value,<br />

because it ra<strong>is</strong>es its rate; but inasmuch as it reduces the total mass <strong>of</strong> labor employed by<br />

a given capital, it reduces the factor <strong>of</strong> the number by which the rate <strong>of</strong> surplus-value <strong>is</strong><br />

multiplied to obtain its mass.<br />

The absolute increase in the mass <strong>of</strong> capital depends on its ex<strong>is</strong>ting magnitude. But,<br />

on the other hand, if th<strong>is</strong> magnitude <strong>is</strong> given, the proportion <strong>of</strong> its growth or the rate <strong>of</strong><br />

its increment, depends on the rate <strong>of</strong> pr<strong>of</strong>it. The increase in the productiveness can directly<br />

only increase that portion <strong>of</strong> the value <strong>of</strong> the annual product which <strong>is</strong> reconverted into capital.<br />

Regarding the productivity <strong>of</strong> labor, th<strong>is</strong> can only occur by ra<strong>is</strong>ing the relative surplus-value,<br />

or reducing the value <strong>of</strong> the constant capital, so that the commodities which enter either the<br />

reproduction <strong>of</strong> labor-power or the elements <strong>of</strong> constant capital, are cheapened.<br />

Hans: Since you are always trying to be comprehensive, look in my [424] to see which aspect <strong>of</strong> the <strong>Question</strong> you<br />

did not emphasize enough here.<br />

Message [336] referenced by [376] and [424]. Next Message by MsMarx <strong>is</strong> [336.1].<br />

[376] Emma: To understand what relative surplus-value <strong>is</strong>, one must first understand the<br />

concepts <strong>of</strong> “necessary” and “surplus” labor and, surplus-value and absolute surplus-value.<br />

Necessary labor <strong>of</strong> a society <strong>is</strong> the amount <strong>of</strong> labor required for reproducing that society<br />

at a certain material and cultural level. Surplus labor <strong>is</strong> whatever labor <strong>is</strong> performed over<br />

th<strong>is</strong> minimum amount. Say, for instance, that individually it takes six hours a day to produce<br />

the food, clothing, shelter, etc. necessary to support someone who works eight hours. The<br />

remaining two hours represent surplus labor. <strong>What</strong> the capital<strong>is</strong>t buys <strong>is</strong> the worker’s labor<br />

power. <strong>What</strong> he pays for it equals the cost <strong>of</strong> the reproduction <strong>of</strong> the labor power, the wage.<br />

When the capital<strong>is</strong>t uses the labor power he just purchased and it realizes itself in an amount<br />

<strong>of</strong> labor time greater than the necessary labor time, the capital<strong>is</strong>t makes a pr<strong>of</strong>it. That <strong>is</strong>,<br />

the worker produces surplus labor time that <strong>is</strong> retained by the capital<strong>is</strong>t and not paid out in<br />

a wage. Surplus labor time <strong>is</strong> represented as surplus value. The capital<strong>is</strong>t’s pr<strong>of</strong>dit in th<strong>is</strong><br />

transaction <strong>is</strong> the surplus value created by the surplus labor.<br />

“Absolute” surplus value can change if there <strong>is</strong> a change in the overall length <strong>of</strong> the<br />

working day, since it assumes that necessary labor remains constant. But the amount <strong>of</strong><br />

surplus value can be changed by changing the length <strong>of</strong> necessary labor time in a given<br />

working day through, for example, increasing the productivity necessary for reproducing<br />

labor power. Thus, if the working day <strong>is</strong> eight hours and the necessary part <strong>is</strong> six hours, the<br />

surplus value represents two hours. But if the necessary part <strong>is</strong> cut in half then, everything


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 219<br />

else being held constant, the surplus value <strong>is</strong> increased by three hours. Th<strong>is</strong> means too that<br />

relative surplus value can not only be increased without increasing the absolute length <strong>of</strong><br />

the working day, but it can be increased while actually decreasing the length <strong>of</strong> the working<br />

day. Th<strong>is</strong> variability in necessary labor represents a new concept since up to now Marx has<br />

assumed that necessary labor <strong>is</strong> a constant.<br />

Hans: Good explanation <strong>of</strong> the concept <strong>of</strong> surplus labor, but regarding the <strong>Question</strong> itself, [336] was the better<br />

answer.<br />

Message [376] referenced by [424]. Next Message by Emma <strong>is</strong> [475.3].<br />

[387] Camera: Surplus value, as explained in the study guide, <strong>is</strong> surplus value that ar<strong>is</strong>es<br />

from the shortening <strong>of</strong> the necessary labor-time, and from the corresponding alteration in the<br />

respective lengths <strong>of</strong> the two components <strong>of</strong> the working day. The new dimension, which<br />

was so far treated as a given constant and now enters the d<strong>is</strong>cussion <strong>of</strong> relative surplus value<br />

<strong>is</strong> that <strong>of</strong> the length productivity <strong>of</strong> a working day. Chapter 12 starts out explaining th<strong>is</strong> by<br />

stating,“That portion <strong>of</strong> the working day which merely produces an equivalent for the value<br />

paid by the capital<strong>is</strong>t for h<strong>is</strong> labour-power has up to th<strong>is</strong> point been treated by us as a constant<br />

magnitude.” Labor time <strong>is</strong> now an adjustable variable that will affect overall value as well<br />

as surplus value. We now will consider commodity production under the circumstances <strong>of</strong><br />

varying length <strong>of</strong> work day as well as necessary and surplus labor.<br />

Message [387] referenced by [424]. Next Message by Camera <strong>is</strong> [503].<br />

[424] Hans: Decline from the first to the third answer Of the three answers to 232, the<br />

first answer we received, MsMarx’s [336], was the best. MsMarx recognized that the new<br />

element entering here <strong>is</strong> technology. Now capital<strong>is</strong>m creates its own mode <strong>of</strong> production; it<br />

no longer depends on the traditional labor process but moulds the labor process according<br />

to its own needs. It institutes technologies in which the worker <strong>is</strong> controlled by the machine<br />

rather than vice versa. In Marx’s view, production technology would look much different if<br />

the social relations <strong>of</strong> production were different.<br />

Emma’s [376] saw the <strong>is</strong>sue on a more technical level, saying that the assumption <strong>of</strong> a<br />

constant length <strong>of</strong> the necessary day was relaxed. The relaxation <strong>of</strong> an assumption itself<br />

cannot be considered a “whole new dimension.” Technology <strong>is</strong> not just a quantitative matter,<br />

but a qualitative change. Camera’s [387] <strong>is</strong> a shorter statement which contains nothing which<br />

was not said in Emma’s [376]. Camera bears a severe grade penalty because <strong>of</strong> that.<br />

Message [424] referenced by [336]. Next Message by Hans <strong>is</strong> [426].<br />

<strong>Exam</strong> <strong>Question</strong> 234 <strong>is</strong> 212 in 1995ut, 352 in 1997sp, and 351 in 1997ut:<br />

<strong>Exam</strong> <strong>Question</strong> 234 Extending the surplus labor by increases in productivity seems hopeless<br />

because only few industries produce the workers’ means <strong>of</strong> consumption, and the lowering<br />

<strong>of</strong> the value <strong>of</strong> any given use value (e.g. shirts) can only have a negligible effect on the<br />

wages. How does Marx reply to these objections?<br />

[379] VanHalen: First <strong>of</strong> all I think that Marx would agree that the lowering <strong>of</strong> the value<br />

<strong>of</strong> the use value <strong>of</strong> a shirt for example would only have a negligible effect on wages. But<br />

Marx says you have to look at all the factors that make up the total value <strong>of</strong> labor power.<br />

Obviously if there are 100 items that make up the means <strong>of</strong> subs<strong>is</strong>tence for the laborer<br />

and you only analyze one item then you won’t see much if any change. If a small bolt used<br />

in making a car becomes cheaper, you won’t see much change in the cost <strong>of</strong> producing the<br />

220 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

car. But if all the parts <strong>of</strong> the car become cheaper then you obviously would see a change in<br />

the cost <strong>of</strong> producing the car.<br />

On the whole, Marx says on page 433, “the total decrease <strong>of</strong> necessary labour-time <strong>is</strong><br />

equal to the sum <strong>of</strong> all the different reductions in the labour time which have occurred in<br />

those various d<strong>is</strong>tinct branches <strong>of</strong> production.”<br />

Though there may be only a few industries that produce the workers’ means <strong>of</strong> consumption,<br />

there are many other markets that affect these industries. A change in the price <strong>of</strong><br />

leather will change the value <strong>of</strong> leather shoes even if the productivity <strong>of</strong> the cobbler stays the<br />

same, or gets better. The industries that supply the cobbler with everything that he uses to<br />

make shoes multiplies the industries that affect the value <strong>of</strong> labor power. There may be only<br />

3 industries that directly affect the value <strong>of</strong> labor power but there may be 30 industries that<br />

affect those three magnifying the number <strong>of</strong> industries that really affect the value <strong>of</strong> labor.<br />

Again, Marx’s main point to these objections <strong>is</strong> ,“the total decrease <strong>of</strong> necessary labor<br />

time <strong>is</strong> = to the sum <strong>of</strong> all the different reductions in labor time which have occurred in those<br />

various d<strong>is</strong>tinct branches <strong>of</strong> production.” I would think that Marx <strong>is</strong> refering to both direct<br />

and indirect industries whose products determine the value <strong>of</strong> labor directly.<br />

Hans: Good and thorough answer to th<strong>is</strong> (not very difficult) <strong>Question</strong>.<br />

Next Message by VanHalen <strong>is</strong> [473].<br />

<strong>Question</strong> 235 <strong>is</strong> 204 in 1995WI and 213 in 1995ut:<br />

<strong>Question</strong> 235 Which are the motives why a capital<strong>is</strong>t might try to introduce new technology?<br />

[334] Jake: Technology can both help workers and also possibly replace them. A capital<strong>is</strong>t<br />

has pr<strong>of</strong>its in mind when ever there <strong>is</strong> a change in production. Technology can help<br />

productivity. By introducing new technology, the capital<strong>is</strong>t has in mind <strong>of</strong> increasing production<br />

or making current production levels more efficient. Technology <strong>is</strong> the way the capital<strong>is</strong>t<br />

survives. If not implemented by him, somebody else will beat him to the punch. The main<br />

motives for new technology <strong>is</strong> to increase pr<strong>of</strong>its or possibly maintain current pr<strong>of</strong>it levels.<br />

The new technology <strong>is</strong> a window to compete against other capital<strong>is</strong>ts. If technology can produce<br />

a product cheaper than the next capital<strong>is</strong>t, market pressures will force old production<br />

methods out <strong>of</strong> the market. So as I see it, the motive <strong>of</strong> survival pushes the capital<strong>is</strong>t to seek<br />

new technology.<br />

Hans: You did not make the connection between th<strong>is</strong> <strong>Question</strong> and relative surplus value.<br />

Message [334] referenced by [370] and [574]. Next Message by Jake <strong>is</strong> [335].<br />

[370] Angela: Subm<strong>is</strong>sion 8 I think if a capital<strong>is</strong>t wants to cheapen h<strong>is</strong> products without<br />

reducing the value <strong>of</strong> labor power and shortening necessary labor- time. And a capital<strong>is</strong>t<br />

wants to earn the prodit from h<strong>is</strong> products. I think these may be the motives to introducing<br />

new technology to cheapen h<strong>is</strong> products. Th<strong>is</strong> way can increase the general rate <strong>of</strong> surplusvalue<br />

without influencing anythings!! So the capital<strong>is</strong>t will introducing new technoloy.<br />

Hans: <strong>What</strong> you are saying falls far behind Jake’s [334].<br />

Message [370] referenced by [574]. Next Message by Angela <strong>is</strong> [393.1].<br />

[380] KALISPEL: Technology In th<strong>is</strong> realm, Marx analyses production and specifically<br />

on the labor process in which raw materials are transformed to produce use values. Th<strong>is</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 221<br />

model can be extended into the “non productive sector” including the home. Marx stressed<br />

that technology was central. Nature does not build machines. Machines are products <strong>of</strong><br />

human labor. Natural material transformed into the human will, organs <strong>of</strong> the human brain<br />

made with human hands. Th<strong>is</strong> model incorporates the nature <strong>of</strong> class struggle and the oppression<br />

<strong>of</strong> the working classes.<br />

So, what are the motives why a capital<strong>is</strong>t might try to introduce new technology? 1- To<br />

help keep h<strong>is</strong> class status. He now has a way to cheapen the subs<strong>is</strong>tence level <strong>of</strong> workers<br />

which cheapens the value <strong>of</strong> labor itself. Th<strong>is</strong> creates larger inequalities and forces the<br />

worker to become more subjective to the capital<strong>is</strong>t through inequal relations. 2- Pr<strong>of</strong>its. We<br />

cannot leave out these in capital<strong>is</strong>m. Capital<strong>is</strong>ts want to take a larger part <strong>of</strong> the surplus<br />

value. Th<strong>is</strong> can only be done with machines, cheapened values <strong>of</strong> labor, and the ability to<br />

coerce those to operate the machinery itself. These, I believe are the two general aims.<br />

However, I believe, there are some other subclasses to consider. 1- If you introduce<br />

technology you can experiece faster growth rates. Th<strong>is</strong> <strong>is</strong> part <strong>of</strong> pr<strong>of</strong>it motivation. The<br />

faster you grow the less likely you will go out <strong>of</strong> business and the more capital accumulation<br />

you will have. Thus, if you ever go out <strong>of</strong> business you can sell <strong>of</strong>f the capital and retire<br />

nicely. 2- You need to grow to be competitive. If you do not produce more efficiently all<br />

the time and increase your company’s net worth than you may end up going out <strong>of</strong> business.<br />

Introducing technology helps a company to remain more secure assuming its costs are not<br />

too high.<br />

It <strong>is</strong> obvious what the results <strong>of</strong> these motivations lead to. It leads to a longer work day,<br />

larger inequalities, and class struggle. The social outcome <strong>is</strong> not revolved around the wellbeing<br />

<strong>of</strong> the worker, but it does revolve around the capital<strong>is</strong>t. Th<strong>is</strong> leads to democracy for<br />

the few.<br />

Social aims should revolve around making the masses better <strong>of</strong>f. Technology should be<br />

desired to lower the hours worked in a week and at producing commodities efficiently so<br />

that there will be more to go around for everyone. Th<strong>is</strong> will make people “happier” and<br />

society will be a better place to live in. The capital<strong>is</strong>t motives appear to do these things, but<br />

capital<strong>is</strong>m contradicts itself, from it’s aims to its results. How capital<strong>is</strong>m appears and how it<br />

operates are two different things. I believe th<strong>is</strong> <strong>is</strong> obvious, but you cannot take an “impure<br />

(greedy)” motive and turn it into sunshine. Results are a product <strong>of</strong> the human mind, just as<br />

technology. However, we are free to w<strong>is</strong>h upon the star that never was. In th<strong>is</strong> way, we can<br />

at least think we have the sunshine in our pockets.<br />

Message [380] referenced by [426]. Next Message by KALISPEL <strong>is</strong> [383].<br />

[406] Homer: question 235 KALISPEL’s response to th<strong>is</strong> answer stated one <strong>of</strong> the<br />

reasons <strong>is</strong> to increase pr<strong>of</strong>its. Th<strong>is</strong> <strong>is</strong> certainly true. However, I would like to explore th<strong>is</strong> a<br />

little further.<br />

For a capital<strong>is</strong>t to purchase a new machine to reduce the costs <strong>of</strong> production (thus increasing<br />

pr<strong>of</strong>its) the cost <strong>of</strong> the new machine must be less than the wages paid to the workers<br />

whom the machine will replace. It <strong>is</strong> not enough for a machine to be “labor-saving” it must<br />

also be “pr<strong>of</strong>it-increasing.” If a machine’s cost <strong>is</strong> equal to potential savings in wages, it will<br />

222 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

not be purchased; even though it may represent a substantial saving in labor-time in society<br />

as a whole. Th<strong>is</strong> shows an important difference in the dynamics <strong>of</strong> a capital<strong>is</strong>t industry<br />

compared to a planned social<strong>is</strong>t industry.<br />

New machinary can lower production costs by saving wages that would have been paid to<br />

the replaced workers. New technology also lowers costs in another way. When workers see<br />

that a machine will be used if it <strong>is</strong> cheaper than wages paid, they have to compete by settling<br />

for lower wages. Th<strong>is</strong> process continues until workers are forced to accept wages that only<br />

cover the bare cost <strong>of</strong> reproducing their labor-power.<br />

Message [406] referenced by [426]. Next Message by Homer <strong>is</strong> [500].<br />

[426] Hans: KALISPEL’s and Homer’s answers KALISPEL’s answer [380] not only<br />

gives the motives themselves, but also a critique <strong>of</strong> these motives. Just one quibble about the<br />

motive which you bring first:<br />

To help keep h<strong>is</strong> class status. He now has a way to cheapen the subs<strong>is</strong>tence<br />

level <strong>of</strong> workers which cheapens the value <strong>of</strong> labor itself.<br />

Relative surplus value <strong>is</strong> usually not a conscious motive <strong>of</strong> the capital<strong>is</strong>t. The capital<strong>is</strong>t<br />

may consider the wages a cost which must be reduced like any other cost. Th<strong>is</strong> <strong>is</strong> a reified<br />

consciousness which suppresses the fact that the wage <strong>is</strong> the revenue for h<strong>is</strong> co-citizens. It<br />

<strong>is</strong> my view that many capital<strong>is</strong>ts would be much less enthusiastic capital<strong>is</strong>ts if they knew<br />

where their por<strong>of</strong>its came from.<br />

Homer’s [406] <strong>is</strong> the fourth subm<strong>is</strong>sion to the same answer, yet he has something to say<br />

which all <strong>of</strong> them overlooked: Very good!<br />

Next Message by Hans <strong>is</strong> [431].<br />

[506] Gottlieb: Technology The capital<strong>is</strong>t’s main motive for anything <strong>is</strong> pr<strong>of</strong>it. Because<br />

capital<strong>is</strong>tic societies are at the cutting edge <strong>of</strong> technology, technology must equal pr<strong>of</strong>its.<br />

Why? To a capital<strong>is</strong>t the value <strong>of</strong> human labor <strong>is</strong> the amount that they are paying in wages.<br />

If I own a farm I may pay my illegal laborers fifty dollars per day. They can plant one<br />

hundred dollars worth <strong>of</strong> tomatoes per week. I get the surplus $50. If I can somehow create<br />

more surplus through technology, then I will incorperate it. Loaning my workers hoes will<br />

help them plant $200 worth <strong>of</strong> tomatoes per week with only $50 <strong>of</strong> wage labor costs.<br />

Personally, a good capital<strong>is</strong>t would ra<strong>is</strong>e the wage to $55 per week and charge $6 per<br />

week to rent the hoe. If obtaining a machine to create $1000 worth <strong>of</strong> tomatoes per week<br />

<strong>is</strong> possible, I will incorporate it only if my surplus increases. Th<strong>is</strong> way the work <strong>is</strong> less<br />

strenuous and I can pay my laborers less.<br />

Hans: Th<strong>is</strong> <strong>is</strong> a very obvious answer. But th<strong>is</strong> <strong>is</strong> not the only possible motivation, and it might also have been good<br />

to put th<strong>is</strong> in the context <strong>of</strong> Marx’s d<strong>is</strong>cussion <strong>of</strong> relative surplus value.<br />

First Message by Gottlieb <strong>is</strong> [32].<br />

[574] Femme: There’s a motive for each capital<strong>is</strong>t to cheapen h<strong>is</strong> commodities, increasing<br />

h<strong>is</strong> pr<strong>of</strong>it by increasing productivity <strong>of</strong> labour. An increase in the productivity <strong>of</strong> labour <strong>is</strong><br />

defined as a labour process that would decrease the labour-time socially necessary for the<br />

production <strong>of</strong> a commodity and have a given quantity <strong>of</strong> labour which produces a greater<br />

quantity <strong>of</strong> use-value. The productivity <strong>of</strong> a persons labor most likely will not for example


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 223<br />

double unless there’s an alteration in h<strong>is</strong> tools or in h<strong>is</strong> mode <strong>of</strong> production. The introduction<br />

<strong>of</strong> new technology <strong>is</strong> the tool necessary for th<strong>is</strong> alteration so that the productivity <strong>of</strong> a<br />

persons labor can double. So with the increase in productivity <strong>of</strong> labour the value <strong>of</strong> labourpower<br />

will go down and the working day necessary for the reproduction <strong>of</strong> that value will be<br />

shortened. New technology can d<strong>is</strong>cover new ways <strong>of</strong> making a product with fewer people<br />

and/or within a shorter period <strong>of</strong> time which will lead to a higher pr<strong>of</strong>it margin by reducing<br />

costs.<br />

Hans: Your original message came after [334] and [370], and it added very little to them.<br />

Next Message by Femme <strong>is</strong> [577].<br />

<strong>Question</strong> 237 <strong>is</strong> 289 in 1997WI, 354 in 1997sp, 515 in 2002fa, 535 in 2003fa, 588 in<br />

2004fa, 541 in 2005fa, 584 in 2007fa, 592 in 2008SP, 596 in 2008fa, 625 in 2009fa, 688<br />

in 2010fa, 708 in 2011fa, and 737 in 2012fa:<br />

<strong>Question</strong> 237 Why can we gain a scientific understanding <strong>of</strong> competition only after having<br />

grasped the inner nature <strong>of</strong> capital?<br />

[386] Pizza: The inner nature <strong>of</strong> capital are those forces which assert themselves upon<br />

individuals through society. To attempt to quanitify we must first use a looking glass as<br />

does the scient<strong>is</strong>t to observe the relations between each <strong>of</strong> the actors in our play. Once we<br />

understand the context <strong>of</strong> the scene we then look to the roles played out by the actors. We<br />

known the context now lets see the result.<br />

Message [386] referenced by [431]. Next Message by Pizza <strong>is</strong> [393].<br />

[401] Wolf: To begin with I would like to first start by addrassing two ideas, “We first<br />

must grasp the inner nature <strong>of</strong> capital before we can understand the phenomena generated<br />

by competition.” pp.144 If it <strong>is</strong> a phenom., then everything about it <strong>is</strong> new, unreal<strong>is</strong>ed, and<br />

not perceptable to the sences. It <strong>is</strong> dynamic. Next, I would like to address the fact that<br />

in compair<strong>is</strong>on to cooperation, competition <strong>is</strong> where something <strong>is</strong> always lost or wasted.<br />

where as in cooperation something <strong>is</strong> always gained. For example if 2 people were to build<br />

a house, if they both worked together they might have a place to stay for winter and can use<br />

the capital/machienery to build the next house for the other. But, if they are in competion<br />

and don’t work together and share there are inumerable wastes and they both may not have<br />

a place to stay for the winter.<br />

Hans: That Marx said so <strong>is</strong> not a sufficient answer to the <strong>Question</strong> “why”.<br />

Message [401] referenced by [431] and [599]. Next Message by Wolf <strong>is</strong> [445].<br />

[431] Hans: Short and worth reading Pizza’s short answer [386] <strong>is</strong> worth reading carefully;<br />

it <strong>is</strong> a good description <strong>of</strong> Marx’s method. Wolf’s [401] m<strong>is</strong>understands how Marx<br />

uses the words “phenomenon” and “competition”. Although in general usage, a phenomenon<br />

<strong>is</strong> something amazing and unexplainable, Marx uses it in the philosophical sense <strong>of</strong> an<br />

empirical fact, something which presents itself to the investigator on the surface. “Competition”<br />

<strong>is</strong> used by Marx for the market interactions <strong>of</strong> the economic agents under capital<strong>is</strong>m.<br />

Next Message by Hans <strong>is</strong> [432].<br />

<strong>Exam</strong> <strong>Question</strong> 238 <strong>is</strong> 205 in 1995WI, 237 in 1996ut, 290 in 1997WI, 355 in 1997sp, 354 in<br />

1997ut, 363 in 1998WI, 364 in 1999SP, 477 in 2001fa, 516 in 2002fa, 536 in 2003fa, 590<br />

in 2004fa, 543 in 2005fa, 596 in 2007SP, 586 in 2007fa, 598 in 2008fa, 627 in 2009fa,<br />

690 in 2010fa, 710 in 2011fa, 739 in 2012fa, and 690 in Answer:<br />

224 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Exam</strong> <strong>Question</strong> 238 Does the introduction <strong>of</strong> new machinery increase the value produced<br />

during the day?<br />

[375] Kalle: Intro <strong>of</strong> new machinery=increased value produced? To answer th<strong>is</strong> question<br />

one must first d<strong>is</strong>tingu<strong>is</strong>h between social value and individual value. I chapter One we<br />

learned that the labor cost (or value) that goes into a commodity <strong>is</strong> determined by the socially<br />

necessary labor time under prevailing production conditions. The socially necessary<br />

labor time and value <strong>of</strong> means <strong>of</strong> production determines the social value <strong>of</strong> a commodity.<br />

However, one producer might be able to increase productivity and use less labor time for a<br />

given commodity than what <strong>is</strong> socially necessary. The individual value <strong>of</strong> h<strong>is</strong> products will<br />

therefore be less than the social value.<br />

For a moment, let’s go further back and look at the labor power that goes into the products.<br />

A producer has only available a limited amount <strong>of</strong> labor hours. To determine how<br />

much labor time to allocate to each article, one put total labor time over number <strong>of</strong> articles<br />

produced. However, introduction <strong>of</strong> new machinery might reduce the labor time allocated to<br />

each article. The total labor time, however, remains the same, but will be allocated in a less<br />

amount over an increased number <strong>of</strong> products. Since value <strong>of</strong> labor time <strong>is</strong> a fixed amount<br />

the total value produced remains the same. For example, let’s assume that 100 hours <strong>of</strong> labor<br />

produced 10 articles, and each labor hour <strong>is</strong> valued at $1, a total <strong>of</strong> $100. In th<strong>is</strong> situation<br />

$10 worth <strong>of</strong> labor goes into each product. If new machinery caused an increase in production<br />

so that it only took 9 hours worth <strong>of</strong> labor time to produce the article, only $9 <strong>of</strong> labor<br />

value <strong>is</strong> allocated to each product. For th<strong>is</strong> we can see that increased productivity caused by<br />

new machinery does not increase value produced. The labor time <strong>is</strong> merely d<strong>is</strong>tributed over<br />

an increased number <strong>of</strong> products.<br />

However, if we look back on the d<strong>is</strong>cussion about social value and individual value, we<br />

can see that an increase in productivity will benefit the producer. The individual value <strong>of</strong> each<br />

article will be less than the social value, because he uses less labor than socially necessary<br />

on the average. Consumers will still value h<strong>is</strong> products at the social value, and will therefore<br />

realize extra surplus value because he produces the articles for less than the social value.<br />

Th<strong>is</strong> situation, however, <strong>is</strong> not a sustainable over a longer period. Other producers will<br />

duplicate the more productive method and will soon be the “new standard” or socially necessary<br />

on the average.<br />

Hans: Good comprehensive answer. But it <strong>is</strong> a little confusing that you call value also the “labor cost” und the<br />

value created in a certain time the “value <strong>of</strong> labor time”. In general usage, the labor cost <strong>of</strong> an article <strong>is</strong> the wage<br />

cost, which <strong>is</strong> below the value created by the labor.<br />

Message [375] referenced by [449]. Next Message by Kalle <strong>is</strong> [501].<br />

[449] Snowman: Re: question 238 The introduction <strong>of</strong> new, presumably more efficient<br />

machinery does not increase the value produced in a day. The value <strong>of</strong> what <strong>is</strong> produced in<br />

a day <strong>is</strong> based on the human labor power expended in a day. If a person <strong>is</strong> to work for a full<br />

day, say eight hours, then the results <strong>of</strong> h<strong>is</strong>/her work for that day carry the value <strong>of</strong> having<br />

an eight hour quantity <strong>of</strong> human labor, or some fraction there <strong>of</strong> depending on what <strong>is</strong> being<br />

produced and how much <strong>of</strong> the working day <strong>is</strong> devoted to its production on average. That <strong>is</strong><br />

if the labor <strong>of</strong> an eight hour work day results in the completion <strong>of</strong> eight commodities then<br />

each commodity contains 1/8th <strong>of</strong> the value produced by that worker for that day. Should


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 225<br />

the efficiency double because for the introduction <strong>of</strong> a new machine then the output for the<br />

worker will double and at the end <strong>of</strong> the day there will be twice as many goods, however<br />

the value <strong>of</strong> each commodity will be halve as they represent individually half the labor as<br />

was contained in them before. So the sum <strong>of</strong> the value produced in one day <strong>is</strong> still the<br />

same it <strong>is</strong> only spread over twice as many goods. The only difference <strong>is</strong> that the quantity <strong>of</strong><br />

goods produced <strong>is</strong> doubled, what th<strong>is</strong> may mean socially <strong>is</strong> that certain labor-power may be<br />

freed to persue other production, assuming the quantity orginaly produced before the new<br />

machine was sufficient, so that now half the total labor hours are required to produce the<br />

same quantity <strong>of</strong> commodities. Th<strong>is</strong> could over the long run allow greater diversity in what<br />

<strong>is</strong> being produced in the community as a whole. Th<strong>is</strong> <strong>is</strong> assuming that the Labor-power<br />

originally producing the commodity where the new machine was installed was performed<br />

by more than one person, for you can slit the labor in a production plant to other plants, but<br />

not in the individual Laborer to other plants.<br />

Hans: Well written and clear. But you should have mentioned the extra surplus value in the short run, for those<br />

who innovate first, which was at the center <strong>of</strong> attention in Kalles’s [375].<br />

Message [449] referenced by [464]. Next Message by Snowman <strong>is</strong> [507].<br />

[464] MUCHO: introduction <strong>of</strong> new machinery Snowman points out important fact.<br />

He states in h<strong>is</strong> subm<strong>is</strong>sion[449], introducing new machinery only increase the efficiency<br />

for the products which also leads to the increase <strong>of</strong> the output. However, the value will<br />

remain same. I feel the same way as Snowman. The new machinery cannot effect the value<br />

<strong>of</strong> goods any ways. Because, machinery cannot create the value. Only the human labor can<br />

create the value produced during the day.<br />

Next Message by MUCHO <strong>is</strong> [596].<br />

<strong>Exam</strong> <strong>Question</strong> 239 <strong>is</strong> 206 in 1995WI and 215 in 1995ut:<br />

<strong>Exam</strong> <strong>Question</strong> 239 Explain the difference between individual value and social value.<br />

[341] Wight: Individual value <strong>is</strong> the labor cost to produce one article. Social value <strong>is</strong> the<br />

cost to produce the great bulk <strong>of</strong> the same articles under average social conditions. Individual<br />

value <strong>of</strong> articles <strong>is</strong> typically lower than social value. When aggregated, the cost <strong>of</strong> production<br />

<strong>is</strong> higher accounting for higher social value, whereas with individual value the producer has<br />

some additional control over h<strong>is</strong> costs and techniques to cut labor costs. There <strong>is</strong> an average<br />

that each article costs marketwide, but under altered modes <strong>of</strong> production, these costs can<br />

be reduced resulting in lower individual value for that particular producer. The effective<br />

value <strong>of</strong> a commodity <strong>is</strong> its social value not individual value i.e. its value <strong>is</strong> not measured by<br />

the labor time that the article costs the producer in each individual case but the labor time<br />

socially required for its production. Th<strong>is</strong> differential between social and individual value <strong>is</strong><br />

realized by the producer in the form <strong>of</strong> extra surplus value.<br />

Hans: The social value can also be below individual value, since the competitors are trying innovate and to control<br />

their costs as well. When you introduce the question <strong>of</strong> “effective” value, it sounds as if you was a question <strong>of</strong> how<br />

to measure values, but from your last sentence one can see that it <strong>is</strong> the question which <strong>of</strong> these values determines<br />

the price.<br />

Message [341] referenced by [343], [377], [385], and [432]. Next Message by Wight <strong>is</strong> [422].<br />

[343] MsMarx: Difference in individual value and social value Individual value <strong>is</strong><br />

lower than social value; an article costs less labor-time than the bulk <strong>of</strong> the same articles<br />

produced under the average social conditions. The effective value <strong>of</strong> a commodity <strong>is</strong> not its<br />

226 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

individual value, but its social value. Its value <strong>is</strong> not measured by the labor-time that the<br />

article costs the producer in each individual case, but by the labor-time socially required for<br />

its production. If a capital<strong>is</strong>t sells h<strong>is</strong> commodity at its social value <strong>of</strong> 44 cents, but under<br />

the altered mode <strong>of</strong> production it costs only 20 cents, he realizes an extra surplus-value <strong>of</strong><br />

24 cents.<br />

In other words, the value <strong>of</strong> an article depends on the labor socially necessary to produce<br />

it. If an individual capital<strong>is</strong>t can find a way <strong>of</strong> ra<strong>is</strong>ing productivity above the general level,<br />

he can reap more surplus-value, since the general level <strong>of</strong> productivity still determines the<br />

value <strong>of</strong> the product. Th<strong>is</strong> seems to be a strong incentive to increase productivity. Other<br />

capital<strong>is</strong>ts will then be forced to copy the new methods, for fear <strong>of</strong> being undersold, and the<br />

value <strong>of</strong> the product will fall as the general level <strong>of</strong> productivity <strong>is</strong> ra<strong>is</strong>ed.<br />

Hans: Your answer <strong>is</strong> good, but even though you did not want a grade for it, you should have said, for the benefit<br />

<strong>of</strong> the many class participants to whom these answers are sent, how your answer relates to what Wright wrote in<br />

[341] a day earlier. Did you consider it a clarification, or a correction, or did he leave something out?<br />

Message [343] referenced by [377] and [432]. Next Message by MsMarx <strong>is</strong> [436].<br />

[359] Snake: individual and social value Individual value constitutes that the behavior<br />

<strong>of</strong> one individual may not be that <strong>of</strong> another individual. Personal traits dictate the motive behind<br />

an individual dec<strong>is</strong>ion making. The dec<strong>is</strong>ion making ability <strong>of</strong> an individual <strong>is</strong> effected<br />

by h<strong>is</strong>/hers cultural background. Where one individual might highly value a commodity as<br />

opposed to another whom might not value th<strong>is</strong> commodity at all. Thus, the demand for a<br />

particular commodity may be at any given value on the individual level. Therefore a producer<br />

would want to develop a commodity that fits the needs <strong>of</strong> a particular individual. On<br />

the other hand, social value <strong>is</strong> driven by the forces <strong>of</strong> the community. Depending on the<br />

type <strong>of</strong> society involved in market time production and exchange, the demand for a commodity<br />

<strong>is</strong> given by the needs <strong>of</strong> the social complex. Where consumers as a whole empower<br />

the value <strong>of</strong> the commodity. Therefore a producer would want to develop a commodity by<br />

which <strong>is</strong> deemed acceptable once under social context, where the value <strong>of</strong> the commodity <strong>is</strong><br />

determined by the demand.<br />

Hans: Your answer has nothing to do with Marx or with the context in which the <strong>Question</strong> was asked.<br />

Message [359] referenced by [432]. Next Message by Snake <strong>is</strong> [515].<br />

[377] Bandit: Individual value and Social Value In order to d<strong>is</strong>tingu<strong>is</strong>h the difference<br />

between individual value and social value we must first define what the value <strong>of</strong> a commodity<br />

<strong>is</strong>. The value <strong>of</strong> a commodity <strong>is</strong> made up <strong>of</strong> the value <strong>of</strong> quantity <strong>of</strong> labour and the value<br />

<strong>of</strong> the instruments used in the labor process. Therefore, the individual value <strong>is</strong> the added<br />

value given by the amount <strong>of</strong> labor used in producting the commodity. The social value, or<br />

the “real value <strong>of</strong> the commodity” <strong>is</strong> the labour-time required for its production. In other<br />

words the individual value <strong>is</strong> the labour-time, in each individual case, the product costs the<br />

producer, whereas social value <strong>is</strong> the total labour-time value <strong>of</strong> the product.<br />

Hans: You are saying that the individual value <strong>is</strong> the direct labor going into the product, while the social value <strong>is</strong><br />

the direct and indirect labor. Th<strong>is</strong> <strong>is</strong> a wrong answer. Your answer came after Wight’s [341] and MsMarx’s [343],<br />

which were both correct answers.<br />

Next Message by Bandit <strong>is</strong> [560].<br />

[392] Brumbys: individual and social Society <strong>is</strong> made up <strong>of</strong> individuals. It <strong>is</strong> important<br />

to understand that society <strong>is</strong> the majority. We cannot cry about one person’s values not being<br />

represented by society. If we allow th<strong>is</strong> to happen, thenw we will fall into a society where


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 227<br />

everybody will be expecting to be l<strong>is</strong>tened to. If you have power or money and lots <strong>of</strong> it,<br />

then your values will be expressed by society. If you have neither, then you will be ithe one<br />

who <strong>is</strong> crying in the end. In terms <strong>of</strong> commodities, social value determines the price <strong>of</strong> an<br />

item. It <strong>is</strong> not the individual labor time that determines the price it <strong>is</strong> the whole entire labor<br />

force. Therefore, the value <strong>of</strong> a commodity <strong>is</strong> not the individual but the social labor time it<br />

took for its production. So in a capital<strong>is</strong>t society th<strong>is</strong> <strong>is</strong> how they pr<strong>of</strong>it <strong>is</strong> by selling above<br />

its individual value.<br />

Message [392] referenced by [432]. Next Message by Brumbys <strong>is</strong> [392.2].<br />

[397] Positive: There are several other students answering th<strong>is</strong> question. Wight and<br />

MsMarx are copying Karl Marx himself too much. Th<strong>is</strong> might be the reason why they do<br />

not really get the understanding <strong>of</strong> h<strong>is</strong> thoughts. Snake,on the other hand talkes over h<strong>is</strong><br />

head. Th<strong>is</strong> <strong>is</strong> how I will view Marx’ thoughts:<br />

Labor-time <strong>is</strong> the social value which again represents social labor. The individual labor <strong>is</strong><br />

the labor-time contributed to produce a specific product. The effective value <strong>of</strong> a commodity<br />

<strong>is</strong> not individual value but social value. For example, a product which appears as two hours<br />

worth <strong>of</strong> labor can actually be done in a shorter period <strong>of</strong> time. Th<strong>is</strong> shorter period <strong>of</strong> time<br />

implies as more intense and effective labor, and <strong>is</strong> named as the individual value <strong>of</strong> the labortime.<br />

The whole two hours <strong>is</strong> the social value. The products made throughout the day will be<br />

sold at their price from social value. So - the value <strong>of</strong> the product made <strong>is</strong> not measured by<br />

the time <strong>of</strong> labor it costs for the producer in each individual case, but the socially labor-time<br />

required for its production. The market-price <strong>of</strong> a product <strong>is</strong> always sold at its social value,<br />

vs the labor which <strong>is</strong> done at its individual value. And, the differential between social and<br />

individual value <strong>is</strong> realized by the producer in the form <strong>of</strong> surplus value.<br />

Message [397] referenced by [432]. Next Message by Positive <strong>is</strong> [428].<br />

[398] CaseWorker: individual and social In my terms, the difference between individual<br />

value and social value <strong>is</strong>: An individual values would be value you would set for yourself<br />

and social value as in general <strong>is</strong> some value you would set to fit society. when you set an<br />

individual value you do not care if anyone would accept it or not. but when setting a social<br />

value, you want it to be accepted by the general public.<br />

Message [398] referenced by [432]. First Message by CaseWorker <strong>is</strong> [335.9].<br />

[432] Hans: Individual and Social Value: Seven Answers We have seven answers to<br />

th<strong>is</strong> <strong>Question</strong>. The first answer, Wight’s [341], was already basically correct, and the second<br />

answer, MsMarx’s [343], was a little clearer and also added a little bit that was not in [343].<br />

Strangely, both claim that indvidual value <strong>is</strong> below social value. Th<strong>is</strong> <strong>is</strong> obviously incorrect;<br />

it <strong>is</strong> like saying that everyone <strong>is</strong> above average.<br />

Snake’s [359] and CaseWorker’s [398] give an interpretation <strong>of</strong> the concept “individual<br />

value” and “social value” which has nothing to do with Marx or the subject <strong>of</strong> the readings.<br />

They got very bad grades for th<strong>is</strong>.<br />

Brumbys’s [392] and Positive’s [397] try to give an additional spin to the “correct” answers.<br />

Brumbys sees a parallel between the social fact that society does not necessarily<br />

represent an individual’s value and the economic fact that commodities are valued at their<br />

average rather than their individual labor content. I would have liked Brumbys to be more<br />

specific about the connection <strong>of</strong> these two things. Brymbys seems to say that a society in<br />

228 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

which everyone expects to be l<strong>is</strong>tened to would be a society <strong>of</strong> crybabies. How about a society<br />

<strong>of</strong> mature adults in which in fact everybody has a say, not only the rich and powerful?<br />

Positive thinks that the source <strong>of</strong> pr<strong>of</strong>its <strong>is</strong> that you produce something which seems to<br />

contain two hours <strong>of</strong> labor in a shorter time than two hours. Although it <strong>is</strong> a common<br />

marketing strategy to make everything look as slick and expensive as possible, th<strong>is</strong> <strong>is</strong> not the<br />

main source <strong>of</strong> surplus value. I also d<strong>is</strong>agree with the formulation <strong>of</strong> Positive’s last sentence:<br />

The differential between social and individual value <strong>is</strong> realized by the producer<br />

in the form <strong>of</strong> surplus value.<br />

Don’t confuse the capital<strong>is</strong>t with the “producer.” The worker <strong>is</strong> the producer.<br />

Next Message by Hans <strong>is</strong> [433].<br />

<strong>Question</strong> 240 <strong>is</strong> 207 in 1995WI, 216 in 1995ut, 238 in 1996ut, 291 in 1997WI, and 356 in<br />

1997sp:<br />

<strong>Question</strong> 240 Why does Marx say the social value and not the individual value <strong>is</strong> the “effective”<br />

value (wirklicher Wert)?<br />

[357] Reidar: “Effective” value Marx says that the social value <strong>of</strong> a commodity <strong>is</strong> the<br />

effective value because the social value associated with a commodity <strong>is</strong> the value that the<br />

capital<strong>is</strong>t can sell h<strong>is</strong> product for. Although the capital<strong>is</strong>t may reduce the cost <strong>of</strong> producing<br />

h<strong>is</strong> product and thus have a lower individual value, the value which he <strong>is</strong> interested in when<br />

the product enters the market place for sell <strong>is</strong> the “effective” social value.<br />

Marx later explains that the capital<strong>is</strong>t will have a greater quantity <strong>of</strong> commodities to sell<br />

an may have to sell below the social value price in order to sell h<strong>is</strong> commodities. He however<br />

can still sell above h<strong>is</strong> cost with a greater margin <strong>of</strong> pr<strong>of</strong>it.<br />

H<strong>is</strong> competitors may obtain the same technology in order to reduce their prices to match<br />

h<strong>is</strong>, but regardless <strong>of</strong> how the market price may change, the effective value to the capital<strong>is</strong>t<br />

<strong>is</strong> still the social value.<br />

Message [357] referenced by [368] and [385]. Next Message by Reidar <strong>is</strong> [487].<br />

[368] Hans: “Effective” value The first portion <strong>of</strong> Reidar’s answer [357] <strong>is</strong> completely<br />

right:<br />

Marx says that the social value <strong>of</strong> a commodity <strong>is</strong> the effective value because<br />

the social value associated with a commodity <strong>is</strong> the value that the<br />

capital<strong>is</strong>t can sell h<strong>is</strong> product for. Although the capital<strong>is</strong>t may reduce the<br />

cost <strong>of</strong> producing h<strong>is</strong> product and thus have a lower individual value, the<br />

value which he <strong>is</strong> interested in when the product enters the market place for<br />

sell <strong>is</strong> the “effective” social value.<br />

Next Reidar tries out h<strong>is</strong> concept in somewhat more irregular cases. Th<strong>is</strong> <strong>is</strong> a good way<br />

to test it:<br />

Marx later explains that the capital<strong>is</strong>t will have a greater quantity <strong>of</strong> commodities<br />

to sell an may have to sell below the social value price in order to


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 229<br />

sell h<strong>is</strong> commodities. He however can still sell above h<strong>is</strong> cost with a greater<br />

margin <strong>of</strong> pr<strong>of</strong>it.<br />

According to Reidar’s own criterion, here the social value <strong>is</strong> no longer the effective value,<br />

but the individual value <strong>is</strong> not either. The market price <strong>is</strong>. I would go along with th<strong>is</strong>. In the<br />

next paragraph, Reider makes a m<strong>is</strong>take:<br />

H<strong>is</strong> competitors may obtain the same technology in order to reduce their<br />

prices to match h<strong>is</strong>, but regardless <strong>of</strong> how the market price may change, the<br />

effective value to the capital<strong>is</strong>t <strong>is</strong> still the social value.<br />

In th<strong>is</strong> situation, not only the market price changes, but also the social value changes. If<br />

the social value falls to the capital<strong>is</strong>t’s individual value, then one can say that the individual<br />

value <strong>is</strong> the “effective” value, but only because it <strong>is</strong> equal to the social value.<br />

Message [368] referenced by [385]. Next Message by Hans <strong>is</strong> [424].<br />

[385] Peaches: Effective social value Marx states that social value and not individual<br />

value <strong>is</strong> the effective value <strong>of</strong> a commodity. Th<strong>is</strong> means that the social value, for a capital<strong>is</strong>t,<br />

means extra surplus-value. The capital<strong>is</strong>t can make extra money if he sells h<strong>is</strong> commodity<br />

at its social value rather than for its individual value which means that it has costs less<br />

labor time for the same items produced under the average social conditions. Its value <strong>is</strong><br />

not measured by the labor-time that the item costs the producer in each individual case, but<br />

by the labor-time socially required for its production. The effective value <strong>of</strong> a commodity,<br />

therefore, <strong>is</strong> not its individual, but its social value.<br />

Hans: Taken by itself, your answer <strong>is</strong> ok and shows that you are understanding the material. But [357] and [368]<br />

already gave a much more comprehensive answer than yours, and also [341] says everything that you are saying.<br />

Th<strong>is</strong> hurts your grade.<br />

Next Message by Peaches <strong>is</strong> [407.3].<br />

<strong>Question</strong> 241 <strong>is</strong> 208 in 1995WI, 217 in 1995ut, 239 in 1996ut, 292 in 1997WI, 357 in<br />

1997sp, 355 in 1997ut, and 597 in 2007SP:<br />

<strong>Question</strong> 241 How does the introduction <strong>of</strong> machinery increase the exploitation <strong>of</strong> the<br />

worker even if he does not have to work harder and longer than before and lives as well<br />

as before?<br />

[347] Jupiter: Exploitation <strong>of</strong> the worker The introduction <strong>of</strong> machinery into a the life<br />

<strong>of</strong> a worker would seem to be a very positive thing, but in many cases it <strong>is</strong> not the case. Let<br />

me go <strong>of</strong>f on a tangent for a second, during the industrial revolution many new machines<br />

came to town to make work easier for the the workers, but what ended up happening <strong>is</strong> that<br />

the work became much more labor intensive. New machines brought problems which had to<br />

be fixed by the workers and many times these machines would kill those who were working<br />

with them, hours became longer for these workers producing hords <strong>of</strong> commodities much to<br />

the delight <strong>of</strong> the owners <strong>of</strong> production. The work spaces were dark and not well ventilated<br />

for the exaust <strong>of</strong> these machines.<br />

Now that I said that back to the question at hand. Yes, the introduction <strong>of</strong> machines do<br />

increase the exploitation <strong>of</strong> the worker. Just because a laborer works the same hours and<br />

does not have to work harder, and lives just sa well as before does not mean that he <strong>is</strong> not<br />

230 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

exploited. Exploitation takes many forms, in th<strong>is</strong> case the text in which we see it <strong>is</strong> that <strong>of</strong><br />

unfair wages. Th<strong>is</strong> <strong>is</strong> clear that a laborer gets paid for h<strong>is</strong> labor-power(abstract labor), so if<br />

he worked on making boots and did it all by hand it takes him a while to do it, and he <strong>is</strong> paid<br />

for whatever he put into that boot, and every boot that he puts labor into. If a machine or<br />

new tools come along to make th<strong>is</strong> production <strong>of</strong> boots double that <strong>of</strong> the old production the<br />

laborer will loose the surplus value that will be made by the owner <strong>of</strong> the boot factory. Let<br />

me make th<strong>is</strong> clearer, the owner <strong>of</strong> the factory can now sell twice as many boots as before,<br />

and still pay the person who actually made them the same amount, th<strong>is</strong> gives the owner a big<br />

surplus <strong>of</strong> money, while the only surplus that the worker gets <strong>is</strong> that <strong>of</strong> surplus-labor, which<br />

<strong>is</strong> like giving free labor.<br />

Exploitation can be hidden as I have just mentioned or it can be more blatant as in my<br />

opening paragraph, it <strong>is</strong> a key player in the game <strong>of</strong> the capital<strong>is</strong>t.<br />

Message [347] referenced by [366]. Next Message by Jupiter <strong>is</strong> [349].<br />

[366] Hans: Increases in productivity hide exploitation Jupiter’s [347] gives the right<br />

answer: if the capital<strong>is</strong>t makes more money but does not give any <strong>of</strong> th<strong>is</strong> to the worker,<br />

th<strong>is</strong> makes the situation more unfair and therefore <strong>is</strong> an increase in exploitation, even if<br />

absolutely the worker <strong>is</strong> no worse <strong>of</strong>f than before. It <strong>is</strong> not just a moral <strong>is</strong>sue: the higher<br />

pr<strong>of</strong>its give the capital<strong>is</strong>t more power over the worker: he can use the additional money to<br />

break strikes, lobby for anti-labor government, etc.<br />

But I d<strong>is</strong>agree with the following formulation:<br />

During the industrial revolution many new machines came to town to make<br />

work easier for the the workers, but what ended up happening <strong>is</strong> that the<br />

work became much more labor intensive.<br />

Th<strong>is</strong> sounds as if the purpose <strong>of</strong> the machinery was to improve the situation <strong>of</strong> the worker,<br />

but unfortunately the reality <strong>of</strong> it turned out differently. You can read similar stories in the<br />

newspaper every day. Somehow all the bad consequences <strong>of</strong> capital<strong>is</strong>m are happening by<br />

m<strong>is</strong>take. The capital<strong>is</strong>ts know exactly what the consequences <strong>of</strong> their actions are, and they<br />

still have the gall to say: we did not want it.<br />

Message [366] referenced by [433]. Next Message by Hans <strong>is</strong> [367].<br />

[381] MUCHO: exploitation <strong>of</strong> worker Because the machinery was introduced, muscular<br />

power was not as important as it used to be. As a result, the labor <strong>of</strong> women and children<br />

was the capital<strong>is</strong>t application <strong>of</strong> machinery. According to the book, “The value <strong>of</strong> laborpower<br />

was determined, not only by the labor-time necessary to maintain the individual adult<br />

worker, but also by that necessary to maintain h<strong>is</strong> family.” It also states that “Machinery,<br />

by throwing every member <strong>of</strong> that family onto the labor-market, spreads the value <strong>of</strong> the<br />

man’s labor-power over h<strong>is</strong> whole family.” For the capital<strong>is</strong>t, it will cost them to purchase<br />

the labor-power <strong>of</strong> whole family than the labor-power <strong>of</strong> the head <strong>of</strong> the family. However,<br />

they believe that it <strong>is</strong> worth doing so because they can minimize the labor time and the price<br />

falls in proportion to the excess <strong>of</strong> the surplus labor <strong>of</strong> whole family over the surplus labor <strong>of</strong><br />

one. Now the whole family have to provide not only labor for the capital<strong>is</strong>t, but also surplus<br />

labor.<br />

Message [381] referenced by [433]. Next Message by MUCHO <strong>is</strong> [458].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 231<br />

[390] Scott: The introduction <strong>of</strong> machinery decreases the amount <strong>of</strong> labour power necessary<br />

for the labourer to reproduce her / h<strong>is</strong> value. Thus, by default, th<strong>is</strong> increases the surplusvalue,<br />

since we can say that the working day, and working pay can remain unchanged. The<br />

previous subm<strong>is</strong>sions, concerning th<strong>is</strong> question, have made the point <strong>of</strong> increased efficiency<br />

for the capital<strong>is</strong>t, so that more work can be accompl<strong>is</strong>hed in a given period. Generally stated,<br />

surplus-value <strong>is</strong> creating pr<strong>of</strong>it, and <strong>is</strong> the exploitation <strong>of</strong> the worker in a capital<strong>is</strong>t society.<br />

An example might be <strong>of</strong> a secretary whom has had a computer installed in h<strong>is</strong> <strong>of</strong>fice. The<br />

capital<strong>is</strong>ts’ value <strong>of</strong> a secretary in a particular city might be $1800 per month. Okay, so<br />

now th<strong>is</strong> capital<strong>is</strong>ts’ secretary can accompl<strong>is</strong>h many more tasks in the same work day as the<br />

adjacent secretaries down the street. In fact, the addition <strong>of</strong> machinery for the one secretary<br />

will lead to the further exploitation <strong>of</strong> the adjacent ones, since they will all receive improved<br />

machinery i.e. computers, to accompl<strong>is</strong>h more work in the same period <strong>of</strong> time, due to<br />

competition.<br />

The exploitation <strong>of</strong> the worker has increased due to the introduction <strong>of</strong> machinery. He<br />

<strong>is</strong> producing more surplus-labour than without the computer, and yet the rate for secretaries<br />

has not changed in the market, nor has the lenght <strong>of</strong> the work day.<br />

Message [390] referenced by [433]. Next Message by Scott <strong>is</strong> [429.1].<br />

[417] Gilligan: well since my subm<strong>is</strong>sion didn’t go through the first time, my answer<br />

ought to compare to most that have attempted to answer it. As machinery <strong>is</strong> introduced<br />

into the workplace a lot more <strong>is</strong> able to be accompl<strong>is</strong>hed in the same amount <strong>of</strong> time. The<br />

laborer without the machine was able to produce according to h<strong>is</strong> or her individual value<br />

and was paid for that, when machinery <strong>is</strong> implemented the worker produces alot more than<br />

he previously was able to. Once th<strong>is</strong> has happened it creates a surplus value that <strong>is</strong>n’t being<br />

passed onto the laborer and in th<strong>is</strong> sense he <strong>is</strong> being exploited. The capital<strong>is</strong>t <strong>is</strong> the person<br />

who <strong>is</strong> sitting back enjoying the new machinery because he’s able to make a quick pr<strong>of</strong>it and<br />

still pay h<strong>is</strong> employee (SLAVE) the same wages as before. Th<strong>is</strong> <strong>is</strong> true because I’m in th<strong>is</strong><br />

same type <strong>of</strong> situation at my work. We used to put the machines we manufacture together<br />

with screwdrivers, hammers, and other small instruments, then they decided to get everybody<br />

power tools to speed up the production process, which it did and I was able to produce at<br />

least twice as much as before. BUT they haven’t even thought <strong>of</strong> paying me differently and<br />

the surplus value <strong>of</strong> my labor <strong>is</strong> going directly into their pockets. It made me mad after I<br />

read th<strong>is</strong> and it really made me think <strong>of</strong> the many ways in which the capital<strong>is</strong>t system takes<br />

advantage <strong>of</strong> me and my fellow members <strong>of</strong> society. With capital<strong>is</strong>m exploitation <strong>is</strong> the<br />

name <strong>of</strong> the game.<br />

Message [417] referenced by [433]. Next Message by Gilligan <strong>is</strong> [448].<br />

[433] Hans: MUCHO’s, Scott’s, and Gilligan’s answers After I wrote in [366] that<br />

it <strong>is</strong> not the purpose <strong>of</strong> machinery to improve the situation <strong>of</strong> the worker, MUCHO gave<br />

a good example <strong>of</strong> th<strong>is</strong> in [381]: even the fact that machine labor <strong>is</strong> easier than manual<br />

labor <strong>is</strong> turned aga<strong>is</strong>nt the worker, because now the capital<strong>is</strong>t <strong>is</strong> able to employ children.<br />

Gilligan’s [417] <strong>is</strong> an interesting personal account <strong>of</strong> h<strong>is</strong> own situation: he feels tbat in he <strong>is</strong><br />

exploited more because the labor process has been made mroe efficient without him getting<br />

any benefits from it.<br />

Scott, in [390], seems to mean the right thing, but h<strong>is</strong> formulations are very imprec<strong>is</strong>e.<br />

Instead <strong>of</strong><br />

232 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The introduction <strong>of</strong> machinery decreases the amount <strong>of</strong> labour power necessary<br />

for the labourer to reproduce her / h<strong>is</strong> value.<br />

he should have written:<br />

The introduction <strong>of</strong> machinery decreases the amount <strong>of</strong> labour necessary to<br />

reproduce the labourer’s labour power.<br />

And surplus value <strong>is</strong> not creating pr<strong>of</strong>it, but pr<strong>of</strong>it <strong>is</strong> surplus value. Besides, Scott’s grade<br />

suffered because he said things that were said before on the l<strong>is</strong>t.<br />

Next Message by Hans <strong>is</strong> [441].<br />

[443] Jake: <strong>Question</strong> 241 wants to address the exploitation <strong>of</strong> the worker by the introduction<br />

<strong>of</strong> technology. I want to make the point that technology always exploits the workers. Its<br />

true that the capital<strong>is</strong>ts gain more by more efficient ways and employees never share these<br />

excess pr<strong>of</strong>its, but I want to talk about technology and relate it to slavery. Without any major<br />

advances in technology, slavery in the early going <strong>of</strong> th<strong>is</strong> country clearly exploited mankind<br />

more than any kind <strong>of</strong> exploitation today. Th<strong>is</strong> exploitation came from the hard core manually<br />

labor expected from the plantation owners. With all the hard labor the slaves put into the<br />

plantations, <strong>is</strong> th<strong>is</strong> better than if they had tractors and other means <strong>of</strong> producing? I guess the<br />

point trying to be made <strong>is</strong> that as wrong as it was to condone slavery at that time, technology<br />

could <strong>of</strong> been one <strong>of</strong> the many factors that began to turn individuals from slavery. Other<br />

means <strong>of</strong> extracting came about. So as bad as technology may seem today as a means <strong>of</strong><br />

exploiting workers, there was a time that it actually may have helped them. There may be<br />

many exceptions similiar today.<br />

Next Message by Jake <strong>is</strong> [444].<br />

<strong>Question</strong> 242 <strong>is</strong> 218 in 1995ut, 293 in 1997WI, 365 in 1998WI, 366 in 1999SP, 453 in<br />

2000fa, 479 in 2001fa, 518 in 2002fa, 538 in 2003fa, 592 in 2004fa, 545 in 2005fa,<br />

598 in 2007SP, 588 in 2007fa, 596 in 2008SP, 600 in 2008fa, 712 in 2011fa, and 741 in<br />

2012fa:<br />

<strong>Question</strong> 242 <strong>What</strong> <strong>is</strong> extra surplus-value? How <strong>is</strong> it related to relative surplus-value?<br />

[378] Kia: Marx stated that extra value <strong>is</strong> social value that <strong>is</strong> added to produce a commodity.<br />

Which the the value that are measured by the labor time socially required for producing<br />

a commodity. Thus, if capital<strong>is</strong>t who applies th<strong>is</strong> method and sell h<strong>is</strong> commodity at its social<br />

value <strong>of</strong> 24 cents, and turns around and sell it for above its individual value <strong>of</strong> 6 cents. At<br />

end he realize the extra value <strong>of</strong> 6 cents.<br />

Relative surplus value can be recognized from the value <strong>of</strong> the production costs. From<br />

th<strong>is</strong> costs, good percentage represent the value <strong>of</strong> the means <strong>of</strong> production. The rest <strong>of</strong> the<br />

sum, are created during the production. Looking at th<strong>is</strong>, most produtive labor <strong>is</strong> done at<br />

the end <strong>of</strong> working day. Thus, workers now only need to work less hours to produce same<br />

value at a higher surplus value. Increasing the number <strong>of</strong> the extra surplus value into relative<br />

value.<br />

Message [378] referenced by [447]. Next Message by Kia <strong>is</strong> [400].<br />

[396] Caren: Extra surplus-value A driving force for the social production <strong>of</strong> surplusvalue<br />

<strong>is</strong> actually in individual capital<strong>is</strong>ts attempt to improve their own methods <strong>of</strong> production


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 233<br />

in order to obtain extra surplus-value. A capital<strong>is</strong>t who has managed to introduce an exceptionally<br />

superior technological method <strong>of</strong> production in compar<strong>is</strong>on with the dominant<br />

representative method in an industry reduces the labor-time as well as the costs necessary to<br />

produce a unit <strong>of</strong> product, while he can sell it with a social value estimated on the bas<strong>is</strong> <strong>of</strong> the<br />

general conditions <strong>of</strong> production in the industry. The extra surplus-value which <strong>is</strong> obtained<br />

by such a capital<strong>is</strong>t must d<strong>is</strong>appear with the gradual diffusion <strong>of</strong> h<strong>is</strong> method <strong>of</strong> production<br />

over the industry, and the social value <strong>of</strong> the product <strong>is</strong> accordingly reduced down. Therefore,<br />

the acqu<strong>is</strong>ition <strong>of</strong> extra surplus-value presupposes more or less difficulty in instantly<br />

introducing new technological methods <strong>of</strong> production on the part <strong>of</strong> other capital<strong>is</strong>ts, generally<br />

because <strong>of</strong> the costs <strong>of</strong> abandoning the ex<strong>is</strong>ting equipments with their remaining values.<br />

The legal patent rights system further serves to secure extra surplus-value for the initiating<br />

capital<strong>is</strong>ts.<br />

Since even the capital<strong>is</strong>ts in industries producing luxury goods can obtain extra surplusvalue<br />

by innovating technologies, extra surplus-value <strong>is</strong> obtainable even without directly<br />

contributing to the social production <strong>of</strong> relative surplus-value. The workers with same intensity<br />

<strong>of</strong> labor cease to bring about extra surplus-value after the general<strong>is</strong>ation <strong>of</strong> new technology.<br />

The source <strong>of</strong> extra surplus-value <strong>is</strong> in the red<strong>is</strong>tribution <strong>of</strong> social surplus-labor-time<br />

through the price mechan<strong>is</strong>m, so that either less surplus-labor-substance may be d<strong>is</strong>tributed<br />

to other capital<strong>is</strong>ts with old methods <strong>of</strong> production, or it <strong>is</strong> increased socially, with the gradual<br />

reduction <strong>of</strong> the price <strong>of</strong> commodity products in the process <strong>of</strong> general<strong>is</strong>ation <strong>of</strong> new<br />

method <strong>of</strong> production. So long as a portion <strong>of</strong> social surplus-labor must cover, in one way<br />

or another, the costs <strong>of</strong> improving methods <strong>of</strong> production according to the general economic<br />

norms common to all human societies, the portion <strong>of</strong> capital<strong>is</strong>tic surplus-labor red<strong>is</strong>tributed<br />

in the form <strong>of</strong> extra surplus-value has such a social function by its very nature. Nevertheless<br />

there cannot be any objective standard set by general economic norms as to how large<br />

a proportion <strong>of</strong> social surplus-labor <strong>is</strong> to be spent for such a function. And the quantity <strong>of</strong><br />

surplus-labor obtained in the form <strong>of</strong> extra surplus-value by capital<strong>is</strong>ts <strong>of</strong>ten well exceeds<br />

the quantity <strong>of</strong> labor which <strong>is</strong> rationally and actually necessary for improving methods <strong>of</strong><br />

production. Hence, it serves as a strong incentive for technological innovations.<br />

The capital<strong>is</strong>tic development <strong>of</strong> productive power, driven by the incentive to acquire extra<br />

surplus-value and resulting in the social production <strong>of</strong> relative surplus-value, takes three<br />

elementary forms: i.e. co-operation, div<strong>is</strong>ion <strong>of</strong> labor and mechan<strong>is</strong>ed factory system.<br />

Message [396] referenced by [447]. Next Message by Caren <strong>is</strong> [407].<br />

[404] Super: The extra surplus value <strong>is</strong> the extra time spent to produce an extra amount <strong>of</strong><br />

product. The workday <strong>is</strong> extended to produce a surplus amount or increase total productivity.<br />

The relative surplus value <strong>is</strong> the increased technology or innovation used in the production<br />

process to increase total output <strong>of</strong> the product within the same amount <strong>of</strong> time.<br />

These are related in that both cause increased total productivity in the production <strong>of</strong> a<br />

commodity.<br />

Message [404] referenced by [447]. Next Message by Super <strong>is</strong> [496].<br />

[447] Hans: Caren’s, Kia’s and Super’s answers Caren’s answer [396] <strong>is</strong> very thoughful.<br />

She points out the link between extra surplus value and patent laws, and she also asks the<br />

question where the extra surplus value comes from, and how good its social justification <strong>is</strong>.<br />

234 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

These are additional points which are not in the reading, but which pertinent to the subject.<br />

Very good job!<br />

By contrast, Kia’s [378] and Super’s [404] are completely in the dark about the subject.<br />

Next Message by Hans <strong>is</strong> [457].<br />

<strong>Question</strong> 246 Marx says that an increase in productivity will increase surplus value not<br />

only through the cheapening <strong>of</strong> the workers’ means <strong>of</strong> subs<strong>is</strong>tence, but through other avenues<br />

as well. Describe some <strong>of</strong> these other avenues.<br />

[403] TOAD: Some <strong>of</strong> the other avenues that will increase surplus value would be tecnology.<br />

With new tecnology the worker <strong>is</strong> able to produce ten times as many products as<br />

before now he only spends one tenth as much time on every item. The laborer still has the<br />

opertunity to work for the same amount <strong>of</strong> hours he just <strong>is</strong> now able to credit more time to<br />

himself and less to necessary labor time.<br />

One other avenue <strong>is</strong> becoming more skilled at the task at hand th<strong>is</strong> enables the laborer<br />

to increse the number <strong>of</strong> units produced in a given amount <strong>of</strong> time and use the remaning<br />

time, that would continue to increase as he became better and quicker, to credit towards h<strong>is</strong><br />

surplus value.<br />

Message [403] referenced by [460]. Next Message by TOAD <strong>is</strong> [554].<br />

[460] Hans: TOAD’s answer TOAD’s [403] starts with the sentence:<br />

Some <strong>of</strong> the other avenues that will increase surplus value would be tecnology.<br />

“Increase in productivity” and “technology” <strong>is</strong> the same thing. It seems so obvious that<br />

an increase in productivity increase pr<strong>of</strong>its, but according to the labor theory <strong>of</strong> value it <strong>is</strong><br />

not. You write:<br />

With new tecnology the worker <strong>is</strong> able to produce ten times as many products<br />

as before now he only spends one tenth as much time on every item.<br />

But if the labor theory <strong>of</strong> value <strong>is</strong> valid, then the total sum <strong>of</strong> values the worker creates<br />

during the day does not change. See <strong>Question</strong> 238 about that. How can then pr<strong>of</strong>its increase?<br />

It <strong>is</strong> not a rhetorical question, but it <strong>is</strong> not obvious. Th<strong>is</strong> was the subject <strong>of</strong> Chapter 12.<br />

In the second paragraph <strong>of</strong> your answer, you should have d<strong>is</strong>tingu<strong>is</strong>hed between increases<br />

in productivity and increases in intensity <strong>of</strong> labor. If you change your production method so<br />

that more can be produced with the same amount <strong>of</strong> effort, th<strong>is</strong> <strong>is</strong> an increase in productivity.<br />

If you produce more because you work faster, th<strong>is</strong> <strong>is</strong> an increase in the product but not an<br />

increase in productivity, because you had to work harder for the additional output.<br />

One other avenue <strong>is</strong> becoming more skilled at the task at hand th<strong>is</strong> enables<br />

the laborer to increse the number <strong>of</strong> units produced in a given amount <strong>of</strong><br />

time and use the remaning time, that would continue to increase as he became<br />

better and quicker.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 235<br />

Workers whose work intensity <strong>is</strong> higher than the average create more value than the average.<br />

Their wages will be higher, but the wage differential will be lower than the difference in<br />

value produced. Since higher technology <strong>is</strong> <strong>of</strong>ten accompanied by more control and therefore<br />

more intensive labor, th<strong>is</strong> <strong>is</strong> indeed an additional avenue for increasing pr<strong>of</strong>its.<br />

Next Message by Hans <strong>is</strong> [461].<br />

<strong>Exam</strong> <strong>Question</strong> 247 <strong>is</strong> 214 in 1995WI, 223 in 1995ut, 245 in 1996ut, 298 in 1997WI, and<br />

733 in 2011fa:<br />

<strong>Exam</strong> <strong>Question</strong> 247 <strong>What</strong> <strong>is</strong> the difference between the value (resp. price) <strong>of</strong> labor-power<br />

and the wage?<br />

[422] Wight: When a capital<strong>is</strong>t pays a worker, a transformation takes place. The transformation<br />

<strong>is</strong> one <strong>of</strong> the value <strong>of</strong> the labor power into a price. The price <strong>is</strong> not paid for the<br />

labor power itself but for the labor in which the labor power <strong>is</strong> recognized. The difference<br />

between the value <strong>of</strong> labor power and the wage paid <strong>is</strong> illustrated in th<strong>is</strong> transformation. If<br />

the worker were paid for h<strong>is</strong> labor power, he would need to tell the employer how much he<br />

needs for the reproduction <strong>of</strong> h<strong>is</strong> labor power, and the employer would reimburse for these<br />

expenses. Instead, the worker <strong>is</strong> paid for h<strong>is</strong> labor in which h<strong>is</strong> labor power <strong>is</strong> realized. H<strong>is</strong><br />

compensation <strong>is</strong> the wage paid for labor. The worker <strong>is</strong> not surpr<strong>is</strong>ed that he <strong>is</strong> paid for h<strong>is</strong><br />

labor. After selling h<strong>is</strong> labor power on the market, he cannot go home and enjoy the wage.<br />

He must first show up and work for the capital<strong>is</strong>t for many hours. <strong>What</strong> he really gives the<br />

capital<strong>is</strong>t <strong>is</strong> therefore h<strong>is</strong> labor. The worker does not see the transformation that I mentioned<br />

earlier. He thinks he <strong>is</strong> paid for what he <strong>is</strong> giving the capital<strong>is</strong>t which <strong>is</strong> h<strong>is</strong> labor. Hence,<br />

the value <strong>of</strong> labor power <strong>is</strong> the cost to replen<strong>is</strong>h and repoduce th<strong>is</strong> labor power day after<br />

day, and the wage <strong>is</strong> the monetary compensation paid by the employer for labor performed<br />

by the employee. Th<strong>is</strong> transformation <strong>is</strong> one big reason why exploitation <strong>is</strong> inv<strong>is</strong>ible under<br />

capital<strong>is</strong>m.<br />

Message [422] referenced by [461]. Next Message by Wight <strong>is</strong> [527].<br />

[461] Hans: Wight’s answer Wight’s answer [422] was a good explanation (based on my<br />

Annotations). Here <strong>is</strong> an additional point which, I hope, makes the matter more concrete.<br />

Since the workers sells her labor power, she only gets paid the value <strong>of</strong> her labor power, not<br />

the value <strong>of</strong> what she <strong>is</strong> producing. If someone makes $10 per hour, th<strong>is</strong> <strong>is</strong> not because she<br />

creates a value <strong>of</strong> $10 per hour, but because workers like her traditionally need $400 per<br />

week to survive, and work 40 hours per week.<br />

Next Message by Hans <strong>is</strong> [462].<br />

[481] Caren: There <strong>is</strong> the difference between the value <strong>of</strong> labor-power and the wage. The<br />

wage <strong>is</strong> the price <strong>of</strong> labor power, in so far as th<strong>is</strong> <strong>is</strong> simply function <strong>of</strong> the relation <strong>of</strong> supply<br />

and demand on the labor market; on the other hand the value <strong>of</strong> labor-power <strong>is</strong> that average<br />

quantity to which the actual wage paid seeks to adjust itself in the long run, and which <strong>is</strong><br />

therefore independent <strong>of</strong> supply and demand. Since labor-power only ex<strong>is</strong>ts as a capacity<br />

<strong>of</strong> the living individual, and since it <strong>is</strong> inseparable from its bearer, the worker himself, the<br />

costs <strong>of</strong> its production clearly break down into those costs which are required to maintain<br />

the worker as worker and to perpetuate the race <strong>of</strong> workers; and these are primarily the<br />

necessities which serve for the maintenance <strong>of</strong> workers and their families, for their nour<strong>is</strong>hment,<br />

clothing, housing etc., if we d<strong>is</strong>regard the relatively small costs <strong>of</strong> training <strong>of</strong> the great<br />

236 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

majority <strong>of</strong> workers. In th<strong>is</strong> sense the value <strong>of</strong> labor-power <strong>is</strong> determined by the value <strong>of</strong><br />

the necessary means <strong>of</strong> labor incorporated in them. The value <strong>of</strong> labor-power <strong>is</strong> constituted<br />

from two elements, one <strong>of</strong> which <strong>is</strong> merely physical, the other social. Nothing other than<br />

that the laws <strong>of</strong> determination <strong>of</strong> wages are elastic, and that the value <strong>of</strong> labor-power must<br />

vary within particular limits. Its ultimate limit <strong>is</strong> determined by physical element, that <strong>is</strong> to<br />

say, to maintain and reproduce itself, to perpetuate <strong>is</strong> physical ex<strong>is</strong>tence, the working class<br />

must receive the necessaries absolutely ind<strong>is</strong>pensable for living and multiplying. The value<br />

<strong>of</strong> those ind<strong>is</strong>pensable necessaries forms, therefore, the ultimate limit <strong>of</strong> the value <strong>of</strong> labor.<br />

The wage moves up or down according to the relationship between supply and demand<br />

that <strong>is</strong> the relation between the d<strong>is</strong>posable labor-powers and the size <strong>of</strong> the capital which <strong>is</strong><br />

seeking an outlet in production.<br />

Message [481] referenced by [570]. Next Message by Caren <strong>is</strong> [486].<br />

[482] Skippy: Wage Vs Labor Power Its very simple.<br />

Its <strong>is</strong> stated clearly that a wage <strong>is</strong> the compensation received by an individual for h<strong>is</strong> labor<br />

time.<br />

Labor power <strong>is</strong> realized in labor itself. Labor power <strong>is</strong> the capibility <strong>of</strong> the individual.<br />

Th<strong>is</strong> <strong>is</strong> a consept. To provide labor <strong>is</strong> putting th<strong>is</strong> concept to work. Th<strong>is</strong> <strong>is</strong> how an employer<br />

desides, in a way, how much to set the wage based on the job required.<br />

Message [482] referenced by [570]. Next Message by Skippy <strong>is</strong> [535].<br />

[499] Pizza: In looking to the other answers on question 247 I dont feel the question or<br />

meaning <strong>of</strong> labor power was answered.<br />

Labor power <strong>is</strong> the resulting output that produces an enhanced value that <strong>is</strong> not easily<br />

recognized by the worker who thinks that he <strong>is</strong> only selling labor. Labor <strong>is</strong> amount <strong>of</strong><br />

resources expended to produce the labor power. The failure to recognize th<strong>is</strong> d<strong>is</strong>tinction on<br />

the part <strong>of</strong> the worker and recognition on the part <strong>of</strong> the capital<strong>is</strong>t enables th<strong>is</strong> nond<strong>is</strong>tinction<br />

to be perpetuated. Capital<strong>is</strong>m helps to sustain th<strong>is</strong> d<strong>is</strong>tinction as the worker <strong>is</strong> alienated from<br />

the transformation process and I think th<strong>is</strong> allows the capital<strong>is</strong>t to perpetuate the belief that<br />

the end result <strong>of</strong> the production <strong>is</strong> the result <strong>of</strong> h<strong>is</strong> labor and not the worker. The value<br />

belongs to the capital<strong>is</strong>ts, the worker did not play a part in th<strong>is</strong> labort value. Somewhere in<br />

the middle I think lies the actual truth that both parties have the right to the ownership <strong>of</strong> the<br />

labor value.<br />

Message [499] referenced by [570]. Next Message by Pizza <strong>is</strong> [577].<br />

[505] Femme: The value <strong>of</strong> labour-power <strong>is</strong> what the labour <strong>is</strong> worth. For the worker the<br />

cost <strong>of</strong> production <strong>is</strong> the value <strong>of</strong> labour-power as it ex<strong>is</strong>ts in the personality <strong>of</strong> the worker.<br />

By calculating the daily value <strong>of</strong> labour-power upon the length <strong>of</strong> the workers life and giving<br />

it a money form determines the value <strong>of</strong> labour. In Marx’s example he used a 12 hour day<br />

was equivalent to a vlaue <strong>of</strong> labour-power <strong>of</strong> $3. The laborer took 12 hours to produce an<br />

object and h<strong>is</strong> labour-power <strong>is</strong> = $3. If the laborer produced 2 <strong>of</strong> these same objects within<br />

h<strong>is</strong> 12 hours <strong>of</strong> labor than the vlaue <strong>of</strong> h<strong>is</strong> labour power <strong>is</strong> =$6.<br />

The wage <strong>is</strong> what a laborer earns despite how many objects he produces within h<strong>is</strong> 12<br />

hours <strong>of</strong> work a day (sticking to the example). It’s a fixed amount despite the workers<br />

production and efficiency. For the capital<strong>is</strong>t the cost <strong>of</strong> production will naturally be lower<br />

than the value/price <strong>of</strong> the labour-power. Because despite how many objects the laborer


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 237<br />

produces, he receives a fixed amount not based on the value <strong>of</strong> the items as defined by hours<br />

<strong>of</strong> labor it took to produce the item but based on an amount that will be most pr<strong>of</strong>itable for<br />

the capital<strong>is</strong>t. Th<strong>is</strong> the difference between wage and value <strong>of</strong> labour-power as I understood<br />

it.<br />

Message [505] referenced by [570]. Next Message by Femme <strong>is</strong> [548].<br />

[510] KALISPEL: Labout power and the wage Wages are the monetary form in which<br />

workers are paid for the sale <strong>of</strong> their labor power. Their level <strong>is</strong> the price <strong>of</strong> lavor power,<br />

and like other prices th<strong>is</strong> fluctuates around its value, according to the particular situation <strong>of</strong><br />

demand and supply, in th<strong>is</strong> case in the labor market. Unlike other commodities, however,<br />

labor power <strong>is</strong> not produced under capital<strong>is</strong>t relations <strong>of</strong> production, and the value <strong>of</strong> labor<br />

power therefore undergoes no transformation into a price <strong>of</strong> production as the price around<br />

which, for other commodities, the market price fluctuates. The value <strong>of</strong> labor power, in that<br />

sense, remains untransformed.<br />

Marx points out that the wage-form <strong>is</strong> deceptive in nature because a day’s wage <strong>is</strong> paid<br />

only after a whole day’s work, it appears that it <strong>is</strong> payment for a day’s labor. The worker<br />

<strong>is</strong> underpaid. The capital<strong>is</strong>t tries to make it appear that the worker <strong>is</strong> being paid for the<br />

labor they produced by doing th<strong>is</strong>. Marx points out that unequal exchange cannot produce<br />

value, only possibly red<strong>is</strong>tribute the surplus. The wage form <strong>is</strong> the hidden mechan<strong>is</strong>m in<br />

exploitation.<br />

The condition <strong>is</strong> that the wage <strong>is</strong> an agreement <strong>of</strong> payment when a certain amount <strong>of</strong> labor<br />

<strong>is</strong> performed. <strong>What</strong> <strong>is</strong> really being bought and sold <strong>is</strong> a worker’s labor power. Th<strong>is</strong> <strong>is</strong> paid<br />

for at its value, and its value must be less than that which the worker could create in one<br />

day, otherw<strong>is</strong>e no pr<strong>of</strong>it would be made. The wage form <strong>is</strong> illusory in the sense <strong>of</strong> hiding<br />

the exploitation that goes underneath it, not in the sense <strong>of</strong> being unreal. It <strong>is</strong> a real mode <strong>of</strong><br />

surplus extraction <strong>of</strong> capital<strong>is</strong>m.<br />

Marx points out that the growth <strong>of</strong> wages cannot keep pace with the growth <strong>of</strong> productivity.<br />

Th<strong>is</strong> comes out when he considers national differences in wages. He argues that<br />

although the level <strong>of</strong> wages may be higher in absolute terms in more advanced capital<strong>is</strong>t<br />

countries the value <strong>of</strong> labor power will be lower than in less developed nations. Th<strong>is</strong> <strong>is</strong><br />

because the purpose <strong>of</strong> capital<strong>is</strong>t accumulation <strong>is</strong> the extraction <strong>of</strong> more and more surplus<br />

value, and ultimately th<strong>is</strong> must take form <strong>of</strong> the extraction <strong>of</strong> relative surplus value through<br />

a lowering <strong>of</strong> the value <strong>of</strong> labor power. Wages will r<strong>is</strong>e with time, but in the movement<br />

from less to more developed economies, th<strong>is</strong> <strong>is</strong> not in proportion to the relative increase <strong>of</strong><br />

productivity, and what happens <strong>is</strong> workers become more exploited as the value <strong>of</strong> their labor<br />

power falls.<br />

Succinctly: The more capital<strong>is</strong>m grows so does the rate <strong>of</strong> exploitation r<strong>is</strong>e. The wage <strong>is</strong><br />

the mechan<strong>is</strong>m which hides the exploitation.<br />

Message [510] referenced by [570]. Next Message by KALISPEL <strong>is</strong> [523].<br />

[512] Ramb<strong>is</strong>: labor power vs. wage The wage <strong>is</strong> what the capital<strong>is</strong>t pays the laborer for<br />

h<strong>is</strong> labor, or output produced. The laborer receives compensation for h<strong>is</strong> labor performed<br />

after he has performed it and realizes that s/he <strong>is</strong> not paid for h<strong>is</strong>/her labor power, but instead<br />

for the wage attached to the production <strong>of</strong> commodities or services through the application<br />

<strong>of</strong> h<strong>is</strong>/her labor. The labor power <strong>of</strong> an individual may be much greater than the labor<br />

238 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

performed to produce a good/service, but the quantity <strong>of</strong> labor power needed to perform<br />

the particular labor may be such that full application <strong>of</strong> labor power <strong>is</strong>n’t necessary for the<br />

accompl<strong>is</strong>hment <strong>of</strong> the capital<strong>is</strong>t’s desire for output. The wage <strong>is</strong> simply the value <strong>of</strong> the<br />

labor expended to produce the commodity, while the value <strong>of</strong> labor power can be much<br />

greater.<br />

An individual laborer may have a much greater and valuable labor power than another<br />

laborer, but they are both paid equally for the amount <strong>of</strong> production that they produce with<br />

the wage paid for by the capital<strong>is</strong>t. Thus, the wage <strong>is</strong> paid for the value <strong>of</strong> the labor accompl<strong>is</strong>hed,<br />

and not as a measurement <strong>of</strong> the value <strong>of</strong> labor power contained within the individual<br />

who produced the labor product. The laborer may sell h<strong>is</strong>/her labor power in the marketplace<br />

(including h<strong>is</strong>/her capacity for certain labor skills or performances), but s/he will be<br />

rewarded or compensated only for h<strong>is</strong>/her labor performed, not for the value <strong>of</strong> h<strong>is</strong>/her labor<br />

power.<br />

Message [512] referenced by [570]. Next Message by Ramb<strong>is</strong> <strong>is</strong> [563].<br />

[515] Snake: difference <strong>of</strong> value and wage The value <strong>of</strong> labour power <strong>is</strong> determined<br />

by the labor time essential for the production and the duplication <strong>of</strong> a specific article. As<br />

far as it has value, it represents no more than a definite quanity <strong>of</strong> the average social labor<br />

objectified in it. For h<strong>is</strong>/her maintenance there requires a certain quantity <strong>of</strong> the means <strong>of</strong><br />

subs<strong>is</strong>tence <strong>of</strong> the worker. On the other hand, the worker constantly produces labour power<br />

that dominates and exploits him/her and the capital<strong>is</strong>t just as constantly produces labour<br />

power, in the form <strong>of</strong> a subjective source <strong>of</strong> <strong>wealth</strong> which <strong>is</strong> for the most part theoretical,<br />

although it ex<strong>is</strong>ts only in the physical body <strong>of</strong> the worker, and <strong>is</strong> separated from its own<br />

means <strong>of</strong> objectification and observation, therefore the capital<strong>is</strong>t produces the worker as<br />

a wage-labour. Th<strong>is</strong> continual reproduction, the duration <strong>of</strong> the worker, <strong>is</strong> the absolutely<br />

necessary circumstances for capital<strong>is</strong>t production.<br />

——————–<br />

Message [515] referenced by [570]. Next Message by Snake <strong>is</strong> [601].<br />

[570] Hans: About the remaining answers to <strong>Question</strong> 247 Caren’s [481] explains the<br />

difference between value <strong>of</strong> labor power and the market price <strong>of</strong> labor power. (<strong>What</strong> Caren<br />

calls “wage” <strong>is</strong> the market price <strong>of</strong> labor power.) Caren overlooks the other, more important<br />

transformation, which Marx <strong>is</strong> focusing on, i.e., the fact that the wage <strong>is</strong> not paid for the<br />

labor power itself but for labor.<br />

Skippy’s [482] <strong>is</strong> short and interesting enough that I will d<strong>is</strong>cuss it here sentence by<br />

sentence:<br />

Its <strong>is</strong> stated clearly that a wage <strong>is</strong> the compensation received by an individual<br />

for h<strong>is</strong> labor time.<br />

Labor power <strong>is</strong> realized in labor itself. Labor power <strong>is</strong> the capability <strong>of</strong> the<br />

individual. Th<strong>is</strong> <strong>is</strong> a concept.<br />

So far everything <strong>is</strong> right. But labor power <strong>is</strong> not only a concept. Nowadays it <strong>is</strong> also<br />

something which you can buy on the market. Labor power can be bought because the laborers<br />

are prevented from applying their labor power under their own command by the fact<br />

that they are excluded, by private property rights, from access to the means <strong>of</strong> production.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 239<br />

Skippy <strong>is</strong> describing th<strong>is</strong> situation in the words: the worker <strong>is</strong> only a theoretical concept, and<br />

the employer puts it into practice, therefore he gets to decide how much to pay the laborer:<br />

To provide labor <strong>is</strong> putting th<strong>is</strong> concept to work. Th<strong>is</strong> <strong>is</strong> how an employer<br />

desides, in a way, how much to set the wage based on the job required.<br />

<strong>What</strong> Skippy <strong>is</strong> forgetting <strong>is</strong> the coercive social conditions which force the laborer to<br />

assume the status <strong>of</strong> a “theoretical concept.”<br />

Pizza’s [499] and Ramb<strong>is</strong>’s [512] are m<strong>is</strong>lead by the word “power” in the term “labor<br />

power”. They think labor power <strong>is</strong> more than mere labor. Th<strong>is</strong> <strong>is</strong> a m<strong>is</strong>understanding. Labor<br />

power, as Marx uses the term, <strong>is</strong> synonymous to “potential labor”, or “ability to work”, it <strong>is</strong><br />

less than actual labor because it does not have the conditions to realize itself. Such a basic<br />

m<strong>is</strong>understanding makes me wonder how closely Pizza and Ramb<strong>is</strong> have read Marx. On<br />

the other hand, as examples <strong>of</strong> the spontaneous explanations people generate for the income<br />

differentials between capital<strong>is</strong>t and worker, these answers are <strong>of</strong> interest.<br />

Pizza writes in [499]: labor power <strong>is</strong> the output <strong>of</strong> labor. The worker works at such low<br />

wages because he does not realize how valuable the output <strong>of</strong> h<strong>is</strong> labor <strong>is</strong>, but the capital<strong>is</strong>t<br />

knows it. In other words, Pizza thinks the worker sells h<strong>is</strong> labor, not h<strong>is</strong> labor power, but he<br />

<strong>is</strong> too dumb to demand an appropriate price for it. Marx’s answer would be that it <strong>is</strong> not the<br />

worker’s stupidity that prevents the laborer from getting an equivalent <strong>of</strong> what he produces<br />

during the day, but the fact that he <strong>is</strong> only selling h<strong>is</strong> ability to work, not h<strong>is</strong> work itself, and<br />

the market value <strong>of</strong> th<strong>is</strong> ability <strong>is</strong> determined by the reproduction cost <strong>of</strong> the laborer, not by<br />

the value produced during the day.<br />

Ramb<strong>is</strong>, in [512], thinks: no wonder the employer pays so little, because he <strong>is</strong> using only<br />

very little <strong>of</strong> the employee’s potential. He <strong>is</strong> confusing cause and effect. The employer can<br />

afford using only so little <strong>of</strong> the employee’s productivity and creativity, and instead assign<br />

boring, repetitive, and stupid tasks to him, because wages are so low. He has no interest in<br />

giving the workers more say in the production process because he <strong>is</strong> afraid the workers will<br />

then no longer tolerate being taken advantage <strong>of</strong> and will kick him out.<br />

Femme, in [505], does not see that labor creates new value but thinks that labor transfers<br />

its cost to the end product. In her interpretation, pr<strong>of</strong>its come from a mixture <strong>of</strong> overcharging<br />

on the market place and hurrying the worker in the production process.<br />

KALISPEL, in [510], brings interesting additional points which are not in the assigned<br />

readings. H<strong>is</strong> work <strong>is</strong>, as usual, very thorough and thoughtful.<br />

Snake’s [515] <strong>is</strong> apparently a paraphrase <strong>of</strong> several Marx quotes. They are sometimes<br />

botched by the om<strong>is</strong>sion or confusion <strong>of</strong> words. I didn’t figure out what he means with it,<br />

but it sure sounds very Marxian.<br />

Next Message by Hans <strong>is</strong> [571].<br />

<strong>Question</strong> 248 <strong>is</strong> 224 in 1995ut, 299 in 1997WI, 372 in 1998WI, 373 in 1999SP, 461 in<br />

2000fa, 488 in 2001fa, 527 in 2002fa, 547 in 2003fa, 602 in 2004fa, 555 in 2005fa, 608<br />

in 2007fa, 620 in 2008fa, 651 in 2009fa, 734 in 2011fa, and 608 in Answer:<br />

240 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Question</strong> 248 There <strong>is</strong> a saying: “if it looks like a duck and walks like a duck and quacks<br />

like a duck, then it <strong>is</strong> a duck.” <strong>What</strong> the laborer <strong>is</strong> selling the capital<strong>is</strong>t <strong>is</strong> paid as if it was h<strong>is</strong><br />

labor, and what the laborer gives the capital<strong>is</strong>t during the day <strong>is</strong> h<strong>is</strong> labor, therefore on what<br />

grounds does Marx assert that it <strong>is</strong> not h<strong>is</strong> labor but h<strong>is</strong> labor power which he <strong>is</strong> selling?<br />

[497] VanHalen: Th<strong>is</strong> chapter took me a while to figure out. Here goes..<br />

I think Marx asserts that what <strong>is</strong> really being sold <strong>is</strong> labor-power because <strong>of</strong> the return<br />

that <strong>is</strong> given. If you sell a vase, the value <strong>of</strong> the vase <strong>is</strong> the labor that it took to produce the<br />

vase. If the worker was really selling h<strong>is</strong> labor, then he would realize the value <strong>of</strong> h<strong>is</strong> labor.<br />

If he put in 12 hours he would recieve the equivalent.<br />

But he doesn’t. He recieves only the value <strong>of</strong> h<strong>is</strong> labor-power, the value <strong>of</strong> which <strong>is</strong><br />

determined by the things necessary to basically keep him alive and working. In reality, that<br />

<strong>is</strong> all that he <strong>is</strong> selling because that <strong>is</strong> all he gets in return for h<strong>is</strong> 12 hours.<br />

If the laborer was paid according to h<strong>is</strong> labor then there wouldn’t be any surplus labor,<br />

hence surplus value reinvestment in capital and accumulation. Labor would realize its value<br />

just like any other commodity.<br />

Marx gives an explanation for why there <strong>is</strong> th<strong>is</strong> false perception that what <strong>is</strong> being sold<br />

<strong>is</strong> labor: “we see further; the value <strong>of</strong> 3 shillings which represents the paid portion <strong>of</strong> the<br />

working day - 6 hours <strong>of</strong> labour appears as the value <strong>of</strong> price <strong>of</strong> the whole working day <strong>of</strong><br />

12 hours, which thus includes 6 hours which have not been paid for. The wage form thus<br />

extingu<strong>is</strong>hes every trace <strong>of</strong> the div<strong>is</strong>ion <strong>of</strong> the working day into necessary labour and surplus<br />

labor into paid and unpaid labor. All labour appears as paid labor.”<br />

If the trace <strong>of</strong> the div<strong>is</strong>ion <strong>of</strong> the working day had not been extingu<strong>is</strong>hed, we would better<br />

be able to see what <strong>is</strong> actually being sold. The div<strong>is</strong>ion between paid and unpaid labor would<br />

be known because <strong>of</strong> the fact that the return to the laborer <strong>is</strong> only the value <strong>of</strong> the things that<br />

sustain h<strong>is</strong> life and keep him working not the value <strong>of</strong> all twelve <strong>of</strong> h<strong>is</strong> labor hours.<br />

Message [497] referenced by [500] and [541]. Next Message by VanHalen <strong>is</strong> [551].<br />

[500] Homer: question 248 Marx asserts that a worker sells h<strong>is</strong> labor-power rather than<br />

h<strong>is</strong> labor. As the Annotations state, it appears that the worker <strong>is</strong> being paid for h<strong>is</strong> labor.<br />

However, because <strong>of</strong> the element <strong>of</strong> surplus value which <strong>is</strong> created by the worker’s labor,<br />

the value <strong>of</strong> one hour <strong>of</strong> labor-power <strong>is</strong> less than one hour <strong>of</strong> social labor time equivilent<br />

received by workers per one hour <strong>of</strong> social labor time expended. Thus, the value <strong>of</strong> labor<br />

performed <strong>is</strong> greater than the wage received for the work er’s labor-power. Th<strong>is</strong> descrepency<br />

between the value created by labor and the wagev received for labor-power <strong>is</strong> the foundation<br />

<strong>of</strong> worker exploitation. Every hour that a worker <strong>is</strong> at work, her labor-power <strong>is</strong> available<br />

to the capital<strong>is</strong>t and she <strong>is</strong> paid the hourly value <strong>of</strong> her labor-power. While she recieves<br />

payment for her labor-power, she does not recieve the full payment for her labor.<br />

Hans: Your grade suffered because your answer was too similar to VanHalen’s [497], which was posted to the<br />

class one hour earlier.<br />

Message [500] referenced by [544]. Next Message by Homer <strong>is</strong> [592].<br />

[541] Hans: Cause and Effect in VanHalen’s answer At the beginning <strong>of</strong> h<strong>is</strong> thoughtful<br />

answer [497], VanHalen writes:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 241<br />

Marx asserts that what <strong>is</strong> really being sold <strong>is</strong> labor-power because <strong>of</strong> the<br />

return that <strong>is</strong> given.<br />

Th<strong>is</strong> <strong>is</strong> right. Despite superficial evidence to the contrary, Marx ins<strong>is</strong>ts that what <strong>is</strong> being<br />

sold <strong>is</strong> labor power, because th<strong>is</strong> makes a big difference for the wage the laborer can hope to<br />

receive. VanHalen continues:<br />

If you sell a vase, the value <strong>of</strong> the vase <strong>is</strong> the labor that it took to produce<br />

the vase. If the worker was really selling h<strong>is</strong> labor, then he would realize<br />

the value <strong>of</strong> h<strong>is</strong> labor. If he put in 12 hours he would recieve the equivalent.<br />

But he doesn’t. He recieves only the value <strong>of</strong> h<strong>is</strong> labor-power, the value <strong>of</strong><br />

which <strong>is</strong> determined by the things necessary to basically keep him alive and<br />

working.<br />

Now I d<strong>is</strong>agree with VanHalen’s next sentence. It reads:<br />

In reality, that <strong>is</strong> all that he <strong>is</strong> selling because that <strong>is</strong> all he gets in return for<br />

h<strong>is</strong> 12 hours.<br />

“In reality,” things are exactly the other way round. VanHalen should have written:<br />

In reality, that <strong>is</strong> all that he gets in return for h<strong>is</strong> 12 hours because that <strong>is</strong> all<br />

he <strong>is</strong> selling.<br />

I.e., he does not get the full equivalent for h<strong>is</strong> 12 hours because he <strong>is</strong> not selling h<strong>is</strong> labor,<br />

but only h<strong>is</strong> labor power (which has a value that <strong>is</strong> below the value product <strong>of</strong> 12 hours).<br />

VanHalen’s original formulation may still have its justification. Perhaps VanHalen meant:<br />

I know that he <strong>is</strong> selling only h<strong>is</strong> labor power because I see that he <strong>is</strong> getting a wage which<br />

<strong>is</strong> much less than the value <strong>of</strong> labor. The word “because” <strong>is</strong> sometimes used to describe real<br />

connections, and sometimes to describe how we find out about reality.<br />

Next Message by Hans <strong>is</strong> [544].<br />

[544] Hans: More Confusion between Cause and Effect Homer writes in [500]:<br />

As the Annotations state, it appears that the worker <strong>is</strong> being paid for h<strong>is</strong><br />

labor.<br />

I think the sentence Homer <strong>is</strong> referring to <strong>is</strong> the first sentence in Chapter Nineteen:<br />

On the surface <strong>of</strong> bourgeo<strong>is</strong> society, the compensation <strong>of</strong> the laborer appears<br />

as price <strong>of</strong> labor, a certain quantum <strong>of</strong> money paid for a certain<br />

quantum <strong>of</strong> labor.<br />

Here, appears <strong>is</strong> taken in the meaning <strong>of</strong> “takes the form <strong>of</strong>”. It <strong>is</strong> not just an illusion,<br />

but it <strong>is</strong> reality that the worker gets h<strong>is</strong> income in form <strong>of</strong> a hourly price <strong>of</strong> h<strong>is</strong> labor. We are<br />

talking here about forms, i.e., about the surface <strong>of</strong> the economy. But Marx warns us that we<br />

should not conclude from th<strong>is</strong> surface appearance that labor <strong>is</strong> what the worker <strong>is</strong> selling the<br />

capital<strong>is</strong>t.<br />

Now Homer continues:<br />

242 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

However, because <strong>of</strong> the element <strong>of</strong> surplus value which <strong>is</strong> created by the<br />

worker’s labor, the value <strong>of</strong> one hour <strong>of</strong> labor-power <strong>is</strong> less than one hour<br />

<strong>of</strong> social labor time equivilent received by workers per one hour <strong>of</strong> social<br />

labor time expended.<br />

Th<strong>is</strong> sentence <strong>is</strong> not quite coherent. I think Homer meant something like:<br />

However, because <strong>of</strong> the element <strong>of</strong> surplus value which <strong>is</strong> created by the<br />

worker’s labor, the value <strong>of</strong> one hour <strong>of</strong> labor-power received by the worker<br />

<strong>is</strong> less than the equivalent produced by one hour <strong>of</strong> social labor.<br />

Marx would argue just the other way round:<br />

Since the value <strong>of</strong> one hour <strong>of</strong> labor-power received by the worker <strong>is</strong> less<br />

than the equivalent produced by one hour <strong>of</strong> social labor, the laborer produces<br />

a surplus value for the capital<strong>is</strong>t.<br />

I am amazed how people get cause and effect confused when they speak about exploitation.<br />

Apparently our brains are so conditioned that we don’t even dare to think that exploitation<br />

<strong>is</strong> not some eternal given but that it has specific mechan<strong>is</strong>ms which can be changed. Of<br />

course, under today’s conditions, the capital<strong>is</strong>ts would not hire the workers if they did not<br />

get more value out <strong>of</strong> them than they pay them. But they can only be so greedy because they<br />

monopolize the means <strong>of</strong> production and conveniently find the commodity labor power on<br />

the market.<br />

In the rest <strong>of</strong> h<strong>is</strong> subm<strong>is</strong>sion, Homer has it right and formulates it well, and I will not<br />

repeat it here. I hope that Homer does not consider it a personal putdown that I am pointing<br />

out h<strong>is</strong> errors here. I did it because I think others can learn from th<strong>is</strong> exerc<strong>is</strong>e too.<br />

Next Message by Hans <strong>is</strong> [570].<br />

<strong>Question</strong> 250 <strong>is</strong> 226 in 1995ut, 248 in 1996ut, 301 in 1997WI, 367 in 1997sp, 491 in<br />

2001fa, 530 in 2002fa, 551 in 2003fa, 607 in 2004fa, 560 in 2005fa, 634 in 2007SP, 614<br />

in 2007fa, 626 in 2008fa, 720 in 2010fa, 740 in 2011fa, and 769 in 2012fa:<br />

<strong>Question</strong> 250 Why can the laborer not sell commodities instead <strong>of</strong> h<strong>is</strong> labor?<br />

[442] Jake: question 250 The point being made here <strong>is</strong> that if a person had the capacity<br />

to use h<strong>is</strong> labor to bring products to the market place himself, he them would have no need<br />

to sell h<strong>is</strong> labor power as if it was a commodity. Labor <strong>is</strong> not first produced as a commodity<br />

and then brought to the market for exchange. Labor <strong>is</strong> created the moment it reaches the<br />

market.<br />

Another look at the question, “Why can the laborer not sell commodities instead <strong>of</strong> h<strong>is</strong><br />

labor?” If the individual was selling h<strong>is</strong> own commodities in the market, he wouldn’t be considered<br />

a laborer. A laborer <strong>is</strong> one who labors for another. One who brings h<strong>is</strong> commodities<br />

to the market <strong>is</strong> a producer.<br />

Message [442] referenced by [462]. Next Message by Jake <strong>is</strong> [443].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 243<br />

[462] Hans: Jake’s two answers Jake gives two answers in [442]. The second answer<br />

<strong>is</strong>: “because then he would not be a laborer.” Th<strong>is</strong> <strong>is</strong> soph<strong>is</strong>try, call th<strong>is</strong> individual what you<br />

want. Jake’s first answer <strong>is</strong>:<br />

if a person had the capacity to use h<strong>is</strong> labor to bring products to the market<br />

place himself, he them would have no need to sell h<strong>is</strong> labor power as if it<br />

was a commodity.<br />

Th<strong>is</strong> assumes that the laborer does not have “the capacity” but does not explain why not.<br />

The reason <strong>is</strong> not that the workers are too stupid. The reason <strong>is</strong> that workers do not have<br />

control over the means <strong>of</strong> production. If they were the ones who directed the labor process,<br />

instead <strong>of</strong> a greedy boss, then they would also organize the labor in such a way that it <strong>is</strong> not<br />

so stultifying for the worker.<br />

Message [462] referenced by [470]. Next Message by Hans <strong>is</strong> [470].<br />

[469] Skyler: “If labor had value, then it would transfer its value to the product.” (Annotations<br />

Pg. 153) For labor to be <strong>of</strong> use the laborer must have available the raw materials<br />

and beable to produce a commodity to sell for value. The value <strong>of</strong> a commodity or product<br />

<strong>is</strong> expressed through its exchange value on the market. The laborer or producer <strong>of</strong> the<br />

commodity must take the materials and means <strong>of</strong> production and produce something to sell<br />

on the market allowing the value to be expressed. The labor in-and-<strong>of</strong>f-itself <strong>is</strong> does not<br />

have value. If it did there would be no need to produce commodities. Labor would just<br />

ex<strong>is</strong>t before being sold. People would store labor until needed and then sell when the time<br />

was right. In short, a laborer needs a job or a means <strong>of</strong> production to produce a product or<br />

commodity. “If a worker able to endow labor with an independent ex<strong>is</strong>tence, he would be<br />

selling a commodity, and not labor.”<br />

Message [469] referenced by [470]. Next Message by Skyler <strong>is</strong> [566].<br />

[470] Hans: Warning: No More <strong>Question</strong> 250! Skyler’s [469] d<strong>is</strong>cusses the <strong>is</strong>sue which<br />

Marx brings up at the beginning <strong>of</strong> Chapter Nineteen: that for logical reasons, labor, the<br />

source <strong>of</strong> value, cannot have value. I tried to make Marx’s argument more explicit in my<br />

Annotations. I am not 100 percent sat<strong>is</strong>fied with what I wrote there, but I think it generally<br />

goes in the right direction. Skyler has read my Annotations and plays with these arguments.<br />

I am interested in th<strong>is</strong>. Perhaps there <strong>is</strong> a better way to put it all together. However Skyler’s<br />

subm<strong>is</strong>sion <strong>is</strong> very brief, and I do not see all the connections he <strong>is</strong> making, and I suspect<br />

some <strong>of</strong> them are based on m<strong>is</strong>understandings.<br />

For instance, how does he get from the first sentence:<br />

“If labor had value, then it would transfer its value to the product.”<br />

which <strong>is</strong> a quote from my Annotations, to the second sentence:<br />

For labor to be <strong>of</strong> use the laborer must have available the raw materials and<br />

be able to produce a commodity to sell for value.<br />

I suspect Skyler understood my quote from the Annotations as if it had said:<br />

“Labor power only then has any use if it can be materialized in a product.”<br />

244 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Th<strong>is</strong> <strong>is</strong> not what I meant. I meant: If labor were a commodity like any other, an input<br />

into production, something that has value instead <strong>of</strong> being the unique source <strong>of</strong> value, then it<br />

would transfer the value which it has to the end product, like any other input into production.<br />

I.e., then it would be wrong to say that the labor produces more value than it costs the capital<strong>is</strong>t;<br />

if the wage costs are so and so much, th<strong>is</strong> <strong>is</strong> how much value the laborer contributes to<br />

the product. Th<strong>is</strong> <strong>is</strong> what neoclassical economics assumes, and they even have the “addingup<br />

theorem” to prove it, but it <strong>is</strong> at variance with Marx’s claim that all pr<strong>of</strong>its come from the<br />

unpaid labor <strong>of</strong> the proletarian.<br />

But apart from th<strong>is</strong> suspected m<strong>is</strong>understanding, Skyler’s text makes sense. He does a<br />

better job than my Annotations at integrating Marx’s 675:3, the paragraph to which <strong>Question</strong><br />

250 refers. In my Annotations I thought there was a break in Marx’s argument, suddenly<br />

he talks about the practicalities <strong>of</strong> the exchange. Skyler’s text made it clear to me that these<br />

practicalities are not extraneous, but that the ability to express the value on the market place<br />

<strong>is</strong> essential for the concept <strong>of</strong> value:<br />

The value <strong>of</strong> a commodity or product <strong>is</strong> expressed through its exchange<br />

value on the market. The laborer or producer <strong>of</strong> the commodity must take<br />

the materials and means <strong>of</strong> production and produce something to sell on the<br />

market allowing the value to be expressed. The labor in-and-<strong>of</strong>-itself does<br />

not have value. If it did there would be no need to produce commodities.<br />

Labor would just ex<strong>is</strong>t before being sold. People would store labor until<br />

needed and then sell when the time was right.<br />

Here Skyler follows my counterfactual argument in the Annotations, but again I meant<br />

it differently. I meant: people would store labor until needed and then use it when the time<br />

was right. For instance, some unexpected guests arrive at the door. <strong>What</strong> do you do? You<br />

run into the kitchen, take some eggs and flour etc., pour some labor over it out <strong>of</strong> your bottle,<br />

and voila you have a cake instantly. No need to store cakes in the deep freezer. And you<br />

sprinkle some labor into the living room, and there! everything <strong>is</strong> tidied up and inviting for<br />

the guests to sit down.<br />

Skyler’s attempt was interesting and also ambitious, and I rewarded him with a good<br />

grade for it. But before everyone else rushes to beat th<strong>is</strong> <strong>Question</strong> to death by answering<br />

it too, let me warn you: unless you are bringing something really new and enlightening,<br />

you cannot expect a good grade any more. My earlier [462] and Skyler’s [469] and th<strong>is</strong><br />

commentary here probably said everything there <strong>is</strong> to say about th<strong>is</strong> <strong>Question</strong>.<br />

Next Message by Hans <strong>is</strong> [472].<br />

[503] Camera: The laborer can not sell commodities instead <strong>of</strong> h<strong>is</strong> labor because as stated<br />

in chapter 19 in order to sell labor as a commodity in the market, it must ex<strong>is</strong>t before it <strong>is</strong> sold.<br />

To remedy th<strong>is</strong>, the laborer would have to give the labor an independency so that it ex<strong>is</strong>ts on<br />

its own and not as a result <strong>of</strong> the laborer’s efforts. Then he would be selling a commodity<br />

instead <strong>of</strong> h<strong>is</strong> labor; but <strong>of</strong> course th<strong>is</strong> <strong>is</strong> not how the market works. Commodities sold on<br />

the market are produced in order to exchange, then brought to the market, whereas labor <strong>is</strong><br />

created the moment it <strong>is</strong> brought to the market.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 245<br />

Another explanation comes from chapter six where Marx states that there must ex<strong>is</strong>t two<br />

conditions in order for labor power to be a commodity; one was that the person creating the<br />

labor power must <strong>of</strong>fer the labor power for sale as a commodity, and the other, which helps<br />

to answer the question at hand, <strong>is</strong> that the producer <strong>of</strong> the labor power must free himself<br />

from the market where h<strong>is</strong> labor power <strong>is</strong> sold as a commodity.<br />

Hans: Good answer!<br />

First Message by Camera <strong>is</strong> [51].<br />

<strong>Question</strong> 253 <strong>is</strong> 217 in 1995WI, 304 in 1997WI, 377 in 1998WI, 378 in 1999SP, 495 in<br />

2001fa, 534 in 2002fa, 555 in 2003fa, 611 in 2004fa, 563 in 2005fa, 638 in 2007SP, 618<br />

in 2007fa, and 744 in 2011fa:<br />

<strong>Question</strong> 253 Why can the inequality in the exchange between worker and capital<strong>is</strong>t not<br />

be explained by the difference that the worker represents living labor, and the capital<strong>is</strong>t<br />

objectified labor?<br />

[494] Karl: Workers gouged? Some econom<strong>is</strong>ts have argued that labor <strong>is</strong> not equal to<br />

the value <strong>of</strong> other commodities, ie: the labor required to produce an equivalent amount <strong>of</strong><br />

capital. The differentiation process they have used to explain th<strong>is</strong> <strong>is</strong> dead labor vs. living<br />

labor. Th<strong>is</strong> can be explained in the form. <strong>What</strong> the capital<strong>is</strong>t does <strong>is</strong> make un-essential<br />

changes in the form <strong>of</strong> the commodity such as devaluing the labor against the capital. Th<strong>is</strong><br />

<strong>is</strong> <strong>is</strong> only true because <strong>of</strong> the laborer willing to enter into the “social contract” so he can sell<br />

h<strong>is</strong> only commodity, that <strong>of</strong> labor. Th<strong>is</strong> was qouted in the reading, “It was necessary to reach<br />

an agreement”(yet another version <strong>of</strong> the social contract!)’that every time completed labor<br />

was exchanged for, the capital<strong>is</strong>t would receive a higher value than the former.<br />

Marx would argue against the mere change in form to describe living labor, and objectified<br />

labor. Marx said, “dead labor <strong>is</strong> dead.” Marx goes into the idea <strong>of</strong> the labor theory <strong>of</strong><br />

value. It <strong>is</strong> not the dead labor that counts here. It <strong>is</strong> the allocation <strong>of</strong> socially present labor<br />

time that equates to the value differences. For instance if If I am a furniture maker, and<br />

produce a table in 12 hours, then that <strong>is</strong> the equated value represented by socially present<br />

labor time. However, if I design a process to reduce the amount <strong>of</strong> time it takes to produce<br />

the table, 6 hours, it then then reduces to half <strong>of</strong> it’s value. Marx <strong>is</strong> quick to point out that<br />

it <strong>is</strong> not the quantity objectified in it, but the quantity <strong>of</strong> living labor needed to produce the<br />

commodity that counts. The capital<strong>is</strong>t thinks nothing <strong>of</strong> the differences, one only needs to<br />

look at the Douglas/Cobb models or study Taylor<strong>is</strong>m to see that th<strong>is</strong> labor saving methods<br />

never changes the value <strong>of</strong> the commodity. Rather the capital<strong>is</strong>t takes the difference as h<strong>is</strong><br />

surplus.<br />

I think one can carry th<strong>is</strong> concept a step further by realizing that the capital<strong>is</strong>t also creates<br />

unequal exchange <strong>of</strong> labor by not paying for the labor power, instead he(capital<strong>is</strong>t) pays for<br />

strict hourly labor. The difference between the two forms <strong>of</strong> living and objectified labor can<br />

be thought <strong>of</strong> in these terms. For the capital<strong>is</strong>t to pay for labor power, in essence he would<br />

have to pay for the total subs<strong>is</strong>tence costs to the worker. The capital<strong>is</strong>t not doe th<strong>is</strong>. When<br />

was the last time your employer had you bring in an expense/reimbursment sheet on how<br />

much it costs you to live? Th<strong>is</strong> <strong>is</strong> <strong>is</strong> yet another reason why there <strong>is</strong> an unessential, and<br />

unequal exchange in light <strong>of</strong> the capital<strong>is</strong>t view.<br />

246 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Hans: Wow! You are really working through my Annotations. You are trying to follow the most abstract arguments,<br />

and doing a good job <strong>of</strong> it. It makes me hope that my arguments are right. In a sense, I am groping around<br />

too, but it helps if I can witness how someone else tries to make sense <strong>of</strong> it. Then you are putting your own thoughts<br />

in too. I can only encourage you; you are doing excellent work.<br />

Next Message by Karl <strong>is</strong> [529].<br />

<strong>Question</strong> 254 <strong>is</strong> 565 in 2005fa:<br />

<strong>Question</strong> 254 Don’t all the contradictions in the concept <strong>of</strong> “value <strong>of</strong> labor” described here<br />

come from the fallacious attempt to derive the value <strong>of</strong> something from its use value?<br />

[492] Brumbys: reproduced argument Yes. The argument that Marx makes for skilled<br />

labor being more valuable than unskilled or average labor <strong>is</strong> circular.<br />

The purpose <strong>of</strong> the concept <strong>of</strong> “value <strong>of</strong> labor” <strong>is</strong> to explain why goods are valued at<br />

different levels. Marx says that goods produced by skilled labor are worth more than goods<br />

produced by unskilled labor (e.g. one hour <strong>of</strong> labor from a computer programmer <strong>is</strong> worth<br />

five hours <strong>of</strong> the labor <strong>of</strong> a fast-food worker). He argues that skilled labor should simply be<br />

treated as a multiple <strong>of</strong> unskilled or average labor. However, the only way that Marx knows<br />

that skilled labor <strong>is</strong> worth more than unskilled labor <strong>is</strong> because the market values skilled<br />

labor more highly. Marx has to rely on the process that he <strong>is</strong> attempting to explain in order<br />

to explain it. Why should one part <strong>of</strong> the product <strong>of</strong> a given amount <strong>of</strong> labor be valued more<br />

highly than any other part? For example, at the Kenecott Copper mine small amounts <strong>of</strong><br />

labor to “produce” worth more than the copper? According to Marx, in the long run, they<br />

should be valued equally but they are not.<br />

He also argues that if value <strong>is</strong> created by living labor and not machines, then in the long<br />

run the amount <strong>of</strong> pr<strong>of</strong>it that capital<strong>is</strong>ts earn would be completely unrelated to the amount <strong>of</strong><br />

capital that they employ. Th<strong>is</strong> <strong>is</strong> false. Capital <strong>is</strong> employed to increase productivity which<br />

increases pr<strong>of</strong>its. If the price that a capital<strong>is</strong>t paid for a machine was equal to the value that<br />

machine was doing to eventually pass on to the commodities that are produced by it, why<br />

buy the machines at all?<br />

Message [492] referenced by [598]. Next Message by Brumbys <strong>is</strong> [495].<br />

[598] Hans: Are there basic fallacies in Marx? Brumbys’s [492] <strong>is</strong> not specifically<br />

an answer to <strong>Question</strong> 254, but Brumbys ra<strong>is</strong>es the <strong>Question</strong> whether Marx’s theory does<br />

not contain some theoretical fallacies. Brumbys brings three such fallacies, but th<strong>is</strong> l<strong>is</strong>t<br />

could easily be extended: there <strong>is</strong> a whole cottage industry in academia busy d<strong>is</strong>covering<br />

“fallacies” in Marx.<br />

Here <strong>is</strong> Marx’s first fallacy, according to Brumbys:<br />

The argument that Marx makes for skilled labor being more valuable than<br />

unskilled or average labor <strong>is</strong> circular. The purpose <strong>of</strong> the concept <strong>of</strong> “value<br />

<strong>of</strong> labor” <strong>is</strong> to explain why goods are valued at different levels. Marx says<br />

that goods produced by skilled labor are worth more than goods produced<br />

by unskilled labor (e.g. one hour <strong>of</strong> labor from a computer programmer <strong>is</strong><br />

worth five hours <strong>of</strong> the labor <strong>of</strong> a fast-food worker).


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 247<br />

Before Brumbys even gets to the fallacy in th<strong>is</strong>, here are a few comments on what Brumbys<br />

wrote so far: According to Marx, labor has no value, th<strong>is</strong> was the subject <strong>of</strong> Chapter<br />

Nineteen. Brumbys probably means: the purpose <strong>of</strong> Marx’s labor theory <strong>of</strong> value. Even<br />

after th<strong>is</strong> correction, many Marx<strong>is</strong>ts would d<strong>is</strong>agree with the statement that Marx’s purpose<br />

was to explain prices. Marx’s purpose was to explain exploitation. However some Marx<strong>is</strong>ts<br />

(myself included) think that Marx’s theory should also be able to explain prices, along with<br />

all the other surface phenomena.<br />

Another remark: Marx would never think the relations between skilled and unskilled<br />

labor are 1:5, they are perhaps 1:2, but not more.<br />

He argues that skilled labor should simply be treated as a multiple <strong>of</strong> unskilled<br />

or average labor. However, the only way taht Marx knows that<br />

skilled labor <strong>is</strong> worth more than unskilled labor <strong>is</strong> because the market values<br />

skilled labor more highly. Marx has to rely on the process that he <strong>is</strong><br />

attempting to explain in order to explain it.<br />

Marx basically says, if you are a skilled laborer who needs 5 years <strong>of</strong> training in order<br />

to work afterwards for 30 years, then you produce the same value in those 30 years which<br />

an unskilled laborer would produce who works the whole 35 years. Of course, wages differences<br />

are much higher, because skilled laborers usually have a better bargaining position.<br />

Th<strong>is</strong> <strong>is</strong> why capital<strong>is</strong>ts prefer hiring unskilled laborers to skilled workers.<br />

But not all differences in labor powers are reducible to skill differences. Those other<br />

differences will result in value differences, but there <strong>is</strong> no general law determining those.<br />

Unlike mainstream economics, which never has a problem coughing up n equations if it has<br />

n unknowns, Marx says that some aspects <strong>of</strong> the economy just depend on the constellations<br />

<strong>of</strong> demand and supply and do not follow a deeper regularity.<br />

Th<strong>is</strong> <strong>is</strong> my take on it. Other Marx<strong>is</strong>ts may d<strong>is</strong>agree. Marx<strong>is</strong>t economics <strong>is</strong> not a very<br />

developed science, because not many are doing it, but in my view it <strong>is</strong> not inherently contradictory.<br />

Now Brumbys brings another example where there <strong>is</strong> a fallacy in Marx.<br />

Why should one part <strong>of</strong> the product <strong>of</strong> a given amount <strong>of</strong> labor be valued<br />

more highly thanany other part? For example, at the Kenecott Copper mine<br />

small amounts <strong>of</strong> labor to “produce” worth more than the copper? According<br />

to Marx, in the long run, they should be valued equally but they are<br />

not.<br />

The sentences are a little garbled, and I can only guess what <strong>is</strong> meant. Perhaps Brumbys<br />

means that the gold which they get out <strong>of</strong> the mine should have the same value as the copper?<br />

Let me switch to another example, because gold and copper need not always be produced<br />

together, and therefore the average production costs <strong>of</strong> both can be determined separately.<br />

But let us go to meat: the expensive cuts <strong>of</strong> beef and the cheap cuts are produced in the<br />

same production process, how can the labor theory <strong>of</strong> value explain these price differences?<br />

Answer: the sum total <strong>of</strong> the prices <strong>of</strong> all cuts <strong>of</strong> meat are determined by the labor necessary<br />

248 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

to ra<strong>is</strong>e beef, but how these prices are d<strong>is</strong>tributed over the different cuts <strong>is</strong> determined by<br />

demand and supply.<br />

Brumbys’s last objection <strong>is</strong> dealt with in Volume 3 <strong>of</strong> Capital. Brumbys writes:<br />

He also argues that if value <strong>is</strong> created by living labor and not machines,<br />

then in the long run the amount <strong>of</strong> pr<strong>of</strong>it that capital<strong>is</strong>ts earn would be completely<br />

unrelated to the amount <strong>of</strong> capital that they employ. Th<strong>is</strong> <strong>is</strong> false.<br />

Capital <strong>is</strong> employed to increase productivity which increases pr<strong>of</strong>its. If the<br />

price that a capital<strong>is</strong>t paid for a machine was equal to the value that machine<br />

was doing to eventually pass on to the commoditites that are produced by<br />

it, why buy the machines at all?<br />

Marx’s answer in volume 3 <strong>of</strong> Capital <strong>is</strong>: The equilibrium prices in a capital<strong>is</strong>t economy<br />

are not proportional to the values, but they are set in such a way that the rates <strong>of</strong> pr<strong>of</strong>it are<br />

equal. Capital<strong>is</strong>ts with lots <strong>of</strong> machines can charge more for their products than those with<br />

less machines. Their pr<strong>of</strong>its are not created by the machines, but they are transferred from<br />

the surplus value created by the workers working for the capital<strong>is</strong>ts with fewer machines. In<br />

other words, the capital<strong>is</strong>ts exploit the workers jointly, and then they d<strong>is</strong>tribute their booty in<br />

proportion to the total capital they had to advance for th<strong>is</strong> exploitation, instead <strong>of</strong> allowing<br />

each capital<strong>is</strong>t to keep the surplus value which h<strong>is</strong> own workers produce.<br />

Next Message by Hans <strong>is</strong> [604].<br />

<strong>Question</strong> 255 <strong>is</strong> 230 in 1995ut, 253 in 1996ut, 306 in 1997WI, 372 in 1997sp, and 370 in<br />

1997ut:<br />

<strong>Question</strong> 255 Give real life examples from which one can see that the laborer, when he<br />

works, <strong>is</strong> no longer the owner <strong>of</strong> h<strong>is</strong> labor.<br />

[468] Jupiter: In researching th<strong>is</strong> question I find that I can take everyday situations to<br />

apply. One <strong>of</strong> the more obvious examples <strong>of</strong> th<strong>is</strong> form <strong>of</strong> exploitation would be that <strong>of</strong><br />

a worker that enters a contract binding agreement (which many <strong>of</strong> workers do), that sets<br />

limits on the worker, i.e. time constraints, maximum or minimum. Lets use a pr<strong>of</strong>essional<br />

basketball player (if you can call playing basketball labor?), they get paid to play basketball.<br />

If the basketball player <strong>is</strong> good then he usually stays with a team for a long period <strong>of</strong> time<br />

(Karl Malone). If however on the other hand the player <strong>is</strong> not good then they will be sold<br />

to another team in a different area (maybe David Benoit?), th<strong>is</strong> now <strong>is</strong> the example that the<br />

player <strong>is</strong> not the owner <strong>of</strong> h<strong>is</strong> production, if the player does not want to move or play with<br />

a certain member <strong>of</strong> the proposed new team then that <strong>is</strong> tough. The player has the choice to<br />

be traded against h<strong>is</strong> will, or he can quit (breach the contract which will have stiff penalties).<br />

We can therefor see that the player <strong>is</strong> no longer in control it has been bought by some person<br />

or group with lots <strong>of</strong> money.<br />

Another example I will give will be a personal one. I have worked some awful jobs, one I<br />

cleaned a parking lot when I was 15-17 years old, my labor was sold for a low price to clean<br />

a 3 level parking garage. I was told to do many thing which i did not w<strong>is</strong>h to do, things that<br />

I deemed as unesesary, but I had to do them because I was no longer the owner <strong>of</strong> my own


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 249<br />

labor, if I did not do the job I would be fired and have no income, so against my will I had<br />

to do the job.<br />

I think that these are 2 examples simple as they may be but they are everyday ocurances,<br />

and will continue to be ,either in the small scale form or the obvious form. In both cases the<br />

labor surenders h<strong>is</strong> labor to h<strong>is</strong> “boss”.<br />

Hans: Good examples. By their contrast in thouse regards which are irrelevant to the <strong>Question</strong>, you bring out very<br />

well what they have in common.<br />

Message [468] referenced by [516]. Next Message by Jupiter <strong>is</strong> [561].<br />

[471] Positive: The capital<strong>is</strong>t who “owns” the worker tries to receive as as much labor as<br />

possible for as little money as possible. Because, he tries to gain as much pr<strong>of</strong>it as possible<br />

without having unnecessary costs. The cheaper the laborer works for, and the lower the<br />

capital<strong>is</strong>t’s costs <strong>of</strong> production <strong>is</strong>, the greater chance he has to make a greater return on h<strong>is</strong><br />

products. Th<strong>is</strong> prooves, according to Marx, that it <strong>is</strong> not the labor-power which becomes<br />

paid, it <strong>is</strong> the value <strong>of</strong> its function, <strong>of</strong> the labor itself. In real life, a worker <strong>is</strong> responsible for<br />

h<strong>is</strong> work, but <strong>is</strong> not the owner <strong>of</strong> h<strong>is</strong> labor. Th<strong>is</strong> <strong>is</strong> based on the phenomena that the capital<strong>is</strong>t<br />

who hired the worker in the first place, <strong>is</strong> able to treat h<strong>is</strong> worker the way he wants, but<br />

within h<strong>is</strong> limited rights and norms.<br />

Message [471] referenced by [472]. Next Message by Positive <strong>is</strong> [540].<br />

[472] Hans: Positive’s Pro<strong>of</strong> <strong>of</strong> <strong>What</strong>? I agree with the first three sentences in Positive’s<br />

answer [471]:<br />

The capital<strong>is</strong>t who “owns” the worker tries to receive as as much labor<br />

as possible for as little money as possible. Because, he tries to gain as<br />

much pr<strong>of</strong>it as possible without having unnecessary costs. The cheaper the<br />

laborer works for, and the lower the capital<strong>is</strong>t’s costs <strong>of</strong> production <strong>is</strong>, the<br />

greater chance he has to make a greater return on h<strong>is</strong> products.<br />

And the worker does not get any <strong>of</strong> the benefits, they are all pocketed by the capital<strong>is</strong>t.<br />

Th<strong>is</strong> may seem utterly unfair and purely arbitrary. The capital<strong>is</strong>t can get away with grossly<br />

underpaying the worker, to the point <strong>of</strong> paying immorally low wages. Marx claims now<br />

that there <strong>is</strong> an economic mechan<strong>is</strong>m systematically enabling the capital<strong>is</strong>ts to be th<strong>is</strong> unfair.<br />

Th<strong>is</strong> mechan<strong>is</strong>m <strong>is</strong>: what the worker sells to the capital<strong>is</strong>t <strong>is</strong> not h<strong>is</strong> labor but h<strong>is</strong> labor<br />

power. And although the capital<strong>is</strong>t underpays the worker in terms <strong>of</strong> the labor received, i.e.,<br />

he pays the laborer much less than the value created by the laborer, he does not necessarily<br />

underpay him in terms <strong>of</strong> h<strong>is</strong> labor power received. Therefore Positive’s next sentence has it<br />

all backwards. Positive writes:<br />

Th<strong>is</strong> proves, according to Marx, that it <strong>is</strong> not the labor-power which becomes<br />

paid, it <strong>is</strong> the value <strong>of</strong> its function, <strong>of</strong> the labor itself.<br />

Positive should have written:<br />

Th<strong>is</strong> proves, according to Marx, that it <strong>is</strong> not the labor which <strong>is</strong> sold on<br />

the market and determines the wage, but the hourly wage <strong>is</strong> an installment<br />

on the payment <strong>of</strong> the value <strong>of</strong> labor power, which <strong>is</strong> far below the value<br />

created by its function, the labor itself.<br />

250 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The next sentence <strong>is</strong> another argument how one can see it already during the labor process,<br />

without even looking at the pay check, that what <strong>is</strong> sold <strong>is</strong> not the labor but so-to-say<br />

the laborer:<br />

In real life, a worker <strong>is</strong> responsible for h<strong>is</strong> work, but <strong>is</strong> not the owner <strong>of</strong><br />

h<strong>is</strong> labor. Th<strong>is</strong> <strong>is</strong> based on the phenomena that the capital<strong>is</strong>t who hired the<br />

worker in the first place, <strong>is</strong> able to treat h<strong>is</strong> worker the way he wants, but<br />

within h<strong>is</strong> limited rights and norms.<br />

Next Message by Hans <strong>is</strong> [489].<br />

[502] Wolf: A real life example <strong>of</strong> a laborer, that when they work, <strong>is</strong> no longer the owner<br />

<strong>of</strong> h<strong>is</strong> labor <strong>is</strong> that <strong>of</strong> an electriction to be even more specific an electrition that <strong>is</strong> starting<br />

out = an apprentice. Th<strong>is</strong> apprentice or any other for that fact (including inturns) <strong>of</strong>ten do<br />

work at a wage rate far below the going rate, some work for free and they do so for a given<br />

ammount <strong>of</strong> time ( years, months, days, etc.) willfully or because they have to in order to<br />

become a pr<strong>of</strong>essional and possibly a capital<strong>is</strong>t. So, it may be that they don’t recieve any<br />

sort <strong>of</strong> a benefit for their labor in the short run, there <strong>is</strong> a carrot dangleing in front <strong>of</strong> them<br />

so to speak, enticing them to maybe pr<strong>of</strong>it one day and own the labor <strong>of</strong> others whom they<br />

train and hire.<br />

I myself am in a sort <strong>of</strong> apprenticeship my pay <strong>is</strong> just enough to survive, I am only<br />

supposed to work 20 hrs. per week but however, I always put in about 40+ per week and for<br />

more than half <strong>of</strong> the year my hours exceed 90 hrs per week. I am also required to attend<br />

full hours <strong>of</strong> class in order to get paid in the first place. There are many times when I lose<br />

focus <strong>of</strong> that carrot and I want to move on especially after reading Marx. But, I don’t at<br />

least I have the oppotunity to be an apprentice or an inturn because as it turns out, stat<strong>is</strong>ticly<br />

apprenticeships and inturnships are <strong>of</strong>ten bias, prejudice, sexest, etc. And sonn I’ll be a<br />

part <strong>of</strong> the good’ol boys, or so I think. To hell with negative thoughts, they are a waste <strong>of</strong><br />

productive energy, thanks for reading, but as for now I need to get back to work <strong>of</strong> which I<br />

don’t own my labor. I own my mind!<br />

Message [502] referenced by [516]. Next Message by Wolf <strong>is</strong> [550].<br />

[507] Snowman: The real life examples that I can think <strong>of</strong> are Assembly line workers<br />

who make anything for instance coke bottles, at the point that they input their labor into the<br />

building <strong>of</strong> the coke bottle they have lost their labor. The coke bottle <strong>is</strong> the commodity and<br />

the labor that <strong>is</strong> congealed in it <strong>is</strong> sold as a part <strong>of</strong> it, and therefor because the bottle does<br />

not belong to the laborer the labor that the bottle contains no longer belongs to the laborer.<br />

Another example that the labor <strong>of</strong> the worker <strong>is</strong> lost from the start <strong>of</strong> production <strong>is</strong> the<br />

example <strong>of</strong> the contractor for home improvement. When the contractor signs the agreement<br />

he thus prom<strong>is</strong>es h<strong>is</strong> labor in return for the agreed payment. <strong>What</strong> <strong>is</strong> <strong>of</strong>ten strange <strong>is</strong> the<br />

contractor <strong>of</strong>ten does the work before there the payment <strong>is</strong> made, so that not only <strong>is</strong> h<strong>is</strong> labor<br />

contained in that which he does not own for, and as such sell, but he has also done so with<br />

out any real payment. Clearly th<strong>is</strong> sets up the potential for the owner <strong>of</strong> the house to gain<br />

labor power with out paying for it. So not only does the worker not own the labor that he<br />

produces but he also does not get any payment for that which he expends.<br />

Next Message by Snowman <strong>is</strong> [606].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 251<br />

[516] Hans: Wolf and Snowman: Real Work Life I agree with Wolf’s [502]. Having<br />

to do productive work without getting paid (with the excuse that as an apprentice you are<br />

learning from the work) can make one feel like a slave, not the owner <strong>of</strong> one’s labor power.<br />

And having to work 90 hours per week when one <strong>is</strong> supposed to be working 20 hours per<br />

week shows how one-sided the relationship <strong>of</strong> dependence between worker and employer <strong>is</strong>.<br />

The exaples given as answers to 255 can be classified into two categories. Wolf’s examples<br />

show that in many situations the laborer can hardly even be called the owner <strong>of</strong> h<strong>is</strong><br />

labor power. Perhaps he <strong>is</strong> formally so, on paper, but not in reality. Also Jupiter’s example<br />

<strong>of</strong> the baseball players in [468] makes th<strong>is</strong> point. Other examples show that the worker as he<br />

works <strong>is</strong> no longer the owner <strong>of</strong> h<strong>is</strong> labor. (Here you must d<strong>is</strong>tingu<strong>is</strong>h between labor power<br />

and labor!) These are the examples where he has to follow orders and does not benefit from<br />

improvements in the efficiency <strong>of</strong> the labor process etc. Strictly speaking my <strong>Question</strong> only<br />

asked for examples <strong>of</strong> th<strong>is</strong> latter kind, but I am giving good grades for both.<br />

Snowman’s coke bottle worker <strong>is</strong> an example <strong>of</strong> the latter kind: as soon as the worker<br />

enters the plant he has lost h<strong>is</strong> labor. The worker thinks the product <strong>of</strong> h<strong>is</strong> labor <strong>is</strong> no longer<br />

h<strong>is</strong> because the materials and instruments he works with are not h<strong>is</strong>. Th<strong>is</strong> does not quite go to<br />

the bottom <strong>of</strong> it. The ultimate reason why h<strong>is</strong> labor <strong>is</strong> taken away from him <strong>is</strong>: he was forced<br />

to sell h<strong>is</strong> labor power, instead <strong>of</strong> being able to sell h<strong>is</strong> labor. The employer takes advantage<br />

<strong>of</strong> the fact that those who do the work do not have control <strong>of</strong> the means <strong>of</strong> production.<br />

Snowman’s contractor example <strong>is</strong> still <strong>of</strong> another kind: here the worker does sell h<strong>is</strong> labor,<br />

not h<strong>is</strong> labor power, but he has to sell it on credit, and r<strong>is</strong>ks not getting paid.<br />

Next Message by Hans <strong>is</strong> [521].<br />

[517] Peaches: A laborer <strong>is</strong> no longer the owner <strong>of</strong> h<strong>is</strong> labor onces he starts working<br />

because he has sold h<strong>is</strong> labor power to someone, a capital<strong>is</strong>t. Marx states that “as soon as<br />

h<strong>is</strong> labor begins, it has already ceased to belong to him: it can therefore no longer be sold by<br />

him.” He cannot go to the next man and sell h<strong>is</strong> labor because he <strong>is</strong> already “employed” by<br />

someone.<br />

It’s like my job. I have sold my labor power to the FAA: eight hours a day, five days a<br />

week. During th<strong>is</strong> time, I cannot sell my labor power to anyone else because I “belong,”<br />

for th<strong>is</strong> duration <strong>of</strong> time, to the FAA and labor for them what they want <strong>of</strong> me. I can, after<br />

putting in th<strong>is</strong> time, sell my labor power to someone else, for say another four hours. Of<br />

course, in duration <strong>of</strong> th<strong>is</strong> time, I, again, cannot sell my labor power to someone else...etc.<br />

Therefore, I can only sell my labor power when I am not employed or have not been bought<br />

by someone. It only makes sense...I cannot be in two places at the same time. BUT, I can be<br />

doing two different tasks at the same time!<br />

Hans: You are saying two things in your answer without differentiating them:<br />

(1) the laborer <strong>is</strong> no longer the owner <strong>of</strong> h<strong>is</strong> labor once he has sold h<strong>is</strong> labor power (even if you can do two<br />

things at the same time, the employer expects that both <strong>of</strong> these things are work for him).<br />

(2) the laborer <strong>is</strong> no longer the owner <strong>of</strong> h<strong>is</strong> labor power once he has sold it.<br />

Next Message by Peaches <strong>is</strong> [558].<br />

<strong>Question</strong> 256 Which theory <strong>of</strong> imaginary numbers <strong>is</strong> suggested by th<strong>is</strong> social analogy?<br />

252 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[511] Dunny: question 256 Which theory <strong>of</strong> imaginary numbers <strong>is</strong> suggested by th<strong>is</strong><br />

social analogy? The theory <strong>of</strong> imaginary numbers being refered here by Marx <strong>is</strong> that <strong>of</strong> the<br />

mathematicians. In the mathematical process <strong>of</strong> solving problems you come across certain<br />

places that to some could be consideres dead ends or even something impossible. Th<strong>is</strong> <strong>is</strong><br />

not the reality <strong>of</strong> it for a mathematician. They have developed formulas and such to break<br />

through those dead ends and be able to continue on with their analys<strong>is</strong>. I believe th<strong>is</strong> <strong>is</strong> what<br />

Marx <strong>is</strong> refering to. Specifically I think <strong>of</strong> the imaginary “i” numbers that make it possible<br />

to take the square roots <strong>of</strong> numbers that normally you would be unable. In compar<strong>is</strong>on it<br />

seems that Marx <strong>is</strong> moving in that same direction with h<strong>is</strong> ideas <strong>of</strong> labor. The value <strong>of</strong> labor<br />

has some impossibility about it.<br />

Marx says that there has to be some way around th<strong>is</strong> block just as the mathematicians had<br />

found with their imaginary numbers. In the study guide it mentioned the value <strong>of</strong> the earth<br />

as being an impossible concept. Sure, you can’t really put a value on it but to each individual<br />

it carries some sort <strong>of</strong> maybe innate value. To a business it may be the value <strong>of</strong> the natural<br />

resources that they acquire from the earth, or maybe to a forrest ranger, it may be the joy<br />

that they get from living on that beautiful land that gives them a sense <strong>of</strong> its value. There <strong>is</strong><br />

some imaginary value that can be placed on labor through tha relations <strong>of</strong> what it produces.<br />

Message [511] referenced by [521]. Next Message by Dunny <strong>is</strong> [602].<br />

[521] Hans: Imaginary numbers In [511], Dunny re-explains in h<strong>is</strong> own words, in a<br />

very lively and understandable style, an obscure and subtle allusion made by Marx about<br />

imaginary numbers. He certainly understands Marx correctly in th<strong>is</strong> respect. Then Dunny<br />

also speculates how the concept <strong>of</strong> “value <strong>of</strong> the earth,” which <strong>is</strong> equally imaginary as “value<br />

<strong>of</strong> labor,” might be explained rationally:<br />

Sure, you can’t really put a value on it but to each individual it carries some<br />

sort <strong>of</strong> maybe innate value. To a business it may be the value <strong>of</strong> the natural<br />

resources that they acquire from the earth, or maybe to a forrest ranger, it<br />

may be the joy that they get from living on that beautiful land that gives<br />

them a sense <strong>of</strong> its value. There <strong>is</strong> some imaginary value that can be placed<br />

on labor through tha relations <strong>of</strong> what it produces.<br />

Sorry, Dunny, from a Marxian point <strong>of</strong> view you are drowning here in the swamp <strong>of</strong><br />

confusion between value and use value. Marx nevers crosses th<strong>is</strong> boundary. Ricardo wrote<br />

something similar as you did, trying to derive the value <strong>of</strong> the earth from the value <strong>of</strong> the natural<br />

resources that the earth contains. Marx, the pedant, caught him and severely criticized<br />

him for th<strong>is</strong>. More details are in my [109].<br />

Next Message by Hans <strong>is</strong> [541].<br />

<strong>Question</strong> 257 At which point in their theories did the classical econom<strong>is</strong>ts unwittingly<br />

switch from the assertion that the laborer sells h<strong>is</strong> labor to that that he sells h<strong>is</strong> labor power?<br />

[491] Panacea: labour and labour power I see the switch occurring together with their<br />

objectification <strong>of</strong> the labourer himself. Marx’s formulation <strong>of</strong> the question “But what <strong>is</strong><br />

the cost <strong>of</strong> production...<strong>of</strong> the worker, i.e. the cost <strong>of</strong> producing or reproducing the worker<br />

himself?...” seems to me to be a fundemental reason why Malthus (Ricardo agreeing with


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 253<br />

him) finds it so necessary to keep the working class on subs<strong>is</strong>tence wages...could th<strong>is</strong>, in<br />

their eyes, more closely reproduce the value <strong>of</strong> the workers’ labour?<br />

Marx mentions the parallel between the machine and it’s function, and man and h<strong>is</strong> labour<br />

power, which I find interesting. I believe Marx <strong>is</strong> pointing out how neo-classicals end up<br />

judging the worker by the value <strong>of</strong> h<strong>is</strong> potential labour, th<strong>is</strong> being for the capital<strong>is</strong>t the<br />

expressed use they see in the worker. (Hans?) The neo-classicals fail to examine their own<br />

terms - “value <strong>of</strong> labour” leads one into a inexplicable dead end, whereas they meant to<br />

use “value <strong>of</strong> labour power.” Marx writes how th<strong>is</strong> m<strong>is</strong>hap may have been unknown to the<br />

capital<strong>is</strong>ts mostly concerned with market prices <strong>of</strong> labour and their ability to turn a pr<strong>of</strong>it.<br />

Hans: You are bringing some interesting observations which are not exactly the answer sought by th<strong>is</strong> <strong>Question</strong>,<br />

but which are very relevant:<br />

(1) such a switch reveals that they consider the laborers objects,<br />

(2) if they do believe that th<strong>is</strong> <strong>is</strong> the value <strong>of</strong> labor, then they must oppose any r<strong>is</strong>e <strong>of</strong> the worker’s standard <strong>of</strong><br />

living above subs<strong>is</strong>tence.<br />

(3) Their confusion between the laborer and h<strong>is</strong> function also reveals that they want to use the laborer for their<br />

own purposes.<br />

Maybe one could turn th<strong>is</strong> into a theory <strong>of</strong> fet<strong>is</strong>h<strong>is</strong>m <strong>of</strong> labor power.<br />

Next Message by Panacea <strong>is</strong> [493].<br />

<strong>Question</strong> 258 <strong>is</strong> 221 in 1995WI, 257 in 1996ut, 373 in 1997ut, 544 in 2002fa, 621 in<br />

2004fa, 573 in 2005fa, 630 in 2007fa, 642 in 2008fa, 673 in 2009fa, 758 in 2011fa, and<br />

787 in 2012fa:<br />

<strong>Question</strong> 258 How <strong>is</strong> the “value <strong>of</strong> labor” derived from the value <strong>of</strong> labor-power? Compare<br />

the “value <strong>of</strong> labor” thus obtained with the value <strong>of</strong> the product <strong>of</strong> the labor.<br />

[436] MsMarx: The derivation <strong>of</strong> the value <strong>of</strong> labor The d<strong>is</strong>tinction between labor<br />

and labor-power <strong>is</strong> what Marx’s analys<strong>is</strong> <strong>of</strong> surplus-value rests on. The worker sells laborpower<br />

and <strong>is</strong> paid the value <strong>of</strong> h<strong>is</strong> labor-power. <strong>What</strong> the capital<strong>is</strong>t gets from the worker <strong>is</strong><br />

value-creating labor. In everyday life, no one makes th<strong>is</strong> d<strong>is</strong>tinction, and workers are paid<br />

wages either at an hourly rate or on a piece work bas<strong>is</strong>. Th<strong>is</strong> <strong>is</strong> where Marx takes account<br />

<strong>of</strong> th<strong>is</strong> fact. The value <strong>of</strong> labor-power <strong>is</strong> what the worker sells, and the hourly wage <strong>is</strong> the<br />

value (or price) <strong>of</strong> a day’s labor-power divided by the normal number <strong>of</strong> hours worked per<br />

day. The value <strong>of</strong> labor <strong>is</strong> not to be treated merely as wages. As Marx states in 677:3/oo:<br />

“what they called the ‘value <strong>of</strong> labour’ <strong>is</strong> in fact the value <strong>of</strong> labour-power, as it ex<strong>is</strong>ts in<br />

the personality <strong>of</strong> the worker, and it <strong>is</strong> as different from its function, labour, as a machine <strong>is</strong><br />

from the operations it performs.”<br />

It <strong>is</strong> as if the price <strong>of</strong> a horse was quoted at so much per leg, and then multiplied by four<br />

to find the price per horse. The price <strong>of</strong> labor-power <strong>is</strong> normally quoted at so much per<br />

hour. However, in a commodity producing society, there <strong>is</strong> no need to calculate the value<br />

<strong>of</strong> labor-power or <strong>of</strong> any other commodity. Sellers simply seek the highest price the market<br />

will bear, while buyers look for the best bargain.<br />

According to Marx, the value <strong>of</strong> labor-power <strong>is</strong> determined, as in the the case <strong>of</strong> every<br />

other commodity, by the labor-time necessary for the production, and consequently also the<br />

reproduction, <strong>of</strong> th<strong>is</strong> special article. So far as its value, it represents no more than a definite<br />

254 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

quantity <strong>of</strong> the average labor <strong>of</strong> society incorporated in it. Labor-power ex<strong>is</strong>ts only as a<br />

capacity or power <strong>of</strong> the living individual, so its production pre-supposes its ex<strong>is</strong>tence.<br />

The production <strong>of</strong> labor-power for an individual cons<strong>is</strong>ts <strong>of</strong> h<strong>is</strong> reproduction <strong>of</strong> himself<br />

or h<strong>is</strong> maintenance. For h<strong>is</strong> maintenance he requires a given quantity <strong>of</strong> the means <strong>of</strong> subs<strong>is</strong>tence.<br />

Therefore, the labor-time required for the production <strong>of</strong> labor-power reduces itself<br />

to that necessary for the production <strong>of</strong> those menas <strong>of</strong> subs<strong>is</strong>tence. In other words, the value<br />

<strong>of</strong> labor-power <strong>is</strong> the value <strong>of</strong> the means <strong>of</strong> subs<strong>is</strong>tence necessary for the maintenance <strong>of</strong><br />

the laborer. Labor-power becomes a reality only by its exerc<strong>is</strong>e; it sets itself in action only<br />

by working. But then a definite quantity <strong>of</strong> human muscle, nerve, brain, etc. <strong>is</strong> wasted and<br />

needs to be restored. Th<strong>is</strong> increased expenditure demands a larger income. If the owner <strong>of</strong><br />

labor-power worked today, tomorrow he must again be able to repeat the same process in<br />

the same condition <strong>of</strong> health and strength. H<strong>is</strong> means <strong>of</strong> subs<strong>is</strong>tence must be sufficient to<br />

maintain him in h<strong>is</strong> normal state as a laboring individual. H<strong>is</strong> natural wants, such as food,<br />

clothing, fuel, and housing, vary according to the climatic and other physical conditions <strong>of</strong><br />

h<strong>is</strong> country. Yet the number and extend <strong>of</strong> h<strong>is</strong> so-called necessary wants and the modes <strong>of</strong><br />

sat<strong>is</strong>fying them enter into the determination <strong>of</strong> the value <strong>of</strong> labor-power as a h<strong>is</strong>torical and<br />

moral element. Nevertheless, the average quantity <strong>of</strong> the means <strong>of</strong> subs<strong>is</strong>tence necessary for<br />

the laborer <strong>is</strong> practically known.<br />

The two factors necessary for the calculation <strong>of</strong> the value <strong>of</strong> labor power are the worker’s<br />

life expectancy and the length <strong>of</strong> the working day. The value <strong>of</strong> labor power determines<br />

the value <strong>of</strong> labor, or its necessary price. Assume that the usual working day <strong>is</strong> 12 hours<br />

and the daily value <strong>of</strong> labor-power <strong>is</strong> three shillings, which <strong>is</strong> the expression in money <strong>of</strong> a<br />

value <strong>of</strong> 6 hours <strong>of</strong> labor. If the worker receive 3 shillings, then he receives the value <strong>of</strong> h<strong>is</strong><br />

labor-power, which functions through 12 hours. If th<strong>is</strong> value <strong>of</strong> a day’s labor-power <strong>is</strong> now<br />

expressed as the value <strong>of</strong> a day’s labor itself, then 12 hours <strong>of</strong> labor has a value <strong>of</strong> 3 shillings.<br />

Th<strong>is</strong> quantity <strong>of</strong> labor forms the value <strong>of</strong> a day’s labor-power or the value <strong>of</strong> thelaborpower<br />

daily reproduced. If half a day’s average social labor <strong>is</strong> incorporated in three shillings,<br />

then three shillings <strong>is</strong> the price corresponding to the value <strong>of</strong> a day’s labor-power. If its owner<br />

therefore <strong>of</strong>fers it for sale at three shillings a day, its selling price <strong>is</strong> equal to its value, and<br />

someone who <strong>is</strong> intent upon converting h<strong>is</strong> three shillings into capitall, pays th<strong>is</strong> value.<br />

Hence, the value <strong>of</strong> labor power thus determines the value <strong>of</strong> labor, or its necessary price.<br />

Marx states that use-value supplied by the worker to the capital<strong>is</strong>t <strong>is</strong> not labour-power, but it<br />

<strong>is</strong> its function. “That th<strong>is</strong> labour, <strong>is</strong> on the other hand, the universal value-creating element,<br />

an dthus possesses a property <strong>of</strong> virtue which falls outside the frame <strong>of</strong> reference <strong>of</strong> the<br />

everyday consciousness.” (p. 681).<br />

The value <strong>of</strong> labor <strong>is</strong> only a non-rational expression for the value <strong>of</strong> labor-power, which<br />

explains the above-mentioned fact that the value <strong>of</strong> labor <strong>is</strong> always less than its valueproduced<br />

and the capital<strong>is</strong>t always makes labor-power work longer than <strong>is</strong> necessary for<br />

the reproduction <strong>of</strong> its own value. Th<strong>is</strong> <strong>is</strong> because the value which the labor-power produces<br />

<strong>is</strong> dependent on the length <strong>of</strong> time it <strong>is</strong> in action, not on its own value. In the example given,<br />

the value which the labor-power produces <strong>is</strong> 6 shillings, because it functions during the 12


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 255<br />

hours. Labor which creates a value <strong>of</strong> 6 shillings can possess a value <strong>of</strong> 3 shillings, but it<br />

functions during the 12-hour period.<br />

Hans: Only after the end <strong>of</strong> the Quarter did I find out that the analogy with the horse’s legs at the beginning <strong>of</strong> the<br />

second paragraph was lifted, without attribution, from Anthony Brewer’s book about Marx’s Capital.<br />

Message [436] referenced by [441], [2004fa:369], [2004fa:397], and [2005fa:1326]. Next Message by MsMarx <strong>is</strong><br />

[438].<br />

[441] Hans: MsMarx has too many Marx quotes at the end Here are some remarks<br />

about MsMarx’s answer [436]. I like her observation that<br />

In everyday life, no one makes th<strong>is</strong> d<strong>is</strong>tinction<br />

(between labor and labor power). No wonder. Revolution would be around the corner<br />

if the kids were to learn in kindergarden: no, Dad <strong>is</strong> not selling h<strong>is</strong> labor, he has to sell h<strong>is</strong><br />

labor power, because there are some rich people who say: “th<strong>is</strong> <strong>is</strong> my factory”, although<br />

they do not even work there.<br />

MsMarx also remarks on the perverse method by which the value <strong>of</strong> labor power <strong>is</strong> computed,<br />

with the striking analogy:<br />

It <strong>is</strong> as if the price <strong>of</strong> a horse was quoted at so much per leg, and then<br />

multiplied by four to find the price per horse.<br />

Th<strong>is</strong> <strong>is</strong> an unforgettable metaphor, and I will put it into the next edition <strong>of</strong> my Annotations,<br />

if you don’t mind, MsMarx.<br />

I also like the following explanation:<br />

In a commodity producing society, there <strong>is</strong> no need to calculate the value<br />

<strong>of</strong> labor-power or <strong>of</strong> any other commodity. Sellers simply seek the highest<br />

price the market will bear, while buyers look for the best bargain.<br />

Very true. The market makes these calculations for us. The formulas which Marx gives<br />

in h<strong>is</strong> book are only the theoretical anticipations <strong>of</strong> the results <strong>of</strong> the market mechan<strong>is</strong>ms—<br />

provided these mechan<strong>is</strong>ms are allowed to act in purity. But for the market participants, such<br />

formulas can provide only the crudest guidelines. In their practical activities, most market<br />

participants do not rely on such calculations, but merely observe the play <strong>of</strong> the forces <strong>of</strong><br />

demand and supply to set their wages. Unfortunately, MsMarx does not give us more details<br />

about how the play <strong>of</strong> demand and supply enforce the general law that wages are determined<br />

by the value <strong>of</strong> labor power. It <strong>is</strong> quite simple: if people will not get a living wage, they<br />

cannot work, and on the other hand, as long as there <strong>is</strong> unemployment (and we will d<strong>is</strong>cuss<br />

the causes <strong>of</strong> unemployment in Chapter 25, where Marx claims that unemployment <strong>is</strong> a<br />

necessary aspect <strong>of</strong> capital<strong>is</strong>m), everyone who <strong>of</strong>fers a living wage will find takers.<br />

The rest <strong>of</strong> MsMarx’s subm<strong>is</strong>sion <strong>is</strong> for my taste too close to Marx’s text. MsMarx does<br />

not deny her source, she starts it all with the words “According to Marx”, but it would have<br />

been more helpful, and possibly also much shorter and thus less taxing for the attention span<br />

<strong>of</strong> the readers, had MsMarx used her own formulations.<br />

First, MsMarx gives a long quote from Chapter Six, pp. R 184/5. After th<strong>is</strong>, MsMarx<br />

jumps to Chapter 19, p. R679, with the remark that the worker’s life expectancy enters the<br />

256 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

wage. Neither Marx nor, for that matter, my Annotations are very clear about th<strong>is</strong>, therefore<br />

I would have appreciated some clarification, instead <strong>of</strong> more Marx quotes. But Marx quotes<br />

<strong>is</strong> all we get for the rest <strong>of</strong> MsMarx’s long subm<strong>is</strong>sion.<br />

Next Message by Hans <strong>is</strong> [447].<br />

[504] Chacci: The ‘value <strong>of</strong> labor’ <strong>is</strong> derived from the value <strong>of</strong> labor-power in the following<br />

way: The laborer uses h<strong>is</strong> labor-power during a normal day which has been given a<br />

certain value. The socially necessary time to produce th<strong>is</strong> value <strong>is</strong> a fraction <strong>of</strong> the normal<br />

working day. But the capital<strong>is</strong>t make the laborer work longer to produce a surplus value.<br />

The laborer receives th<strong>is</strong> value <strong>of</strong> labor-power as compensation. Thus the value <strong>of</strong> h<strong>is</strong> laborpower<br />

has been given the value <strong>of</strong> labor. A more specific explanation may be: A laborer<br />

works a normal “x” hour day. The daily value <strong>of</strong> the labor-power <strong>is</strong> “y” dollars. The socially<br />

necessary time to produce value “y” <strong>is</strong> a fraction <strong>of</strong> “x” hours. If the laborer receives “y”<br />

dollars for h<strong>is</strong> “x” hours <strong>of</strong> labor, the value <strong>of</strong> h<strong>is</strong> labor-power <strong>is</strong> now determined by the<br />

‘value <strong>of</strong> labor’ or necessary price <strong>of</strong> labor. If the value or price <strong>of</strong> labor-power differs then<br />

the necessary price <strong>of</strong> labor will differ similarly.<br />

Thus to compare the value <strong>of</strong> the labor-power and the value <strong>of</strong> the product <strong>of</strong> labor the<br />

fraction <strong>of</strong> “x” hours must be considered. Th<strong>is</strong> fraction was the socially necessary time to<br />

produce the value <strong>of</strong> labor-power. Thus since the laborer works “x” hours rather than a<br />

fraction <strong>of</strong> “x” hours he produces a surplus <strong>of</strong> value which <strong>is</strong> contained in the value <strong>of</strong> the<br />

product <strong>of</strong> labor.<br />

Th<strong>is</strong> means that the value <strong>of</strong> the product <strong>of</strong> labor <strong>is</strong> greater than the value <strong>of</strong> labor-power.<br />

Hans: I like your attempt at giving a straightforward step-by-step explanation. It was not quite successful, but<br />

almost. I think you got <strong>of</strong>f the track in the two sentences:<br />

The laborer receives th<strong>is</strong> value <strong>of</strong> labor-power as compensation. Thus the value <strong>of</strong> h<strong>is</strong> laborpower<br />

has been given the value <strong>of</strong> labor.<br />

The first sentence <strong>is</strong> right. But then you should have added that the laborer does not get the equivalent <strong>of</strong> h<strong>is</strong> daily<br />

labor power in one piece, but for every hour he works he gets the value <strong>of</strong> h<strong>is</strong> daily labor power divided by the<br />

average number <strong>of</strong> hours worked per day. In th<strong>is</strong> way the value <strong>of</strong> h<strong>is</strong> labor power determines what he gets paid for<br />

each hour <strong>of</strong> h<strong>is</strong> labor. Your second sentence should therefore read:<br />

H<strong>is</strong> labor has been given the value <strong>of</strong> h<strong>is</strong> labor-power.<br />

Further down you are making the same confusion when you write:<br />

The value <strong>of</strong> h<strong>is</strong> labor-power <strong>is</strong> now determined by the ‘value <strong>of</strong> labor’.<br />

Again, it <strong>is</strong> just the other way around.<br />

Next Message by Chacci <strong>is</strong> [555].<br />

<strong>Question</strong> 259 Under which circumstances will capital<strong>is</strong>ts agree to let the workers go home<br />

early and pay them accordingly less?<br />

[493] Panacea: getting the day <strong>of</strong>f The problem here has to do with how the capital<strong>is</strong>t<br />

actually makes h<strong>is</strong> bread and butter: since h<strong>is</strong> pr<strong>of</strong>it <strong>is</strong> surplus value, and value <strong>is</strong> produced<br />

by labour - for which he and the worker have afixed a monetary value - then it <strong>is</strong> in the<br />

capital<strong>is</strong>ts best interests to employ the worker for as long as possible so that he <strong>is</strong> able to<br />

accumulate as much surplus value as possible. Somewhere I have heard the notion that your<br />

employer makes h<strong>is</strong> cut only in the last few hours <strong>of</strong> the workday. Th<strong>is</strong> seems plausible -in<br />

the first few hours, the revenue value <strong>of</strong> production pays for the materials, equipment and


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 257<br />

labour power necessary to produce the commodities. After th<strong>is</strong> <strong>is</strong> paid for, the capital<strong>is</strong>t<br />

reaps the pr<strong>of</strong>its.<br />

I work in a bread factory which gladly pays overtime in order to keep workers on the<br />

job longer than eight hours. Even paying me time and a half, the company makes more<br />

money during the last few hours than at any time during my shift. I’m happy because <strong>of</strong> the<br />

extra wages - their happy because <strong>of</strong> their pr<strong>of</strong>it. Th<strong>is</strong> <strong>is</strong> one <strong>of</strong> those “mystifications <strong>of</strong> the<br />

capital<strong>is</strong>t mode <strong>of</strong> production” marx talks about.<br />

Panacea<br />

Hans: That’s basically the right answer: they usually don’t want to do it.<br />

Next Message by Panacea <strong>is</strong> [532].<br />

<strong>Question</strong> 260 <strong>is</strong> 222 in 1995WI, 387 in 1999SP, 567 in 2003fa, 623 in 2004fa, and 575 in<br />

2005fa:<br />

<strong>Question</strong> 260 Why <strong>is</strong> the transformation <strong>of</strong> the value (resp. price) <strong>of</strong> labor-power into the<br />

value (resp. price) <strong>of</strong> labor the bas<strong>is</strong> <strong>of</strong> “all mystifications <strong>of</strong> the capital<strong>is</strong>tic mode <strong>of</strong> production”?<br />

[438] MsMarx: A Mystificiation <strong>of</strong> the capital<strong>is</strong>tic mode <strong>of</strong> production As in the case<br />

<strong>of</strong> the slave laborer, h<strong>is</strong> labor appears as unpaid labor. However, in wage labor, even surplus<br />

labor or unpaid labor, appears as paid. The property-relation conceals the slave’s labor for<br />

himself. The money-relation conceals the uncompensated labor <strong>of</strong> the wage-laborer. Th<strong>is</strong> <strong>is</strong><br />

why it <strong>is</strong> important to understand the transformation <strong>of</strong> the value and price <strong>of</strong> labor-power<br />

into form <strong>of</strong> wages or into price <strong>of</strong> labor itself–because the form <strong>of</strong> appearance makes the<br />

actual relation inv<strong>is</strong>ible and appears to the eye as the opposite <strong>of</strong> that relation and apears as<br />

a mystification <strong>of</strong> the capital<strong>is</strong>tic mode <strong>of</strong> production.<br />

In other words, the concept <strong>of</strong> wage labor can be thought <strong>of</strong> as a phenomenal form, which<br />

d<strong>is</strong>gu<strong>is</strong>es its true form. Th<strong>is</strong> phenomenal form, Marx writes, <strong>is</strong> the source <strong>of</strong> “all the ideas<br />

about rights on the part <strong>of</strong> workers as well as capital<strong>is</strong>ts, all mystifications <strong>of</strong> the capital<strong>is</strong>t<br />

mode <strong>of</strong> production, all its illusions about freedom, all <strong>of</strong> the apoligetic humbug <strong>of</strong> the vulgar<br />

econom<strong>is</strong>ts.” (p. 680).<br />

To understand how the wage form <strong>of</strong> labor <strong>is</strong> responsible for such awesome confusion and<br />

nonsense, remember that the earlier modes <strong>of</strong> production rest ultimately upon noneconomic<br />

power–that <strong>is</strong>, the slave produces because he <strong>is</strong> forced to do so, the serf contributes h<strong>is</strong><br />

surplus labor to the lord because <strong>of</strong> tradition and santitity to God, and so on. Capital<strong>is</strong>m<br />

d<strong>is</strong>dains these primitive means <strong>of</strong> exploitation and proclaims itself a society <strong>of</strong> freedom, <strong>of</strong><br />

contract, and <strong>of</strong> equivalent exchange. At the same time, it requires that the owners <strong>of</strong> the<br />

means <strong>of</strong> production appropriate an increasing surplus. If the workers are paid the full value<br />

<strong>of</strong> what they produce, then there will be nothing left over for pr<strong>of</strong>it and new investment. The<br />

problem <strong>is</strong> to rationalize a nonequivalent exchange, in which one party to a contract gets<br />

more than the other, as an equivalent exchange.<br />

Marx argues that the wage does th<strong>is</strong>, because it <strong>is</strong> a “phenomenal form,” a reality whose<br />

appearance conceals rather than reveals its meaning. It defines an equal exchange between<br />

unequals. Th<strong>is</strong> phenomenal form falsifies the fact that the worker was on the losing end<br />

258 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> an unequal exhcange, proclaiming that he was paid for every minute he labored. But it<br />

also funcitoned as a truth, for the unequal exchange was the justice and logic <strong>of</strong> a society <strong>of</strong><br />

private social labor.<br />

To quote from Marx, “that th<strong>is</strong> same labour, <strong>is</strong> on the other hand, the universal valuecreating<br />

element, and thus possesses a property by virtue <strong>of</strong> which it differs from all other<br />

commodities, <strong>is</strong> something which falls outside the frame <strong>of</strong> reference <strong>of</strong> the everyday consciousness.”<br />

(p. 681).<br />

Next Message by MsMarx <strong>is</strong> [551].<br />

<strong>Question</strong> 261 <strong>is</strong> 223 in 1995WI, 235 in 1995ut, 313 in 1997WI, 385 in 1998WI, 388 in<br />

1999SP, 480 in 2000fa, 509 in 2001fa, and 644 in 2008SP:<br />

<strong>Question</strong> 261 In a speech which was later publ<strong>is</strong>hed as a pamphlet called Value, Price and<br />

Pr<strong>of</strong>it, Marx says that there <strong>is</strong> no such thing as a fair wage. <strong>What</strong> does he mean by th<strong>is</strong>?<br />

[478] Lamma: fair wages I think that Marx means that there will always be exploitation<br />

in the market based system. In h<strong>is</strong> own example he shows that “labour wich creates a value<br />

<strong>of</strong> 6 shillings posseses a value <strong>of</strong> 3 shillings.” Marx <strong>is</strong> showing us that in a market economy,<br />

due to the way value <strong>is</strong> determined from the labour power, a man working in th<strong>is</strong> system will<br />

always be exploited and not get a fair wage.<br />

He calls the relation <strong>of</strong> the labour power and wages ‘inv<strong>is</strong>ible’. It <strong>is</strong> th<strong>is</strong> inv<strong>is</strong>ibility that<br />

allows for all individuals involved in the market process to think that it <strong>is</strong> a justifyable and<br />

fair process. But in fact <strong>is</strong> not a fair wage.<br />

Hans: You have learned Marx’s lessons well. Since everything <strong>is</strong> going according to the law <strong>of</strong> value, there <strong>is</strong> no<br />

hope that the workers will bet a better lot as long as the market system continues. And Marx also explains how the<br />

real relations are mystified by the appearances. You will only get fairness when you abol<strong>is</strong>h the wage labor system.<br />

Message [478] referenced by [488]. Next Message by Lamma <strong>is</strong> [584.2].<br />

[488] Angela: Subm<strong>is</strong>sion 8 From the Marx’ point <strong>of</strong> view, the labour <strong>is</strong> always exploited<br />

in any economics ( market ) system. From R608:1, we know that under the capital<strong>is</strong>t<br />

economics system, the wage-form extingu<strong>is</strong>hes into necessary labor and surplus labor, and<br />

we know the wage did’nt cover the surplus labor in th<strong>is</strong> system even though all labor seem<br />

to pay the fair wage. Moreover, under the corvee system, the slave labor just replaces the<br />

value <strong>of</strong> h<strong>is</strong> own means <strong>of</strong> subs<strong>is</strong>tence. So all the labor appears as unpaid labor. So from<br />

the Mrax’s point <strong>of</strong> view, the labour <strong>is</strong> exploited in any economics system. If the labour <strong>is</strong><br />

exploited in any economics system, then no matter whatever paid for labour ( laboue <strong>is</strong> paid<br />

for money or slave labour <strong>is</strong> paid for subs<strong>is</strong>tence ) <strong>is</strong> always unfair in any economics system.<br />

From the reading, we also know that the value <strong>of</strong> labour <strong>is</strong> determined by the value <strong>of</strong><br />

labour-power and we know th<strong>is</strong> relationship <strong>is</strong> inv<strong>is</strong>ible. Let why I said all labour seem to<br />

pay the fair wage even though the wage did’nt cover the surplus labour. Because <strong>of</strong> th<strong>is</strong><br />

inv<strong>is</strong>ible relationship, the capital<strong>is</strong>t market system evaluates the value <strong>of</strong> labour by the value<br />

<strong>of</strong> labour-power in order to let the wage seems fair in the market system and also let the<br />

labour think the wage <strong>is</strong> fair.<br />

Hans: Your answer reproduces step by step the argument made in [478]. You gave the page number <strong>of</strong> Lamma’s<br />

example, but other than that, that what you added was wrong. Unlike Lamma, you imply that any economy must<br />

be an exploitative market economy, and also the following sentence <strong>is</strong> a blunder:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 259<br />

Moreover, under the corvee system, the slave labor just replaces the value <strong>of</strong> h<strong>is</strong> own means<br />

<strong>of</strong> subs<strong>is</strong>tence. So all the labor appears as unpaid labor.<br />

Next Message by Angela <strong>is</strong> [552].<br />

[509] Scott: question 261- fair wages Some Marx quotes relating to the question:<br />

“for every wage that r<strong>is</strong>es there <strong>is</strong> generally one which remains stationary and another<br />

that falls”<br />

“We can fix the minimum <strong>of</strong> wages, but we cannot fix their maximum”<br />

“The will <strong>of</strong> the capital<strong>is</strong>t <strong>is</strong> certainly to take as much as possible”<br />

I feel the third quote <strong>is</strong> the main force behind the non-ex<strong>is</strong>tence <strong>of</strong> fair wages in a capital<strong>is</strong>t<br />

society. Clearly, if wages r<strong>is</strong>e, pr<strong>of</strong>its must decline, ceter<strong>is</strong> paribus . The general tendency <strong>of</strong><br />

capital<strong>is</strong>t production <strong>is</strong> to sink to the average standard <strong>of</strong> wages, and not to an above average<br />

or a higher state. Utimately, it has to be understood by the worker that he <strong>is</strong> only fighting the<br />

effects and not the causes <strong>of</strong> those effects. He must r<strong>is</strong>e up and overthrow the capital<strong>is</strong>ts’,<br />

before fair wages will be attainable. Marx indicates that labour unions are fighting effects, if<br />

I am understanding him correctly. Previously, I was thinking that Marx would have approved<br />

<strong>of</strong> labour unions’ efforts, and I now see how they are only working within the system, which<br />

he believed was not the most judicious use <strong>of</strong> their endeavors. He felt more aggressive<br />

behavior would be the appropriate method <strong>of</strong> representing the labourer.<br />

Hans: I don’t know where you have those Marx quotes from; I’d like to see the context in which he said these<br />

things.<br />

Your thoughts about labor unions are interesting. You are right: labor unions are fighting against economic laws<br />

which are stronger than they. But nevertheless Marx says workers should not give up th<strong>is</strong> fight, since by th<strong>is</strong> fight<br />

they establ<strong>is</strong>h the claim to be the masters <strong>of</strong> their own fates. You are right, he thinks th<strong>is</strong> fight must and will take<br />

on a more “aggressive” form.<br />

Next Message by Scott <strong>is</strong> [576].<br />

[576] Scott: Marx quotations util<strong>is</strong>ed Hans,<br />

In response to your query concerning the passages where I had found the quotes used in<br />

my subm<strong>is</strong>sion 509 on Q:261....<br />

The first was from Economic and Philosophical Manuscripts by Karl Marx, under the<br />

sub-heading <strong>of</strong> Wages and Labour. I have looked again carefully, and I’m not sure if I have<br />

taken th<strong>is</strong> quote out <strong>of</strong> context or not. It appears the translation <strong>is</strong> somewhat ambiguous.<br />

The second and third were from the Value, Price, and Pr<strong>of</strong>it pamphlet referred to in the<br />

question. I used the Marx-Engels library search on line, in order to locate were I had originally<br />

gathered these quotes from. I did find that the pamphlet was an easier read that most<br />

<strong>of</strong> Marxs’ work. The library search <strong>is</strong> an excellent resource that I think you should inform<br />

your future students about. I only w<strong>is</strong>h that I had found it earlier in the quarter.<br />

Next Message by Scott <strong>is</strong> [582].<br />

[583] Scott: Marx quotations util<strong>is</strong>ed Hans,<br />

In response to your query concerning the passages where I had found the quotes used in<br />

my subm<strong>is</strong>sion 509 on Q:261....<br />

260 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The first was from Economic and Philosophical Manuscripts by Karl Marx, under the<br />

sub-heading <strong>of</strong> Wages and Labour. I have looked again carefully, and I’m not sure if I have<br />

taken th<strong>is</strong> quote out <strong>of</strong> context or not. It appears the translation <strong>is</strong> somewhat ambiguous.<br />

The second and third were from the Value, Price, and Pr<strong>of</strong>it pamphlet referred to in the<br />

question. I used the Marx-Engels library search on line, in order to locate were I had originally<br />

gathered these quotes from. I did find that the pamphlet was an easier read that most<br />

<strong>of</strong> Marxs’ work. The library search <strong>is</strong> an excellent resource that I think you should inform<br />

your future students about. I only w<strong>is</strong>h that I had found it earlier in the quarter.<br />

Next Message by Scott <strong>is</strong> [616].<br />

<strong>Question</strong> 262 <strong>is</strong> 224 in 1995WI, 236 in 1995ut, 261 in 1996ut, and 314 in 1997WI:<br />

<strong>Question</strong> 262 Why <strong>is</strong> the labor-power usually paid after it <strong>is</strong> consumed by the purchaser,<br />

and why <strong>is</strong> it paid by the hour?<br />

[458] MUCHO: labor-power usually paid after... If the purchaser pay for the laborpower<br />

in advance, it would be a r<strong>is</strong>ky thing to do for the purchaser. Because, there <strong>is</strong> no<br />

guarantee that purchaser get efficient result from the workers. Thus, it <strong>is</strong> safer for the purchaser<br />

to pay after the labor-power <strong>is</strong> consumed. So that purchaser can get efficient result<br />

from the workers.<br />

Hourly salary also has to do with things that I mentioned above. In addition, paid by the<br />

hour can help both workers and employers. Because, employer can cut the hour that was not<br />

useful or efficient for the employer. On the other hand, worker can get paid for exactly what<br />

they have worked for. Sometimes, workers contribute more labor-power than they paid for.<br />

Message [458] referenced by [501]. Next Message by MUCHO <strong>is</strong> [463].<br />

[487] Reidar: Labor payment Mucho already responded to th<strong>is</strong> question, but I wanted<br />

to make a few remarks regarding the earlier submittal. Mucho states that it <strong>is</strong> safer for the<br />

capital<strong>is</strong>t to pay the laborer h<strong>is</strong>/her wage after the labor <strong>is</strong> performed in order to ensure<br />

that the work <strong>is</strong> sat<strong>is</strong>factory. Hans states simply that the capital<strong>is</strong>t ensures that the work <strong>is</strong><br />

actually done. The difference between these two statements <strong>is</strong> probably negligible.<br />

In my own employment I identify with the explantion given in Chapter 6. Marx said,<br />

“the worker advances the use value <strong>of</strong> h<strong>is</strong> labour-power to the capital<strong>is</strong>t. He lets the buyer<br />

consume it before he receives payment <strong>of</strong> the price.” The worker loses the payment <strong>of</strong> these<br />

wages if the capital<strong>is</strong>t goes bankrupt. Not only does th<strong>is</strong> method <strong>of</strong> wage payment ensure<br />

that the capital<strong>is</strong>t receives the labour power <strong>of</strong> the laborer, but also ensures that when he goes<br />

bankrupt, he will take the unpaid wages with him.<br />

By paying wages according to an hourly bas<strong>is</strong>, the capital<strong>is</strong>t improves h<strong>is</strong> ability to rob<br />

the laborer <strong>of</strong> all wages possible. With an hourly wage, the capital<strong>is</strong>t can deduct any time<br />

that may have been lost due to the laborer being late or having taken a longer break than<br />

allowed in h<strong>is</strong>/her contract.<br />

Today capital<strong>is</strong>ts are able to pay an hourly wage, but on the bas<strong>is</strong> <strong>of</strong> the timeclock which<br />

counts the minutes which a laborer <strong>is</strong> present. The capital<strong>is</strong>t therefore will be allowed to<br />

more accurately and prec<strong>is</strong>ely take advantage <strong>of</strong> the laborer.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 261<br />

In regards to the last line <strong>of</strong> Mucho’s submittal, “sometimes, workers contribute more<br />

labour-power than the (are) paid for.” Correct me if I am wrong, but the Marx described th<strong>is</strong><br />

process as the surplus labor which <strong>is</strong> performed by the laborer. The capital<strong>is</strong>t <strong>is</strong> hence a<br />

capital<strong>is</strong>t because he/she pays the laborer less than the actual amount <strong>of</strong> labour power which<br />

they receive from the laborer.<br />

Hans: Nice job. You pointed out the other side <strong>of</strong> the coin <strong>of</strong> what MUCHO said. MUCHO said that the hourly<br />

pay sees to it that the laborer cannot cheat the capital<strong>is</strong>t, but the fact that the labor <strong>is</strong> paid with a time lag exposes<br />

the worker to cheating by the capital<strong>is</strong>t.<br />

And when MUCHO said that the worker gets paid for all the hours he <strong>is</strong> on the job, you say that the capital<strong>is</strong>t<br />

can also take financial advantage if the worker <strong>is</strong> late.<br />

Regarding your question:<br />

In regards to the last line <strong>of</strong> Mucho’s submittal, “sometimes, workers contribute more labourpower<br />

than the (are) paid for.” Correct me if I am wrong, but the Marx described th<strong>is</strong> process<br />

as the surplus labor which <strong>is</strong> performed by the laborer.<br />

Th<strong>is</strong> <strong>is</strong> one way to get some extra surplus value, but even if the worker gets paid for every minute he <strong>is</strong> on the job,<br />

there still will be surplus value, due to the difference between the value <strong>of</strong> labor power and the value created by the<br />

use <strong>of</strong> th<strong>is</strong> labor power.<br />

Message [487] referenced by [501]. Next Message by Reidar <strong>is</strong> [543].<br />

[496] Super: It was already explained in Chapter 6 that the value <strong>of</strong> a commodity <strong>is</strong><br />

already determined before it <strong>is</strong> presented to the open market. Th<strong>is</strong> includes the labor power<br />

which <strong>is</strong> then exerc<strong>is</strong>ed by the worker and th<strong>is</strong> labor power commodity’s value <strong>is</strong> now seen<br />

as the use value. The actual exchange <strong>of</strong> th<strong>is</strong> labor value commodity for wages <strong>is</strong> not done<br />

until the laborer has completed the job. The purchaser w<strong>is</strong>hes to gain maximum return on<br />

h<strong>is</strong> or her purchase and will make sure that he or she receives the most use value possible<br />

out <strong>of</strong> the transaction.<br />

The worker <strong>is</strong> paid by the hour so that adjustments can be made easily by the consumer<br />

(or capital<strong>is</strong>t) to the changes in demand and supply <strong>of</strong> labor power within the economy, or<br />

others such as wage changes <strong>of</strong> similar workers. The capital<strong>is</strong>t w<strong>is</strong>hes to receive maximum<br />

labor for minimal expense. The capital<strong>is</strong>t does not want to pay the actual labor value price,<br />

he or she wants to pay much less. It <strong>is</strong> the capital<strong>is</strong>ts advantage to pay labor power by the<br />

hour in order to make changes in wages so that they can maximize their return.<br />

Hans: Your point that th<strong>is</strong> form <strong>of</strong> payment allows the capital<strong>is</strong>t to adjust better to demand and supply <strong>is</strong> a good<br />

one, and it was not made very clearly in the two previous subm<strong>is</strong>sions. But other things were already covered, and<br />

if you say:<br />

The capital<strong>is</strong>t does not want to pay the actual labor value price, he or she wants to pay much<br />

less.<br />

th<strong>is</strong> sounds as if the capital<strong>is</strong>t did not make pr<strong>of</strong>its if he had to pay the worker the actual value <strong>of</strong> the labor power.<br />

Th<strong>is</strong> <strong>is</strong> not true.<br />

Message [496] referenced by [501]. Next Message by Super <strong>is</strong> [524].<br />

[498] Gottlieb: Post Paid Labor To understand why labor-power <strong>is</strong> usually paid after it<br />

has been rendered, we must first realize the assumptions Marx places on the capital<strong>is</strong>t. He<br />

assumes that capital<strong>is</strong>ts make their monies from the pr<strong>of</strong>it not paid to the workers. They,<br />

therefore, will do all that they can to increase that amount. To increase their pr<strong>of</strong>its they can<br />

either get more money from the product they sell and/or pay less in wage labor.<br />

262 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

One <strong>of</strong> the reasons the laborer <strong>is</strong> paid after the commodity <strong>is</strong> consumed could be due to<br />

Marx’s reason number three, ‘the movement <strong>of</strong> wages over time.’ The capital<strong>is</strong>t has learned<br />

to use th<strong>is</strong> to her advantage to gauge the worker especially in times <strong>of</strong> inflation.<br />

In the late seventies and early eighties we experienced very high inflation. Many employers<br />

meet with employees only once per year to evaluate the workers’ performances and<br />

make any changes in wages. In periods <strong>of</strong> high inflation the real wage <strong>is</strong> decreasing rapidly<br />

and the increases in nominal wages must be higher. If wages are paid after the fact, then<br />

the employers gain an extra pay period at the old wage for the “old labor.” Th<strong>is</strong> can make<br />

a big difference for a company employing several hundred laborers, especially when th<strong>is</strong> <strong>is</strong><br />

practiced year after year.<br />

Marx was most definitely referring to the industrial assembly-line worker when he talked<br />

about paying by the hour. In an assembly-line job the individual worker can stop work at<br />

any time and pick up the next day where she left <strong>of</strong>f – or someone else could continue her<br />

work. There <strong>is</strong> no incentive forcing the laborer to work more than eight hours in the day.<br />

When paid by the hour the worker loses the time consumed when going to and from the<br />

workplace, changing into the proper attire once at the workplace, and any other activities<br />

taken in preparation for work.<br />

In a banking job, many management positions are paid a flat yearly salary. Managers<br />

know that things MUST be fin<strong>is</strong>hed on certain days and realize that they are the only ones<br />

that can do it. They <strong>of</strong>ten work overtime hours to accompl<strong>is</strong>h th<strong>is</strong>. If they were paid by<br />

the hour the employer would be forced to pay them more. The meat <strong>of</strong> Marx’s “paid by the<br />

hour” statement <strong>is</strong> that employers want to pay as little as possible for as much work as they<br />

can. For a Branch Manager, the employer pays less with a flat salary, for an assembly line<br />

worker, it <strong>is</strong> by paying by the hour.<br />

Hans: Very good point. Inflation <strong>is</strong> a new argument which none <strong>of</strong> the 3 previous subm<strong>is</strong>sions mentioned, and you<br />

are using the same arguments which explain why some workers are paid by the hour in order to explain why other<br />

workers are not paid by the hour.<br />

Next Message by Gottlieb <strong>is</strong> [504.1].<br />

[501] Kalle: paid by the hour In chapter 6, Marx talks about labor-power usually being<br />

paid for after it <strong>is</strong> consumed by the purchaser, but never actually gives a specific reason why<br />

th<strong>is</strong> <strong>is</strong> the case. For example, on page 278, he writes: “In every country where the capital<strong>is</strong>t<br />

mode <strong>of</strong> production prevails, it <strong>is</strong> the custom not to pay for labor-power until it has been<br />

exerc<strong>is</strong>ed..” Further he goes on to talk about the implications <strong>of</strong> workers <strong>of</strong>fering credit to<br />

the capital<strong>is</strong>t, but never really explains why it <strong>is</strong> so.<br />

However, several places he talks about the difference between the exchange <strong>of</strong> commodities<br />

and the exchange <strong>of</strong> labor for capital. By analyzing th<strong>is</strong> difference I believe I can answer<br />

the question why labor power <strong>is</strong> paid for after it has been exerc<strong>is</strong>ed. When you exchange<br />

money for a commodity, you immediately get the use value you paid for. The use value <strong>of</strong><br />

the labor <strong>is</strong> not realized until the worker exerc<strong>is</strong>e h<strong>is</strong> labor power. As for the exchange <strong>of</strong><br />

commodities, he must deliver the use value until he gets paid. Th<strong>is</strong> way the capital<strong>is</strong>t can<br />

be sure he receives the labor-power he pays for. The same reason can be given for why<br />

labor-power <strong>is</strong> paid for by the hour. Th<strong>is</strong> will ensure that the consumer <strong>of</strong> the labor-power<br />

only pays for the amount consumed (hours work by the laborer.)


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 263<br />

Hans: Marx did say th<strong>is</strong>, although in rather abstract terms, in 277:2. He used exactly the same arguments as you<br />

did. But unfortunately, other answers <strong>of</strong> th<strong>is</strong> <strong>Question</strong>, [458], [487], and [496] have already said it as well. Perhaps<br />

they were not quite as detailed as you, but nevertheless th<strong>is</strong> depressed your grade.<br />

Next Message by Kalle <strong>is</strong> [519].<br />

[508] Scott: Pre-paid labour Just a comment which I thought was obvious, and has not<br />

been mentioned.... I have personally advanced thoasands <strong>of</strong> dollars <strong>of</strong> wages to be left in the<br />

lurch by the unscrupulous worker. The worker would take the money and quit the job. ( and<br />

I’m sure many <strong>of</strong> the readers are laughing and thinking what a stupid company that <strong>is</strong>.) The<br />

management began to be more cynical and cold towards the plight <strong>of</strong> the labourer. It then<br />

became much easier to d<strong>is</strong>m<strong>is</strong>s the emergency situations in which an employee requested an<br />

advance upon h<strong>is</strong> wages. Sure, we should have paid more so that the labourers would not<br />

need advances, but as I said we were poor “capital<strong>is</strong>ts”. The company was not an pr<strong>of</strong>itable<br />

one, and yet we always wanted to respect the labourer because the management knew that<br />

their positions were extremely important. We knew that we were replaceable in a second,<br />

and <strong>of</strong>ten were, whereas good labourers begat a safe working environment and enticed other<br />

labourers to the work place. I even thought some <strong>of</strong> the labourers were happy, but alas<br />

I have d<strong>is</strong>covered from Marx that they were not at all. They were only ignorant <strong>of</strong> their<br />

exploitation, and that ignorance <strong>is</strong> bl<strong>is</strong>s in capital<strong>is</strong>m.<br />

Hans: You were a capital<strong>is</strong>t who tried to help h<strong>is</strong> workers, and you could not afford to. I think th<strong>is</strong> <strong>is</strong> a good lesson<br />

for us. It <strong>is</strong> not necessarily the capital<strong>is</strong>ts who are evil, but it <strong>is</strong> the system as a whole.<br />

Next Message by Scott <strong>is</strong> [509].<br />

[519] Kalle: Why are wages paid after labor-power <strong>is</strong> exerc<strong>is</strong>ed For the last homework<br />

assignment I tried as best as I could to answer question 262 about why labor power <strong>is</strong> usually<br />

paid after it <strong>is</strong> consumed. According to Hans the answer to th<strong>is</strong> could be found in chapter<br />

six <strong>of</strong> Capital. However I could not find a sat<strong>is</strong>factory answer to th<strong>is</strong> question. Sure, Marx<br />

talks a lot about the nature <strong>of</strong> labor-power and wages, but do not directly adress the question<br />

why wages <strong>is</strong> paid after labor-power <strong>is</strong> consumed. One thing that bothered me was when he<br />

on page 278 when he says that “In every country where the capital<strong>is</strong>t mode <strong>of</strong> production<br />

prevails, it <strong>is</strong> the custom not to pay for labor-power until it has been exerc<strong>is</strong>ed..” He does not<br />

give a more detailed explination, as far as I understand. I also read others who answered the<br />

same question as me, but still I would be pleased if someone could cearlify the <strong>is</strong>sue for me.<br />

Next Message by Kalle <strong>is</strong> [520].<br />

[524] Super: Why wages are paid after labor power <strong>is</strong> exerc<strong>is</strong>ed Th<strong>is</strong> <strong>is</strong> somewhat<br />

confusing to me also but hopefully I can shed a little light. As I understand it the worker<br />

advances h<strong>is</strong> or her labor power to the capital<strong>is</strong>t as a loan. Th<strong>is</strong> loan starts the minute the<br />

worker begins giving h<strong>is</strong> or her labor power to the buyer (capital<strong>is</strong>t). The buyer does not<br />

pay for th<strong>is</strong> labor power until the contract or agreement has been fulfilled. I think the reason<br />

for th<strong>is</strong> <strong>is</strong> that for one thing it <strong>is</strong> easier for the buyer to purchase the labor in intervals such<br />

as weekly or monthly payments to the worker. Paying the worker daily can be a hassle. If<br />

the buyer (capital<strong>is</strong>t) pre-pays the worker than he <strong>is</strong> taking a substantial r<strong>is</strong>k. <strong>What</strong> if the<br />

worker decides to skip town before he completes the labor contract? Marx indicates that the<br />

value <strong>of</strong> labor <strong>is</strong> predetermined before the labor contract <strong>is</strong> completed, but the use-value <strong>is</strong><br />

the actual exerc<strong>is</strong>e <strong>of</strong> the labor power. The capital<strong>is</strong>t wants to make sure he <strong>is</strong> receiving the<br />

most use-value he can and hopes it <strong>is</strong> more than the wage he pays. So he waits until the<br />

264 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

contract <strong>is</strong> completed and could even have the nerve to change the wage in h<strong>is</strong> favor. The<br />

capital<strong>is</strong>t then has nothing to lose where the laborer r<strong>is</strong>ks much more.<br />

Next Message by Super <strong>is</strong> [539].<br />

[543] Reidar: Thread 683 I submitted an answer to th<strong>is</strong> question earlier, but after reading<br />

the many other responses to th<strong>is</strong> question I wonder if we are not all m<strong>is</strong>sing the point. Other<br />

than an obvious reason that <strong>is</strong> in the syllabus; the capital<strong>is</strong>t pays the laborer after the labor <strong>is</strong><br />

expended to ensure that it actually <strong>is</strong> accompl<strong>is</strong>hed, I wonder if the main reason <strong>is</strong> because<br />

before the labor <strong>is</strong> expended, it has no real value.<br />

If the laborer could receive payment without having done the labor, th<strong>is</strong> would mean that<br />

h<strong>is</strong>/her labor would have a use value that could be considered a commodity. We have already<br />

establ<strong>is</strong>hed that th<strong>is</strong> cannot occur.<br />

The persons labor has no actual value until the laborer provides it. Just as an object has no<br />

value to its owner before the object <strong>is</strong> sold or exchanged and the owner receives something<br />

in payment, the labor power <strong>of</strong> a laborer has no value that can be paid for in advance, until<br />

the labor power <strong>is</strong> provided.<br />

Gottlieb also states that a bank laborer would be paid on a salaried bas<strong>is</strong> because he/she<br />

will inevitably work overtime. Th<strong>is</strong> occurrence <strong>is</strong> very common, but not because it <strong>is</strong> legal. I<br />

have worked in salaried positions for a couple <strong>of</strong> years and received a slightly higher salary,<br />

but would have been paid more had I been paid for my overtime. Until six months ago I<br />

did not know that in the state <strong>of</strong> <strong>Utah</strong>, it <strong>is</strong> illegal to withhold overtime pay from salaried<br />

employees if the overtime hours are greater than a certain amount. I am not presently aware<br />

<strong>of</strong> the exact amount <strong>of</strong> hours.<br />

By creating a salaried position, the capital<strong>is</strong>t has found yet another way to extract more<br />

labor hours from laborers while paying them a fixed salary. The threat <strong>of</strong> termination <strong>is</strong><br />

real for those employees who actually have the guts to point out that what their capital<strong>is</strong>t<br />

employers are doing <strong>is</strong> illegal.<br />

Next Message by Reidar <strong>is</strong> [595].<br />

[611] Kia: Workers are paid after they provide labour power, because many capital<strong>is</strong>t<br />

wants to see what they are getting before paying their workers. If the workers performance<br />

<strong>is</strong> great and provide good commodity he than produce commodity that will generate money<br />

for h<strong>is</strong> employer. In turn, employer gets surplus value from the buyer. If workers job performance<br />

<strong>is</strong> bad then commodity that he produce will bring less surplus value for the employer.<br />

Th<strong>is</strong> way capital<strong>is</strong>t will know what he <strong>is</strong> getting before he pays for the workers wages.<br />

Hans: Your grade suffered because your subm<strong>is</strong>sion was late.<br />

Next Message by Kia <strong>is</strong> [612].<br />

<strong>Exam</strong> <strong>Question</strong> 263 <strong>is</strong> 262 in 1996ut, 315 in 1997WI, and 379 in 1997ut:<br />

<strong>Exam</strong> <strong>Question</strong> 263 Does Marx agree that points a and b are valid pro<strong>of</strong>s that wages are<br />

the price <strong>of</strong> labor and not <strong>of</strong> labor power? Give h<strong>is</strong> arguments in your own words.<br />

[514] Pinky: Marx makes it clear that the reasoning put forth in the beginning <strong>of</strong> point a<br />

and b do not <strong>of</strong>fer pro<strong>of</strong> that wages are payment for labor rather than labor power. Marx says<br />

that with an increase in the daily or weekly wage, the price <strong>of</strong> labour may remain nominally<br />

constant , and yet fall balow its normal level. He says that th<strong>is</strong> occurs every time the working


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 265<br />

day <strong>is</strong> prolonged beyond its customary length, while the price <strong>of</strong> labour remains constant.<br />

Hence, point a <strong>is</strong> just an illusion. Point b goes on to define the differences in the value<br />

created by different laborers. Th<strong>is</strong> point <strong>is</strong> an illusion as well, since it <strong>is</strong> the capital<strong>is</strong>t that<br />

reaps the benefit from increased production far more than does the worker himself.<br />

Hans: Your first point goes in the right direction, but you are leaving it as a paradox, without fin<strong>is</strong>hing the explanation:<br />

Marx says that with an increase in the daily or weekly wage, the price <strong>of</strong> labour may remain<br />

nominally constant , and yet fall balow its normal level. He says that th<strong>is</strong> occurs every time<br />

the working day <strong>is</strong> prolonged beyond its customary length, while the price <strong>of</strong> labour remains<br />

constant.<br />

Regarding point b, what you write <strong>is</strong> correct.<br />

Next Message by Pinky <strong>is</strong> [528].<br />

<strong>Question</strong> 264 <strong>is</strong> 225 in 1995WI, 316 in 1997WI, 389 in 1998WI, 393 in 1999SP, 514 in<br />

2001fa, 554 in 2002fa, 577 in 2003fa, 633 in 2004fa, 585 in 2005fa, 666 in 2007SP, 656<br />

in 2008fa, and 773 in 2011fa:<br />

<strong>Question</strong> 264 Is the transformation <strong>of</strong> the value <strong>of</strong> labor-power into the value <strong>of</strong> labor real,<br />

or does it take place only in the minds <strong>of</strong> those who sell and buy labor-power?<br />

[513] Pinky: Marx contends that the notion that wages represent the value <strong>of</strong> labor <strong>is</strong><br />

absurd. To Marx, labor creates value. The capital<strong>is</strong>t system <strong>is</strong> in no way a system <strong>of</strong> the<br />

exchange <strong>of</strong> equal values. If the capital<strong>is</strong>t was to pay the worker the value created by h<strong>is</strong><br />

work, there would be no surplus-value. As for the specific question <strong>of</strong> if the transformation<br />

<strong>of</strong> the value <strong>of</strong> labor-power into the value take place only in the minds <strong>of</strong> those who sell and<br />

buy labor-power, I think that it would be a stretch to assume that they truly see it as an equal<br />

exchange. Capital<strong>is</strong>m <strong>is</strong> the process by which the capital<strong>is</strong>t takes a value-producing thing<br />

and puts it to work to create more value than he has paid for it. Th<strong>is</strong> philosophy applies to<br />

every aspect <strong>of</strong> production.<br />

Hans: The following sentence <strong>is</strong> a basic m<strong>is</strong>understanding:<br />

The capital<strong>is</strong>t system <strong>is</strong> in no way a system <strong>of</strong> the exchange <strong>of</strong> equal values.<br />

Marx took pains to explain pr<strong>of</strong>its not as a violation <strong>of</strong> equal exchange, but on the bas<strong>is</strong> <strong>of</strong> equal exchange. Where<br />

have you been? Given th<strong>is</strong> faulty starting point, no wonder you are m<strong>is</strong>understanding the question. The question<br />

was not whether workers consider their wages fair.<br />

And the last sentence <strong>is</strong> a bummer too:<br />

Th<strong>is</strong> philosophy applies to every aspect <strong>of</strong> production.<br />

You are saying that all production <strong>is</strong> exploitation.<br />

Next Message by Pinky <strong>is</strong> [514].<br />

<strong>Question</strong> 265 <strong>is</strong> 264 in 1996ut, 387 in 1997WI, 451 in 1997ut, 457 in 1998WI, and 678 in<br />

2003fa:<br />

<strong>Question</strong> 265 Answer the above <strong>Question</strong>s (a)-(h) for capital<strong>is</strong>t society.<br />

[193] Angela: Capital<strong>is</strong>t Society I do not know much about Theory <strong>of</strong> Capital<strong>is</strong>m, but<br />

I think I am living in the capital<strong>is</strong>t society. And I just use my knowledge to answer the<br />

following questions and I do not know it <strong>is</strong> right or not!!<br />

(a) Yes, I think that everyone shares the labour necessary to the society’s physical survival,<br />

because everyone provides their labour to produce the different commodities and serives.<br />

266 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

People, in the capital<strong>is</strong>t society, take the advantages and share each other. And I think the<br />

labours sell their laborur for wages in the capital<strong>is</strong>t society, I do’nt think that they are slaves<br />

because the slaves can not decide to sell their laborur by themselves and they are the part<br />

<strong>of</strong> porperty for their masters and their masters decided everything for them in the feudal<br />

system. Moreover, these slaves might be born into a certain caste in the feudal society, not<br />

in the capital<strong>is</strong>t society. In the capitalsit society, people work for their bosses or owners and<br />

their relationships like trade <strong>of</strong> commodities. one side sell their laborur and the other side<br />

buy their laborur.<br />

(b) Basically, I think that people work to earn the money to sat<strong>is</strong>fy their survival needs and<br />

then to sat<strong>is</strong>fy their desires. In the capital<strong>is</strong>t society, the producers produce the commodities<br />

not only for survival needs and also for desirous needs ( not for survival needs ). And I<br />

think that in the capital<strong>is</strong>t systems people are not obliged on pain <strong>of</strong> death or pun<strong>is</strong>hment<br />

to produce tribute for someone else. People work by their owns’ purposes or wills, because<br />

they have different purposes for working so that they represent different styles in the society.<br />

Some people work not because they want to earn the money for survival needs and they<br />

have the other purposes to do so!! For example, some art<strong>is</strong>ts create their arts not because<br />

they want to earn the money for survival needs. They just carry out their dreams. But in<br />

the capital<strong>is</strong>t society, some people might need these art<strong>is</strong>ts’ creations to sat<strong>is</strong>fy their mental<br />

needs or something else. So these creations will become a commodity to trade in the market<br />

in the capital<strong>is</strong>t society.<br />

(c) In the capital<strong>is</strong>t society, I think the capital<strong>is</strong>ts and governments and independent producers<br />

will organize how to work and what kind <strong>of</strong> work and the speed and the mothods<br />

<strong>of</strong> work and etc... I think once people work who may be managed by their managers or<br />

their owners or bosses. But it <strong>is</strong> not kind <strong>of</strong> controlling everything by their owners or bosses<br />

or managers. there will be some communication ways to communicate each other such as<br />

unions.<br />

(d) In the capital<strong>is</strong>t society, the capital<strong>is</strong>ts and owners and bosses own and independent<br />

producers control the means <strong>of</strong> production. These people provide the means <strong>of</strong> production<br />

and hire people to produce the commodities into the markets.<br />

(e) I think that the purpose <strong>of</strong> underlying production <strong>of</strong> the capital<strong>is</strong>m <strong>is</strong> to make the<br />

money and pr<strong>of</strong>its. And capital<strong>is</strong>ts, owners, bosses and independent producers establ<strong>is</strong>h a<br />

production process with the objective <strong>of</strong> enriching themselves. And I also think there are<br />

some institutions which direct the production process necessary for collective survival in the<br />

society. So that in the whole society, there will are everything <strong>of</strong> commodities or servies for<br />

everyone.<br />

(f) In the capital<strong>is</strong>t society, I do not think that there are particlar castes into which some<br />

people are born which do not require them to work, but they get enough food or goods to<br />

survive. I just think there are some people who do not work but they get enough goods<br />

to survive because some other people support them to do so. For example, I came USA<br />

for studying and I did not work but I get enough goods for survive not because I have a<br />

special caste just because my parents support me!! But on the other hand, some countries<br />

are monarchies, eventhough their economies are capital<strong>is</strong>t economics, their kings and the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 267<br />

royal familes might not need to work but they get everything which they need. I do not<br />

know th<strong>is</strong> situation violates the ideas <strong>of</strong> capital<strong>is</strong>t.<br />

Moreover, in the capital<strong>is</strong>t society there might be a sexual div<strong>is</strong>ion <strong>of</strong> labour which requires<br />

one sex to do less work than the other. Eventhough there are some sexual movements<br />

against these situations, uptoday there still are a sexual div<strong>is</strong>ion <strong>of</strong> labour. But I do not<br />

think there <strong>is</strong> a class <strong>of</strong> people who manage to receive and income without working. They<br />

just work different ways to earn their incomes. I think they use their management skills or<br />

they have to develop the new commodity for the market and they might take the r<strong>is</strong>k for<br />

these things. So in my opinion, I do not think these managers receive their income without<br />

working.<br />

(g) In the capital<strong>is</strong>t society, I think that people can be divided into 2 main groups- blue<br />

group and white group. And individual’s standard <strong>of</strong> living and levels <strong>of</strong> income depends<br />

on which group he/she belongs to. But I think that in the capital<strong>is</strong>t society, more skills and<br />

technical knowledge people have, and more income they earn. And the society necessary<br />

will decide these differences!! But in general, white group has higher income than blue<br />

group.<br />

(h) I think that in the capital<strong>is</strong>t society, the markets play main roles for the d<strong>is</strong>tribution<br />

mechan<strong>is</strong>m. Using market systems, people can find out what and how to do with their supplies<br />

and demands. People sell and buy the commodities and servcies with market systems.<br />

The market will adjustment how to d<strong>is</strong>tribution <strong>of</strong> the commodities and services.<br />

Message [193] referenced by [247]. Next Message by Angela <strong>is</strong> [193.1].<br />

[243] Brumbys: work or no work not a choice People work because it <strong>is</strong> part <strong>of</strong><br />

surviving. I don’t think it <strong>is</strong> to produce the goods they need but for what others need and in<br />

exchange they get money for it. Th<strong>is</strong> <strong>is</strong> part <strong>of</strong> the comparative advantage theory where one<br />

will produce more <strong>of</strong> what she/he <strong>is</strong> good at. In a capital<strong>is</strong>t society it <strong>is</strong>n’t a choice whether<br />

you want to work or not if you want bread on the table then yes you must work. Th<strong>is</strong> <strong>is</strong><br />

why in a capital<strong>is</strong>t society they like the unemployment rate to be high so that way it makes<br />

people work harder because if you don’t then someone else will take your job immediately.<br />

In every job force, there <strong>is</strong> a master who determines what you do and at what price. I believe<br />

that every individual works because they need money to sat<strong>is</strong>fy their survival needs. In order<br />

to survive in a capital<strong>is</strong>t society, you need money therefore you must work. Of course there<br />

are individuals that are happy about there jobs and get paid for it.<br />

Hans: When you sent your message on Monday, it was rejected because you had specified <strong>Question</strong> number 265b.<br />

There <strong>is</strong> no <strong>Question</strong> 265b. <strong>Question</strong> 265 asks you to answer all parts <strong>of</strong> the <strong>Question</strong>. It <strong>is</strong> not right to say that<br />

everyone has to work in capital<strong>is</strong>m; labor <strong>is</strong> not the only source <strong>of</strong> income in capital<strong>is</strong>m.<br />

Next Message by Brumbys <strong>is</strong> [248].<br />

[247] Hans: Relations <strong>of</strong> Production in Contemporary Capital<strong>is</strong>m Angela starts her<br />

answer [193] with the remark that she does not know much about capital<strong>is</strong>m. Reading her<br />

comments I am getting the impression that she does not want to know much about capital<strong>is</strong>m.<br />

She <strong>is</strong> trying to tell herself that conditions in capital<strong>is</strong>m are just fine, but she <strong>is</strong> not very<br />

successful at it. Here are my more detailed responses:<br />

(a) There are important enough differences between the different motivations to work that<br />

I would not think it can be summarized by saying: “everybody shares the work.” (Angela<br />

268 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

almost seems to say that people take advantage <strong>of</strong> each other; th<strong>is</strong> <strong>is</strong> something I could agree<br />

more with.) Some people work because they need the income from wage labor. Others<br />

work in their homes, doing housework for the family, child rearing etc. They do not get<br />

paid for their labor, but they are dependent on the wage earner for support. Others are<br />

“independently <strong>wealth</strong>y” and do not have to work at all if they do not want to. Others (the<br />

unemployed) would like to have a waged job but society does not provide for one. Others<br />

are on welfare.<br />

You are right that wage workers are not slaves, but th<strong>is</strong> does not make it a voluntary<br />

relationship. They are forced to work for others because they do not have access to the<br />

means <strong>of</strong> production otherw<strong>is</strong>e.<br />

(b) You say:<br />

people work to earn the money to sat<strong>is</strong>fy their survival needs and then to<br />

sat<strong>is</strong>fy their desires.<br />

Again I do not think th<strong>is</strong> properly reflects the facts. The broad masses <strong>of</strong> the population<br />

are allowed to use some products <strong>of</strong> modern technology, like TV’s, but on the other hand,<br />

many go without adequate food or housing or medical care. They do not have a choice how<br />

much they want to work; there are no well-paid decent part-time jobs, it <strong>is</strong> either a full-time<br />

job or m<strong>is</strong>ery.<br />

You continue:<br />

People work by their owns’ purposes or wills, because they have different<br />

purposes for working so that they represent different styles in the society.<br />

Some people work not because they want to earn the money for survival<br />

needs and they have the other purposes to do so!! For example, some art<strong>is</strong>ts<br />

create their arts not because they want to earn the money for survival needs.<br />

They just carry out their dreams. But in the capital<strong>is</strong>t society, some people<br />

might need these art<strong>is</strong>ts’ creations to sat<strong>is</strong>fy their mental needs or something<br />

else. So these creations will become a commodity to trade in the<br />

market in the capital<strong>is</strong>t society.<br />

There are very few people lucky enough that they can follow their dreams and still make a<br />

living. They can only follow their dreams if the market allows them to do so. Art<strong>is</strong>ts are torn<br />

between the necessity to produce what sells and their desire to follow their inner avocation.<br />

Regarding (c) you say correctly that it <strong>is</strong> not the workers who organize their work, but<br />

their bosses. Some enlightened bosses l<strong>is</strong>ten to their workers, and sometimes the unions step<br />

in when abuses become too obvious, but th<strong>is</strong> <strong>is</strong> still quite a different affair than if the workers<br />

themselves could decide.<br />

(d) In our society, the capital<strong>is</strong>ts are <strong>of</strong>ten called the “producers,” although the workers<br />

are the real producers. I also d<strong>is</strong>agree with your formulation that the capital<strong>is</strong>ts “provide”<br />

the means <strong>of</strong> production. They control them and have the right to withhold them (and <strong>of</strong>ten<br />

do withhold them, th<strong>is</strong> <strong>is</strong> why there <strong>is</strong> so much unemployment). They only “provide” them<br />

if it <strong>is</strong> in their interest to do so.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 269<br />

(e) I agree with you that the purpose <strong>of</strong> underlying production <strong>of</strong> the capital<strong>is</strong>m <strong>is</strong> to make<br />

the money and pr<strong>of</strong>its. You also way that<br />

there are some institutions which direct the production process necessary<br />

for collective survival in the society.<br />

But these are subordinate to private pr<strong>of</strong>it-making. Some industries (schools, roadbuilding)<br />

are run by the state because capital<strong>is</strong>t pr<strong>of</strong>iteering in th<strong>is</strong> area would do too much damage<br />

to capital<strong>is</strong>t pr<strong>of</strong>iteering elsewhere.<br />

I do not know how you can say the following sentence:<br />

So that in the whole society, there will are everything <strong>of</strong> commodities or<br />

servies for everyone.<br />

Even in one <strong>of</strong> the richest capital<strong>is</strong>t countries, there <strong>is</strong> an appaling amount <strong>of</strong> m<strong>is</strong>ery and<br />

poverty next to obscene amounts <strong>of</strong> <strong>wealth</strong>, and if you go to the countries in the periphery<br />

(India, Africa), people cannot even feed themselves.<br />

In (f), you say a few things with which I can agree. But you should ask how your parents<br />

have enough income to send you to study in the USA? Does everyone in your country have<br />

enough income for th<strong>is</strong>, and if not, why not? You see that in capital<strong>is</strong>m, one can gain income<br />

without working (property income, stock market or commodity speculation, royalties from<br />

the sale <strong>of</strong> something, income <strong>of</strong> the managers). You are trying to re-interpret th<strong>is</strong> and say<br />

that all these sources <strong>of</strong> income are some kind <strong>of</strong> work.<br />

Regarding (g), some Marx<strong>is</strong>ts argue that the relative protection <strong>of</strong> the white collar workers<br />

from exploitation <strong>is</strong> coming to an end.<br />

Next Message by Hans <strong>is</strong> [268].<br />

<strong>Exam</strong> <strong>Question</strong> 267 <strong>is</strong> 389 in 1997WI:<br />

<strong>Exam</strong> <strong>Question</strong> 267 Define productive forces and relations <strong>of</strong> production.<br />

[176] Snake: productive forces Production <strong>is</strong> a state <strong>of</strong> being engaged in the creating <strong>of</strong><br />

economic value, or the producing <strong>of</strong> goods and services. Productive forces could be defined<br />

as the only productive labor <strong>is</strong> that which <strong>is</strong> directly consumed in the coarse <strong>of</strong> production for<br />

the fixing <strong>of</strong> prices <strong>of</strong> capital. Labor <strong>is</strong> productive if it directly controls the value <strong>of</strong> capital,<br />

or creates surplus value. Where as relations <strong>of</strong> production correspond to a determined stage<br />

<strong>of</strong> development <strong>of</strong> the productive forces.<br />

Message [176] referenced by [178]. Next Message by Snake <strong>is</strong> [300].<br />

[178] Hans: Productive forces do not only ex<strong>is</strong>t in capital<strong>is</strong>m There <strong>is</strong> not a single<br />

sentence that <strong>is</strong> right in Snake’s answer [176].<br />

Production <strong>is</strong> a state <strong>of</strong> being engaged in the creating <strong>of</strong> economic value, or<br />

the producing <strong>of</strong> goods and services.<br />

Only in particular economies are things produced as “economic values”. The concept <strong>of</strong><br />

productive forces <strong>is</strong> however applicable to all higherto ex<strong>is</strong>ting economies. Snake should<br />

270 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

have used the word “use value” here. Use values as use values do not fall into the realm <strong>of</strong><br />

economics, use values are not “economic”.<br />

Productive forces could be defined as the only productive labor <strong>is</strong> that which<br />

<strong>is</strong> directly consumed in the coarse <strong>of</strong> production for the fixing <strong>of</strong> prices <strong>of</strong><br />

capital. Labor <strong>is</strong> productive if it directly controls the value <strong>of</strong> capital, or<br />

creates surplus value.<br />

Snake <strong>is</strong> confusing the concept <strong>of</strong> “productive force” with a different concept <strong>of</strong> Marx’s,<br />

namely, the concept <strong>of</strong> productive labor under capital<strong>is</strong>m, which <strong>is</strong> labor that produces surplus<br />

value. Did you read the Annotations?<br />

Where as relations <strong>of</strong> production correspond to a determined stage <strong>of</strong> development<br />

<strong>of</strong> the productive forces.<br />

Th<strong>is</strong> <strong>is</strong> one <strong>of</strong> Marx’s theses about relations <strong>of</strong> production, but not their definition.<br />

Next Message by Hans <strong>is</strong> [179].<br />

<strong>Question</strong> 276 How does the passage from the Preface which we just d<strong>is</strong>cussed relate to<br />

the famous assertion in the Commun<strong>is</strong>t Manifesto that “the h<strong>is</strong>tory <strong>of</strong> all hitherto ex<strong>is</strong>ting<br />

society <strong>is</strong> the h<strong>is</strong>tory <strong>of</strong> class struggles”?<br />

[183] Jupiter: Class struggles Th<strong>is</strong> statment relates to the subject <strong>of</strong> class struggles,<br />

in that no matter what our wills will be we have really no choice in the cards that we are<br />

handed. It <strong>is</strong> a function <strong>of</strong> social stratification, which <strong>is</strong> structured inequality within a given<br />

society that separates groups <strong>of</strong> people and the roles which they play within that particular<br />

society.<br />

Through out h<strong>is</strong>tory except for the Primitive Communal period <strong>of</strong> time (which <strong>is</strong> where it<br />

<strong>is</strong> mostly a communal order so there <strong>is</strong> no inequality among the tribe) there has been forms <strong>of</strong><br />

inequality. For example there were the lords who exploited the serfs, the plantation owners<br />

who exploited the slaves, and many more that contributed along the way to put us where we<br />

are today. Where are we today? Are we so much better <strong>of</strong>f than those <strong>of</strong> time past? To be<br />

honest I do not know that we are, sure we have allot more opprotunity in th<strong>is</strong> life but I look<br />

around and see so much inequality today that brings me to believe that we are not that much<br />

better <strong>of</strong>. We live in a bureaucratic institution that thrives on exploiting those who are not at<br />

the top (the proletariate).<br />

Th<strong>is</strong> <strong>is</strong> what I see Marx to be saying about a h<strong>is</strong>tory <strong>of</strong> all class struggles, it <strong>is</strong> a summation<br />

<strong>of</strong> all past bringing us to where we are today.<br />

Hans: I like what you say about class struggles (individual advancement <strong>is</strong>, as a matter <strong>of</strong> principle, only open to<br />

a minority, and we still live in a class society today). Th<strong>is</strong> <strong>is</strong> a central concept for Marx<strong>is</strong>m. <strong>Question</strong> 276 was<br />

wondering whether Marx had forgotten about th<strong>is</strong> when he wrote the Preface.<br />

Next Message by Jupiter <strong>is</strong> [186].<br />

<strong>Question</strong> 277 <strong>is</strong> 56 in 2005fa, 67 in 2007fa, 68 in 2008SP, 68 in 2008fa, 71 in 2009fa,<br />

and 72 in 2010fa:<br />

<strong>Question</strong> 277 First give Marx’s arguments how one can come to the conclusion that exchange<br />

value <strong>is</strong> not something inherent in the commodity. Then reproduce, in your own


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 271<br />

words, Marx’s rebuttal that, despite these arguments, exchange value seems to be something<br />

inherent to the commodity after all. (Th<strong>is</strong> <strong>is</strong> <strong>Question</strong> 37 and 40 merged).<br />

[170.2] VanHalen: Marx says that, “Exchange value appears first <strong>of</strong> all as the quantitative<br />

relation, the proportion , in which use values <strong>of</strong> one kind exchange for the use values <strong>of</strong><br />

another kind. Th<strong>is</strong> relation changes constantly with time and place. Hence exchange value<br />

appears to be something accidental and purely relative and consequently an intrinsic value,<br />

i.e., an exchange value that <strong>is</strong> inseparably connected with the commodity, inherent in it<br />

seems a contradiction in terms.”<br />

Since the exchange value <strong>is</strong> constantly changing, due to social factors and time and place<br />

it can’t be inherent in the commodity. Sometimes it may fetch no exchange and other times<br />

when various factors change it may fetch a rather large exchange. Th<strong>is</strong> volatility keeps the<br />

exchange value from being inherent in the commodity.<br />

My own interpretation (due to reading others interpretations) <strong>of</strong> Marx’s rebuttal that despite<br />

these arguements, exchange value seems to be something inherent to the commodity<br />

<strong>is</strong> as follows. From Marx’s example <strong>of</strong> the quarter <strong>of</strong> wheat when it <strong>is</strong> exchanged for x<br />

shoe pol<strong>is</strong>h or z gold or y silk, we can see that between these commodities there <strong>is</strong> some<br />

relationship. In one geographical area, the wheat may fetch some amount <strong>of</strong> shoe pol<strong>is</strong>h, in<br />

another place the wheat may fetch some amount <strong>of</strong> gold and in another place it may fetch<br />

some quantity <strong>of</strong> silk. The wheat <strong>is</strong> expressing that the silk, shoe pol<strong>is</strong>h and gold have some<br />

value, and at the same time the shoe pol<strong>is</strong>h, silk and gold are expressing that wheat has some<br />

value in it.<br />

I like the example <strong>of</strong> the headlights, at first the person thinks that the other car was<br />

blinking its lights at him because the person may have known him. But as many other<br />

cars begin to flash their lights at him, he realizes that all the cars are trying to tell him<br />

something solely about him... that h<strong>is</strong> lights are not on. Back to the wheat example, the<br />

other commodities that wheat comes up against at different times and different places, are<br />

all “flashing their lights” at the wheat in that a certain quantity <strong>of</strong> the other commodities<br />

can be exchanged for a certain amount <strong>of</strong> wheat. Th<strong>is</strong> gives the notion that there <strong>is</strong> some<br />

intrinsic value in the wheat and it <strong>is</strong> being expressed by the other commodities when they<br />

come in contact with the wheat.<br />

Hans: Your in-class exam <strong>is</strong> very incomplete, but it started along the right track, and your resubm<strong>is</strong>sion <strong>is</strong> excellent.<br />

Next Message by VanHalen <strong>is</strong> [216].<br />

[176.1] Karl: First I will address why Marx thought exchange <strong>is</strong> not something inherent in<br />

the commodity. Take the relevant form <strong>of</strong> commodity A, 20 yards <strong>of</strong> linen, then set it equal<br />

to commodity B, a coat( the equivalent form.) If these articles are exchanged, they produce<br />

an underlying 3rd dimension that <strong>is</strong> not inherent in either commodity. Exchange value <strong>is</strong> also<br />

not inherent due to the other variables <strong>of</strong> exchanged. For example Marx believed exchange<br />

value was also changed by other “outside” factors such as “abundance, time, and place <strong>of</strong><br />

exchange.”<br />

Then Marx uses a planned contradiction to explain that exchange value <strong>is</strong> inherent after<br />

all. According to the text, Marx believed that a commodity held a “two-fold form.” It <strong>is</strong><br />

exchange value tied with its underlying factor <strong>of</strong> “abstract labor”, or “general abstract labor”<br />

272 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

that gives exchange value it’s inherent value to the commodity. It <strong>is</strong> so much a part <strong>of</strong><br />

the commodity that Marx called it the Father <strong>of</strong> the commodity, and nature <strong>is</strong> the Mother.<br />

Without the inherent nature <strong>of</strong> <strong>of</strong> exchange value, the commodity would not be recognized<br />

in it’s original form.<br />

The notion <strong>of</strong> an inherent exchange value <strong>is</strong> simple. Put very well in Hans’s rebuttal to<br />

question 40. It was stated, “It seems commodities have a value (exchange value), otherw<strong>is</strong>e<br />

people would not bother producing them.”<br />

Hans: Do not think that all the answers can be found in the collection <strong>of</strong> answers. Some <strong>of</strong> the d<strong>is</strong>cussions on the<br />

internet were incomplete.<br />

First I will address why Marx thought exchange <strong>is</strong> not something inherent in the commodity.<br />

Take the relevant form <strong>of</strong> commodity A, 20 yards <strong>of</strong> linen, then set it equal to commodity B,<br />

a coat( the equivalent form.) If these articles are exchanged, they produce an underlying 3rd<br />

dimension that <strong>is</strong> not inherent in either commodity.<br />

The exchange does not produce th<strong>is</strong>, the exchange <strong>is</strong> pro<strong>of</strong> that there <strong>is</strong> th<strong>is</strong> underlying third dimension. Th<strong>is</strong> 3rd<br />

dimension <strong>is</strong> not identical to either commodity, but it <strong>is</strong> inherent in both. I.e., here you are bringing arguments for<br />

an intrinsic exchange value, not against it. The next portion <strong>of</strong> your text <strong>is</strong> better:<br />

Exchange value <strong>is</strong> also not inherent due to the other variables <strong>of</strong> exchanged. For example Marx<br />

believed exchange value was also changed by other “outside” factors such as “abundance,<br />

time, and place <strong>of</strong> exchange.”<br />

Th<strong>is</strong> <strong>is</strong> already Marx’s reconciliation how it can be something intrinsic despite th<strong>is</strong> variability. Alone by calling<br />

these the “outside” factors you imply that there are also “inside” factors, namely, the labor.<br />

Then Marx uses a planned contradiction to explain that exchange value <strong>is</strong> inherent after all.<br />

According to the text, Marx believed that a commodity held a “two-fold form.” It <strong>is</strong> exchange<br />

value tied with it’s underlying factor <strong>of</strong> “abstract labor”, or “general abstract labor” that gives<br />

exchange value it’s inherent value to the commodity. It <strong>is</strong> so much a part <strong>of</strong> the commodity<br />

that Marx called it the Father <strong>of</strong> the commodity, and nature <strong>is</strong> the Mother.<br />

You did not get th<strong>is</strong> planned contradiction at all. No, he said that concrete labor was the father <strong>of</strong> the use value and<br />

nature its mother.<br />

Without the inherent nature <strong>of</strong> <strong>of</strong> exchange value, the commodity would not be recognized in<br />

its original form.<br />

I don’t understand th<strong>is</strong> one.<br />

The notion <strong>of</strong> an inherent exchange value <strong>is</strong> simple. Put very well in Hans’s rebuttal to question<br />

40. It was stated, “It seems commodities have a value (exchange value), otherw<strong>is</strong>e people<br />

would not bother producing them.”<br />

Th<strong>is</strong> <strong>is</strong> a somewhat crude 2nd order argument, but it <strong>is</strong> a 2nd order argument. Marx used a much more soph<strong>is</strong>ticated<br />

2nd order argument to reach h<strong>is</strong> conclusions.<br />

Next Message by Karl <strong>is</strong> [176.2].<br />

[188.1] Skyler: Exchange value cannot be something inherent in a commodity because<br />

<strong>of</strong> the variables that are contained in its ability to be exchanged. Things like place and time<br />

and quantity are variables that can adjust the exchange value. The market allows things to<br />

be exchanged and the market evolved because <strong>of</strong> the development <strong>of</strong> different commodities.<br />

An example being a snow plow has value in <strong>Utah</strong>, but no value in Hawaii. The character<strong>is</strong>tic<br />

<strong>of</strong> need forms its value.<br />

According to Marx, regardless <strong>of</strong> the variability, the exchange values are the expressions<br />

<strong>of</strong> something inherent to the commodities. Inherent values remain constant despite their<br />

exchange values. The process by which the value <strong>is</strong> created depends on the inherent social<br />

labor time invested into the commodity.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 273<br />

Hans: You are giving Marx’s arguments against value being inherent to the commodity, and then you say that it <strong>is</strong><br />

not inherent. Marx tried to give arguments how one can see that it <strong>is</strong> not inherent.<br />

Here are some remarks about your in-class exam: It <strong>is</strong> incorrect to say: commodities have value, or the consumers<br />

would not desire them. Th<strong>is</strong> only has to do with use value. At the end <strong>of</strong> your answer you seem to say that<br />

values are inherent because the exchange relation <strong>is</strong> so general. Th<strong>is</strong> <strong>is</strong> the right kind <strong>of</strong> argument, but you are not<br />

bringing it out very clearly.<br />

Your resubm<strong>is</strong>sion left out some things which you did wrong in class, but while cleaning it out you also cut out<br />

some potentially valuable thoughts. Don’t be too critical with yourself.<br />

Next Message by Skyler <strong>is</strong> [272].<br />

[203.1] KALISPEL: A commodity does not have an inherent value because there are<br />

several different variables that may change its exchange value. It <strong>is</strong> dependent on time,<br />

place, and the circumstances <strong>of</strong> exchange. For example, our book may have an exchange<br />

value for people enrolled in our class, but has little or no value to those enrolled in a math<br />

class. Therefore, our book does not hold any kind <strong>of</strong> inherent value, otherw<strong>is</strong>e it would have<br />

the same value to the math student as it does to us enrolled in class.<br />

Despite these arguments, exchange value seems to be inherent to the commodity after all.<br />

For example, when we bought our Das Capital book it had a price. Th<strong>is</strong> price was chosen<br />

by the relation Das Capital has to all books in general and more specifically to books <strong>of</strong><br />

its kind. Th<strong>is</strong> makes the price <strong>of</strong> the book subjective to the market and factors included in<br />

the production process. Further, Das Capital may be compared with other commodities like<br />

styling gel and boot pol<strong>is</strong>h that are very different in form. These other commodities must<br />

be replaceable by each other or equal in magnitude. Exchanges <strong>of</strong> value are expressions <strong>of</strong><br />

something equal. Das Capital cannot always be exchanged against the same other commodity.<br />

It may be expressed in boot pol<strong>is</strong>h one day and bread on another day and as lobster tails<br />

another. Exchange value <strong>is</strong> not a relationship between the owner <strong>of</strong> Das Capital productions<br />

and the owner <strong>of</strong> other commodity productions. All other commodities will express the same<br />

thing about the commodity Das Capital. Th<strong>is</strong> conclusion affirms that the exchange value <strong>of</strong><br />

Das Capital has an intrinsic or inherent value after all. Marx reveals the structural form <strong>of</strong><br />

commodity relations.<br />

Hans: Th<strong>is</strong> <strong>is</strong> good. <strong>What</strong> you tried to do in class was a different approach, but that was good too.<br />

Next Message by KALISPEL <strong>is</strong> [208].<br />

[211.2] Reidar: A commodity does not have an inherent exchange value because each<br />

individual commodity contains numerous “variables that may change its exchange value.”<br />

The exchange value depends on several differing factors such as the time and place it <strong>is</strong><br />

exchanged, as well as perhaps the desired use that the buyer may have in mind.<br />

Marx explains that although commodities have differing factors which effect their exchange<br />

value, all commodities possess some exhange value in common. He states that wheat<br />

may have exchange values with several other commodities and the exchange rate will differ<br />

depending on the commodites involved in the exchange and these “differing variables”.<br />

Marx does not stress a relationship between wheat and other commodities, but the idea<br />

that wheat contains an inherent exchange value that can be exchanged against various other<br />

commodities. He likened th<strong>is</strong> to linen in the “expanded form <strong>of</strong> value”. Th<strong>is</strong> exchange value<br />

appears as an inherent part <strong>of</strong> the wheat or linen, because the wheat or linen has a value<br />

which can be exchanged. Th<strong>is</strong> exchange value <strong>is</strong> the “mode <strong>of</strong> expression” which gives the<br />

commodity a perceived intrinsic value.<br />

274 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Hans: Everything <strong>is</strong> right until the last two sentences:<br />

Th<strong>is</strong> exchange value appears as an inherent part <strong>of</strong> the wheat or linen, because the wheat or<br />

linen has a value which can be exchanged.<br />

No, the exchange value <strong>is</strong> the form <strong>of</strong> appearance <strong>of</strong> something other than exchange value, which <strong>is</strong> inherent in the<br />

wheat or linen.<br />

Th<strong>is</strong> exchange value <strong>is</strong> the “mode <strong>of</strong> expression” which gives the commodity a perceived<br />

intrinsic value.<br />

Nothing can be generated by its own mode <strong>of</strong> expression. It <strong>is</strong> right to say that the exchange value <strong>is</strong> the mode <strong>of</strong><br />

expression <strong>of</strong> the value (not exchange value) inherent in the commodity.<br />

Next Message by Reidar <strong>is</strong> [315].<br />

[214.1] Kalle: Exchange value <strong>is</strong> not necessarily something which <strong>is</strong> inherent in a commodity,<br />

because <strong>of</strong> the fact that a commodity can loose it’s ability to serve as a means for<br />

exchange. As long a someone <strong>is</strong> willing to exchange commodity A for commodity B, both<br />

commodities can be said to be carriers <strong>of</strong> exchange value. Exchange relations ex<strong>is</strong>ts between<br />

all commodities and are socially given. However, what happens to a commodity which use<br />

value becomes freely available to all people? For example, commodity A suddenly begins<br />

to grow on wild trees. No one would any longer exchange commodity B (or any other) for<br />

commodity A because it <strong>is</strong> freely available to all without any cost. The exchange relationship<br />

between A and B clearly <strong>is</strong> no longer the same. Th<strong>is</strong> example <strong>is</strong> maybe extreme, but<br />

one can prove that exchange proportions between all commodities changes with time and<br />

place. Because <strong>of</strong> th<strong>is</strong> variability Marx concludes that exchange value <strong>is</strong> not inherent in<br />

commodities.<br />

However, Marx looks at the situation from another point <strong>of</strong> view. Without contradicting<br />

himself, he derives to the conclusion that exchange value <strong>is</strong> inherent in commodities after all.<br />

He argues that it <strong>is</strong> not the people who carry out exchange who “create” the exchange value<br />

<strong>of</strong> commodities. If commodities can be “valued” relative to other commodities, exchange<br />

value must be inherent in commodities and express something in them. In other words, even<br />

before the exchange took place, exchange value was inherent in the commodity.<br />

Hans: The second part <strong>is</strong> ok, although you should have elaborated on it a little in your resubm<strong>is</strong>sion (since these<br />

are quite subtle <strong>is</strong>sues). The first part <strong>is</strong> not quite right. A change in the productivity <strong>of</strong> producign the commodity <strong>is</strong><br />

really a change <strong>of</strong> something inherent to the commodity. The variability Marx was talking about referred to changes<br />

due to the accidents <strong>of</strong> demand and supply, which are much more extraneous to the commodity, and which suggest<br />

that the exchange value only depends on the situation <strong>of</strong> the exchange, not on something that has to do with the<br />

commodity itself.<br />

Next Message by Kalle <strong>is</strong> [214.2].<br />

[317.1] Wolf: To begin with, exchange value <strong>is</strong> NOT something inherent in the commodity<br />

for a number <strong>of</strong> reasons. First and foremost, exchange value <strong>is</strong> used and determined by the<br />

market which <strong>is</strong> dependent upon time, place, and other various circumstances. The market<br />

<strong>is</strong> separate and actually an entity in and <strong>of</strong> it’s self, in compairson to a commodity. Thus, the<br />

market (where exchange value <strong>is</strong> determined) <strong>is</strong> external and independent <strong>of</strong> the commodity.<br />

Allowing for the conclusion that the exchange value <strong>is</strong> not inherent, it <strong>is</strong> not a fundamental<br />

property <strong>of</strong> every commodity upon completion <strong>of</strong> production=¿before it even reaches the<br />

market.<br />

However, despite what I have just d<strong>is</strong>cussed above, there are two sides to every story. Exchange<br />

value seems to be something inherent to the commodity after all. Exchange value has


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 275<br />

an intrinsic root because it <strong>is</strong> the expression <strong>of</strong> something in the commodity. Th<strong>is</strong> something<br />

I speak <strong>of</strong>, with in the commodity, <strong>is</strong> expressed by the relation <strong>of</strong> it to other commodities.<br />

In the form <strong>of</strong> a complement or a substitute. In all, exchange value then ex<strong>is</strong>ts apriori in a<br />

commodity before it rreaches the market<br />

Hans: You are giving a very good explanation <strong>of</strong> the first side <strong>of</strong> the story, but regarding the other side <strong>of</strong> the story<br />

you are only giving the conclusion Marx arrived at<br />

(a) without giving any arguments how already the very superficial first look at the market may support h<strong>is</strong><br />

conclusin (see here the blinking car metaphor in my Annotations), and<br />

(b) without noticing that the explanation which you give as the opposing alternative story also contains an<br />

explanation <strong>of</strong> the first side <strong>of</strong> the story.<br />

Nevertheless, th<strong>is</strong> <strong>is</strong> an impressive piece <strong>of</strong> work, especially since it <strong>is</strong> the same you wrote in class. Unfortunately<br />

your grade suffered from the late resubm<strong>is</strong>sion.<br />

Next Message by Wolf <strong>is</strong> [396.2].<br />

<strong>Question</strong> 278 <strong>What</strong> does Marx mean with the statement that “the individual commodity<br />

must here generally be considered as an average sample <strong>of</strong> its kind”? Give examples. And<br />

give a reasoning why Marx’s statement might be true. (Th<strong>is</strong> <strong>is</strong> a extension <strong>of</strong> <strong>Question</strong> 54).<br />

[212.2] Pinky: By “The individual commodity here must be considered an average sample<br />

<strong>of</strong> its kind”, Marx means that the labor content and use value <strong>is</strong> considered average. A<br />

commodity <strong>is</strong> a two-sided thing, the product <strong>of</strong> concrete useful labor and the product <strong>of</strong><br />

general abstract labor, and must reflect what it <strong>is</strong>. Marx says that in competition, the agents<br />

force each other to conform with the laws <strong>of</strong> capital<strong>is</strong>m, though one cannot infer these laws<br />

themselves from competition. Marx understands that market relations are not establ<strong>is</strong>hed<br />

between idiosyncratic individual commodities, but between standardized commodity types;<br />

the commodities copy each other, the market dictates it. The labor time involved in the<br />

production <strong>of</strong> one <strong>of</strong> the products must be reflected in all <strong>of</strong> the products. If I go to buy a<br />

1-pocket tee shirt and get home to find that it has no pocket, I take it back because it <strong>is</strong> not<br />

lke all <strong>of</strong> the others that stood as examples <strong>of</strong> what I was indenting to buy.<br />

Hans: You were the only one who answered th<strong>is</strong> <strong>Question</strong>.<br />

Next Message by Pinky <strong>is</strong> [216.1].<br />

[313.1] Snowman: The value <strong>of</strong> any product according to Marx “<strong>is</strong> determined by the<br />

quantity <strong>of</strong> labor used to produce it.” The reason that he uses th<strong>is</strong> determinant for deriving<br />

the value <strong>of</strong> products <strong>is</strong> it <strong>is</strong> the only factor <strong>of</strong> production that <strong>is</strong> inherent in all commodities,<br />

and therefor by measuring the quantity <strong>of</strong> that factor in any one commodity we can compare<br />

its value to any other commodity. The relative value then <strong>is</strong> the quantity <strong>of</strong> labor used to<br />

produce a product. The value <strong>of</strong> a given product <strong>is</strong> not any one individuals labor but instead<br />

the labor hour <strong>is</strong> determined as a whole based on the average labor hour for the entire society.<br />

The labor hour <strong>is</strong> then merely the average time it takes to produce a commodity in a society.<br />

Though Labor <strong>is</strong> not perhaps the only constant variable in the production <strong>of</strong> commodities it<br />

<strong>is</strong> the best suited to relate values, because <strong>of</strong> its relation to the society as a whole, most other<br />

inputs merely serve to increase or decrease the productivity <strong>of</strong> th<strong>is</strong> one variable.<br />

Because a commodity’s value <strong>is</strong> determined by the average amount <strong>of</strong> labor hours that <strong>is</strong><br />

required in its production, and labor hours are an average <strong>of</strong> society, it <strong>is</strong> required to consider<br />

any one commodity as generic, or representative <strong>of</strong> all the commodities <strong>of</strong> its kind. That <strong>is</strong> to<br />

determine the value based on the average labor in production we must assume that which <strong>is</strong><br />

276 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

being produced <strong>is</strong> representative <strong>of</strong> a group <strong>of</strong> products identical to one another. For example<br />

to know the value <strong>of</strong> a hammer one must assume that we are comparing an average hammer<br />

and its value to some other product and its value. Th<strong>is</strong> <strong>is</strong> a requirement that ensures apples<br />

are compared with apples and not oranges, as with the hammer its value would reflect the<br />

amount <strong>of</strong> labour used to produce it and all the hammers that are identical to it, but would<br />

not require that it represent the features <strong>of</strong> a hammer with different features, though it may<br />

accidently. So when given the value <strong>of</strong> hammer “A” that all hammers identical to “A” would<br />

have the same value and use value based on the average <strong>of</strong> the labor hours used to produce<br />

all “A” like hammers, and as such any on <strong>of</strong> the “A” like hammers <strong>is</strong> an “average sample <strong>of</strong><br />

its kind.”<br />

Message [313-1] referenced by [327]. Next Message by Snowman <strong>is</strong> [369].<br />

[335.10] MsMarx: Conditions for labor power to be a commodity For labor power<br />

to be a commodity, certain conditions must first be met. First, it must be sold by its own<br />

possessor, that <strong>is</strong>, it must be free labor-power, Since buyer and seller as contracting parties<br />

are both juridicially equal persons, labor-power must be sold only temporarily, since in a<br />

sale en bloc the seller no longer remains the seller, but becomes a commodity himself. But<br />

then the owner, instead <strong>of</strong> being able to sell commodities in which h<strong>is</strong> labor <strong>is</strong> embodied,<br />

must rather be in a position where he has to sell h<strong>is</strong> labor-power itself as a commodity.<br />

Therefore, for the conversion <strong>of</strong> h<strong>is</strong> money into capital, the owner <strong>of</strong> money must find in<br />

the commodity market the free laborer, free in the double sense that as a free man he can<br />

d<strong>is</strong>pose <strong>of</strong> h<strong>is</strong> labor-power as h<strong>is</strong> commodity and that, on the other hand, he has no other<br />

commodities to sell, has no ties, and <strong>is</strong> free <strong>of</strong> all things necessary for the realization <strong>of</strong> h<strong>is</strong><br />

labor-power.<br />

The owner <strong>of</strong> money must be compelled to <strong>of</strong>fer for sale as a commodity the labor-power<br />

which ex<strong>is</strong>ts only in h<strong>is</strong> living body. He requires the means <strong>of</strong> subs<strong>is</strong>tence. If products are<br />

produced as commodities, they must be sold after they have been produced, and they can<br />

only sat<strong>is</strong>fy the producer’s needs after they have been sold.<br />

Marx said “the exchange <strong>of</strong> commodities implies no other relations <strong>of</strong> dependence than<br />

those which result from its own nature.” (p. 271). Labor-power can appear on the market as<br />

a commodity only if its possessor, the individual whose labor-power it <strong>is</strong>, <strong>of</strong>fers it for sale<br />

or sells it as a commodity. For th<strong>is</strong> to happen <strong>is</strong> where I referred that he must be free, the<br />

owners <strong>of</strong> the commodities are equal, and he sells it for a limited or temporary time. In th<strong>is</strong><br />

way, he alienates h<strong>is</strong> labor-power to avoid renouncing h<strong>is</strong> rights <strong>of</strong> ownership.<br />

I think that you summarized it well in your lecture: For labor power to be a commodity it<br />

must be “free from” and “free to.” For labor-power to be for sale, there must ex<strong>is</strong>t a class <strong>of</strong><br />

free laborers, a proletariat who are, free in th<strong>is</strong> double sense. They are free to sell their laborpower;<br />

they are not slaves or serfs. They are also free <strong>of</strong> any ownership <strong>of</strong> commodities, so<br />

that they have nothing else to sell but their labor-power. Marx goes on to say that th<strong>is</strong><br />

ex<strong>is</strong>tence <strong>of</strong> a class <strong>of</strong> free laborers <strong>is</strong> a result <strong>of</strong> h<strong>is</strong>torical development.<br />

Hans: The sentence<br />

He alienates h<strong>is</strong> labor-power to avoid renouncing h<strong>is</strong> rights <strong>of</strong> ownership.<br />

<strong>is</strong> a somewhat d<strong>is</strong>torted version <strong>of</strong> the last sentence in 270:3/o. But otherw<strong>is</strong>e what you wrote <strong>is</strong> good and comprehensive,<br />

as usual.


Next Message by MsMarx <strong>is</strong> [336].<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 277<br />

<strong>Question</strong> 281 <strong>is</strong> 328 in 1998WI, 419 in 2002fa, 435 in 2003fa, 485 in 2004fa, 462 in<br />

2005fa, 494 in 2007SP, 499 in 2007fa, 506 in 2008SP, 509 in 2008fa, 532 in 2009fa, 569<br />

in 2010fa, and 611 in 2012fa:<br />

<strong>Question</strong> 281 Marx argues that two sets <strong>of</strong> conditions must be sat<strong>is</strong>fied for labor power to<br />

be a commodity. <strong>What</strong> are they?<br />

[335.3] Jake: The conditions are labor power can only appear as a commodity if the the<br />

possessor <strong>of</strong> it <strong>of</strong>fers it for sale or sells it as a commodity. For him to sell it, it must be at<br />

h<strong>is</strong> d<strong>is</strong>posal. The individual must have h<strong>is</strong> freedom to decide if he/she <strong>is</strong> to sell h<strong>is</strong> labor.<br />

The buyer and seller <strong>of</strong> labor meet in the market as equals. The seller must sell it in limited<br />

quantities, th<strong>is</strong> protecting the seller from becoming a slave and losing control. By selling in<br />

a temporary way, it protects the sellers rights to h<strong>is</strong> own labor power.<br />

The owner <strong>of</strong> labor or person selling labor must realize that h<strong>is</strong> labor <strong>is</strong> now a commodity.<br />

Th<strong>is</strong> representing the temporary lost ability for h<strong>is</strong> labor to produce commodities for<br />

individual sell in the market. Th<strong>is</strong> giving the labor power in him to another for use.<br />

Hans: Your characterization <strong>of</strong> the first condition <strong>is</strong> excellent. Regarding the second condition, you mention the<br />

temporary lost ability for h<strong>is</strong> labor to produce commodities for individual sell in the market.<br />

Here I would go further than you. First <strong>of</strong> all, th<strong>is</strong> <strong>is</strong> not a temporary loss, but a permanent loss. And he not only<br />

has lost h<strong>is</strong> ability to use h<strong>is</strong> labor for individual commodity production, but he has lost h<strong>is</strong> ability to use h<strong>is</strong> labor<br />

in any meaningful sense at all, because the capital<strong>is</strong>ts monopolize the means <strong>of</strong> production.<br />

Next Message by Jake <strong>is</strong> [335.4].<br />

[340.1] Wight: Two sets <strong>of</strong> conditions must be sat<strong>is</strong>fied for labor power to be considered<br />

a commodity. They are as follows:<br />

1. Labor power can appear on the market as a commodity only if its possessor, the<br />

individual whose labor power it <strong>is</strong>, <strong>of</strong>fers it for sale or sells it as a commodity. He must<br />

be the free proprietor <strong>of</strong> h<strong>is</strong> own labor capacity. He and the owner <strong>of</strong> money meet in the<br />

market and enter into relations with the understanding that they are on equal footing and<br />

both exchanging a commodity. The proprietor <strong>of</strong> labor power must always sell h<strong>is</strong> labor for<br />

a limited period <strong>of</strong> time. If he sold h<strong>is</strong> labor all at once, he would be making himself a slave.<br />

He must constantly treat h<strong>is</strong> labor power as h<strong>is</strong> own property. In th<strong>is</strong> way, he manages both<br />

to alienate h<strong>is</strong> labor power and avoid renouncing h<strong>is</strong> rights <strong>of</strong> ownership over it. Essentially,<br />

th<strong>is</strong> first condition incorporates the idea that the laborer <strong>is</strong> free to sell h<strong>is</strong> labor power in the<br />

marketplace.<br />

2. The second essential condition <strong>is</strong> that the possessor <strong>of</strong> labor power, instead <strong>of</strong> being<br />

able to sell commodities in which h<strong>is</strong> labor has been objectified, must rather be compelled<br />

to <strong>of</strong>fer for sale as a commodity that very labor power which ex<strong>is</strong>ts only in h<strong>is</strong> living body.<br />

In order that a man may be able to sell commodities other than h<strong>is</strong> labor power, he must <strong>of</strong><br />

course possess means <strong>of</strong> production i.e. raw materials, instruments <strong>of</strong> labor, etc. Basically,<br />

what th<strong>is</strong> condition in stating <strong>is</strong> that the laborer who sells h<strong>is</strong> labor power in the marketplace<br />

must be free from the constraints that result from the ownership <strong>of</strong> any kinds <strong>of</strong> means <strong>of</strong><br />

production.<br />

278 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

In summary, the first condition states the laborer <strong>is</strong> FREE TO and the second condition<br />

states the laborer <strong>is</strong> FREE FROM.<br />

Hans: Very good.<br />

Message [340-1] referenced by [2007fa:543]. Next Message by Wight <strong>is</strong> [341].<br />

[341.7] Panacea: Condition 1: The individual who owns it (necessarily the labourer<br />

himself) must voluntarily <strong>of</strong>fer up h<strong>is</strong> labour on the market for a temporary and specified<br />

period. If the time period were not specified as temporary, the labourer would be entering<br />

into slavery.<br />

Condition 2: The individual sells on the market not the objectified RESULT <strong>of</strong> h<strong>is</strong> labourers<br />

(which he cannot own since he has no means <strong>of</strong> production nor raw materials), i.e. a commodity,<br />

but rather he sells h<strong>is</strong> LABOUR-POWER, or potential labour, which <strong>is</strong> the force by<br />

which commodities are produced from raw materials.<br />

Hans: I would call condition 2 that what you put in parentheses: that the laborer has no access to the means <strong>of</strong><br />

production nor raw materials.<br />

Next Message by Panacea <strong>is</strong> [342].<br />

[341.6] KALISPEL: 1- Labor power <strong>is</strong> not produced like other commodities. Production<br />

<strong>of</strong> labor power <strong>is</strong> an aspect <strong>of</strong> the biological and social reproduction <strong>of</strong> workers as human<br />

beings. Th<strong>is</strong> complex process <strong>of</strong> reproduction involves social relations which are in general<br />

different from capital<strong>is</strong>t or commodity relations. In well developed capital<strong>is</strong>t societies, labor<br />

power <strong>is</strong> reproduced by household labor which doesn’t receive a wage (domestic economy).<br />

Less developed countries do it through non-capital<strong>is</strong>tic modes <strong>of</strong> production like private<br />

farming through the domestic economy.<br />

2- The use-value <strong>of</strong> labor power <strong>is</strong> its capacity to produce value. Labor power <strong>is</strong> unlike<br />

other commodities in that in order to utilize it the purchaser, the capital<strong>is</strong>t, must enter into<br />

a whole new set <strong>of</strong> relations whith the seller, the worker. The extraction <strong>of</strong> labor from<br />

labor power ra<strong>is</strong>es additional points <strong>of</strong> conflict between buyer and seller beyond the usual<br />

negotiation over the price <strong>of</strong> the commodity, in th<strong>is</strong> case the wage. These antagon<strong>is</strong>tic class<br />

struggles fundamentally structure the technical and social aspects <strong>of</strong> capital<strong>is</strong>tic production.<br />

More simply these conditions must ex<strong>is</strong>t.<br />

1- There must be a class <strong>of</strong> free laborers who have the right to d<strong>is</strong>pose <strong>of</strong> their labor for<br />

limited periods <strong>of</strong> time. 2- It requires the separation <strong>of</strong> laborers from means <strong>of</strong> production<br />

so they can’t produce and sell the product <strong>of</strong> thier labor power. Workers are forced to sell<br />

their labor power. 3- As a result the worker <strong>is</strong> alienated from work and creative functions<br />

are decreased.<br />

Essentially to answer the question we only need the first two answers directly above. The<br />

rest <strong>is</strong> to put it all in perspective.<br />

Workers are commodities because they represent human capital that <strong>is</strong> forced to work and<br />

produce value. Thus humans have use value (brain,energy, nerves,etc.) and humans are paid<br />

a subs<strong>is</strong>tence wage to maintain the capital<strong>is</strong>t’s capital (human labor). Th<strong>is</strong> reveals the secret<br />

<strong>of</strong> surplus value in ch. 7 and so on.<br />

Hans: Your first two paragraphs are really answers <strong>of</strong> <strong>Question</strong> 282. The <strong>Question</strong> was asking about the conditions<br />

for labor power to be a commodity, i.e., the circumstances that must ex<strong>is</strong>t so that labor power can be a commodity.<br />

Th<strong>is</strong> <strong>is</strong> the free from and free to stuff.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 279<br />

Next Message by KALISPEL <strong>is</strong> [380].<br />

[346.2] Jupiter: Labor power <strong>is</strong> the mental and physical abilities that ex<strong>is</strong>t in the physical<br />

form <strong>of</strong> a human being, ones that are used when a use-value <strong>of</strong> any kind <strong>is</strong> made. In order for<br />

th<strong>is</strong> to be classified as a commodity two conditions must be present. First, the recognition <strong>of</strong><br />

th<strong>is</strong> power by the person to whom it <strong>is</strong> inherent, knowing what it <strong>is</strong> and how to use it. Once<br />

th<strong>is</strong> <strong>is</strong> done then the person has to be free <strong>of</strong> any <strong>of</strong> the other important natural materials i.e.<br />

land, tools, materials and so forth. The absence <strong>of</strong> these important assets leaves the human<br />

with nothing but h<strong>is</strong> or her raw phy<strong>is</strong>ical and mental capacities. Th<strong>is</strong> will lead a person into<br />

the market place to recieve rewards or some other form <strong>of</strong> compensation in exchange for<br />

th<strong>is</strong> labor-power. We now have a seller <strong>of</strong> a commodity and a buyer <strong>of</strong> that commodity, we<br />

have a market for human labor! Both are deemed as equals in th<strong>is</strong> setting because both are<br />

willing to give up something in exchange for something else, but th<strong>is</strong> brings into action the<br />

other condition.<br />

The second criteria that must be present in order for labor-power to become a commodity<br />

<strong>is</strong> that <strong>of</strong> free will. Freedom for the worker to set limits and boundries on the certain things<br />

that will be asked <strong>of</strong> h<strong>is</strong> or her labor-power. A contract will be made that has both approvals<br />

<strong>of</strong> those that are involved. The rewards that the laborer will recieve will be that <strong>of</strong> h<strong>is</strong> efforts<br />

<strong>of</strong> abstract labor, thats where it will end. For the buyer <strong>of</strong> the labor he will recieve h<strong>is</strong><br />

compensation in the market <strong>of</strong> the products that he promotes in the market place,(selling the<br />

products <strong>of</strong> h<strong>is</strong> laborer).<br />

The laborer must by all accounts be a free worker one who only will produce what he or<br />

she <strong>is</strong> saked to produce by the new owner <strong>of</strong> h<strong>is</strong> or her labor power.<br />

Hans: Your resubm<strong>is</strong>sion was a definite improvement over what you wrote in class. I like especially that you<br />

recognized that even the positive freedom, the freedom to as opposed to the freedom from, has a negative content:<br />

it <strong>is</strong> the freedom to set limits.<br />

Next Message by Jupiter <strong>is</strong> [347].<br />

[356.2] Reidar: The sets <strong>of</strong> conditions which must be justified for labor power to be a<br />

commodity are first, “labour power can appear on the market as a commodity only if...the<br />

possessor <strong>of</strong>fers h<strong>is</strong>/her labor power for sale. In order that the possessor can sell h<strong>is</strong> labor<br />

power, he must possess or be the free proprietor <strong>of</strong> h<strong>is</strong> own labour capacity”.<br />

The second condition <strong>is</strong> that the owner <strong>of</strong> h<strong>is</strong>/her labour power must not be able or<br />

have the means <strong>of</strong> creating use-value on their own. He “must be compelled to <strong>of</strong>fer for<br />

sale...labour power which ex<strong>is</strong>ts in h<strong>is</strong> living body”.<br />

He cannot possess a means <strong>of</strong> production other than h<strong>is</strong> labour power. I.E.; “raw materials,<br />

instruments <strong>of</strong> labor”. He <strong>is</strong> therefore compelled in order to survive, to sell h<strong>is</strong> own<br />

labor power as a commodity to those who possess the means <strong>of</strong> production.<br />

Next Message by Reidar <strong>is</strong> [357].<br />

[357.2] Karl: x<br />

The first condition must be that the laborer must voluntarily <strong>of</strong>fer h<strong>is</strong> labor for sell. Marx<br />

makes it clear that th<strong>is</strong> must be sold to the “owner <strong>of</strong> money”, in increments, and not in a<br />

lump sum. Marx said, “He (laborer) must constantly treat h<strong>is</strong> labor power as h<strong>is</strong> own.”<br />

The second condition that sat<strong>is</strong>fies labor as a commodity <strong>is</strong> that he(laborer),“must be<br />

compelled to <strong>of</strong>fer for sale as a commodity the very labor power <strong>of</strong> h<strong>is</strong> living body.” Th<strong>is</strong><br />

280 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

concept contains various components not found in the first. For instance within th<strong>is</strong> second<br />

concept, a person must be free to d<strong>is</strong>pose <strong>of</strong> h<strong>is</strong> labor power, and also at the same time rid<br />

himself <strong>of</strong> all other commodities for sale. In other words the laborer must live on subs<strong>is</strong>tence<br />

commodity consumption only. The only commodity the poor labor can <strong>of</strong>fer <strong>is</strong> h<strong>is</strong> own<br />

labor power. Marx refered to th<strong>is</strong> in the German as “Zukunftsmusik.” And “money owners”<br />

in antithes<strong>is</strong> must be the owener <strong>of</strong> raw materials above subs<strong>is</strong>tence levels, in order for the<br />

buyer and seller <strong>of</strong> labor power to successfully transact equal commodity proportions <strong>of</strong><br />

money for labor power.<br />

Hans: You m<strong>is</strong>understood Marx’s passage about “Zukunftsmusik” (utopian dreams about the future, castles in the<br />

air) on p. R272. Marx did not want to say that the future will or should hold simple commodity production. Marx<br />

said that people have to consume before they can produce, and he jokingly added, even if all they do <strong>is</strong> dream about<br />

the future, they still have to eat in the present.<br />

Next Message by Karl <strong>is</strong> [357.4].<br />

[357.3] Caren: For the worker the exchange between capital and labor simply represents<br />

the sale <strong>of</strong> h<strong>is</strong> labor-power for a particular sum <strong>of</strong> money, for wage; what the capital<strong>is</strong>t gains<br />

by means <strong>of</strong> th<strong>is</strong> exchange <strong>is</strong> labor itself, ‘the productive power which capital obtains and<br />

multiplies’ which does not ar<strong>is</strong>e from the value <strong>of</strong> the commodity which capital purchases,<br />

but from its use-value. The worker’s exchange <strong>is</strong> an act <strong>of</strong> simple commodity circulation<br />

in which h<strong>is</strong> commodity (labor-power) passes through the circulation form C-M-C; whereas<br />

capital represents the moment opposed to th<strong>is</strong>, the form M-C-M. Finally, for the worker<br />

the matter <strong>is</strong> one <strong>of</strong> an exchange <strong>of</strong> equivalents (labor-power for the price <strong>of</strong> labor), on the<br />

other hand one can only speak <strong>of</strong> a non-exchange on the side <strong>of</strong> capital since, through that<br />

exchange, the capital<strong>is</strong>t has to obtain more value than he has given.<br />

As in any exchange, the worker appears here as the owner <strong>of</strong> h<strong>is</strong> commodity, labor power,<br />

which does not however ex<strong>is</strong>t as a thing external to him, but as part <strong>of</strong> h<strong>is</strong> living body. It<br />

<strong>is</strong> therefore evident that he can only hand over the d<strong>is</strong>position over h<strong>is</strong> capacity to work to<br />

the owner <strong>of</strong> money, to the capital<strong>is</strong>t, if th<strong>is</strong> d<strong>is</strong>position <strong>is</strong> restricted to a specific labor and <strong>is</strong><br />

restricted in time (so much labor-time). The two sets <strong>of</strong> conditions that must be sat<strong>is</strong>fied for<br />

labor-power to be a commodity are again “a specific labor” and “ restricted in time”.<br />

The worker can always begin the exchange anew as soon as he has taken in the quantity<br />

<strong>of</strong> substances required in order to reproduce the external<strong>is</strong>ation <strong>of</strong> h<strong>is</strong> life; and that labor<br />

constitutes ’a constant new source <strong>of</strong> exchange with capital for the worker as long as he <strong>is</strong><br />

capable <strong>of</strong> working’. The periodic recurrence <strong>of</strong> the act <strong>of</strong> exchange <strong>is</strong> merely the expression<br />

<strong>of</strong> the fact that the worker <strong>is</strong> not perpetuum mobile, and must first sleep and eat h<strong>is</strong> fill before<br />

he <strong>is</strong> capable <strong>of</strong> repeating h<strong>is</strong> labor and h<strong>is</strong> exchange with capital. Labor always has only h<strong>is</strong><br />

living direct labor itself to exchange.<br />

Hans: A condition, in Marx’s terminology, <strong>is</strong> not only something that restricts, but also something that enables.<br />

When you write:<br />

He can only hand over the d<strong>is</strong>position over h<strong>is</strong> capacity to work to the owner <strong>of</strong> money, to the<br />

capital<strong>is</strong>t, if th<strong>is</strong> d<strong>is</strong>position <strong>is</strong> restricted to a specific labor and <strong>is</strong> restricted in time (so much<br />

labor-time).<br />

you overlook the positive condition implied in th<strong>is</strong>, namely, the fact that the laborer must be enough <strong>of</strong> a master<br />

over himself to be able to sell h<strong>is</strong> labor. It <strong>is</strong> a freedom which the laborer can only make use <strong>of</strong> by giving it up.<br />

The two conditions the <strong>Question</strong> referred to were on the one hand th<strong>is</strong> freedom (which must be restricted as<br />

you say), and on the other hand, as you write in your in-class exam, but not in your resubm<strong>is</strong>sion, that he must be


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 281<br />

obligated to sell h<strong>is</strong> labor power instead <strong>of</strong> a commodity. You omit that he <strong>is</strong> obligated to do so because he <strong>is</strong> cut<br />

<strong>of</strong>f from the means <strong>of</strong> production.<br />

Next Message by Caren <strong>is</strong> [394.2].<br />

[368.3] Lamma: First <strong>of</strong> all, in order to <strong>of</strong>fer labor power for sale as a commodity the<br />

owner <strong>of</strong> th<strong>is</strong> labor power must <strong>of</strong>fer it for sale. Th<strong>is</strong> <strong>is</strong> a basic but most important step. In<br />

order for the owner to <strong>of</strong>fer h<strong>is</strong> labor power for sale he must be the sole owner and have<br />

comlete control and ownership <strong>of</strong> the labor power. He also must <strong>of</strong>fer it for sell for only<br />

a limited time, as to sell the labor power contained within himself and not himself as the<br />

commodity. The second step <strong>is</strong> that the owner must be able to <strong>of</strong>fer pure labor power and<br />

not a commodity produced by the power. So, only the labor paower contained within h<strong>is</strong><br />

living body can <strong>of</strong>fered in order for the labor paower to be <strong>of</strong>fered as a commodity.<br />

Hans: You are leaving out the reason why the laborer <strong>is</strong> selling h<strong>is</strong> labor power instead <strong>of</strong> selling a commodity<br />

produced by h<strong>is</strong> labor power, which would be much more lucrative, since he would get reimbursed for all the labor<br />

instead <strong>of</strong> just the value <strong>of</strong> h<strong>is</strong> labor power.<br />

Next Message by Lamma <strong>is</strong> [434].<br />

[369.4] Camera: 1st condition:<br />

The possessor <strong>of</strong> the labor power, who <strong>is</strong> the individual putting out the labor power, must<br />

<strong>of</strong>fer the labor power for sale or sell it as a commodity. In order for that to happen th<strong>is</strong><br />

person must have the labor power at h<strong>is</strong> d<strong>is</strong>posal and be the free proprietor <strong>of</strong> h<strong>is</strong> own labor<br />

capacity. He must always sell it for a limited period <strong>of</strong> time exclusively, and treat h<strong>is</strong> labor<br />

power as h<strong>is</strong> own commodity in order to d<strong>is</strong>tingu<strong>is</strong>h himself from that <strong>of</strong> a slave entity.<br />

2nd contition:<br />

The possessor <strong>of</strong> the labor power, instead <strong>of</strong> possessing the ability to sell commodities<br />

in which h<strong>is</strong> labor has been objectified, must rather be compelled to <strong>of</strong>fer for sale as a<br />

commodity that very labor power which ex<strong>is</strong>ts only in h<strong>is</strong> living body. The possessor <strong>of</strong><br />

the labor power must have a sense <strong>of</strong> freedom as far as h<strong>is</strong> ability to sell h<strong>is</strong> labor power<br />

as a commodity and also freedom in the sense <strong>of</strong> free from all the objects needed for the<br />

realization <strong>of</strong> h<strong>is</strong> labor power.<br />

Next Message by Camera <strong>is</strong> [387].<br />

[369.5] Snowman: The first set <strong>of</strong> conditions laid out by Marx revolves around the requirement<br />

that the possessor <strong>of</strong> the labor power, or the individual who the labor belongs to,<br />

<strong>of</strong>fers the labor-power for sale as a commodity. Th<strong>is</strong> condition requires that the seller <strong>of</strong> the<br />

labor power must be selling their own labor power and that their labor power <strong>is</strong> theirs to sell.<br />

Th<strong>is</strong> <strong>is</strong> so that what <strong>is</strong> being sold <strong>is</strong> not already spoken for in such a way that the commodity<br />

<strong>is</strong> actually availble for sale, th<strong>is</strong> similar to the analogy that when you go to by a house you<br />

do not d<strong>is</strong>cuss the sale with the renters <strong>of</strong> the property but rather the one who holds the title<br />

and rights to that property. It <strong>is</strong> also required that the labor seller must sell h<strong>is</strong> labor power<br />

for a defined period <strong>of</strong> time, which <strong>is</strong> to be limited in such a way so as to have bounds, or<br />

else the possessor <strong>of</strong> the labor power no longer owns themselves, and in effect becomes a<br />

slave.<br />

The second condition requires that the seller not the results <strong>of</strong> h<strong>is</strong> labor but the labor itself,<br />

in other words the sale can not be the congealed labor contained in another commodity but<br />

the commodity must be the labor itself. The sale <strong>of</strong> the raw labor as a use value to the buyer<br />

allows the buyer to do what ever they w<strong>is</strong>h with it as they would with any other commodity<br />

282 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

that factors into their business. The labor becomes a tool, and <strong>is</strong> bought and sold as such.<br />

Th<strong>is</strong> <strong>is</strong> why the Labor must be the labor that <strong>is</strong> ready at hand with in the body <strong>of</strong> the laborer.<br />

Next Message by Snowman <strong>is</strong> [369.6].<br />

[371.2] Kalle: The first condition Marx mentions <strong>is</strong> that labor power (the possessor <strong>of</strong> it)<br />

<strong>of</strong>fers it for sale or sell it as a commodity on the market. Th<strong>is</strong> implies that the person <strong>is</strong> in a<br />

situation where he/she controls what can be done with the labor power possessed. A slave,<br />

for example, does not have the opportunity to sell or their labor power because it <strong>is</strong> under<br />

control <strong>of</strong> another person or institution. To fulfill the first condition a person must enter into<br />

a contract and sell h<strong>is</strong>/her labor power for a limited period <strong>of</strong> time. When the specified time<br />

period <strong>is</strong> over the person will again market it’s labor power and enter into a new contract.<br />

The second criteria necessary for the realization <strong>of</strong> labor power <strong>is</strong> that the individual has<br />

no other commodity for sale except h<strong>is</strong>/her labor power. If a person can sell commodities<br />

other than h<strong>is</strong>/her own labor power he/she must possess the means to produce commodities<br />

(machines, raw-material, etc.) A person without these means <strong>of</strong> production fulfill the second<br />

condition necessary to <strong>of</strong>fer h<strong>is</strong>/her labor power as a commodity on the market<br />

Next Message by Kalle <strong>is</strong> [375].<br />

[374.1] Chocolate: According to Marx, the value <strong>of</strong> labour-power <strong>is</strong> determined, “as<br />

in the case <strong>of</strong> every othercommodity, by the labor-time necessary for the production, and<br />

sonsequently also the reproduction <strong>of</strong> th<strong>is</strong> article.” Labor-time and the reproduction <strong>of</strong> the<br />

commodity are the two sets <strong>of</strong> conditions that must be sat<strong>is</strong>fied for labor power to be a commodity.<br />

Marx also states that “labor-power ex<strong>is</strong>ts only as a capacity <strong>of</strong> the living individual...the<br />

production <strong>of</strong> labor-power cons<strong>is</strong>ts in h<strong>is</strong> reproduction <strong>of</strong> himself or h<strong>is</strong> maintence.”<br />

<strong>What</strong> I feel Marx’s <strong>is</strong> saying <strong>is</strong> that as long as the individual <strong>is</strong> alive and able to perform<br />

the task’s necessary to produce or reproduce a certain commodity then that individual’s effort<br />

will give value to labor-power.<br />

Hans: Sorry for th<strong>is</strong> grade, but you are confusing value and use value, and you did not catch the significance <strong>of</strong><br />

labor power being a commodity.<br />

Next Message by Chocolate <strong>is</strong> [408].<br />

[391.1] CaseWorker: 1) labour power can appear on the market as a commodity only if<br />

and in so far as, its possessor, the individual whose labour power it <strong>is</strong>, <strong>of</strong>fer it for sale or sells<br />

it as a commodity.<br />

2) the possessor <strong>of</strong> labour power, instead <strong>of</strong> being able to sell commodities in which h<strong>is</strong><br />

labour has been objectified, must rather be compelled to <strong>of</strong>fer for sale as a commodity that<br />

very labour power which ex<strong>is</strong>ts only in h<strong>is</strong> living body.<br />

Hans: The firswt condition as you formulated it <strong>is</strong> a tautology. To say a commodity <strong>is</strong> on the market <strong>is</strong> the same as<br />

saying someone <strong>of</strong>fers it for sale.<br />

Next Message by CaseWorker <strong>is</strong> [392.3].<br />

[394.4] TOAD: Labor power must meet the conditions <strong>of</strong>, “its posser the individual whose<br />

labor power it <strong>is</strong>, <strong>of</strong>fers it for sale or sales it as a commodity” and that “he must have it at<br />

h<strong>is</strong> d<strong>is</strong>posal, he must be the free propritor <strong>of</strong> h<strong>is</strong> own labor capacity, hence <strong>of</strong> h<strong>is</strong> person.”<br />

Also the owner <strong>of</strong> money must want to employ the owner <strong>of</strong> labor power and see a pr<strong>of</strong>itable<br />

amount <strong>of</strong> value in employing the others use value. In other words there must be a demand<br />

for the labor and a suplier <strong>of</strong> money for that labor. The laborer must be free meaning that<br />

he has no other obligations for h<strong>is</strong> labor and <strong>is</strong> able to sell h<strong>is</strong> whole self for the time period


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 283<br />

expressed in the contract. And he has no other commodities to sell on the market to provide<br />

substance.<br />

Hans: Your observation that there can be no market without demand <strong>is</strong> a good one. Freedom <strong>is</strong> more than just the<br />

absence <strong>of</strong> an “obligation.” or would you call the unfreedom <strong>of</strong> a slave an “obligation for h<strong>is</strong> labor”? But I am glad<br />

that you are using your own words and yuour own head.<br />

Next Message by TOAD <strong>is</strong> [403].<br />

[394] Angela: The first set <strong>of</strong> condition: The labour can be free from and free to by<br />

himself on the market as a commodity. Th<strong>is</strong> means the he can manages both to alienate<br />

h<strong>is</strong> labour-power and to avoid renouncing h<strong>is</strong> rights <strong>of</strong> ownership over it. The labour can<br />

alienate h<strong>is</strong> labour- power to sell h<strong>is</strong> labour-power to the buyer, And the other hand he also<br />

can renouncing h<strong>is</strong> labour-power to h<strong>is</strong> buyer if he does not want to sell h<strong>is</strong> labour-power.<br />

The second set <strong>of</strong> condition: the necessary for sale must be counted as well as the time<br />

<strong>of</strong> production. Because the labour-power ex<strong>is</strong>ts only in the labour’s living body and nobody<br />

can live on the products <strong>of</strong> the future or on use-value whose production has not yet been<br />

completed.<br />

So the worker must be free in the double sense that as a free individual he can d<strong>is</strong>pose<br />

<strong>of</strong> h<strong>is</strong> labour-power as h<strong>is</strong> own commodity and that on the other hand, he has no other<br />

commodity for sale, i.e. he <strong>is</strong> free <strong>of</strong> all the objects needed for the realization <strong>of</strong> h<strong>is</strong> labourpower.<br />

Next Message by Angela <strong>is</strong> [488].<br />

[395.3] Skyler: Fwd: Your Subm<strong>is</strong>sion Returned The first condition <strong>is</strong> the fact that<br />

labor-power can appear on the market as a commodity only if, the possessor (individual)<br />

whose labor-power its <strong>is</strong>, <strong>of</strong>fers the commodity for sale, at h<strong>is</strong> d<strong>is</strong>posal and free <strong>of</strong> propriety.<br />

He must treat the labor-power as h<strong>is</strong> own property, own commodity, by placing it at the<br />

d<strong>is</strong>posal <strong>of</strong> a buyer. Th<strong>is</strong> must take place in small amounts, not a lump sum which would<br />

convert the owner into a slave to the commodities labor-power.<br />

The second conditin allows the owner <strong>of</strong> the money to dind labor-power in the market<br />

as a commodity. Thepossesr <strong>of</strong> labor-power, instead <strong>of</strong> selling the commodity in the labor<br />

d<strong>is</strong>playee, he will <strong>of</strong>fer to sell the commodity by the labor-power that ex<strong>is</strong>ts in h<strong>is</strong>self. Possessing<br />

a means <strong>of</strong> production <strong>is</strong> also very important. For example, raw materials, tools etc.<br />

The time necessary for sale must be counted as well as the time <strong>of</strong> production.<br />

Hans: You did not get the second condition right. The worker must exactly be deprived <strong>of</strong> means <strong>of</strong> production in<br />

order to have to sell h<strong>is</strong> labor power.<br />

It <strong>is</strong> not very polite to re-send all the error messages at the top <strong>of</strong> your message. You should clean them out.<br />

Next Message by Skyler <strong>is</strong> [469].<br />

[395.1] Super: First, the possessor <strong>of</strong> th<strong>is</strong> labor power must be willing to <strong>of</strong>fer h<strong>is</strong>/her<br />

services for sale in an open market as a commodity. Th<strong>is</strong> labor power must be used at the<br />

laborer’s d<strong>is</strong>cretion and he/she <strong>is</strong> free to <strong>of</strong>fer their own labor power on their own terms.<br />

Th<strong>is</strong> labor power <strong>is</strong> h<strong>is</strong>/her own commodity to exchange.<br />

The second condition <strong>is</strong> that the laborer must take care <strong>of</strong> h<strong>is</strong>/her own means <strong>of</strong> subs<strong>is</strong>tence<br />

first, then the labor power that <strong>is</strong> left over can be used as a commodity on the open<br />

market. Marx says, “...that the possessor <strong>of</strong> labour-power, instead <strong>of</strong> being able to sell commodities<br />

in which h<strong>is</strong> labour has been objectified, must rather be compelled to <strong>of</strong>fer for sale<br />

as a commodity that very labour-power which ex<strong>is</strong>ts only in h<strong>is</strong> living body.” Marx explains<br />

284 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

that the possessor <strong>of</strong> th<strong>is</strong> labor power can only <strong>of</strong>fer h<strong>is</strong>/her commodity in the amount in<br />

which he/she possesses within the limits <strong>of</strong> their physical abilities.<br />

Hans: You did not understand the second condition.<br />

Next Message by Super <strong>is</strong> [395.2].<br />

[398.2] Wolf: Labor power can appear on the market as a commodity only if, and in so<br />

far as, it’s possessor, the individual whose labor power it <strong>is</strong>, <strong>of</strong>fers it for sale or sells it as a<br />

commodity (exchange). Thus, they must have it at their d<strong>is</strong>posal and be the free proprietor<br />

<strong>of</strong> h<strong>is</strong> own labor capacity, hence <strong>of</strong> h<strong>is</strong> person. Th<strong>is</strong> person and the owner <strong>of</strong> the money<br />

meet in the market and enter into relations, one a seller, one a buyer. The proprietor <strong>of</strong> labor<br />

power must always sell it for a limited period <strong>of</strong> time only, other w<strong>is</strong>e he would be making<br />

himself a slave.<br />

The second essential condition which allows the owner <strong>of</strong> money to find labor power in<br />

the market as a commodity <strong>is</strong> th<strong>is</strong>, that the possessor <strong>of</strong> labor power, instead <strong>of</strong> being able to<br />

sell commotities in which h<strong>is</strong> labor has been objectified, must rather be compelled to <strong>of</strong>fer<br />

for ssale as a commodity that very labor power which ex<strong>is</strong>ts only in h<strong>is</strong> living body. He must<br />

posses the means <strong>of</strong> production for a commodity, with in. In all, labor power must be used<br />

for (the purpose <strong>of</strong>) exchange and have use value.<br />

Hans: You got the second condition wrong.<br />

Next Message by Wolf <strong>is</strong> [401].<br />

[399.2] Femme: Marx argues that two sets <strong>of</strong> conditions must be sat<strong>is</strong>fied for labor power<br />

to be a commodity. One <strong>of</strong> these conditions <strong>is</strong> that its possesor, the individual whose labourpower<br />

it <strong>is</strong>, <strong>of</strong>fers it for sale or sells it as a commodity. The possessor must have it at h<strong>is</strong><br />

d<strong>is</strong>posal, he must be the free proprietor <strong>of</strong> h<strong>is</strong> own labour capacity. The second condition <strong>is</strong><br />

the possesor <strong>of</strong> labour-power must be compelled to <strong>of</strong>fer for sale as a commodity the labourpower<br />

which ex<strong>is</strong>ts only in h<strong>is</strong> living body. These two sets <strong>of</strong> conditions must be sat<strong>is</strong>fied<br />

for labour-power to be a commosity.<br />

Hans: How will he be compelled?<br />

Next Message by Femme <strong>is</strong> [399.3].<br />

[401.4] Homer: For labor power to be a commodity, two conditions must ex<strong>is</strong>t. The first<br />

<strong>is</strong> that the worker must be free to d<strong>is</strong>pose <strong>of</strong> h<strong>is</strong> or her own labor power. Thus, the worker<br />

cannot be bound to a particular labor process, such as a slave being bound to the master in<br />

a slave economy. The second condition <strong>is</strong> the worker must not have access to the means <strong>of</strong><br />

production. A worker will only sell h<strong>is</strong> or her labor power if they cannot provide themselves<br />

with the necessary means <strong>of</strong> production.<br />

Hans: Very good.<br />

Next Message by Homer <strong>is</strong> [401.5].<br />

[402.1] Pinky: For labor power to be for sale, ther must ex<strong>is</strong>t a class <strong>of</strong> free laborers, a<br />

proletariat. Marx describes th<strong>is</strong> class as free in a double sense. Free to 1: Sell their labor<br />

power and 2: Free <strong>of</strong> any ownership <strong>of</strong> commodities so that their labor power <strong>is</strong> all they have<br />

to sell. They cannot produce for themselves because they do not own the needed means <strong>of</strong><br />

production. The ex<strong>is</strong>tance <strong>of</strong> a class <strong>of</strong> free laborers <strong>is</strong> a result <strong>of</strong> h<strong>is</strong>torical development, as<br />

are all <strong>of</strong> the other prerequ<strong>is</strong>ites for the emergence <strong>of</strong> capital.<br />

Hans: Excellent.<br />

Next Message by Pinky <strong>is</strong> [418].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 285<br />

[405] Dunny: 281 two conditions The first condition <strong>is</strong> th<strong>is</strong> that th<strong>is</strong> labor power can<br />

only enter or be part <strong>of</strong> the market if the producer and possessor <strong>of</strong> that labor power puts it<br />

up for sale on the market as h<strong>is</strong>/her commodity, or in other words, sells himself or herself as<br />

a commodity. Th<strong>is</strong> <strong>is</strong> the aspect <strong>of</strong> the physical product. The owners have to put themselves<br />

there. The second aspect <strong>is</strong> that the person or individual that holds the labor power, instead<br />

<strong>of</strong> selling the commodity in which the labor was set out for, he must sell it instead as the<br />

commodity that encludes h<strong>is</strong> very labor power which he used to produce it. Everything from<br />

h<strong>is</strong> own body. Th<strong>is</strong> encompasses the use <strong>of</strong> raw materials that he uses as h<strong>is</strong> instruments <strong>of</strong><br />

labor.<br />

Next Message by Dunny <strong>is</strong> [511].<br />

[405.6] Chacci: Marx states that the two conditions that must be sat<strong>is</strong>fied for labor power<br />

to be a commodity are if the individual <strong>of</strong>fers it for sale or sells it as a commodity and<br />

the individual must be compelled to <strong>of</strong>fer h<strong>is</strong> labor power h<strong>is</strong> sole commodity. First, the<br />

individual must be the sole proprietor <strong>of</strong> h<strong>is</strong> labor power. He must sale it for limited time<br />

periods otherw<strong>is</strong>e he would be a slave. In other words you must be free to give up your labor<br />

power for limited time periods. Second, the individual must be compelled to <strong>of</strong>fer h<strong>is</strong> labor<br />

power as h<strong>is</strong> sole commodity. He must own no other means <strong>of</strong> production.<br />

Marx states that a ‘owner <strong>of</strong> money must find the worker available on the commodity<br />

market: and th<strong>is</strong> worker must be free in the double sense that as a free individual he can<br />

d<strong>is</strong>pose <strong>of</strong> h<strong>is</strong> labor power as h<strong>is</strong> own commodity, and that he has no other commodity to<br />

sale.’ I gave a bad example on my in class test because exchange value should not have been<br />

brought into the d<strong>is</strong>cussion.<br />

I give a better one here. If I was a laborer my labor power would be realized as a commodity<br />

on the market because I am free to d<strong>is</strong>pose <strong>of</strong> my labor, I have no prior arrangements<br />

with anyone else, my labor power <strong>is</strong> my commodity (condition 1). I am compelled to do so<br />

because I have no other means <strong>of</strong> production, I have no raw materials or other commodities<br />

to produce value except my own muscle and brain power (condition 2).<br />

Hans: Good. Why did you say: exchange value should not have been brought into the d<strong>is</strong>cussion?<br />

Next Message by Chacci <strong>is</strong> [504].<br />

[407.3] Peaches: Returned mail: Host unknown (Name server: m.ucc.utah.edu: ho<br />

The first condition that needs to be present in order that labour power be a commodity <strong>is</strong> that<br />

labour power can appear on the market as a commodity only if its possessor <strong>of</strong>fers it for sale<br />

or sells it as a commodity. The possessor must have it at h<strong>is</strong> d<strong>is</strong>posal, he must be the free<br />

proprietor <strong>of</strong> h<strong>is</strong> own labour capacity. He must only sell h<strong>is</strong> commodity for a short time or<br />

he will be selling h<strong>is</strong> commodity, himself, as a commodity; therefore, becoming a slave.<br />

The second condition allows the owner <strong>of</strong> money to find labor power in the market as a<br />

commodity only if the possessor <strong>of</strong> labour power be compelled to <strong>of</strong>fer for sale as a commodity<br />

that very labour power which exits only in h<strong>is</strong> living body. The possessor must be<br />

free in a double sense in that as a free individual, he can d<strong>is</strong>pose <strong>of</strong> h<strong>is</strong> labour power as h<strong>is</strong><br />

own commodity, and that, on the other hand, he has no other commodity for sale.<br />

Hans: The “free from” can be developed one step further: that he does not have access to means <strong>of</strong> production.<br />

Next Message by Peaches <strong>is</strong> [517].<br />

286 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[420.4] Punani: Commodities assume a role in capital<strong>is</strong>m that one would not deduce<br />

based on available knowledge and which goes “beyond use value and the content <strong>of</strong> determinations”<br />

Marx understood commodities to be social products, that they owe their value<br />

not primarily to the estimation <strong>of</strong> their utility by consumers, but to the ex<strong>is</strong>tence <strong>of</strong> social<br />

relations which constitute the fabric society and which make the production <strong>of</strong> the commodity<br />

possible in the first place. So value <strong>of</strong> labor power <strong>is</strong> determined by the “labor time<br />

necessary for the production and consequently also the reproduction <strong>of</strong> the specific article”<br />

“All one needs <strong>is</strong> mobility <strong>of</strong> labor and in the case <strong>of</strong> simple commodity production, the assumption<br />

that labor cost outweigh all other costs. As long as demand <strong>is</strong> so high in a certain<br />

industry that price r<strong>is</strong>e above labor content, labor will migrate into that industry, and th<strong>is</strong> will<br />

re-establ<strong>is</strong>h prices in line with labor values.” “In some societies it’s not the abstract labor in<br />

the things that <strong>is</strong> counted by society, but the concrete labor, which <strong>is</strong> a relation between the<br />

producer and the product.”<br />

Hans: <strong>What</strong> you wrote <strong>is</strong> not relevant to the question at hand.<br />

Next Message by Punani <strong>is</strong> [450].<br />

[430.1] Scott: The first condition for labour power to be a commodity, <strong>is</strong> that it can be<br />

sold only temporarily for a limited time, in order that the labourer would not become a slave<br />

versus a free man. The labourer cannot sell it once and for all, lest he transgresses from<br />

being an owner <strong>of</strong> a commodity into a commodity itself. He must <strong>of</strong>fer it to the buyer on<br />

equal terms “in the eyes <strong>of</strong> the law.”<br />

The second condition, <strong>is</strong> that the labour power util<strong>is</strong>ed may only ex<strong>is</strong>t in the sellers’ living<br />

body. Th<strong>is</strong> means that the labour power ex<strong>is</strong>ts only as a capacity.<br />

Hans gave a more eloquent answer in the class, as usual, in the d<strong>is</strong>cussion <strong>of</strong> May 8th.<br />

Since I already have an overwelming feeling <strong>of</strong> guilt due to plagiar<strong>is</strong>m, when answering<br />

many <strong>of</strong> these questions, I reframed from using Hans’ terminology as much as I could.<br />

Hans: Your second reason <strong>is</strong> not developed to its end.<br />

Next Message by Scott <strong>is</strong> [508].<br />

[457.5] Ramb<strong>is</strong>: The two conditions which must be sat<strong>is</strong>fied for labor power to be considered<br />

a commodity are first, “that the individual whose labor power it <strong>is</strong>, <strong>of</strong>fers it for sale<br />

or sells it as a commodity”; and second, “that the possessor <strong>of</strong> labor power be compelled to<br />

<strong>of</strong>fer for sale as a commodity that very labor power which ex<strong>is</strong>ts only in h<strong>is</strong> living body.”<br />

In other words, the individual alone can provide exactly the labor power s/he <strong>is</strong> capable<br />

<strong>of</strong> and s/he willingly agrees to <strong>of</strong>fer th<strong>is</strong> labor power for exchange in the marketplace, either<br />

through the forms <strong>of</strong> other commodities or the universal commodity, money. For labor power<br />

to be considered a commodity it must originate with the individual, be unique or endogenous<br />

to the individual, and be freely <strong>of</strong>fered by the individual in order to be exchanged in the<br />

marketplace.<br />

Hans: You did not understand either <strong>of</strong> the two conditions. I doubt that you understood the question; it <strong>is</strong> not a<br />

matter <strong>of</strong> “being cosidered a commodity”.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [512].<br />

[475.3] Emma: From our class d<strong>is</strong>cussion after the test I believe it <strong>is</strong> necessary to add<br />

the “free to” and “free from” arguments. That <strong>is</strong>, a laborer only sells labor to the capital<strong>is</strong>t<br />

if the laborer does not own or have access to the means <strong>of</strong> production for himself. I’m


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 287<br />

personally not clear on how th<strong>is</strong> prov<strong>is</strong>ion <strong>is</strong> applied on a practical level. Owning or controlling<br />

the means <strong>of</strong> production requires that one be an entrepreneur, for the most part. Not<br />

very many people have the capacity to take the r<strong>is</strong>ks or perform the tasks associated with<br />

entrepreneurship, aside from acquiring the necessary financial and capital resources. The<br />

data on the number <strong>of</strong> failed businesses as a percentage <strong>of</strong> startups would, I believe, bear<br />

th<strong>is</strong> observation out. That, plus the number <strong>of</strong> business owners as a percentage <strong>of</strong> the labor<br />

force, would be further evidence. Marx seems to imply that the change in roles from laborer<br />

to capital<strong>is</strong>t <strong>is</strong> a simple one, even an arbitrary one. I d<strong>is</strong>agree. The second part <strong>of</strong> the answer<br />

makes more sense to me. It’s clear that for labor to be a commodity the laborer must be a<br />

willing participant, capable <strong>of</strong> rational exchange behavior.<br />

Hans: See my [572]. Regarding your last sentence:<br />

It’s clear that for labor to be a commodity the laborer must be a willing participant, capable <strong>of</strong><br />

rational exchange behavior.<br />

He must above all the have the right to sell h<strong>is</strong> labor, he must be the owner <strong>of</strong> h<strong>is</strong> labor power (a slave <strong>is</strong> not). Of<br />

course it also makes a big difference whether or not he <strong>is</strong> willing to do it, whether he considers sale <strong>of</strong> h<strong>is</strong> labor<br />

power as an opportunity or a compulsion.<br />

Message [475-3] referenced by [572]. Next Message by Emma <strong>is</strong> [475.4].<br />

[572] Hans: How can laborers have access to the means <strong>of</strong> production? Emma’s quiz<br />

resubm<strong>is</strong>sion [475-3] ra<strong>is</strong>ed an interesting question which I want to answer publicly. Emma<br />

wrote:<br />

From our class d<strong>is</strong>cussion after the test I believe it <strong>is</strong> necessary to add the<br />

“free to” and “free from” arguments. That <strong>is</strong>, a laborer only sells labor to<br />

the capital<strong>is</strong>t if the laborer does not own or have access to the means <strong>of</strong><br />

production for himself. I’m personally not clear on how th<strong>is</strong> prov<strong>is</strong>ion <strong>is</strong><br />

applied on a practical level. Owning or controlling the means <strong>of</strong> production<br />

requires that one be an entrepreneur, for the most part. Not very many people<br />

have the capacity to take the r<strong>is</strong>ks or perform the tasks associated with<br />

entrepreneurship, aside from acquiring the necessary financial and capital<br />

resources. The data on the number <strong>of</strong> failed businesses as a percentage <strong>of</strong><br />

startups would, I believe, bear th<strong>is</strong> observation out. That, plus the number<br />

<strong>of</strong> business owners as a percentage <strong>of</strong> the labor force, would be further<br />

evidence. Marx seems to imply that the change in roles from laborer to<br />

capital<strong>is</strong>t <strong>is</strong> a simple one, even an arbitrary one. I d<strong>is</strong>agree.<br />

Th<strong>is</strong> <strong>is</strong> an important question. In the olden times, ownership <strong>of</strong> the means <strong>of</strong> production<br />

was no problem. People worked alone or in the circle <strong>of</strong> the family with perhaps a few<br />

outside helpers and used hand tools. Modern production must be done in factories. Not<br />

everyone can privately own a factory. The “access” to the means <strong>of</strong> production can no<br />

longer be organized by private property. Under the conditions <strong>of</strong> modern technology and<br />

modern interdependence, ownership <strong>of</strong> means <strong>of</strong> production means that all the workers run<br />

the factory cooperatively, and they make joint dec<strong>is</strong>ions, in coordination with other workers<br />

elsewhere, what to produce. Worker’s “ownership” <strong>of</strong> the means <strong>of</strong> production <strong>is</strong> the right<br />

to use it and the right to decide, within a larger collective, what should be done with it.<br />

And it <strong>is</strong> the right to a job. It does not mean that everyone can walk in and out freely and<br />

work only when they please, as the owner <strong>of</strong> the factory today. It also does not mean that<br />

288 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

they can sell their factory and split up the proceeds. There will be no market for means <strong>of</strong><br />

production. Today’s means <strong>of</strong> production are inherently social, and th<strong>is</strong> will be reflected in<br />

the forms <strong>of</strong> ownership (if we ever get there before the present myopic system throws us into<br />

an ecological tailspin).<br />

Message [572] referenced by [475.3]. Next Message by Hans <strong>is</strong> [575].<br />

[617.10] Dunny: Dunny did not resubmit h<strong>is</strong> exam. The in-class exam was not very well<br />

formulated and it <strong>is</strong> not clear what he means. A resubm<strong>is</strong>sion would have been called for.<br />

First Message by Dunny <strong>is</strong> [101].<br />

[617.2] Brumbys: Brumbys did not resubmit the exam, but gave a good summary <strong>of</strong> both<br />

points.<br />

First Message by Brumbys <strong>is</strong> [243].<br />

[617.1] Angela: Angela did not resubmit her exam. The in-class exam she wrote shows<br />

that she did not understand the two pages in Capital she was trying to excerpt.<br />

First Message by Angela <strong>is</strong> [35].<br />

<strong>Question</strong> 282 <strong>is</strong> 287 in 1996ut, 342 in 1997sp, 341 in 1997ut, 352 in 1999SP, and 557 in<br />

2009fa:<br />

<strong>Question</strong> 282 It <strong>is</strong> <strong>of</strong>ten argued that labor power <strong>is</strong> not really a commodity. Does labor<br />

power meet the following general character<strong>is</strong>tics <strong>of</strong> the commodity?<br />

It <strong>is</strong> a non-use-value for its producer.<br />

It <strong>is</strong> a use value for the buyer.<br />

Its use value <strong>is</strong> not the source <strong>of</strong> its value.<br />

It <strong>is</strong> produced for the exchange.<br />

[335.7] Positive: Labor power <strong>is</strong> the actually labor being done by a worker. The worker <strong>is</strong><br />

the one who actually makes the product. H<strong>is</strong> goal and meaning with the production <strong>is</strong> to sell<br />

h<strong>is</strong> products. The reason <strong>is</strong> because he <strong>is</strong> willing to make pr<strong>of</strong>it. Th<strong>is</strong> <strong>is</strong> why the workers only<br />

value will be the exchange-value. The producer has no direct use for h<strong>is</strong> product. When the<br />

product <strong>is</strong> being exchanged on the market from seller to buyer, the product will get a value<br />

for the buyer. Th<strong>is</strong> value <strong>is</strong> the the use-value, in which <strong>is</strong> because it will make it useful to<br />

him. The source <strong>of</strong> a commodity’s value leads back to its production. The production <strong>of</strong> a<br />

product <strong>is</strong> done because there <strong>is</strong> a market <strong>of</strong> its sales. If these statements are reasonable, the<br />

four character<strong>is</strong>tics <strong>of</strong> the commodity Are right.<br />

Hans: The <strong>Question</strong> was not asking about the product <strong>of</strong> labor power being a commodity, but labor power itself.<br />

Th<strong>is</strong> <strong>is</strong> a central point that <strong>is</strong> new in Chapter Six, how could you m<strong>is</strong>s th<strong>is</strong>?<br />

Next Message by Positive <strong>is</strong> [397].<br />

[475.1] Skippy: Labor power <strong>is</strong> a commodity. It <strong>is</strong> bought and sold on the open market.<br />

It <strong>is</strong> produced by individuals. Training <strong>is</strong> used to enhance the labpr skills. There <strong>is</strong> not any<br />

physical objects attached to it.<br />

Different types <strong>of</strong> labor have different values. To the individual, he earns a wage for h<strong>is</strong><br />

labor and the employer receives the value <strong>of</strong> production <strong>of</strong> that labor.<br />

Labor <strong>is</strong> the only possession that we all have to give and use. It <strong>is</strong> marketable everywhere.<br />

it <strong>is</strong> used to produce everything. it <strong>is</strong> rediculas to not think <strong>of</strong> labor power as a commodity.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 289<br />

The need for physical substance for a commodity to ex<strong>is</strong>ts <strong>is</strong> not neccessary. Labor power<br />

<strong>is</strong> a commodity.<br />

Hans: The definition at the beginning <strong>of</strong> Chapter One <strong>is</strong>: a commodity <strong>is</strong> a material thing produced for the exchange.<br />

Despite what you say, labor power <strong>is</strong> a material thing, its physical substance <strong>is</strong> the worker. Is labor power<br />

produced for the exchange? It <strong>is</strong> not entirely clear. Your argument that workers acquire skills to enhance the value<br />

<strong>of</strong> their labor power <strong>is</strong> a good one. But it has one important property: it <strong>is</strong> a non-use value for its owner, because<br />

workers do not have access to the means <strong>of</strong> production. Th<strong>is</strong> <strong>is</strong> somewhat implied in your sentence:<br />

Labor <strong>is</strong> the only possession that we all have to give and use.<br />

All in all what you are saying <strong>is</strong> roughly correct but not well reasoned out.<br />

Next Message by Skippy <strong>is</strong> [475.2].<br />

[617.5] Fox: Fox did not resubmit h<strong>is</strong> exam. Too bad, every single one <strong>of</strong> h<strong>is</strong> answers<br />

was wrong, and it would have been instructive for him and the class to explain th<strong>is</strong> in more<br />

detail.<br />

Next Message by Fox <strong>is</strong> [617.8].<br />

<strong>Question</strong> 283 <strong>is</strong> 477 in 2005fa and 524 in 2008fa:<br />

<strong>Question</strong> 283 How <strong>is</strong> the value <strong>of</strong> labor power determined? Explain what it means that<br />

“the determination <strong>of</strong> the value <strong>of</strong> labor power contains a h<strong>is</strong>torical and moral element.”<br />

Doesn’t Marx imply with th<strong>is</strong> that the value <strong>of</strong> labor power can be just about anything? Is<br />

there any scientific insight in th<strong>is</strong>?<br />

[344.3] Kia: Marx stated that value <strong>of</strong> labour power <strong>is</strong> determined as in the case <strong>of</strong> every<br />

other commodity, by the labour time necessary for the production and consequently also<br />

the reproduction. Labour power ex<strong>is</strong>ts only as a capacity <strong>of</strong> the living individual. Also<br />

the production <strong>of</strong> labour power cons<strong>is</strong>ts in h<strong>is</strong> reproduction <strong>of</strong> himself or h<strong>is</strong> maintenance.<br />

However, labour power becomes reality only by being expressed. But in the course <strong>of</strong> th<strong>is</strong><br />

activity, a definite quantity <strong>of</strong> human muscle, nerve, etc. <strong>is</strong> expanded, and these things have<br />

to be replaced. Since there <strong>is</strong> expansion one must work to again expand in order to expand.<br />

Hans: You seem to say that the value <strong>of</strong> labor power <strong>is</strong> determined by the labor time necessary to replace human<br />

muscle, nerve, etc. Th<strong>is</strong> seems a hopeless task, since at the same time you say (correctly) that labor uses up those<br />

things. And you should look up in the dictionary the difference between expend and expand. Th<strong>is</strong> <strong>is</strong> important for<br />

understanding the text.<br />

Next Message by Kia <strong>is</strong> [378].<br />

[345.3] VanHalen: I’ll try and carry on with the ideas <strong>of</strong> my inclass answer.<br />

Marx says that the value <strong>of</strong> labor power <strong>is</strong> determined by the labor time necessary for the<br />

production and the reproduction <strong>of</strong> the specific article. The value <strong>of</strong> labor power <strong>is</strong> the value<br />

<strong>of</strong> the means <strong>of</strong> subs<strong>is</strong>tence necessary for the maintenance <strong>of</strong> its owner.<br />

Now about the h<strong>is</strong>torical and moral element to the value <strong>of</strong> labor power... The h<strong>is</strong>torical<br />

element comes from the fact that as societies became more advanced more things became<br />

“necessary requirements” for the laborer. The h<strong>is</strong>torical element also includes the conditions<br />

which the class <strong>of</strong> free workers has been formed. As time progressed the class <strong>of</strong><br />

free workers may develope habits and expectations that are necessary to keep the free workers<br />

working. As time passes, “necessary requirements,” change as do expectations <strong>of</strong> the<br />

workers. That <strong>is</strong> the h<strong>is</strong>torical element to the value <strong>of</strong> labor.<br />

290 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Question</strong> 283 left out the first part <strong>of</strong> the quoted sentence. It said that, “In contrast,<br />

therefore, with the case <strong>of</strong> other commodities......” I think th<strong>is</strong> adds a lot to the question<br />

about the moral element. In contrast to other commodities...... The commodity <strong>of</strong> labor<br />

power <strong>is</strong> very different from all other commodities. Labor power <strong>is</strong> performed by human<br />

beings for other human beings. The labor power can be exploited by the buyer <strong>of</strong> the labor<br />

power. I think th<strong>is</strong> <strong>is</strong> the moral element Marx <strong>is</strong> talking about. To what degree will the labor<br />

power seller be exploited by the labor buyer brings in a moral question. How will you treat<br />

another human being.<br />

Marx might be implying that the value <strong>of</strong> labor power could be just about anything but I<br />

think that puts it in a different light than what he was meaning. You would have very different<br />

values for labor power if you looked at early times when labor first started to be a commodity<br />

versus now. Different cultures even today have very different values <strong>of</strong> labor power. They<br />

might all have the same elements , food, shelter... but the quantities and qualities can vary<br />

greatly across time periods, cultures or geographic locations.<br />

I’m not sure what <strong>is</strong> meant by the question, “<strong>is</strong> there any scientific insight in th<strong>is</strong>?” I<br />

think there are conlusions and hypothesies that can be drawn from looking at the value <strong>of</strong><br />

labor power. Such as that as long as the laborer <strong>is</strong> only compensated for h<strong>is</strong> labor with<br />

just the necessities to basically stay alive , then the worker will never have enough to be<br />

anything more than just a laborer. In th<strong>is</strong> way the worker has to come back to work to get the<br />

necessities <strong>of</strong> life and the buyer <strong>of</strong> labor power gets more out <strong>of</strong> the laborer than he <strong>is</strong> putting<br />

into the laborer. I don’t know if that <strong>is</strong> scientific insight but from studying how the value <strong>of</strong><br />

labor power <strong>is</strong> determined, one begin to see cycles developing over time which would lend<br />

insights as to what keeps the cycles going or what could be done to break the cycle.<br />

Hans: Excellent! At Marx’s time, the word “moral” was <strong>of</strong>ten used for something nonphysical. For instance, Marx<br />

calls technical obsolescence <strong>of</strong> means <strong>of</strong> production “moral depreciation”. Besides, Marx was over-inclined to see<br />

morality as a form <strong>of</strong> exerc<strong>is</strong>e <strong>of</strong> power (which it <strong>of</strong>ten <strong>is</strong>, but it seems Marx threw out the baby <strong>of</strong> an objectively<br />

justifiable ethics – remember the fact-value d<strong>is</strong>tinction <strong>is</strong> wrong – with the bathwater <strong>of</strong> moral<strong>is</strong>m and hypocricy).<br />

Therefore I am not sure if that what you say about morality coincides with Marx’s views, but I find your argument<br />

interesting and think there <strong>is</strong> something to it even if Marx himself does not say it.<br />

Next Message by VanHalen <strong>is</strong> [379].<br />

[345.2] MUCHO: I just like to add little more to what I wrote on my exam. As I mentioned<br />

it on exam, h<strong>is</strong>torical and moral element lead to hierarchy <strong>of</strong> labor power. If the family had<br />

h<strong>is</strong>torical power even the family who live in now do not have any power. Because <strong>of</strong> their<br />

ancestors were powerful, just the power was passed on to now. That <strong>is</strong> why the determination<br />

<strong>of</strong> the value <strong>of</strong> labor power contains a h<strong>is</strong>torical and moral element.<br />

Hans: You are required to resubmit your whole answer, not just the additions. You did not give Marx’s basic<br />

argument how the value <strong>of</strong> labor power <strong>is</strong> determined.<br />

Next Message by MUCHO <strong>is</strong> [381].<br />

[357.1] Snake: labour power The value <strong>of</strong> labor power <strong>is</strong> determined by the price or<br />

exchange rate in which the commodity was bought or exchanged for, on the market. If a<br />

commodity <strong>is</strong> highly valued on the market, then we must subtract the marginal cost <strong>of</strong> production<br />

from the market value <strong>of</strong> the commodity. The excess currency obtained could then<br />

be divided by the time in which it took to develope the commodity. Th<strong>is</strong> would then determine<br />

the labor power used to develop th<strong>is</strong> particular commodity. In which labor power


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 291<br />

operates with the certainty <strong>of</strong> a force <strong>of</strong> nature in order to create the commodity. In a capital<strong>is</strong>tic<br />

sense the labour <strong>is</strong> only the foundation <strong>of</strong> labor power. Use value that comes <strong>of</strong> the<br />

labour <strong>is</strong> generally shown by the amount <strong>of</strong> effort and time an individual applies to the commodity.<br />

In which the labour sells their capacity to work for a given period <strong>of</strong> time, then labor<br />

power becomes a commodity. Throughout h<strong>is</strong>tory labor has always coex<strong>is</strong>ted in market time<br />

society. Also improvements with technological occurrence has significantly elevated labor<br />

power, where labor power has decreased production time <strong>of</strong> an commodity. Value <strong>of</strong> labor<br />

power as an moral element has been abused throughout h<strong>is</strong>tory, indentured servants, slavery<br />

are all examples <strong>of</strong> the moral effect that comes from labor power. The abuses <strong>of</strong> labor power<br />

can still be seen even to present day, by that <strong>of</strong> the wage separation between the individuals<br />

that actually create the commodity and the individuals that benefit from the work <strong>of</strong> others.<br />

———————-<br />

Hans: Th<strong>is</strong> answer <strong>is</strong> completely unsat<strong>is</strong>factory.<br />

Next Message by Snake <strong>is</strong> [359].<br />

[505.1] Gottlieb: Labor power <strong>is</strong> a constant even though there can be no definite value<br />

given to it. Th<strong>is</strong> may sound like a oxymoron at first but I think that th<strong>is</strong> will be explained in<br />

th<strong>is</strong> response.<br />

If one shoe <strong>is</strong> produced with one labor hour then the value <strong>of</strong> the labor power <strong>of</strong> one hour<br />

equals one shoe. If three toothbrushes can be produced in one hour then one hour <strong>of</strong> labor<br />

power equals three toothbrushes. Marx can use the value <strong>of</strong> labor power to measure just<br />

about anything. Th<strong>is</strong> <strong>is</strong> the reason that the value can be just about anything. It can not be<br />

used by itself as a means <strong>of</strong> measurement though because it has not definite value. It <strong>is</strong> a<br />

constant because it, when used with toothbrushes <strong>is</strong> 1=3, or with shoes 1=1.<br />

Do not compare it with money either. Because we measure everything in dollars, th<strong>is</strong><br />

<strong>is</strong> the thing we automatically want to relate it to. Th<strong>is</strong> would be a m<strong>is</strong>take. The value <strong>of</strong><br />

labor power can only give the value <strong>of</strong> things that can be produced: shoes, thoothbrushes,<br />

buildings, etc. Things such as land can not be given a value in labor power because it does not<br />

originate from it. Money gives the value <strong>of</strong> land in dollars. It can measure anything...except<br />

the value <strong>of</strong> labor power.<br />

Hans: You are confusing labor power and labor. You are anticipating Marx’s argument in Chapter 19 that labor<br />

cannot have value, because it gives everything value. Thoughtful, but apparently you did not do your homework<br />

preparing Chapter Six.<br />

Next Message by Gottlieb <strong>is</strong> [506].<br />

[547.2] Gilligan: labor power <strong>is</strong> labor capacity, the aggregate <strong>of</strong> those mental and physical<br />

capabilities ex<strong>is</strong>ting in the physical form, living personality, <strong>of</strong> a human being. On th<strong>is</strong><br />

assumption labor power can appear on the market as a commodity only if its possessor ,<br />

the individual whose labor power it <strong>is</strong> <strong>of</strong>fers it for sale or sells it as a commodity. Labor<br />

power <strong>is</strong> determined as in the case <strong>of</strong> every other commodity, by the labor time necessary<br />

for the production, and reproduction. Labor power only ex<strong>is</strong>ts as a capacity <strong>of</strong> the living<br />

individual. It’s production presupposes h<strong>is</strong> ex<strong>is</strong>tence. Given the ex<strong>is</strong>tence <strong>of</strong> the individual,<br />

the production <strong>of</strong> labor power cons<strong>is</strong>ts <strong>of</strong> h<strong>is</strong> reproduction <strong>of</strong> himself or h<strong>is</strong> maintenance.<br />

He requires subs<strong>is</strong>tence. The value <strong>of</strong> labor power <strong>is</strong> the value <strong>of</strong> the means <strong>of</strong> subs<strong>is</strong>tence.<br />

Labor power becomes reality only by being expressed , through labor. The labor power<br />

expended should be compensated for. He has necessary requirements i.e. food, clothing,<br />

292 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

fuel and housing. On the other hand , the number and extent <strong>of</strong> h<strong>is</strong> requirements , as also the<br />

manner in which they are sat<strong>is</strong>fied, are themselves products <strong>of</strong> h<strong>is</strong>tory, and depend therefore<br />

to a great extent on the level <strong>of</strong> civilization attained by a country. Labor power contains<br />

a h<strong>is</strong>torical and moral element, in that there <strong>is</strong> pride involved in all forms <strong>of</strong> labor and it<br />

creates a moral value when the product <strong>is</strong> completed that one can be proud <strong>of</strong> and feel h<strong>is</strong> or<br />

her accompl<strong>is</strong>hment, th<strong>is</strong> has been the same h<strong>is</strong>torically as well as in present times. As far<br />

as scientific insight you must replace what <strong>is</strong> taken away, therefore I would say that there <strong>is</strong><br />

in that a father creates children with h<strong>is</strong> wife he creates labor power for the future, and as he<br />

the father goes to h<strong>is</strong> death bed he has left what has been taken away in the form <strong>of</strong> h<strong>is</strong> own<br />

children that will generate labor power.<br />

Hans: Your in-class exam was just a collection <strong>of</strong> Marx-quotes, some irrelevant to the question, without any <strong>of</strong><br />

your own thinking. In the resubm<strong>is</strong>sion you added some <strong>of</strong> your own thoughts.<br />

Next Message by Gilligan <strong>is</strong> [590].<br />

[617.3] Pizza: Pizza did not resubmit h<strong>is</strong> exam. He did not say how the value <strong>of</strong> labor<br />

power <strong>is</strong> determined. Supply and demand <strong>is</strong> not a h<strong>is</strong>torical element, and in Marx’s theory,<br />

supply and demand do not determine the value <strong>of</strong> something, but the deviations between<br />

price and value.<br />

Next Message by Pizza <strong>is</strong> [617.6].<br />

<strong>Question</strong> 286 In Marx’s theory, labor costs have a fundamentally different role than other<br />

costs. While the costs <strong>of</strong> materials, supplies, depreciation, etc., are simply passed on to the<br />

consumer, the capital<strong>is</strong>ts can charge more for the labor costs they incur than what they pay<br />

for labor. Is th<strong>is</strong> true, and if so, how can it be so?<br />

[349] Jupiter: 286 Labor costsX-credit In response to th<strong>is</strong> question, which I hope I<br />

am understanding, the value <strong>of</strong> certain commodities are passed on to the purchacer <strong>of</strong> those<br />

goods, th<strong>is</strong> <strong>is</strong> clear in all that we have thus far d<strong>is</strong>cused in the class. The buyer will buy a<br />

good for the sat<strong>is</strong>fying <strong>of</strong> a need, thus they purchace the material <strong>of</strong> the commodity and they<br />

purchace the abstract labor that has gone into that product, which gives it its exchange value.<br />

The costs are then passed onto the consumer <strong>of</strong> the good, wether a increase or a decrease<br />

in the price <strong>of</strong> the good it <strong>is</strong> now the consumers to control. The labor costs are intrinsic<br />

within the product (built in), th<strong>is</strong> <strong>is</strong> part <strong>of</strong> the cost. We talk about exchange-value, and at<br />

th<strong>is</strong> point I find it very important, because in a simpler market with only every day items<br />

being exchanged one could know what to trade, for example; 2 pounds <strong>of</strong> wheat for 1 shirt,<br />

3 bushels <strong>of</strong> apples for 1 pair <strong>of</strong> boots, people were well aware <strong>of</strong> the amount <strong>of</strong> labor that<br />

went into these products. They were hand done, no fancy costly machinery was employed,<br />

just hard human labor, which was paid for or compensated for.<br />

Today we have capital<strong>is</strong>m that <strong>is</strong> spread throughout the world, we have millions upon<br />

millions <strong>of</strong> products saturating our markets, in which we want to pay the lowest cost. We<br />

have products that are American being made in Taiwan and sent back and sold here in the<br />

USA, we could be buying Polo shirts that cost $5.00 in material, $.50-$3.00 <strong>of</strong> labor time,<br />

and the consumer pays $45.00 for the shirt! The consumer agrees to pay th<strong>is</strong> so to him all <strong>is</strong><br />

well, but the workers are not receiving just compenssation for their abstract labor, although<br />

they think that they are. Th<strong>is</strong> <strong>is</strong> how the capital<strong>is</strong>t can sell labor for more cost but yet be<br />

paying the worker less than adequate pay.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 293<br />

I think that it goes back to the consumer being well informed, in todays market place<br />

consumers have little information about the costs <strong>of</strong> products (me included), but <strong>is</strong> that our<br />

fault? Or <strong>is</strong> there just to much asymetric information going on that keeps consumers in the<br />

dark about production costs?<br />

Message [349] referenced by [356]. Next Message by Jupiter <strong>is</strong> [350].<br />

[356] Hans: Why are laborers content with their low wages? Jupiter’s answer [349]<br />

starts with the words:<br />

In response to th<strong>is</strong> question, which I hope I am understanding,<br />

and what he writes in h<strong>is</strong> first paragraph makes me wonder too whether he does not<br />

m<strong>is</strong>understand certain aspects <strong>of</strong> the question or, for that matter, <strong>of</strong> Marx’s theory. But let’s<br />

skip over th<strong>is</strong> first, theoretical paragraph, and read what Jupiter says in the second paragraph<br />

about the realities <strong>of</strong> modern capital<strong>is</strong>m:<br />

We have products that are American being made in Taiwan and sent back<br />

and sold here in the USA, we could be buying Polo shirts that cost $5.00<br />

in material, $.50-$3.00 <strong>of</strong> labor time, and the consumer pays $45.00 for the<br />

shirt! The consumer agrees to pay th<strong>is</strong> so to him all <strong>is</strong> well, but the workers<br />

are not receiving just compenssation for their abstract labor, although they<br />

think that they are.<br />

One thing <strong>is</strong> very right here: instead <strong>of</strong> the common prejudiuce that the capital<strong>is</strong>ts make<br />

pr<strong>of</strong>its because they charge too much for their product, Jupiter says the prices are ok but<br />

the wages are too low. Jupiter <strong>is</strong> completely right. The source <strong>of</strong> pr<strong>of</strong>its <strong>is</strong> not the sphere<br />

<strong>of</strong> exchange but the site <strong>of</strong> production. But why can the workers not assert the full value<br />

<strong>of</strong> their labor on the labor market? Marx’s answer <strong>is</strong>: because they are selling their labor<br />

power, not their labor. In plain Engl<strong>is</strong>h: the capital<strong>is</strong>ts know that, according to the laws <strong>of</strong> the<br />

market, all they have to give the workers <strong>is</strong> a survival wage, and they are not stupid enough<br />

to give the worker more, although the worker produces much more than an equivalent for<br />

h<strong>is</strong> meager survival wage.<br />

Jupiter’s last sentence in the above paragraph: “although they think that they are (receiving<br />

a just wage for their labor)” <strong>is</strong> a very important additional element in all th<strong>is</strong>, but th<strong>is</strong><br />

<strong>is</strong> not the main reason for the low wages. In Chapter Nineteen (which will be the reading<br />

assignment next week), Marx explains why the workers think they are paid fairly for their<br />

labor, and he emphasizes how very important <strong>is</strong> th<strong>is</strong> m<strong>is</strong>conception <strong>of</strong> workers and capital<strong>is</strong>ts<br />

alike (i.e., it <strong>is</strong> not an <strong>is</strong>sue <strong>of</strong> asymmetric information). Workers would probably be<br />

much more rebellious if the mechan<strong>is</strong>m <strong>of</strong> their exploitation would be more obvious.<br />

In h<strong>is</strong> last paragraph, Jupiter forgets what he said about wages being too low and falls back<br />

into the common prejudice that prices are too high because consumers are not informed.<br />

Next Message by Hans <strong>is</strong> [364].<br />

[434] Lamma: extra credit Yes in capital<strong>is</strong>m the owners <strong>of</strong> capital are able to charge<br />

more for the labor costs than the labor costs them. Th<strong>is</strong> <strong>is</strong> due to the forum in which th<strong>is</strong><br />

labor takes place. The owners <strong>of</strong> capital provide the means for a laborer to expend h<strong>is</strong> labor<br />

power. The owners must take care <strong>of</strong> more than just a wage. They must pay for training, for<br />

294 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

insurances, and other types <strong>of</strong> hidden costs that may drive up their charge for labor. They<br />

feel that th<strong>is</strong> <strong>is</strong> neccesary in order to cover their costs and thier r<strong>is</strong>ks taken at every level<br />

<strong>of</strong> employment. They pass th<strong>is</strong> cost <strong>of</strong> being in business and having employees on to the<br />

consumer through thier products.<br />

Message [434] referenced by [489] and [565]. Next Message by Lamma <strong>is</strong> [453].<br />

[445] Wolf: As we have learned in th<strong>is</strong> class and others, capital<strong>is</strong>m <strong>is</strong> a system built on<br />

pr<strong>of</strong>it, not stealing, or feudal<strong>is</strong>m. It therefore organ<strong>is</strong>es its productive mechan<strong>is</strong>ms in such a<br />

way to reduce costs <strong>of</strong> production to a minimum. Leading to a “div<strong>is</strong>ion <strong>of</strong> labor”- a method<br />

<strong>of</strong> reducing complex skills to routiene and regular motions. Next, labor becomes simple due<br />

to the div<strong>is</strong>ion <strong>of</strong> labor and as a result it <strong>is</strong> at the mercy <strong>of</strong> the capital<strong>is</strong>ts who employ them<br />

because they have no other way <strong>of</strong> securing their livelyhood. Labor <strong>is</strong> bought and sold like<br />

grain.<br />

A commodity <strong>is</strong> not just a thing,but it <strong>is</strong> also a container <strong>of</strong> inv<strong>is</strong>ible social relationships=¿th<strong>is</strong><br />

2 fold nature <strong>of</strong> the commodity mystifies our perception <strong>of</strong> capital<strong>is</strong>t realities=¿the<br />

FETISHISM OF COMMODITIES, meaning that the exchangeability <strong>of</strong> commodities<br />

appears to be the result from their physical properties, not from hidden social relationships<br />

that, by filling them with abstract labor, endow them with their attributes <strong>of</strong> exchange<br />

value.<br />

There <strong>is</strong> also a special attribute <strong>of</strong> labor power that makes it unlike any other commodity.<br />

It <strong>is</strong> the act <strong>of</strong> consuming its use-values yields a “surplus”. Th<strong>is</strong> attribute comes about<br />

because its use-value lies in the products that are produced for the capital<strong>is</strong>t by the worker<br />

during the time in which they labor. And one <strong>of</strong> the conditions <strong>of</strong> selling labor power as a<br />

commodity <strong>is</strong> that the working person abandons any claim to the product he or she creates.<br />

As d<strong>is</strong>cussed above it <strong>is</strong> clear that laborers don’t have real power, they only have labor<br />

power that in reality may not be enough to surive on. It has also been stated that capital<strong>is</strong>m<br />

<strong>is</strong> built on pr<strong>of</strong>it. There <strong>is</strong> a secret to how th<strong>is</strong> pr<strong>of</strong>it <strong>is</strong> gained. the secrete <strong>is</strong> that pr<strong>of</strong>it <strong>is</strong><br />

won not as a result <strong>of</strong> sharp dealings in the commodity market, but as a normal part <strong>of</strong> the<br />

production process; not in exchange but proir to exchange, in productoin itself. The pr<strong>of</strong>it<br />

lies in the idea <strong>of</strong> surplus value, or the difference between the value <strong>of</strong> labor power sold as<br />

a commodity by the working class, and the value <strong>of</strong> the product <strong>of</strong> that labor power, which<br />

accrues to the capital<strong>is</strong>t at the end <strong>of</strong> the production process.<br />

Marx’s theory <strong>of</strong> surplus value asserts that there must be a difference between labor and<br />

labor power. Ss that one must always be able to buy the capacity for work for less than the<br />

value that will be created (when commodities are produced). ONly because <strong>of</strong> th<strong>is</strong> difference<br />

can capital be brought into being in the first place.<br />

HOW CAN THIS BE?<br />

Workers have nothing to sell but their labor power, and that capital<strong>is</strong>ts have the bulk <strong>of</strong><br />

society’s <strong>wealth</strong> at their d<strong>is</strong>posal. THus workers cannot strike (effective enough) to secure<br />

the payment <strong>of</strong> wages equal to the value <strong>of</strong> their output.<br />

The second surplus-value protecting element <strong>is</strong> a “mechan<strong>is</strong>m” that will prevent wages<br />

from going up due to competition. The pressure <strong>of</strong> competition will induce employers to


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 295<br />

introduce cost-cutting, labor saving machienery. Technological unemployment thereby creates<br />

a “ relative overpopulation” that plays the same role as absolute r<strong>is</strong>e in population. And<br />

again capital<strong>is</strong>ts have the upper hand and workers are forced to take a back seat because <strong>of</strong><br />

machienes, or become more productive than a machiene, and feel happy not alienated with<br />

barely enough money to survive on. No wonder there are drugs in our society-¿ the biggest<br />

and most expensive cash crops.<br />

Message [445] referenced by [489]. Next Message by Wolf <strong>is</strong> [502].<br />

[450] Punani: Yes, the capital<strong>is</strong>t can charge more for the labor they incur than what<br />

they pay for labor. Just look at all the costs the proprietor goes through, such as wages for<br />

employees, insurance coverage, medical benefits, all kinds <strong>of</strong> costs that <strong>is</strong> needed to cover<br />

the labor cost. With the danger that the employee goes through during the work area <strong>of</strong><br />

course the employer <strong>is</strong> going to make sure that nothing <strong>is</strong> hazardous. So because <strong>of</strong> the<br />

coverage and the r<strong>is</strong>k the employer <strong>is</strong> taking in hiring laborers, he <strong>is</strong> able to charge more<br />

for the labor costs than what the consumers pay for labor. Thus, the time, the quality and<br />

the quantity <strong>of</strong> making the product <strong>is</strong> then passed down to the consumer, therefore business<br />

remains in business, and workers remain working.<br />

Message [450] referenced by [489]. Next Message by Punani <strong>is</strong> [455].<br />

[451] Caren: @286 Surplus value <strong>is</strong> the difference between between the amount <strong>of</strong><br />

exchange and use value create by workers and the amount <strong>of</strong> value re turn them as wages.<br />

The capital<strong>is</strong>ts control over th<strong>is</strong> surplus <strong>is</strong> the bas<strong>is</strong> <strong>of</strong> their power over the workers and<br />

the rest <strong>of</strong> society. Because <strong>of</strong> competition among capital<strong>is</strong>ts, worker are constantly being<br />

replaced by machinery, enabing and requiring capital<strong>is</strong>ts to extract ever-greater amounts <strong>of</strong><br />

surplus value from workers remaining. Therefore, it <strong>is</strong> ture that the capital<strong>is</strong>ts incur than<br />

what they pay for labor. The amount <strong>of</strong> surplus value <strong>is</strong> also the source <strong>of</strong> capital<strong>is</strong>m’s<br />

greatest weakness. Because only part <strong>of</strong> their product <strong>is</strong> returned to them as wages, the<br />

workers, as consumers, cannot buy a large portion<strong>of</strong> what they produce. Under pressure from<br />

the constant growth <strong>of</strong> the total product, the capital<strong>is</strong>ts periodically fail to find new markets<br />

up the slack. Th<strong>is</strong> leads to cr<strong>is</strong>es <strong>of</strong> overproduction capital<strong>is</strong>m’s classic contradiction, in<br />

which people are forced to live on too little because they have produced too much.<br />

Message [451] referenced by [489]. Next Message by Caren <strong>is</strong> [456].<br />

[454] Lamma: extra credit Yes the owners <strong>of</strong> capital can charge more for labor costs<br />

incurred than they pay for that same labor. In reality when commodities are exchanged it<br />

<strong>is</strong> as if the labor value <strong>is</strong> exchanging hands. But as Marx writes.. the labor does not pass<br />

straight into the hands <strong>of</strong> the buyer. The value <strong>of</strong> that labor has already been pre-determined<br />

before it goes into circulation. It <strong>is</strong> given a labor value based upon the amount <strong>of</strong> social<br />

labourspent on the production <strong>of</strong> that commodity.<br />

At th<strong>is</strong> point we can see that if the owner <strong>of</strong> capital can decrease h<strong>is</strong> own labor costs<br />

through technology, training employees, or new machinery ect, he can create a ‘gap’ in the<br />

amount <strong>of</strong> labor he reqires to make the commdities. Th<strong>is</strong> ‘gap’ <strong>is</strong> a pr<strong>of</strong>it maximizing gap<br />

that allows him to pay for less labor but charge the predetermined amount.<br />

Secondly, when buyers and sellers go to market they are interested in only thier individual<br />

needs. According to Marx they pay no attention to the others in the market. Th<strong>is</strong> allows for<br />

th<strong>is</strong> ‘gap’ to be passed on from producer to buyer. And due to the harmony <strong>of</strong> the market<br />

those buyers and sellers selfich needs come together and work for a mutual advantage to all.<br />

296 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

So the fact that th<strong>is</strong> labor price <strong>is</strong> pre-determined allows the owners <strong>of</strong> capital to charge<br />

more than what they might pay for the labor. Th<strong>is</strong> <strong>is</strong> truly a mysterious role in the capital<strong>is</strong>t<br />

market system.<br />

Next Message by Lamma <strong>is</strong> [477].<br />

[489] Hans: Wolf, Lamma, Punani, Caren on Q 286 I like Wolf’s essay [445]. Just one<br />

remark about h<strong>is</strong> first two sentences:<br />

As we have learned in th<strong>is</strong> class and others, capital<strong>is</strong>m <strong>is</strong> a system built<br />

on pr<strong>of</strong>it, not stealing, or feudal<strong>is</strong>m. It therefore organ<strong>is</strong>es its productive<br />

mechan<strong>is</strong>ms in such a way to reduce costs <strong>of</strong> production to a minimum.<br />

Who organizes the production process? The capital<strong>is</strong>ts. They buy labor. Th<strong>is</strong> <strong>is</strong> important.<br />

Production <strong>is</strong> not organized by the producers themselves, the laborers, but by the owner<br />

<strong>of</strong> the means <strong>of</strong> production for the laborers. For the capital<strong>is</strong>ts, the laborers are cost. <strong>What</strong><br />

you call “reduction <strong>of</strong> the costs <strong>of</strong> production” <strong>is</strong> really the act <strong>of</strong> depriving the laborers <strong>of</strong><br />

their product.<br />

Lamma tried the <strong>Question</strong> twice. In [434] he said the employer must not only pay for<br />

labor, but also for “training, insurances, and other types <strong>of</strong> hidden costs.” But if he only<br />

charges for h<strong>is</strong> costs, he will not be making a pr<strong>of</strong>it. In h<strong>is</strong> second subm<strong>is</strong>sion [445], the<br />

capital<strong>is</strong>t does make a pr<strong>of</strong>it – because he lowers the cost <strong>of</strong> production through “technology,<br />

training employees or new machinery” below the costs <strong>of</strong> h<strong>is</strong> competitors. Does he mean to<br />

say that the competitors do not make pr<strong>of</strong>its? Neither answer <strong>is</strong> even close to Marx’s basic<br />

explanation <strong>of</strong> pr<strong>of</strong>its.<br />

Punani’s [450] starts with similar arguments as Lamma’s [434], but then Punani settles<br />

on explaining pr<strong>of</strong>its as a r<strong>is</strong>k premium, and apparently also as a reward for protecting the<br />

employee from the inherent dangers <strong>of</strong> work:<br />

With the danger that the employee goes through during the work area <strong>of</strong><br />

course the employer <strong>is</strong> going to make sure that nothing <strong>is</strong> hazardous.<br />

Needless to say that Marx’s view <strong>of</strong> the capital<strong>is</strong>ts was not so positive.<br />

Caren’s [451] <strong>is</strong> good: Caren explains that the capital<strong>is</strong>t continually replaces laborers by<br />

machines. She does not say it in th<strong>is</strong> many words, but th<strong>is</strong> excess supply <strong>of</strong> labor <strong>is</strong> an<br />

important factor keeping the price <strong>of</strong> labor low.<br />

Next Message by Hans <strong>is</strong> [490].<br />

[565] Ramb<strong>is</strong>: Yes, it’s true, and it <strong>is</strong> very simple how it can be done. Labor costs take<br />

into account many non-production costs involving the laborer, many <strong>of</strong> which are somewhat<br />

hard to quantify in money terms whereas costs <strong>of</strong> materials, supplies, depreciation, etc., are<br />

explicit and can easily be given a dollar amount. These non-explicit costs <strong>of</strong> labor are much<br />

harder to pin down with a specific dollar amount. How do you determine exactly how much<br />

training <strong>is</strong> sufficient for each particular worker? <strong>What</strong> constitutes enough worker on the job<br />

safety and protection measures? How do you pin a dollar amount on how much enjoyment<br />

the workers received by attending the company picnic? These kinds <strong>of</strong> ‘hidden’ costs have<br />

an interesting relationship to another ‘hidden’ entity – when you look at it under the gu<strong>is</strong>e<br />

<strong>of</strong> labor costs, th<strong>is</strong> appears to be another form <strong>of</strong> exploitation.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 297<br />

Hans: Th<strong>is</strong> <strong>is</strong> close to [434], and even if it were the right answer you would have lost points because <strong>of</strong> that.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [602].<br />

[610] Kia: Extra credit 286 Yes, it <strong>is</strong> true that the labor costs can so be included in the<br />

price tag <strong>of</strong> a product, with the other input costs. In which these costs are passed to consumers<br />

by the capital<strong>is</strong>ts. Reason <strong>is</strong> that Capital<strong>is</strong>ts idea <strong>is</strong> to make highest possible surplus<br />

value on commodity. Thus, the actual labor costs has to be cover more than just workers<br />

wages. These includes the living labour that occur during the process <strong>of</strong> the production.<br />

For example, if the production process doubles, the labour costs are substaintly kept at the<br />

same level, while the capital<strong>is</strong>ts increase productivity, additional labour costs would remain<br />

same. Due to the capital costs that occur would absorb less additional labour costs during<br />

the production.<br />

Next Message by Kia <strong>is</strong> [611].<br />

<strong>Question</strong> 287 Labor versus Labor Power: <strong>What</strong> <strong>is</strong> in a Theoretical D<strong>is</strong>tinction? Marx<br />

claims that people could understand the society they live in much better if they did not<br />

always confuse labor and labor power. Do you agree?<br />

[578] Brumbys: extra credit I d<strong>is</strong>agree that if people could understand the difference<br />

between labor and labor power people will understand soceity better. I think that everyone<br />

wants the power <strong>of</strong> being in charge. Labor <strong>of</strong> course <strong>is</strong> not always value for what it’s worth.<br />

The problem has to do with the pricing <strong>of</strong> scarce materials so that they are rationed in the<br />

produciton process. Let us assume that there are two completely substitutable resources<br />

(minerals or ore) that are used in a given production process. Furthermore, power to d<strong>is</strong>coer,<br />

mine and process. Inany economy that valued these resources take exactly the smae amount<br />

<strong>of</strong> Labor pwer to d<strong>is</strong>cover, mine and process. In any economy that valued these reasources<br />

based on the amount <strong>of</strong> Labor needed to process them, these to ex<strong>is</strong>ted in a much smaller<br />

volune than the other. The more scarce resource should be priced higher than the other,<br />

reflecting its more rare nature. Pricing the scarce resource higher makes producers use it<br />

more sparingly, thus economizing the resource. Th<strong>is</strong> <strong>is</strong> exactly what happens in the free<br />

market. But if Labor values were used, then both resources would be priced equally and th<strong>is</strong><br />

would lead to the over rapid consuption <strong>of</strong> the reosuce that was more scarce.<br />

Hans: Very sloppy writing, with typos and repeated words etc. And I do not understand what your topic has to do<br />

with anything in th<strong>is</strong> class. Are you perhaps thinking that Marx’s Capital was about social<strong>is</strong>m?<br />

Next Message by Brumbys <strong>is</strong> [596].<br />

[582] Scott: surplus credit The theoretical d<strong>is</strong>tinction between labor and labor power <strong>is</strong><br />

based upon an illusion, according to Marx. The workers believe that they are being paid a<br />

wage for labor, but actually they are selling their labor power to the capital<strong>is</strong>t. Labor power<br />

<strong>is</strong> a capacity. Their labor power <strong>is</strong> a commodity, just as any raw material, such as steel, <strong>is</strong><br />

to the CEO <strong>of</strong> Chrysler. The workers exchange their labor power for another commodity,<br />

from the capital<strong>is</strong>t, which <strong>is</strong> money. Naturally, the workers utilize the money paid to them in<br />

the form <strong>of</strong> wages, to obtain commodities necessary for the workers ex<strong>is</strong>tence. The workers<br />

must ex<strong>is</strong>t and reproduce in order that the capital<strong>is</strong>t has th<strong>is</strong> particular commodity in great<br />

supply.<br />

I would have to agree with some <strong>of</strong> Marxs’ conclusions concerning labor power in the<br />

period applicable to h<strong>is</strong> life. I do however find it to be less important in the present time,<br />

298 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

except to form a bas<strong>is</strong> for further elucidation into the plight <strong>of</strong> Marxs’ laborer, and for<br />

Marx to cohesively build a foundation leading to h<strong>is</strong> conclusions. Many <strong>of</strong> the hazards<br />

and injustices <strong>of</strong> the workers have changed since Marx’s time (at least in the US). He refers<br />

to the exploitation <strong>of</strong> children, fifteen-hour work days, and the average life span <strong>of</strong> workers<br />

at one-third <strong>of</strong> todays’ life expectancies.<br />

I believe most people and workers understand the concept <strong>of</strong> the capital<strong>is</strong>ts’ exploitation<br />

<strong>of</strong> the worker. I think th<strong>is</strong> concept <strong>is</strong> more key to revolutionizing the laborers. I realize that<br />

the labor power explanation leads to the clarification <strong>of</strong> the exploitation. However, the clear<br />

path in my mind would be to move to the educational level <strong>of</strong> the worker and teach him, and<br />

not only the privileged few that attend universities and study Marx.<br />

Hans: Your argument seems somewhat contradictory. On the one hand you seem to say that there <strong>is</strong> no more<br />

exploitation today, and on the other that “most people and workers understand the concept <strong>of</strong> the capital<strong>is</strong>t’s exploitation<br />

<strong>of</strong> the worker.”<br />

And if they are already understanding it, how can better teaching revolutionize them?<br />

Next Message by Scott <strong>is</strong> [583].<br />

[591] Wolf: A theoretical d<strong>is</strong>tinction allows for a difference between already ex<strong>is</strong>ting<br />

knowledge to be seen and yield knowledge that wasn’t present before. It <strong>is</strong>n’t testing or<br />

experimenting, it <strong>is</strong> inventing new concepts, thinking, and changing focus (abstracting).<br />

In “Critical Real<strong>is</strong>m” on page 41 it says: “In the preface to CAPITAL vol. 1, Marx tells<br />

us that ’in the analys<strong>is</strong> <strong>of</strong> economic forms neither microscopes nor chemical reagents are <strong>of</strong><br />

ass<strong>is</strong>tance. The power <strong>of</strong> abstraction must replace both’(p.90). Th<strong>is</strong> may appear theoretic<strong>is</strong>t,<br />

but <strong>of</strong> course the ‘power <strong>of</strong> abstraction’ works on a mass <strong>of</strong> emperical material: some <strong>of</strong><br />

it information that anyone who has lived in a capital<strong>is</strong>t society will be familiar with, some<br />

familiar to those running capital<strong>is</strong>t concerns, some familiar to workers struggling against its<br />

tendencies; much was derived from famous reports <strong>of</strong> the factory inspectors whom Marx<br />

pra<strong>is</strong>ed so highly, and from many other h<strong>is</strong>torical records. Years <strong>of</strong> research had gone into<br />

accumulating the emperical raw material <strong>of</strong> CAPITAL. None <strong>of</strong> it was experimental. By<br />

virtue <strong>of</strong> the work <strong>of</strong> abstraction, Marx <strong>is</strong> able to put questions to th<strong>is</strong> mass <strong>of</strong> emperical<br />

data in terms <strong>of</strong> prec<strong>is</strong>ely defined concepts, and to make it answer them, in some cases, as if<br />

they were experimental in nature.”<br />

In all, new knowledge, familiarity, and prec<strong>is</strong>eness <strong>is</strong> what <strong>is</strong> in a theoretical d<strong>is</strong>tinction.<br />

The difference between labor and labor power <strong>is</strong> a theoretical d<strong>is</strong>tinction and as said before,<br />

th<strong>is</strong> <strong>is</strong> done by a methodology <strong>of</strong> abstraction which in and <strong>of</strong> itself <strong>is</strong> quite easy in<br />

compair<strong>is</strong>on to the method <strong>of</strong> implementing the methodology (abstraction)- the way, the directions<br />

for real<strong>is</strong>ing each step along the road toward abstraction, <strong>is</strong> hard for one to follow.<br />

because we soon find that very important dec<strong>is</strong>ions must be made at each stage- deciding<br />

which abstract elements to pursue, and separating fundamental connections from accidental<br />

ones, narrowing down the process <strong>of</strong> analys<strong>is</strong> and judgement the final result for its usefulness.<br />

what criteria should we use (on our own with out the help <strong>of</strong> marx) in deciding, for<br />

instance, whether we should analize labor as a product or input, does it come about for<br />

commodities, or for people, if one or the other, what kind (<strong>of</strong> commodity or person)? in<br />

th<strong>is</strong> sence, if people don’t know how to abstract or they can’t help but get more confused


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 299<br />

by trying to clear up a little confusion. then itwould be a bad idea for people to attempt<br />

to understand the difference between labor and labor power. they may only have a much<br />

harder time trying to understand society as opposed to in the past when they didn’t abstract.<br />

abstraction <strong>of</strong> society can lead to many gross interpertations too, along with nightmar<strong>is</strong>h<br />

consequences. just look at stallin and our past wars, their leaders, and why.<br />

there are however many positives for one when trying to understand society to know the<br />

difference between labor and labor power, i didn’t want to address that side <strong>of</strong> the arguement<br />

because i figured others will, have and with much more ease than proving it to be just the<br />

contrary.<br />

Hans: I like it. It has many deep thoughts.<br />

Next Message by Wolf <strong>is</strong> [599].<br />

Term Paper 296 <strong>is</strong> 523 in 1997WI, 523 in 1997sp, 923 in 1997ut, 923 in 1998WI, and 712<br />

in 2008fa:<br />

Term Paper 296 Essay about Chapter Twenty-Three<br />

[612] Kia: Extra credit ch. 23 In th<strong>is</strong> chapter Marx gives us insight about the reproduction<br />

process and the relationships between capital<strong>is</strong>t and workers. In addition, it shows how<br />

the capital<strong>is</strong>t took its form and the workers who sell their labour commodity.<br />

The process <strong>of</strong> reproduction takes repeated forms. Every time one consumes commodity<br />

it must be done with the smae process as before and must do same in previous amount to<br />

fill the gap. I.e. labour and raw materials. When capital<strong>is</strong>ts sell their commodity they get<br />

in rturn <strong>of</strong> surplus value. The surplus value in turn must be converted into money form or<br />

wage and purchase the needed materials to reproduce the commodity. However, even such<br />

process <strong>is</strong> mere reproduction, it will lose the original character<strong>is</strong>tics. If factory workers keep<br />

producing the same commodity over and over again, the final product <strong>is</strong> different from one<br />

and other. It <strong>is</strong> because each time workers labour input and skills, each product they produce<br />

are different. Such as taking in form <strong>of</strong> an improved commodity. For example, if we look<br />

at the current production <strong>of</strong> cars, the new models come out with the new and improved<br />

models each year. From th<strong>is</strong> process the manufatures bulids on and continue to do so. Thus,<br />

producing commodity that are little different from the previous one.<br />

Before the process <strong>of</strong> production, workers labour are purchased before the production.<br />

Later, the works will realize their value when they finalize in the production and then they<br />

will get paid in wages. But, the form <strong>of</strong> the wage represents the workers labour inputs they<br />

produced during previous work.<br />

To able to keep the capital in one’s hand, he needs to keep working for himself. If h<strong>is</strong><br />

labour <strong>is</strong> for someone else’s gain then the looses h<strong>is</strong> capital. For example, let’s say farmer<br />

who prodcue food for him own consumption, he <strong>is</strong> working for h<strong>is</strong> gain and capital. Vice<br />

versa, if we look at a farmer who produce same commodity as previous farmer but, need to<br />

sell <strong>is</strong> commodity in order to make living, then he <strong>is</strong> loosing h<strong>is</strong> capital by working for other.<br />

In both cases, the process <strong>of</strong> reprodcution <strong>is</strong> on hand.<br />

To obtain capial not everybody was born with it. From begining, people worked for<br />

providing for themselves. After awhile, each workers commodity was placed with the value.<br />

300 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Depending upon how much the skills and labour was put on creating the exchange system<br />

in the market. With the formation <strong>of</strong> barter system, it began the capital system. Also, labour<br />

power can be considered as a type <strong>of</strong> capital. The labour he puts in during production and<br />

then converting into product.<br />

So, its relationships between capital<strong>is</strong>t and workers are similar at the beginning. However,<br />

soon as capital<strong>is</strong>t obtain workers labour it takes a different trun. Due to capital<strong>is</strong>t not only<br />

gaining from the workers, but also by waht he gives him. The relationship that ex<strong>is</strong>ts between<br />

the worker and capital<strong>is</strong>t <strong>is</strong> inseparatable. But, capital<strong>is</strong>ts can continue with the production<br />

even if workers are no longer willing to work, long as the working population <strong>is</strong> increasing<br />

and emigrating into the job force.<br />

Hans: I can tell that you worked through some <strong>of</strong> the text, but you understood only little <strong>of</strong> it. There are many<br />

m<strong>is</strong>understandings. For instance you write:<br />

However, even such process <strong>is</strong> mere reproduction, it will lose the original character<strong>is</strong>tics. If<br />

factory workers keep producing the same commodity over and over again, the final product <strong>is</strong><br />

different from one and otehr.<br />

If a production process <strong>is</strong> repeated over and over again, then not only the individual products may differ (although<br />

modern quality control tries to eliminate th<strong>is</strong> as much as possible), but the whole process may assume a different<br />

character. The main example Marx uses in th<strong>is</strong> Chapter <strong>is</strong>: if one looks at an individual process, it looks as if the<br />

capital<strong>is</strong>t advances the capital. But looked at in repetition, one sees that th<strong>is</strong> capital comes from previous surplus<br />

labor <strong>of</strong> the workers themselves.<br />

Next Message by Kia <strong>is</strong> [614].<br />

Term Paper 297 <strong>is</strong> 524 in 1997WI, 524 in 1997sp, 924 in 1997ut, 924 in 1998WI, 924 in<br />

2000fa, 924 in 2001fa, 824 in 2002fa, 824 in 2003fa, 824 in 2005fa, 721 in 2007SP, and<br />

699 in 2007fa:<br />

Term Paper 297 Essay about Chapter Twenty-Four<br />

[584] Caren: Inversion <strong>of</strong> the law <strong>of</strong> appropriation The inversion <strong>of</strong> the law <strong>of</strong> appropriation<br />

comes about first <strong>of</strong> all because the ultimate stage <strong>of</strong> free exchange <strong>is</strong> the exchange<br />

<strong>of</strong> labour-capacity as a commodity. “From then onwards commodity production <strong>is</strong> general<strong>is</strong>ed<br />

and becomes the typical form <strong>of</strong> production; it <strong>is</strong> only from then onwards that every<br />

product <strong>is</strong> produced for sale from the outset and all <strong>wealth</strong> produced goes through the sphere<br />

<strong>of</strong> circulation. only where wage-labour <strong>is</strong> its bas<strong>is</strong> does commodity production impose itself<br />

upon society as a whole; but it <strong>is</strong> also true that only there does it unfold all its hidden<br />

potentialities.” 733:4/o Hardly surpr<strong>is</strong>ing then that the full development <strong>of</strong> commodity production<br />

according to its inherent laws drives onwards to results which contradict its mode <strong>of</strong><br />

appropriation and turn it into its opposite.<br />

Nevertheless the circulation process, as it appears on the surface <strong>of</strong> society knows no<br />

other method <strong>of</strong> appropriation apart from through the exchange <strong>of</strong> equivalents and it si for<br />

prec<strong>is</strong>ely th<strong>is</strong> reason that th<strong>is</strong> mode <strong>of</strong> appropriation itself as well as the laws which cotracdict<br />

it have to be derived from the development <strong>of</strong> exchange-value itself. The same holds<br />

true for the law <strong>of</strong> value which on the one hand no longer seems to apply to the capital<strong>is</strong>t<br />

mode <strong>of</strong> production, but on the ohter hand requires th<strong>is</strong> mode <strong>of</strong> production in order to attain<br />

its full validity. Of course, bourgeo<strong>is</strong> economics has to sever the connection between the<br />

mode <strong>of</strong> appropriation <strong>of</strong> the simple commodity econmy and that <strong>of</strong> capital<strong>is</strong>t produciton<br />

- it <strong>is</strong> unable to grasp their mutual relation as unity <strong>of</strong> opposites. In the first place it does


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 301<br />

not possess the tool <strong>of</strong> the dialectical method, and in the second it has no theroretical understanding<br />

<strong>of</strong> either the simple commodity economy or the capital<strong>is</strong>t mode <strong>of</strong> production<br />

itself as having a merely relative, h<strong>is</strong>torical character. The true nature <strong>of</strong> capital emerges<br />

only at the end <strong>of</strong> second circuit, and hence that it <strong>is</strong> here that the illusion first d<strong>is</strong>appears<br />

that the capital<strong>is</strong>t exchanges anything at all with the worker other than a part <strong>of</strong> the latter’s<br />

own objectified labour. Not until th<strong>is</strong> point does labour appear as a mere menans to real<strong>is</strong>e<br />

objectified, dead labour to penetrate it with an animating soul while losing its own soul to it.<br />

whereas the objective conditions <strong>of</strong> th<strong>is</strong> laboru are posited as alien independent ex<strong>is</strong>tences as<br />

self-sufficeint values for themselves, which form <strong>wealth</strong> alien to albour- capacity the <strong>wealth</strong><br />

<strong>of</strong> capital. The result <strong>of</strong> th<strong>is</strong> <strong>is</strong> the most extreme alienation, the separation <strong>of</strong> labour itself<br />

from the conditions <strong>of</strong> its real<strong>is</strong>ation. Once th<strong>is</strong> separation <strong>is</strong> given the production process<br />

can only produce it anew, reproduce it and reproduce it on an expanded scale. But we know<br />

“<strong>What</strong> appears paradoxical as result <strong>is</strong> already contained in the presupposition in the act <strong>of</strong><br />

exchange between the capital<strong>is</strong>t and the worker, since the separation <strong>of</strong> labour form property<br />

in the product <strong>of</strong> labour, <strong>of</strong> labour from <strong>wealth</strong>, <strong>is</strong> thus posited in th<strong>is</strong> act <strong>of</strong> exchange<br />

itself. Th<strong>is</strong> presupposition <strong>is</strong> merely real<strong>is</strong>ed in the production and reproduction process <strong>of</strong><br />

capital.”<br />

Next Message by Caren <strong>is</strong> [599].<br />

Term Paper 298 <strong>is</strong> 500 in 1996ut, 505 in 1997WI, and 905 in 1997ut:<br />

Term Paper 298 Essay about Chapter Five<br />

[325] Karl: In my estimation, one <strong>of</strong> the most interesting points Marx makes in chapter<br />

5 <strong>is</strong> the idea that <strong>of</strong> M-C-M in a capaital<strong>is</strong>t system. Th<strong>is</strong> <strong>is</strong> interesting because <strong>of</strong> Marx’s<br />

pre cursor to mentioning th<strong>is</strong>. He starts <strong>of</strong> by comparing two merchants <strong>of</strong> commodities,<br />

one has plenty <strong>of</strong> corn and no wine, the other plenty <strong>of</strong> wine and no corn. Marx gives use<br />

the idea that when the two exchange commodities they exchange only what <strong>is</strong> superfluous,<br />

to get more for less. Th<strong>is</strong> <strong>is</strong> sort <strong>of</strong> the concept behind M-C-M. The interesting contradictory<br />

implication <strong>is</strong> that commodities are always by nature supposed to be exchanged in<br />

“equivalents.” So if the the two merchants exchange corn and wine, it should be on an equal<br />

exchange. It <strong>is</strong>n’t in capatial<strong>is</strong>m, there <strong>is</strong> an extra magnitude <strong>of</strong> value reflected in the price <strong>of</strong><br />

the commodity. Notice how Marx said commodities are “supposed” to behave as equivalents<br />

in any transaction, but in capatil<strong>is</strong>m the don’t. Perhaps th<strong>is</strong> <strong>is</strong> why Marx concluded with the<br />

phrase used by Hegel, “Hic Rhodus, hic Salta”, meaning that the purpose <strong>is</strong> to comprehend<br />

the contradiction <strong>of</strong> M-C-M, rather than to dwell on what <strong>is</strong> supposed to be.<br />

Marx does hint at the fact that even though capatal<strong>is</strong>t can scrape the surplus <strong>of</strong>f <strong>of</strong> exchange<br />

in transaction, that it can equalize by the buying and selling <strong>of</strong> additional commodities.<br />

Marx’s example in chapter 5 <strong>of</strong> M-C-M <strong>is</strong> that the producer that exchanged money for<br />

capital drew from the system more than was put in. He goes on to say that M-C-M may<br />

shift towards a more equivalent over all transaction, because just as the capital<strong>is</strong>t scrapes<br />

surplus, other capital<strong>is</strong>ts will scrape surplus from that capital<strong>is</strong>t when he becomes the buyer<br />

as opposed to the seller. I found it extremely interesting how Marx presented the argument<br />

that in some instances M-C-M may not be all the capital<strong>is</strong>t had planned on, that possibly<br />

commodities are more like “equivalents” in the overall scheme <strong>of</strong> things.<br />

Hans: You could get A’s if you worked harder.<br />

302 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Message [325] referenced by [355]. Next Message by Karl <strong>is</strong> [357.2].<br />

[329] Bandit: Extra Credit Term Paper (ch.5) The general theme <strong>of</strong> Chapter five in<br />

Marx’s “Capital”, <strong>is</strong> that the general formula <strong>of</strong> capital M-C-M (money-commodity-money)<br />

has many contradictions. The bas<strong>is</strong> <strong>of</strong> th<strong>is</strong> argument <strong>is</strong> the m<strong>is</strong>understanding <strong>of</strong> use-value<br />

and exchange value in the circulation <strong>of</strong> commodities.<br />

Marx begins chapter five with a deeper look into the circulation <strong>of</strong> money from buyer<br />

to seller and vice versa. Th<strong>is</strong> circulation cons<strong>is</strong>ts <strong>of</strong> a seller who gives up some <strong>of</strong> h<strong>is</strong><br />

commodities in hope <strong>of</strong> receiving commodities that will fulfill h<strong>is</strong> needs. Inversion <strong>of</strong> the<br />

order <strong>of</strong> succession <strong>is</strong> introduced and explained as the act between these purchasers and the<br />

sellers. The important concept in the beginning <strong>is</strong> whether th<strong>is</strong> circulation, by nature, can<br />

valorize its own values and if the result <strong>is</strong> a surplus-value. Marx begins the argument with a<br />

compar<strong>is</strong>on <strong>of</strong> exhange value and use-value.<br />

The compar<strong>is</strong>on begins with a look at the commodity in the abstract. An important note<br />

that Marx educates <strong>is</strong> that a commodity <strong>is</strong> expressed in its price before it enters into circulation,<br />

therefore it <strong>is</strong> a pre-condition <strong>of</strong> circulation and not a result. A commodity has the same<br />

value (social labor) throughout the process, because the value <strong>is</strong> manifested first in the price<br />

<strong>of</strong> the commodity <strong>of</strong>fered for sale, then as the actual sum <strong>of</strong> money it sold for and finally<br />

as the price <strong>of</strong> an equivalent commodity. Marx states that in the circulation <strong>of</strong> commodities<br />

and their exchanges will be equal only in its purity.<br />

Marx critizes the “vulgar econom<strong>is</strong>ts” for not understanding the difference between usevalues<br />

and exchange values. They believe that the equivalent exchange <strong>is</strong> in both cases<br />

<strong>of</strong> use-values and exchange values. Marx states that “in its pure form, the exchange <strong>of</strong><br />

commodities <strong>is</strong> an exchange <strong>of</strong> equivalents, and not a method <strong>of</strong> increasing values.”<br />

Th<strong>is</strong> same confusion also applies to the theory that the circualtion <strong>of</strong> commodities reaps<br />

a surplus-value. Marx openly critizes Condillac’s idea that in the exchange <strong>of</strong> equal values<br />

neither make a pr<strong>of</strong>it, yet both gain. Condillac’s obvious confusion <strong>of</strong> use-values and<br />

exchange values are still quoted by most econom<strong>is</strong>ts today. Marx continues to d<strong>is</strong>agree by<br />

allowing a buyer to receive a ten cents <strong>of</strong>f the selling price but in turn only losing to another<br />

buyer, by buying the commodity he needs. The seller who gets the same d<strong>is</strong>count also loses<br />

the advantage by buying h<strong>is</strong> needs by the same increase in price. The bottom line <strong>is</strong> that the<br />

prices would r<strong>is</strong>e but the values would remain unchanged.<br />

Not only in the above paragraph did Marx d<strong>is</strong>credited Condillac’s theory but enlightens<br />

the idea that surplus-value cannot be explained by assuming commodities are sold above or<br />

below their value. Stated another way if no surplus-value results due to equivalents being<br />

exchanged and the same for non-equivalents exchange then the exchange <strong>of</strong> commodities<br />

create no value. Marx continues h<strong>is</strong> d<strong>is</strong>credit <strong>of</strong> surplus value by equivalent exchange by<br />

introducing merchants’ capital and usurers’ capital.<br />

Marx says that merchants’ capital <strong>is</strong> done through the circulation <strong>of</strong> the commodities.<br />

Only a merchant who partially puts himself between the buyer and seller can a tw<strong>of</strong>old<br />

advantage be gained. Money <strong>is</strong> thrown into the market and also gained back from the market<br />

in the form <strong>of</strong> a buyer. In ursers’ capital the form M-C-M <strong>is</strong> reduced to M-M, which <strong>is</strong> money<br />

being exchange for more money and therefore unrelated to the exchange <strong>of</strong> commodities.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 303<br />

The chapter <strong>is</strong> concluded by stating that surplus value cannot ar<strong>is</strong>e from circulation and<br />

capital cannot ar<strong>is</strong>e from circulation. The commodity owner can create values by labour, but<br />

he cannot create values which valorize themselves. Marx gives an example <strong>of</strong> leather and<br />

boots. He states that the leather cannot valuorize itself but increase its value when made into<br />

boots. Marx closes with the following statement, “The transformation <strong>of</strong> money into capital<br />

has to be developed on the bas<strong>is</strong> <strong>of</strong> immanent laws <strong>of</strong> the exchange <strong>of</strong> commodities, in such<br />

a way that the starting point <strong>is</strong> the exchange <strong>of</strong> equivalents”.<br />

Message [329] referenced by [364]. Next Message by Bandit <strong>is</strong> [377].<br />

[330] MsMarx: Contradictions in the General Formula for Capital The form <strong>of</strong><br />

circulation by which money becomes capital contradicts all previous laws bearing on the<br />

nature <strong>of</strong> commodities, <strong>of</strong> value, <strong>of</strong> money, and <strong>of</strong> circulation itself. In Chapter 4 Marx<br />

defined capital by the formula M - C - M’, the production <strong>of</strong> surplus-value. Chapter 5 <strong>is</strong> a<br />

puzzle to the question, where does the surplus-value come from, or what has enabled the<br />

capital<strong>is</strong>t to advance money and receive a surplus. It seems to be a puzzle, as he suggests<br />

that surplus-value cannot ex<strong>is</strong>t.<br />

Marx d<strong>is</strong>tingu<strong>is</strong>hed between use-value and exchange-value. When commodities are exchanged,<br />

both parties gain in terms <strong>of</strong> use-value; each parts with something he does not want,<br />

and gets in exchange something that he does want. Th<strong>is</strong> gain, however, has nothing to do<br />

with exchange-value, and the capital<strong>is</strong>t who starts and fin<strong>is</strong>hes with money <strong>is</strong> interested only<br />

in exchange-value. Marx says that the capital<strong>is</strong>t does not spend money, he merely advances<br />

it. He has assumed competition and no cheating.<br />

If equivalents are exchanged, value for value, the process M - C - M’ becomes M - C - M;<br />

there <strong>is</strong> no surplus-value to be gained by exchanging one hundred pounds for commodities,<br />

and then selling them for one hundred pounds again. Commodity circulation creates no new<br />

value. If all goods are priced above (below) their values, the capital<strong>is</strong>ts’s gain (loss) as a<br />

seller <strong>is</strong> exactly <strong>of</strong>fset by h<strong>is</strong> loss (gain) as a buyer. Marx lays down as a rule for himself<br />

that the conversion <strong>of</strong> money into capital has to be explained on the bas<strong>is</strong> <strong>of</strong> the exchange <strong>of</strong><br />

equivalents. <strong>What</strong> <strong>is</strong> more, th<strong>is</strong> inversion ex<strong>is</strong>ts only for one <strong>of</strong> the three transacting persons.<br />

Marx argues that the surplus does not ar<strong>is</strong>e from the circulation <strong>of</strong> commodities, but from<br />

the process <strong>of</strong> production. In Chapter 6, Marx resolves the difficulty, as labour-power can<br />

create extra value, and its use-value possesses the pecululiar property <strong>of</strong> being a source <strong>of</strong><br />

value.<br />

Message [330] referenced by [365] and [490]. Next Message by MsMarx <strong>is</strong> [335.10].<br />

[332] Femme: Summary <strong>of</strong> Chapter 5 Marx begins th<strong>is</strong> chapter with an example <strong>of</strong><br />

M-C-M. Here the simple circulation in the exchange <strong>of</strong> commodities are pure and simple.<br />

The owner <strong>of</strong> one commodity exchanges with the owner <strong>of</strong> another commodity enough<br />

material where the amounts they owe each other and the balance <strong>is</strong> equal on the date <strong>of</strong><br />

the exchange. The exchange <strong>is</strong> a transaction where both parties gain. The trade does not<br />

produce an increase <strong>of</strong> exchange-value for either party involved in the trade. If one was to<br />

introduce money as a medium <strong>of</strong> circulation into th<strong>is</strong> trade it would not change the situation.<br />

The commodities are still equal in value because the value <strong>of</strong> a commodity <strong>is</strong> expressed in its<br />

price before it enters into circulation, so it’s a pre-condition <strong>of</strong> circulation not a result. The<br />

same value or the the same amount <strong>of</strong> social labour <strong>is</strong> in the hands <strong>of</strong> the commodity owners<br />

304 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

in the shape <strong>of</strong> h<strong>is</strong> commodity, the shape <strong>of</strong> the money which the commodity has been<br />

transformed and the shape <strong>of</strong> the commodity into which th<strong>is</strong> money has been re-converted.<br />

Now granted th<strong>is</strong> occurs in its pure form or its natural form where no gain <strong>is</strong> experienced by<br />

either owner.<br />

Next Marx goes into when the exchange value <strong>of</strong> commodities and money are not traded<br />

in their natural form th<strong>is</strong> leads to surplus-value. Marx defines commodities as a natural<br />

form and money as the converted for <strong>of</strong> commodities. Th<strong>is</strong> occurs when a seller sells h<strong>is</strong><br />

commodities above the value, where he sells whats worth $50 for $100 and keeps the surplus<br />

value <strong>of</strong> $50. When the seller has sold h<strong>is</strong> commodity he transforms into the buyer. At th<strong>is</strong><br />

time the gross amount may be balanced if he buys a commodity more than its value.<br />

Lastly, Marx goes into the transformation <strong>of</strong> money into capital <strong>is</strong> developed where you<br />

start with the exchange <strong>of</strong> equivalents. The money-owner buys h<strong>is</strong> commoditied at their<br />

value, sells them at their value and at the end <strong>of</strong> the process has more value than he threw<br />

into it at the beginning.<br />

Message [332] referenced by [365]. Next Message by Femme <strong>is</strong> [399.2].<br />

[335] Jake: Extra credit ch 5 When any two individuals buy and sell on the market<br />

both sides gain from the transaction. Both sides receive something <strong>of</strong> use value that they<br />

previously not had. When money enters the picture, the same should hold true. If exchange<br />

values are followed, the possibility <strong>of</strong> buyer and seller gaining does not occur. “In its pure<br />

form, the exchange <strong>of</strong> commodities <strong>is</strong> an exchange <strong>of</strong> equivalents, and thus it <strong>is</strong> not a method<br />

<strong>of</strong> increasing value.”<br />

When the market comes into the picture where buyers and sellers meet with different<br />

objectives and purposes, the possibility <strong>of</strong> exchange <strong>of</strong> equivalents changes. Everyone holds<br />

the object <strong>of</strong> need <strong>of</strong> another. The buyer could sell h<strong>is</strong> commodity above that <strong>of</strong> its value.<br />

The seller gains the surplus but <strong>is</strong> then faced to purchase from another who also ups the<br />

price. Th<strong>is</strong> then creates an equivalence, it <strong>is</strong> just the same as if they sold and bought at the<br />

true exchange values. The same <strong>is</strong> true for those that lose a percentage as a seller and then<br />

gain a percentage as buyer.<br />

Marx goes on to say that a person who sells high and buys low <strong>is</strong> basically a thief. Marx<br />

makes the point that a “capital<strong>is</strong>t class <strong>of</strong> a given country, taken as a whole cannot defraud<br />

itself.” If equivalents are exchanged, no surplus value results, and if non-equivalents are<br />

exchanged, we still have no surplus value. Th<strong>is</strong> <strong>is</strong> true by looking at the circulation <strong>is</strong>sue.<br />

There then becomes a double result <strong>of</strong> the origination <strong>of</strong> capital. Capital doesn’t come<br />

from the circulation part, but also <strong>is</strong> impossible to come from about without the circulation.<br />

The capital<strong>is</strong>t must “buy commodities at their value, sell them at their value, and yet at the<br />

end <strong>of</strong> the process withdraw more value from circulation than he threw into at the beginning.”<br />

Message [335] referenced by [365]. Next Message by Jake <strong>is</strong> [335.3].<br />

[355] Hans: Karl’s Essay about Chapter Five Here <strong>is</strong> Karl’s essay [325] again with my<br />

comments, so that you know what <strong>is</strong> expected <strong>of</strong> you in your essays.<br />

Karl’s first sentence <strong>is</strong> “malformed” and therefore it <strong>is</strong> not clear what Karl means:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 305<br />

In my estimation, one <strong>of</strong> the most interesting points Marx makes in chapter<br />

5 <strong>is</strong> the idea that <strong>of</strong> M-C-M in a capaital<strong>is</strong>t system.<br />

Karl also did not correct h<strong>is</strong> typos. I consider it a matter <strong>of</strong> basic courtesy to go over<br />

everything you write to the l<strong>is</strong>t before sending it. Karl continues:<br />

Th<strong>is</strong> <strong>is</strong> interesting because <strong>of</strong> Marx’s pre cursor to mentioning th<strong>is</strong>. He<br />

starts <strong>of</strong> by comparing two merchants <strong>of</strong> commodities, one has plenty <strong>of</strong><br />

corn and no wine, the other plenty <strong>of</strong> wine and no corn. Marx gives use the<br />

idea that when the two exchange commodities they exchange only what <strong>is</strong><br />

superfluous, to get more for less. Th<strong>is</strong> <strong>is</strong> sort <strong>of</strong> the concept behind M-C-M.<br />

Marx’s precursor <strong>is</strong>, if I understand Karl right, Ricardo with h<strong>is</strong> comparative advantage.<br />

Karl says here therefore: the gain in M-C-M’ (and Karl should not have omitted the prime<br />

in M’, because th<strong>is</strong> <strong>is</strong> what the whole Chapter Five <strong>is</strong> about) comes from the fact that those<br />

get the goods who need them, and there may also be some comparative advantage involved.<br />

Karl did not notice that Marx denies that th<strong>is</strong> <strong>is</strong> the source <strong>of</strong> the gain! Both arguments<br />

explain a gain in use value, not in value! Marx argues that the sum total <strong>of</strong> values cannot<br />

increase by acts <strong>of</strong> circulation, and based on th<strong>is</strong> argument Marx reaffirms h<strong>is</strong> commitment<br />

to explain capital<strong>is</strong>m by an exchange <strong>of</strong> equal values (which seems then pretty hopeless, but<br />

the resolution will be given in Chapter SIx). Th<strong>is</strong> line <strong>of</strong> reasoning by Marx <strong>is</strong> reflected in<br />

Karl’s essay as follows:<br />

The interesting contradictory implication <strong>is</strong> that commodities are always by<br />

nature supposed to be exchanged in “equivalents.” So if the the two merchants<br />

exchange corn and wine, it should be on an equal exchange. It <strong>is</strong>n’t<br />

in capatial<strong>is</strong>m, there <strong>is</strong> an extra magnitude <strong>of</strong> value reflected in the price <strong>of</strong><br />

the commodity. Notice how Marx said commodities are “supposed” to behave<br />

as equivalents in any transaction, but in capatil<strong>is</strong>m the don’t. Perhaps<br />

th<strong>is</strong> <strong>is</strong> why Marx concluded with the phrase used by Hegel, “Hic Rhodus,<br />

hic Salsa”, meaning that the purpose <strong>is</strong> to comprehend the contradiction <strong>of</strong><br />

M-C-M, rather than to dwell on what <strong>is</strong> supposed to be.<br />

Karl seems to think that earlier, Marx tried to derive laws to what proportions commodities<br />

should be exchanged, but now he realizes that in capital<strong>is</strong>m commodities are not exchanged<br />

th<strong>is</strong> way, and therefore Marx gives up on h<strong>is</strong> normative goals and tries to comprehend<br />

M-C-M’ as it <strong>is</strong>.<br />

Karl m<strong>is</strong>understands here Marx’s method. Marx never considered the exchange <strong>of</strong> equal<br />

values as something that should happen. Marx makes the assumption <strong>of</strong> equal commodity<br />

exchange because he claims that the main mechan<strong>is</strong>m which creates pr<strong>of</strong>its does not depend<br />

on unequal exchange. Unequal exchange may give more pr<strong>of</strong>its for some, but only at the<br />

expense <strong>of</strong> less pr<strong>of</strong>its for others; it <strong>is</strong> an additional d<strong>is</strong>tortion but not the basic principle<br />

explaining pr<strong>of</strong>its. Marx’s arguments in support <strong>of</strong> th<strong>is</strong> are summarized in Karl’s essay as<br />

follows:<br />

Marx does hint at the fact that even though capatal<strong>is</strong>t can scrape the surplus<br />

<strong>of</strong>f <strong>of</strong> exchange in transaction, that it can equalize by the buying and selling<br />

306 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> additional commodities. Marx’s example in chapter 5 <strong>of</strong> M-C-M <strong>is</strong> that<br />

the producer that exchanged money for capital drew from the system more<br />

than was put in. He goes on to say that M-C-M may shift towards a more<br />

equivalent over all transaction, because just as the capital<strong>is</strong>t scrapes surplus<br />

, other capital<strong>is</strong>ts will scrape surplus from that capital<strong>is</strong>t when he becomes<br />

the buyer as opposed to the seller. I found it extremely interesting how<br />

Marx presented the arguement that in some instances M-C-M may not be<br />

all the capital<strong>is</strong>t had planned on, that possibly commodities are more like<br />

“equivalents” in the over all scheme <strong>of</strong> things.<br />

I think that instead <strong>of</strong><br />

in some instances M-C-M may not be all the capital<strong>is</strong>t had planned on<br />

Karl means:<br />

in some instances M-C-M’ may not materialize although the capital<strong>is</strong>t had<br />

planned on it.<br />

because the laws <strong>of</strong> the commodity exchange assert themselves anyway. Again, th<strong>is</strong> <strong>is</strong><br />

not what Marx meant.<br />

One thing that apparently prevents Karl from just reading what Marx wrote <strong>is</strong> that Karl<br />

gets too many ideas <strong>of</strong> h<strong>is</strong> own as he reads Marx. Nobody should expect to understand<br />

all the intricacies in Marx’s arguments just by reading it over in a relaxed manner. Marx’s<br />

arguments are highly constructed and it requires a long attention span and <strong>of</strong>ten several<br />

careful readings to catch all that he <strong>is</strong> saying.<br />

Next Message by Hans <strong>is</strong> [356].<br />

[364] Hans: How to get a good grade without bothering with the material Bandit’s<br />

[329] reminds me more <strong>of</strong> a sports reportage than an essay d<strong>is</strong>cussing economic arguments.<br />

Marx begins with th<strong>is</strong> and then he begins with that and then he begins with that, and then<br />

he criticizes and criticizes and d<strong>is</strong>agrees and d<strong>is</strong>credits, but he also enlightens and educates<br />

(thank you for trying to make me feel good, Bandit), and then he concludes.<br />

And what did I learn reading Bandit’s report? I know now that Bandit did read Chapter<br />

Five. Since I know Chapter Five fairly well I can also pretty much recognize what Bandit<br />

was reading when he made which statement. But somebody who has not read the Chapter,<br />

and <strong>is</strong> interested in what Marx really argued, will get a few unrelated tidbits (one should not<br />

confuse use value and exchange value, and: commodities have their values before they enter<br />

the market) but preciously little in a coherent thought. Indeed, Bandit’s travel diary tells<br />

me more about Bandit’s m<strong>is</strong>understandings <strong>of</strong> Marx, and Bandit’s unwillingness to follow<br />

Marx’s argument, combined with h<strong>is</strong> willingness to go through the motions required to get<br />

a good grade, than about Marx’s arguments.<br />

In other words, for those who want to learn about Marx<strong>is</strong>t economics it <strong>is</strong> a waste <strong>of</strong> time<br />

to go through Bandit’s [329]. I will therefore not bother you with the details.<br />

Next Message by Hans <strong>is</strong> [365].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 307<br />

[365] Hans: About MsMarx’s, Jake’s, and Femme’s essays MsMarx’s [330] <strong>is</strong> an<br />

informative bird’s eye view <strong>of</strong> Marx’s argument in Chapter Five. Everybody who <strong>is</strong> still<br />

thinking <strong>of</strong> writing an essay before the deadline tonight midnight should read it. There <strong>is</strong><br />

also lots <strong>of</strong> room to build on it, there are many things that can be elaborated more.<br />

Jake’s [335] re-explains some <strong>of</strong> the thoughts given by Marx in Chapter Five. Jake also<br />

has the guts to take on some controversial <strong>is</strong>sues, since he writes: “Marx goes on to say<br />

that a person who sells high and buys low <strong>is</strong> basically a thief.” I’d like to add an explanation<br />

to th<strong>is</strong>. Marx does not mean with th<strong>is</strong> that capital<strong>is</strong>m <strong>is</strong> immoral. In 265:1, Marx makes<br />

a very specific argument: buying and selling at prices that deviate from values cannot be<br />

the main source <strong>of</strong> surplus value in modern capital<strong>is</strong>m. Why not? Because th<strong>is</strong> <strong>is</strong> only a<br />

transfer <strong>of</strong> value from one to the other, it cannot explain how the capital<strong>is</strong>t class as a whole<br />

makes pr<strong>of</strong>its. Th<strong>is</strong> <strong>is</strong> where the metaphor with the thief comes in: theft <strong>is</strong> also a transfer <strong>of</strong><br />

things from one to another, it does not create new things. The upshot <strong>of</strong> Marx’s argument <strong>is</strong><br />

therefore: modern capital<strong>is</strong>ts make their money in a different way than thieves.<br />

Femme’s [332] <strong>is</strong> not worth reading, unless you are interested in explanations that are<br />

refreshingly unconcerned about logical contradictions. Femme writes the following two<br />

sentences right one after another without seeing a need for explanation:<br />

The exchange <strong>is</strong> a transaction where both parties gain. The trade does not<br />

produce an increase <strong>of</strong> exchange-value for either party.<br />

At the end, Femme writes that developed capital<strong>is</strong>m does the following:<br />

The money-owner buys h<strong>is</strong> commoditied at their value, sells them at their<br />

value and at the end <strong>of</strong> the process has more value than he threw into it at<br />

the beginning.<br />

Marx sees th<strong>is</strong> as a big challenge, how can th<strong>is</strong> be done? He adds: “Hic Rhodus, hic<br />

salta” (in other words, “I first want to see how th<strong>is</strong> <strong>is</strong> done, before I believe it.”) Femme does<br />

not see it as a challenge. For her, th<strong>is</strong> <strong>is</strong> simply the way things are being done.<br />

Is th<strong>is</strong> femin<strong>is</strong>t economics? No. Th<strong>is</strong> <strong>is</strong> a sign that there <strong>is</strong> a big taboo in our society. We<br />

are not supposed to think rationally about the question where pr<strong>of</strong>its come from.<br />

Message [365] referenced by [490]. Next Message by Hans <strong>is</strong> [366].<br />

[388] Brumbys: In th<strong>is</strong> reading, I have learned that an individual goes into a market to<br />

exchange h<strong>is</strong>/her commodities for other commodities. The value will be equal <strong>of</strong> each item<br />

th<strong>is</strong> <strong>is</strong> where equivalence comes in. When there <strong>is</strong> an equal exchange <strong>of</strong> each commodity.<br />

An individual comes into a market hoping to exchange for something he/she needs at an<br />

equivalent price. Th<strong>is</strong> <strong>is</strong> how the circulation <strong>of</strong> money happens. Every individual makes a<br />

something to exchange for something they need, so it just goes around in a circle. So if A<br />

makes something to get what B wants but A doesn’t need Bs item then A can exchange with<br />

C. So it goes around. But all th<strong>is</strong> equivalence can be a problem if capital<strong>is</strong>t charges more<br />

than it’s surplus value. If one increases its price then the other will have to start increasing<br />

its prices, which again leads to an equivalence in the exchange value if both the sellers and<br />

buyers increase its prices. In a capital<strong>is</strong>t society they want to gain from selling so <strong>of</strong> course<br />

they will increase the value <strong>of</strong> the item. So they will buy at their value and sell it at a higher<br />

308 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

value and th<strong>is</strong> <strong>is</strong> how capitial<strong>is</strong>m <strong>is</strong> formed. Although Marx claims that any individual that<br />

buys something at a lower price and sells it at a higher price <strong>is</strong> a thief but th<strong>is</strong> does lead to<br />

capital<strong>is</strong>m.<br />

Next Message by Brumbys <strong>is</strong> [392].<br />

[393] Pizza: The conception <strong>of</strong> the process <strong>of</strong> mercatil<strong>is</strong>m being a process <strong>of</strong> cheating<br />

holds true only under certain assumptions:<br />

Each time there <strong>is</strong> an exchange each person has the same use value for the same commodity<br />

Supply and demand do not ex<strong>is</strong>t<br />

There ex<strong>is</strong>t no dim<strong>is</strong>hing returns on utility<br />

These are just a few <strong>of</strong> the reasons I can point out that come to my mind.<br />

Thus the process <strong>of</strong> exchange ex<strong>is</strong>ts for the very reason that when the process <strong>of</strong> production<br />

ex<strong>is</strong>ts to an extent that we produce more than we consume the relative exchange value<br />

and use values create mercantil<strong>is</strong>m.<br />

Any takers on th<strong>is</strong>?<br />

Message [393] referenced by [490]. Next Message by Pizza <strong>is</strong> [499].<br />

[400] Kia: Extra Credit Ch. 5 In Chapter 5, Marx d<strong>is</strong>tingu<strong>is</strong>hes between use value and<br />

exchange value during the commodity circulation. Also asserts that capital cannot ar<strong>is</strong>e from<br />

circulation, and it equally impossible to apart from circulation.<br />

Marx starts with the clear example relationships between capital<strong>is</strong>t, buyer, and seller.<br />

Between buyer and seller there <strong>is</strong> no d<strong>is</strong>tinct relationships that ar<strong>is</strong>es from them. There are<br />

nothing more than just exchange in commodity. Only capital<strong>is</strong>t have relationships during<br />

the circulation. Where capital<strong>is</strong>t act as both seller and buyer between the three. Looking at<br />

th<strong>is</strong> one can conclude that it <strong>is</strong> pure and simple circulation, balancing out equally at the end.<br />

Where money serves as a account with the expression <strong>of</strong> commodities in the price.<br />

During th<strong>is</strong> circulation the use value <strong>is</strong> either increased or decreased. However, it <strong>is</strong><br />

wrong to assume that exchange value <strong>is</strong> gained in the process. The use value are changed<br />

through hands <strong>of</strong> people in the trade. Where one person trade something he has no use value<br />

with someone that holds commodity that he needs. Th<strong>is</strong> process takes care <strong>of</strong> the use value<br />

between the traders, as both equally gaining the use value. Thus, during the exchange there<br />

can not be increase nor decrease in exchange value. There might be only in form <strong>of</strong> equality<br />

in the exchange. So, basically exchange value <strong>is</strong> exchange in equal thing and with increase<br />

in use values in it. Here Marx state that “Where equality ex<strong>is</strong>ts there <strong>is</strong> no gain.”<br />

For many experts such as Condillac in th<strong>is</strong> chapter tries to pass commodities circulation<br />

as a surplus value. Confusing use value and exchange value. Where he asks question, why<br />

then we engage in exchange <strong>of</strong> commodities if no one <strong>is</strong> to gain a values in the process. On<br />

th<strong>is</strong> <strong>is</strong>sue Marx asserts that many experts like Condillac, confuses ideas <strong>of</strong> values in question<br />

and commodities producers throws into exchange to gain h<strong>is</strong> needs. Also Marx argue that<br />

commodities can not be paid for twice, once for their use value and other for account <strong>of</strong><br />

their values. Since, during the exchange again, use values can only be exchanged. Far as


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 309<br />

exchange value goes money it self as server are expressed in the form <strong>of</strong> value. Where it<br />

dosen’t alter the pure physical form between the two.<br />

In the market, power <strong>is</strong> attained by the commodities owners. As their ownership <strong>of</strong> commodity<br />

dictate their power. With the material differences, it clarify the buyer and sellers<br />

need. Again, because no-one holds what they need, only what others need. Besides the<br />

commodities differences in physical variety and use value, there <strong>is</strong> also converted form, between<br />

money and commodities. Money as being buyer and commodities as a seller. As a<br />

buyer and sellers, there <strong>is</strong> really no end to the circulation <strong>of</strong> the cycle. When seller makes a<br />

sale, than he has to buy back what he need to make a another sale with the surplus he gained<br />

from selling in first place. Thus, seller becomes buyer in turn buyer becomes seller.<br />

My assumption after reading chapter 5, both the seller and buyers gain advantages. By<br />

d<strong>is</strong>tingu<strong>is</strong>hing the labour both sides can gain their needs by skills that are put into producing<br />

commodity. Th<strong>is</strong> way one would not waste h<strong>is</strong> time producing all the commodities he needs,<br />

which he has to put more labour producing something that he can effectively produce at a<br />

effecient level. Thus, putting more time on something that he h<strong>is</strong> good at producing while<br />

gaining h<strong>is</strong> use value through exchange. However, I got an impression that producers <strong>of</strong><br />

commodity <strong>is</strong> the only one being gaining. If you look at a example on Asia Minor paid a<br />

yealy money tribute to ancient Rome. Which in turn bought commodities from them.<br />

Message [400] referenced by [490]. Next Message by Kia <strong>is</strong> [580].<br />

[407] Caren: CHAPTER V Chapter 5; Contradictions in the General Formula <strong>of</strong> Capital<br />

For the transition <strong>of</strong> value from its money-form into the form <strong>of</strong> capital, the form within<br />

which value finally becomes the self-determining and self-mediating process <strong>of</strong> its own selfexpansion.<br />

Unlike the commodity, which enters circulation only then to fall out <strong>of</strong> it again<br />

once it reaches the hands <strong>of</strong> its consumer, money, on entering the sphere <strong>of</strong> circulation <strong>is</strong><br />

constantly being d<strong>is</strong>placed from one hand to another. With the simple circulation <strong>of</strong> commodities,<br />

the commodity <strong>is</strong> sold because it possesses the quality <strong>of</strong> a non-use-value for its<br />

producer but at the same time has a use value for the owner <strong>of</strong> money. Having transformed<br />

her commodity into money the commodity producer can then buy another commodity that<br />

does have the quality <strong>of</strong> being a use-value for her. Thus the motive force for simple circulation<br />

<strong>of</strong> commodities ar<strong>is</strong>es from the qualitative difference in commodities with respect<br />

to their use-values. In the form -M-C-M- there can be no such qualitative difference since<br />

money <strong>is</strong> the same homogeneous commodity.<br />

Money may become coveted and accumulated for its own shake. The motive for the inverted<br />

form <strong>of</strong> the simple circulation <strong>of</strong> commodities may therefore become the quantitative<br />

difference between M1 and M2. Th<strong>is</strong> inverted form <strong>of</strong> the simple circulation <strong>of</strong> commodities<br />

then becomes expressed in what Marx terms the general formula <strong>of</strong> capital, or, alternatively,<br />

the formula <strong>of</strong> merchant capital: M-C-M’ Where M¡M’ Here the m<strong>is</strong>er, who accumulated<br />

money by selling but not buying, now develops into the merchant who accumulates money<br />

not by withdrawing money from the process <strong>of</strong> circulation but by buying commodities cheap<br />

and selling them dear.<br />

310 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Whereas the motive force for the simple circulation <strong>of</strong> commodities lay outside the sphere<br />

<strong>of</strong> commodity exchange itself in the needs and desires <strong>of</strong> the commodity producers themselves,<br />

the motive force for the circulation <strong>of</strong> the merchant becomes internal to it. It emerges<br />

as the insatiable accumulation <strong>of</strong> the universal and abstract <strong>wealth</strong> represented by money.<br />

With th<strong>is</strong> formula we find the formal expression <strong>of</strong> capital - the process <strong>of</strong> the self-expansion<br />

<strong>of</strong> value.<br />

In developing into the form <strong>of</strong> capital, value comes to subordinate the movement <strong>of</strong> usevalue<br />

to its own ends - to its own self-expansion. As capital, therefore, value becomes an<br />

independent and objective force whose movement appears autonomous from the will and<br />

desires <strong>of</strong> human beings. But for value to take up the form <strong>of</strong> capital it has to overcome an<br />

important contradiction between its own general expression and the circulation <strong>of</strong> commodities.<br />

The circulation <strong>of</strong> commodities appears as being based on the free and equal exchange<br />

<strong>of</strong> commodities. commodities have, for the most part, been assumed to exchange according<br />

to their values. But the circuit <strong>of</strong> merchant capital implies unequal exchange. Either the<br />

merchant buys commodities below their value and then sells at their value, or else she buys<br />

them at their value but then sells them above their value. In either case the merchant must<br />

be able to impose an unequal exchange in either the first phase <strong>of</strong> buying, or else in the<br />

second phase <strong>of</strong> selling. While for each individual merchant there may be a possibility <strong>of</strong><br />

taking advantage <strong>of</strong> the divergence <strong>of</strong> the prices <strong>of</strong> commodities from their values in order<br />

to buy cheap and to sell dear, overall it <strong>is</strong> a zero sum game since the total value in circulation<br />

<strong>is</strong> predetermined by the values created in production. One dealer’s gain must be another’s<br />

loss. Hence there can be no general bas<strong>is</strong> for merchant capital<strong>is</strong>t’s pr<strong>of</strong>it, and thus for the<br />

self-expansion <strong>of</strong> value, within the circulation <strong>of</strong> commodities. With the generalization <strong>of</strong><br />

commodity exchange, merchant pr<strong>of</strong>it, by itself, become impossible. The capital<strong>is</strong>t must<br />

find a commodity which can be used to create a value greater than that embodied within<br />

itself; and the only such commodity <strong>is</strong> labor-power.<br />

Hans: Excellent! There <strong>is</strong> only one thing wrong. You write:<br />

Whereas the motive force for the simple circulation <strong>of</strong> commodities lay outside the sphere <strong>of</strong><br />

commodity exchange itself in the needs and desires <strong>of</strong> the commodity producers themselves,<br />

the motive force for the circulation <strong>of</strong> the merchant becomes internal to it.<br />

The goal <strong>of</strong> accumulation <strong>of</strong> value in its independent monetary form <strong>is</strong> not a goal intrinsic to circulation. The<br />

hoarder even tries to reach it by “saving” money from circulation.<br />

Next Message by Caren <strong>is</strong> [451].<br />

[415] Brumbys: extra credit (fwd) In th<strong>is</strong> reading, I have learned that an individual goes<br />

into a market to exchange h<strong>is</strong>/her commodities for other commodities. The value will be<br />

equal <strong>of</strong> each item th<strong>is</strong> <strong>is</strong> where equivalence comes in. When there <strong>is</strong> an equal exchange<br />

<strong>of</strong> each commodity. An individual comes into a market hoping to exchange for something<br />

he/she needs at an equivalent price. Th<strong>is</strong> <strong>is</strong> how the circulation <strong>of</strong> money happens. Every<br />

individual makes a something to exchange for something they need, so it just goes around<br />

in a circle. So if A makes something to get what B wants but A doesn’t need Bs item then<br />

A can exchange with C. So it goes around. But all th<strong>is</strong> equivalence can be a problem if<br />

capital<strong>is</strong>t charges more than it’s surplus value. If one increases its price then the other will<br />

have to start increasing its prices, which again leads to an equivalence in the exchange value


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 311<br />

if both the sellers and buyers increase its prices. In a capital<strong>is</strong>t society they want to gain from<br />

selling so <strong>of</strong> course they will increase the value <strong>of</strong> the item. So they will buy at their value<br />

and sell it at a higher value and th<strong>is</strong> <strong>is</strong> how capitial<strong>is</strong>m <strong>is</strong> formed. Although Marx claims that<br />

any individual that buys something at a lower price and sells it at a higher price <strong>is</strong> a thief but<br />

th<strong>is</strong> does lead to capital<strong>is</strong>m.<br />

Message [415] referenced by [490]. Next Message by Brumbys <strong>is</strong> [492].<br />

[428] Positive: Extra credit chapter 5 Use-value, both sides gain!<br />

Th<strong>is</strong> <strong>is</strong> a great statement, and also a very true statement. If we relate it to the example<br />

in the book, we can look at A, who sells wine and buys corn, and the corn-farmer B, who<br />

sells corn and buys wine. They both trade their own-produced good with the other person’s<br />

own-produced good. A and B makes their products for sale and pr<strong>of</strong>it. It <strong>is</strong> assumed that<br />

both will benefit from their trades. They exchange their products for a different product, in<br />

which they will gain a use-value from. Th<strong>is</strong>, because both have no use for their own product,<br />

but for the product they are exchanging it into. On the other hand, A who sells wine and<br />

buys corn, possibly produces more wine in the same labor-time than B would, and B may<br />

produce more corn than A, the wine-grower could produce. Therefore, they will both get<br />

more “product”, or assets they can use than they would have gotten without the exchange.<br />

Th<strong>is</strong> <strong>is</strong> the reason why we can state that both sides will gain from the transaction they have<br />

completed.<br />

Message [428] referenced by [490]. Next Message by Positive <strong>is</strong> [471].<br />

[455] Punani: extra credit Chapter 5 in Marx’s “Capital” focuses on the the idea <strong>of</strong><br />

M-C-M in a capital<strong>is</strong>t regularity. M for money, C for commodity, and M for money. The<br />

bas<strong>is</strong> <strong>of</strong> th<strong>is</strong> controversy <strong>is</strong> the conflict <strong>of</strong> use-value and exchange value in the circulation <strong>of</strong><br />

commodities. He start <strong>of</strong>f with the m<strong>is</strong>understanding <strong>of</strong> the money circulation from buyer to<br />

seller and seller to buyer. Th<strong>is</strong> cons<strong>is</strong>ts <strong>of</strong> the seller sacrificing h<strong>is</strong> commodities in exchange<br />

for commidity to sat<strong>is</strong>fy h<strong>is</strong> needs and wants. Marx’s analys<strong>is</strong> <strong>of</strong> commodity <strong>is</strong> everything,<br />

whether raw material or fin<strong>is</strong>hed good, which <strong>is</strong> produced for sale. Commodities are the social<br />

form <strong>of</strong> <strong>wealth</strong> in capital<strong>is</strong>t societies. Every commodity has two aspects; it’s use value<br />

and exchange value. Marx begins the argument with a compar<strong>is</strong>on <strong>of</strong> exchange and usevalue.<br />

Marx sees it as a commodity <strong>is</strong> declared in its price prior into entering the circulation,<br />

thus it’s not the outcome but a pre-condition <strong>of</strong> circulation. Marx’s analyses <strong>of</strong> the commodity<br />

circulation and their exchanges will be equal only in its purity. “Vulgar Econom<strong>is</strong>ts”,<br />

believe that the equal exchange <strong>is</strong> in both cases <strong>of</strong> exchange values and use-values. Marx<br />

blames these econom<strong>is</strong>ts for the lack <strong>of</strong> apprehending the facts on exchange values and<br />

use-values. He also goes on stating “ in its pure form, the exchange <strong>of</strong> commodities <strong>is</strong> an<br />

exchange <strong>of</strong> equivalents, and not a method <strong>of</strong> increasing values.” Chapter 5 ended mentioning<br />

that capital cannot ar<strong>is</strong>e from circulation and surplus value cannot ar<strong>is</strong>e from circulation.<br />

“ The transformation <strong>of</strong> money into capital has tobe developed in the bas<strong>is</strong> <strong>of</strong> immanent<br />

laws <strong>of</strong> the exchange <strong>of</strong> commodities, in such a way that the startin point <strong>is</strong> the exchange <strong>of</strong><br />

equivalents ”. The value <strong>of</strong> a product increases when its content <strong>is</strong> changed to be used as<br />

something else, for example wood when turned into a table, wood cannot valuorize itself but<br />

the change into a table increases its value.<br />

Message [455] referenced by [490]. Next Message by Punani <strong>is</strong> [533].<br />

312 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[490] Hans: Pizza’s term paper In message [365] I recommended to everyone who<br />

was still thinking <strong>of</strong> writing an essay about Chapter Five to first read MsMarx’s [330] and<br />

build on it. Nevertheless, Kia’s [400], Brumbys’s [415], and Punani’s [455] tried an overall<br />

overview <strong>of</strong> the Chapter without getting Marx’s basic argument as it was laid out in [330].<br />

There <strong>is</strong> not much use d<strong>is</strong>cussing these particular contributions; they are just notes jotted<br />

down while reading the Chapter Five which show that the readers did not understand what<br />

Marx wanted to say in Chapter Five.<br />

Pizza’s [393] and Positive’s [428] only concentrated on one aspect <strong>of</strong> the Chapter: whether<br />

there <strong>is</strong> gain involved in the exchange <strong>of</strong> equivalents. It <strong>is</strong> legitimate for a term paper like<br />

th<strong>is</strong>, also for the one on Chapter Twenty-Five, to narrow the subject down like th<strong>is</strong>. Marx<br />

says that in terms <strong>of</strong> use value both sides gain, but in terms <strong>of</strong> value, the exchange <strong>is</strong> a zero<br />

sum game. Neither Pizza nor Positive d<strong>is</strong>tingu<strong>is</strong>h between use value and exchange value,<br />

and they also do not give any arguments that th<strong>is</strong> <strong>is</strong> a false or artificial d<strong>is</strong>tinction. Neverhteless,<br />

both <strong>of</strong> them had some interesting point. If I understand Pizza right, he tried to give<br />

a set <strong>of</strong> conditions under which there would not be a net gain in marginal utility in the exchange.<br />

Pizza tried to show that Marx was only an uninteresting special case <strong>of</strong> neoclassical<br />

theory, something that other neoclassical econom<strong>is</strong>ts have tried to show too. Positive argues<br />

that comparative advantage <strong>is</strong> not only a gain in use value but allows higher productivity.<br />

The gain <strong>is</strong> therefore not subjective but objective. Marx nevertheless ins<strong>is</strong>ts that it <strong>is</strong> a gain<br />

only in terms <strong>of</strong> use values, not in terms <strong>of</strong> values. Higher productivity does not mean that<br />

higher values will be created, but more use value with the same labor time.<br />

Next Message by Hans <strong>is</strong> [516].<br />

Term Paper 299 <strong>is</strong> 999 in 1995WI and 999 in 1996ut:<br />

Term Paper 299 Essay about Chapter Twenty-Five<br />

[527] Wight: For my termpaper essay, I chose to write a paragraph by paragraph abstract<br />

<strong>of</strong> the first section <strong>of</strong> Chapter 25. Th<strong>is</strong> chapter explores the impact <strong>of</strong> the growth <strong>of</strong> capital<br />

on the working class, focusing on the process <strong>of</strong> accumulation and composition <strong>of</strong> capital.<br />

Composition <strong>of</strong> capital has two general aspects. Firstly, as value, it <strong>is</strong> divided into constant<br />

capital or the value <strong>of</strong> the means <strong>of</strong> production. Th<strong>is</strong> <strong>is</strong> the value composition or organic<br />

composition. Secondly, as material, all capital <strong>is</strong> divided into means <strong>of</strong> production and living<br />

labor power. Th<strong>is</strong> <strong>is</strong> the technical composition.<br />

The average <strong>of</strong> all the average compositions in all areas <strong>of</strong> production gives us the composition<br />

<strong>of</strong> the total social capital <strong>of</strong> a country. Th<strong>is</strong> <strong>is</strong> an aggergate <strong>of</strong> all capital means in a<br />

country.<br />

Growth <strong>of</strong> capital implies a growth in labor power. Sometimes, the demand for workers<br />

may exceed the supply, leading to a r<strong>is</strong>e in wages during the process <strong>of</strong> rapid capital accumulation.<br />

The accumulation <strong>of</strong> capital may surpass the growth in labor power. The result<br />

<strong>is</strong> more capital<strong>is</strong>ts and more wage-laborers. Accumulation <strong>of</strong> capital <strong>is</strong> the multiplication <strong>of</strong><br />

the working class.<br />

In a free country where slaves are not allowed, the <strong>wealth</strong>y survive on a multitude <strong>of</strong><br />

laborious poor. Without the working poor, no country would be valuable or successful. To


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 313<br />

make a society, it <strong>is</strong> necessary that a great number <strong>of</strong> citizens remain ignorant and poor.<br />

Knowledge enlarges and multiplies our desires.<br />

The mechan<strong>is</strong>m <strong>of</strong> the accumulation process itself increases the amount <strong>of</strong> capital as well<br />

as the mass <strong>of</strong> the laboring poor. The laboring poor are wage laborers who turn their labor<br />

power into a force to aid in increasing capital and are compelled to make their relationship<br />

<strong>of</strong> dependence on their product an eternal relationship. Persons <strong>of</strong> independent fortunes owe<br />

their superior advantages to the industry <strong>of</strong> others. The ability to command labor d<strong>is</strong>tingu<strong>is</strong>hes<br />

the rich from the poor. Workers are placed in a state <strong>of</strong> easy and liberal dependence.<br />

Instead <strong>of</strong> workers relationship <strong>of</strong> dependence becoming more intensive with the growth<br />

<strong>of</strong> capital, it becomes more extensive. The sphere <strong>of</strong> capital’s exploitation and dominance<br />

extends with the number <strong>of</strong> people subjected to it. The r<strong>is</strong>e in wages as a result <strong>of</strong> capital<br />

accumulation only allows the workers a minimal amount <strong>of</strong> additional freedom. The aim <strong>of</strong><br />

the capital<strong>is</strong>t <strong>is</strong> the production <strong>of</strong> commodities which contain more labor than he paid for.<br />

Therefore, containing a portion <strong>of</strong> value which cost him nothing and <strong>is</strong> realized in the sale <strong>of</strong><br />

the commodities. The law <strong>of</strong> th<strong>is</strong> mode <strong>of</strong> production <strong>is</strong> surplus value, or additional pr<strong>of</strong>its.<br />

Wages imply that workers will always provide a certain quantity <strong>of</strong> unpaid labor. So, an<br />

increase in wages means a decrease in the amount <strong>of</strong> unpaid labor.<br />

A r<strong>is</strong>e in the price <strong>of</strong> labor resulting from accumulation <strong>of</strong> capital implies the following<br />

alternatives. Either, the price <strong>of</strong> labor keeps on r<strong>is</strong>ing, because the r<strong>is</strong>e doesn’t interfere<br />

with the progress <strong>of</strong> accumulation. The increase in capital made the exploitable labor power<br />

insufficient. Or, accumulation slackens as a result <strong>of</strong> the price <strong>of</strong> labor r<strong>is</strong>ing, because the<br />

stimulus <strong>of</strong> gain <strong>is</strong> blunted. The rule <strong>of</strong> accumulation lessens. The relative reduction in the<br />

amount <strong>of</strong> capital caused the exploitable labor power i.e. its price, to be in excess. The rate<br />

<strong>of</strong> capital accumulation <strong>is</strong> the independent variable, and the rate <strong>of</strong> wages in the dependent<br />

variable.<br />

The relation between capital accumulation and the rate <strong>of</strong> wages <strong>is</strong> the relation between<br />

the unpaid labor which has been transformed into capital and the additional paid labor necessary<br />

to set in motion th<strong>is</strong> additional capital. It <strong>is</strong> a relation <strong>of</strong> the paid and unpaid labor <strong>of</strong><br />

the same working population. The r<strong>is</strong>e in wages <strong>is</strong> therefore confined within limits that leave<br />

intact the foundations <strong>of</strong> the capital<strong>is</strong>t systems as well as securing its reproduction on an increasing<br />

scale. The law <strong>of</strong> capital<strong>is</strong>t accumulation expresses the situation that the very nature<br />

<strong>of</strong> accumulation excludes every diminution in the degree <strong>of</strong> exploitation <strong>of</strong> labor and every<br />

r<strong>is</strong>e in the price <strong>of</strong> labor, which could seriously interfere with the continual reproduction <strong>of</strong><br />

the capital relation on a larger scale.<br />

Hans: <strong>What</strong> you are saying <strong>is</strong> right, and it <strong>is</strong> also well written, but should have put more emphas<strong>is</strong> on the connections<br />

between the different topics which you are reporting about. When Marx makes h<strong>is</strong> summary statements<br />

trying to pull it all together, you just quote him literally, instead <strong>of</strong> exploring with your own words and your own<br />

thoughts whether such a connection really ex<strong>is</strong>ts.<br />

First Message by Wight <strong>is</strong> [55].<br />

[528] Pinky: Chapter 25 summary After having d<strong>is</strong>cussed the concept <strong>of</strong> accumulation<br />

in <strong>is</strong>olation, Marx next places it in the context <strong>of</strong> technical progress, examining the effects<br />

on the working class.<br />

314 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Section 1: Marx lays out some basics: He explains the value-composition <strong>of</strong> capital as<br />

the ratio <strong>of</strong> constant to variable capital; c/v, measured in values. The technical composition<br />

<strong>of</strong> capital; the pool <strong>of</strong> means <strong>of</strong> production relative to the employed labor <strong>is</strong> its counterpart<br />

in use-value terms.<br />

Marx then defines the organic composition <strong>of</strong> capital, the “...value-composition <strong>of</strong> capital<br />

in so far as it <strong>is</strong> determined by its technical composition and mirrors the changes <strong>of</strong> the latter”<br />

pg.762 Marx notes that the technical compostition cannot be measured in a quantitative sense<br />

because the means <strong>of</strong> production and labor are qualitatively variable. Therefore, one cannot<br />

be divided by the other. That <strong>is</strong>, changes in the organic composition demonstrate how the<br />

value-composition would have changed if the values <strong>of</strong> the individual commodities used as<br />

the value <strong>of</strong> labor power and the means <strong>of</strong> production remained constant. The following<br />

example demonstrates: When you have 300 value units <strong>of</strong> constant capital and 100 units <strong>of</strong><br />

variable capital, the value-composition <strong>is</strong> 3; (c/v=300/100=3), the organic composition =ing<br />

3 as well. If a technical change brings about a 50% increase in the means <strong>of</strong> production<br />

used, cutting the employed labor-power in half, the values <strong>of</strong> individual units <strong>of</strong> means <strong>of</strong><br />

production and labor-power stayed the same, c would then equal 450 and v would equal 50,<br />

thus the organic composition increases to 9; (450/50). It must then be considered that the<br />

cost <strong>of</strong> the means <strong>of</strong> production may have decreased to that (c) would actually fall so the<br />

value-composition r<strong>is</strong>es at a lesser rate. The organic composition <strong>is</strong> a measure <strong>of</strong> changes<br />

in the technical aspect <strong>of</strong> the composition. To figure the average composition <strong>of</strong> capital, one<br />

includes the “value or organic” composition <strong>of</strong> the complete capital <strong>of</strong> a country. The organic<br />

composition <strong>is</strong> the basic meaning when the composition <strong>of</strong> capital <strong>is</strong> d<strong>is</strong>cussed, unless it <strong>is</strong><br />

defined otherw<strong>is</strong>e.<br />

If accumulation does take place with the absence <strong>of</strong> technological advances and thus<br />

the 3 aspects <strong>of</strong> composition measure remain constant, the constant and variable capital<br />

will increase at an even proportion and consequently in the demand for labor-power. As a<br />

result, Marx says that the demand for labor will be greater than the supply, and the workers<br />

wages will r<strong>is</strong>e. Though th<strong>is</strong> may reduce the pain <strong>of</strong> exploitation, exploitation <strong>is</strong> still the<br />

underlying trait <strong>of</strong> capital<strong>is</strong>m. Marx states that wages r<strong>is</strong>e and fall as a result <strong>of</strong> the variable<br />

accumulation over the industrial cycle.<br />

Section 2: Next, Marx investigates the results <strong>of</strong> having the composition <strong>of</strong> capital variable.<br />

He asserts that the mass <strong>of</strong> means <strong>of</strong> production increases the productivity <strong>of</strong> the<br />

laborer. The means <strong>of</strong> production plays a double role. The mass <strong>of</strong> machinery, etc. <strong>is</strong> a<br />

condition <strong>of</strong> the increasing productivity <strong>of</strong> h<strong>is</strong> labor, and the consequence <strong>is</strong> that a greater<br />

mass <strong>of</strong> raw material will enter the labor process. Marx says that as the technical/organic<br />

composition <strong>of</strong> capital increases, labor productivity follows. As the productivity <strong>of</strong> labor<br />

increases, the value in compar<strong>is</strong>on with its mass <strong>is</strong> reduced. The value per unit <strong>of</strong> the means<br />

<strong>of</strong> production will fall and to some degree make up for the r<strong>is</strong>e in the technical/organic composition<br />

<strong>of</strong> capital. Despite th<strong>is</strong>, Marx maintains that the value-composition will continue to<br />

r<strong>is</strong>e, though at a rate significantly slower that the organic.<br />

Increased accumulation stimulates the growth <strong>of</strong> capital. Marx defined the meaning <strong>of</strong><br />

concentration <strong>of</strong> capital as the process by which surplus value <strong>is</strong> gained by mere accumulation.<br />

He identifies competition as the catalystic facor <strong>of</strong> a converse phenomena: that <strong>of</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 315<br />

the centralization <strong>of</strong> capital where the stream-lining and consequently, reduction <strong>of</strong> units <strong>of</strong><br />

capital takes place.<br />

In conclusion, concentreation and centralization are the result <strong>of</strong> accumulation and competition<br />

. Th<strong>is</strong> promotes greater efficiency, productivity, and the surplus-value rate which<br />

subsequently encourages still more accumulation.<br />

Section 3: When the overall composition <strong>of</strong> capital r<strong>is</strong>es, the capital<strong>is</strong>t invests the increased<br />

capital in more or better means <strong>of</strong> production. The result <strong>is</strong>: the demand for laborpower<br />

falls. Marx notes the irony in that the laboring population produces the means by<br />

which its own value or neccessity <strong>is</strong> reduced, and th<strong>is</strong> process <strong>is</strong> ever-multiplying.<br />

Th<strong>is</strong> reality supports Marx’s theory <strong>of</strong> the need <strong>of</strong> having a “surplus-population” <strong>of</strong> laborers<br />

who keep the cost <strong>of</strong> employing them down. Th<strong>is</strong> enforces the capital<strong>is</strong>t’s ability to pay<br />

the price <strong>of</strong> labor-power at the level <strong>of</strong> its value as a commodity <strong>of</strong> sorts. Th<strong>is</strong> <strong>is</strong> neccessary<br />

for capital<strong>is</strong>t production to exerc<strong>is</strong>e unrestricted activity. Marx describes the development<br />

<strong>of</strong> the capital<strong>is</strong>t mode <strong>of</strong> production as one in which the capital<strong>is</strong>t “sets more labour in motion<br />

without enl<strong>is</strong>ting more workers” The population <strong>of</strong> laborers <strong>is</strong> excessive only relative to<br />

the availability <strong>of</strong> employment. Marx then d<strong>is</strong>m<strong>is</strong>ses Malthus’ demographic explanations <strong>of</strong><br />

wages and population in which higher wages stimulate the birth rate and consequently, the<br />

supply <strong>of</strong> labor-power, based on the theory that dempgraphic reaction takes longer than the<br />

life <strong>of</strong> the industrial cycle. Marx gives credit for the recognition that surplus-population <strong>is</strong><br />

needed in capital<strong>is</strong>t production, but sc<strong>of</strong>fs because Malthus fails to see that it <strong>is</strong> a result <strong>of</strong><br />

the forcible rendering <strong>of</strong> its own superfluousness.<br />

Section 4: Marx splits the reserve labor-army into 4 basic parts:<br />

1: The majority that forms the “floating” surplus workers. Th<strong>is</strong> includes the workers that<br />

were the victims <strong>of</strong> the increased technical/organic composition <strong>of</strong> capital and those replaced<br />

by younger or less-skilled workers. Th<strong>is</strong> group <strong>is</strong> the most accessable when the capital<strong>is</strong>t<br />

needs to draw from the surplus-group.<br />

2: The latent surplus population–where capital<strong>is</strong>t agriculture creates a large number <strong>of</strong><br />

population <strong>of</strong> unemployed in rural areas.<br />

3: The stagnant reserve army; cons<strong>is</strong>ting <strong>of</strong> people who are more irregularly employed.<br />

Princilpally utilized in “domestic industry”, characterized by exessively long hours and low<br />

wages.<br />

4: Paupers that are divided into three sub-groups: a. Those able to work b. Orphans/pauper<br />

children. c. Those who succomb to their inability to adapt to change–the maimed, widowed,<br />

etc.<br />

Marx vividly describes th<strong>is</strong> as “...The hospital <strong>of</strong> the active labor-army and the dead<br />

weight <strong>of</strong> the industrial reserve army.” pg. 797.<br />

Marx explains the absolute general law <strong>of</strong> capital<strong>is</strong>t accumulation as the process in which<br />

great social <strong>wealth</strong> leads to an increased industrial reserve army which results in a greater<br />

population <strong>of</strong> paupers. He elaborates to say that competition empowers the capital<strong>is</strong>t to<br />

maintain low wages while lengthening and intensifying the work day. He finally stresses<br />

316 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

that capital<strong>is</strong>m neccessitates that freedom and reasonable working conditions give way to<br />

the innovation <strong>of</strong> increased mechanization.<br />

Hans: Very good! But I d<strong>is</strong>agree with the following paragraph:<br />

changes in the organic composition demonstrate how the value-composition would have changed<br />

if the values <strong>of</strong> the individual commodities used as the value <strong>of</strong> labor power and the means <strong>of</strong><br />

production remained constant.<br />

Message [528] referenced by [551]. Next Message by Pinky <strong>is</strong> [586].<br />

[551] MsMarx and VanHalen: Term Paper Th<strong>is</strong> paper <strong>is</strong> a summary <strong>of</strong> each section <strong>of</strong><br />

Chapter 25, The General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation. In th<strong>is</strong> chapter, Marx examines<br />

the concept <strong>of</strong> accumulation in the context <strong>of</strong> continuous technical revolution, and he looks<br />

at the effects on the working class.<br />

Section 1. A growing demand for labor-power accompanies accumulation if the composition<br />

<strong>of</strong> capital remains the same.<br />

First, Marx establ<strong>is</strong>hes an essential set <strong>of</strong> concepts. The value-composition <strong>of</strong> capital <strong>is</strong><br />

the ratio <strong>of</strong> constant to variable capital, c/v, measured, in values. The technical composition<br />

<strong>of</strong> capital <strong>is</strong> its counterpart in terms <strong>of</strong> use-values, the mass <strong>of</strong> means <strong>of</strong> production<br />

relative to the living labor employed. The technical composition cannot be measured quantitatively,<br />

since means <strong>of</strong> production and labor are qualitatively different things; one cannot<br />

be divided by the other. Marx then defines the organic composition <strong>of</strong> capital, which <strong>is</strong><br />

“the value-composition <strong>of</strong> capital, in so far as it <strong>is</strong> determined by its technical composition<br />

and mirrors the changes <strong>of</strong> the latter.” Changes in the organic composition show how the<br />

value-composition would have changed had the values <strong>of</strong> the individual commodities used<br />

as means <strong>of</strong> production, and the value <strong>of</strong> labor-power, remained constant.<br />

The average composition <strong>of</strong> capital <strong>is</strong> the composition (value or organic) <strong>of</strong> the total<br />

social capital <strong>of</strong> a country. If accumulation takes place with no technical change, and with<br />

all three measures <strong>of</strong> the composition <strong>of</strong> capital remaining constant, there will be an equal<br />

proportional increase in constant and variable capital, and therefore in the demand for laborpower.<br />

Th<strong>is</strong> outstrips the growth <strong>of</strong> the laboring population, so the demand for labor will<br />

exceed the supply and wages will r<strong>is</strong>e. To put it mathematically, the rate <strong>of</strong> accumulation<br />

<strong>is</strong> the independent, not the dependent, variable; the rate <strong>of</strong> wages the dependent, not the<br />

independent variable.<br />

Section 2. A relative diminution <strong>of</strong> the variable part <strong>of</strong> capital occurs in the course <strong>of</strong> the<br />

further progress <strong>of</strong> accumulation and <strong>of</strong> the concentration accompanying it.<br />

So far, the composition <strong>of</strong> capital has been held constant. However, as the productivity <strong>of</strong><br />

labor r<strong>is</strong>es, so does the technical and therefore the organic composition <strong>of</strong> capital. Marx asserts<br />

that the value-composition <strong>of</strong> capital r<strong>is</strong>es, but it <strong>is</strong> slower than the organic composition,<br />

which mirrors the technical composition.<br />

As accumulation proceeds, individual capitals grow. Growth <strong>of</strong> units <strong>of</strong> capital by simple<br />

accumulation <strong>of</strong> surplus-value <strong>is</strong> called concentration <strong>of</strong> capital, which <strong>is</strong> “only another name<br />

for reproduction on an extended scale.” Centralization <strong>of</strong> capital refers to the regrouping <strong>of</strong><br />

ex<strong>is</strong>ting capital into fewer units, through takeovers, mergers, or the buying up <strong>of</strong> the assets <strong>of</strong><br />

bankrupt firms. Competition promotes centralization, since large capitals have lower costs


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 317<br />

and drive out smaller ones. Accumulation promotes concentration and centralization, which<br />

in turn promotes increased efficiency, ra<strong>is</strong>es the productivity <strong>of</strong> labor, and increases the<br />

rate <strong>of</strong> surplus-value, accelerating accumulation even further. Along with th<strong>is</strong>, the organic<br />

composition <strong>of</strong> capital r<strong>is</strong>es.<br />

Section 3. The progressive production <strong>of</strong> a relative surplus population or industrial reserve<br />

army.<br />

As the composition <strong>of</strong> capital r<strong>is</strong>es, the demand for labor-power falls relatively, since<br />

a larger part <strong>of</strong> capital goes to buy means <strong>of</strong> production and less to employ workers. “The<br />

labouring population therefore produces...the means by which itself <strong>is</strong> made relatively superfluous,<br />

<strong>is</strong> turned into a relative surplus-population; and it does th<strong>is</strong> to an always increasing<br />

extent.” It <strong>is</strong> th<strong>is</strong> presence <strong>of</strong> the relative surplus-population that holds wages (the price <strong>of</strong><br />

labor-power) down to the value <strong>of</strong> labor-power.<br />

There are three factors at work in producing a relative surplus-population: the increasing<br />

composition <strong>of</strong> capital (which reduces the demand for labor power), the accumulation <strong>of</strong><br />

capital (which increases the demand), and the growth in the size <strong>of</strong> the working class (which<br />

increases the supply <strong>of</strong> labor-power).<br />

An industrial reserve army or relative surplus-population, which <strong>is</strong> a mass <strong>of</strong> unemployed<br />

labor-power, <strong>is</strong> essential to capital<strong>is</strong>m, according to Marx. “The mass <strong>of</strong> social<br />

<strong>wealth</strong>...thrusts <strong>is</strong>elf frantically into old branches <strong>of</strong> production, whose market suddenly<br />

expands, or into newly formed brances...In all such cases there must be the possiblity <strong>of</strong><br />

throwing great masses <strong>of</strong> men suddenly on the dec<strong>is</strong>ive points..Over-population supplies<br />

these masses.” The population <strong>is</strong> excessive in relativity to the employment that capital provides.<br />

The working day <strong>is</strong> lengthened and the intensity <strong>of</strong> work <strong>is</strong> stepped up. “The condemnation<br />

<strong>of</strong> one part <strong>of</strong> the working-class to enforced idleness by the over-work <strong>of</strong> the<br />

other part, and the converse, becomes a means <strong>of</strong> enriching the individual capital<strong>is</strong>ts, and<br />

accelerates at the same time the production <strong>of</strong> the industrial reserve army.”<br />

Marx next deals with opposing theories. He ridicules Malthusian demographic explanations<br />

<strong>of</strong> wages and population, in which high wages ra<strong>is</strong>e birth rates and the supply <strong>of</strong><br />

labor-power. He says that the industrial cycle only lasts seven to ten years in total, while<br />

demographic reactions take much longer. Marx also critizes the theory <strong>of</strong> compensation.<br />

Section 4. Different forms <strong>of</strong> ex<strong>is</strong>tence <strong>of</strong> the relative surplus population, the general law<br />

<strong>of</strong> capital<strong>is</strong>t accumulation.<br />

The reserve army <strong>of</strong> labor can be divided into different parts. The floating surpluspopulation<br />

cons<strong>is</strong>ts <strong>of</strong> unemployed workers who have previously worked for capital and who<br />

are already in the industrial centers. The industrial cycle alternately throws great masses <strong>of</strong><br />

workers into the reserve army, and then draws them into employment again.<br />

In rural areas, the development <strong>of</strong> capital<strong>is</strong>t agriculture has created massive underemployment,<br />

the latent surplus-population. Th<strong>is</strong> ensures that new workers for urban industry<br />

are always available. The stagnant reserve army cons<strong>is</strong>ts <strong>of</strong> those who are employed very<br />

rarely and irregularly, and who get low wages when they are employed. They provide the<br />

318 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

labor force for sweated handicrafts and domestic industry. At the lowest level are masses <strong>of</strong><br />

paupers who are desperately poor.<br />

The absolute general law <strong>of</strong> capital<strong>is</strong>t accumulation says that “The greater the social<br />

<strong>wealth</strong>...the greater <strong>is</strong> the industrial reserve army...The more extensive...the industrial reserve<br />

army, the greater <strong>is</strong> <strong>of</strong>fical pauper<strong>is</strong>m.” The pressure <strong>of</strong> competition for jobs keeps wages<br />

down and gives the capital<strong>is</strong>t the bargaining power to lengthen the working day and intensify<br />

labor. Marx also reminds us <strong>of</strong> the destructive effects <strong>of</strong> mechanization on freedom and on<br />

working conditions. He then concludes, that “in proportion as capital accumulates, the lot<br />

<strong>of</strong> the labourer, be h<strong>is</strong> payment high or low, must grow worse.”<br />

Section 5. Illustrations <strong>of</strong> the general law <strong>of</strong> capital<strong>is</strong>t accumulation.<br />

In the final section <strong>of</strong> Chapter 25, Marx presents a number <strong>of</strong> cases to back up the conclusions<br />

stated above, including the Brit<strong>is</strong>h agricultural<strong>is</strong>t and the nomadic population.<br />

Hans: Very good. I see some similarities with Pinky’s [528]. You adopted Pinky’s wrong definition <strong>of</strong> organic<br />

composition.<br />

Message [551] referenced by [560] and [596]. First Message by MsMarx <strong>is</strong> [1].<br />

[560] Bandit: Term Paper In Chapter 25 “The General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation”,<br />

Marx supports h<strong>is</strong> definition <strong>of</strong> the absolute general law <strong>of</strong> capital<strong>is</strong>t accumulation by an in<br />

depth study <strong>of</strong> four categories in the context <strong>of</strong> continuous revolution, and the effects <strong>of</strong> the<br />

working class.<br />

The first section “Growing Demand for Labour-Power Accompanies Accumulation if<br />

the Composition <strong>of</strong> Capital Remains the Same”, Marx introduces two concepts: the value<br />

composition <strong>of</strong> capital and the technical composition <strong>of</strong> capital. The value composition<br />

<strong>of</strong> capital <strong>is</strong> the ratio <strong>of</strong> constant to variable capital; c/v, measured in values. Technical<br />

composition <strong>of</strong> capital <strong>is</strong> the mass <strong>of</strong> means <strong>of</strong> production relative to the employed labor in<br />

use-value terms.<br />

Marx turns h<strong>is</strong> attention next to the subject <strong>of</strong> the organic composition <strong>of</strong> capital. Marx<br />

states that th<strong>is</strong> organic composition cannot be measured in quantities because the means <strong>of</strong><br />

production and labor are qualitatively variable. Therefore one cannot be divided by the other.<br />

Changes in the organic composition show how the value-composition would have changed<br />

had the values <strong>of</strong> the individual commodities used as means <strong>of</strong> production, and the value <strong>of</strong><br />

labor-power, remained constant. Basically stated, the organic composition <strong>is</strong> a measure <strong>of</strong><br />

changes in the technical aspect <strong>of</strong> the composition. In calculating the average composition<br />

<strong>of</strong> capital, the total social capital <strong>of</strong> the entire country must be used.<br />

In the second section Marx d<strong>is</strong>cusses the composition <strong>of</strong> capital as being variable and not<br />

constant as it has been in previous d<strong>is</strong>cussions. Th<strong>is</strong> process <strong>of</strong> the composition <strong>of</strong> capital<br />

being variable produces an increase in the productivity <strong>of</strong> the laborer. He states that as the<br />

organic composition <strong>of</strong> capital increases th<strong>is</strong> productivity <strong>of</strong> labor follows. Th<strong>is</strong> causes a<br />

second reaction that as labor productivity increases, the value in compar<strong>is</strong>on with its mass <strong>is</strong><br />

reduced.<br />

We next look at the concentration <strong>of</strong> capital. Concentration <strong>of</strong> capital <strong>is</strong> the process by<br />

which surplus value <strong>is</strong> gained by accumulation. Th<strong>is</strong> accumulation stimulates the growth <strong>of</strong><br />

capital.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 319<br />

In section three, we find that as the composition <strong>of</strong> capital r<strong>is</strong>es, the demand for laborpower<br />

falls. The reason for th<strong>is</strong> <strong>is</strong> that a larger part <strong>of</strong> the capital <strong>is</strong> invested into the means<br />

<strong>of</strong> production than into employment <strong>of</strong> workers. Marx states that th<strong>is</strong> <strong>is</strong> the reason, the<br />

presence <strong>of</strong> relative surplus-population, that wages are held down.<br />

Marx blasts Malthus’ theory on demographic explanation <strong>of</strong> the demographic reaction<br />

taking longer than the life <strong>of</strong> the industrial cycle. Marx explains that there <strong>is</strong> a need <strong>of</strong> a<br />

“surplus-population” <strong>of</strong> laborers. Why? It enforces the capital<strong>is</strong>ts ability to pay the price <strong>of</strong><br />

labor-power at the level <strong>of</strong> its values as a commodity.<br />

In the final section, before the examples <strong>of</strong> capital accumulation throughout h<strong>is</strong>tory, Marx<br />

introduces four parts to the reserve labor-army. The first part being the “floating” surplus<br />

workers, second, the latent surplus population, third the stagnant reserve army, and finally<br />

the Paupers. The Paupers are divided into three sub-groups: those able to work, orphans,<br />

and the maimed or widowed. Marx describes the Pauper<strong>is</strong>m group as “the hospital <strong>of</strong> the<br />

active labour-army and the dead weight <strong>of</strong> the industrial reserve army.”<br />

In conclusion, section five, states evidence <strong>of</strong> Marx’s arguments through out chapter 25,<br />

The General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation, stating actual cases from h<strong>is</strong>tory.<br />

Hans: You m<strong>is</strong>sed some major points, and one might get the impression that you merely excerpted [551] and did<br />

not read the Chaper itself.<br />

First Message by Bandit <strong>is</strong> [150].<br />

[561] Jupiter: Term Paper I have thus far read the previous papers which my classmates<br />

have contributed as their term paper, I would like to take a different approach to the subject<br />

and give some personal thoughts about what I read in chapter 25. My main topic <strong>of</strong> d<strong>is</strong>cussion<br />

will be at the very heart <strong>of</strong> capital<strong>is</strong>m, which <strong>is</strong> exploitation <strong>of</strong> the “Proletariat” or the<br />

working-class.<br />

The General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation, the name given to chapter 25 <strong>is</strong> properly<br />

so, for the capital<strong>is</strong>t to be, by its own design must have constant accumulation. With th<strong>is</strong><br />

<strong>is</strong> incooperated the exploitation <strong>of</strong> those who are the laborers, those who are paid for their<br />

labor-power. Th<strong>is</strong> will be one <strong>of</strong> the main conflicts that Marxs will take on, and try to prove<br />

that their <strong>is</strong> exploitation <strong>of</strong> the working class.<br />

In one <strong>of</strong> Karl Marx readings I came across one <strong>of</strong> h<strong>is</strong> theories, which says that “there are<br />

two major classes a) those that are the owners <strong>of</strong> the means <strong>of</strong> production, and b) those who<br />

are not.” Because <strong>of</strong> th<strong>is</strong> there <strong>is</strong> a r<strong>is</strong>e <strong>of</strong> class conflict, that between the “bourgeo<strong>is</strong>e” and<br />

the “proletariat”,or the owners and the workers. Marxs also said that “all h<strong>is</strong>tory <strong>is</strong> a h<strong>is</strong>tory<br />

<strong>of</strong> class struggle”, th<strong>is</strong> <strong>is</strong> true, and we can see it prevail today in our society.<br />

I found in my reading <strong>of</strong> chapter 25, that I was one <strong>of</strong> the simple minded workers, who<br />

when I get an increase in pay thinks that boy I sure do have it made. Marx makes it all to<br />

clear and easy to see that when I get an increase in pay it <strong>is</strong> only in small proportion to what<br />

it <strong>is</strong> that I am producing. I have never really thought <strong>of</strong> it in that manner, but it <strong>is</strong> true and it<br />

<strong>is</strong> very unsettling to me to know that when I get a bonus for something that I have done well,<br />

that the boss or buyer <strong>of</strong> my labor-power <strong>is</strong> for the valorization <strong>of</strong> h<strong>is</strong> capital. The surplus<br />

value that the owner recieves in compar<strong>is</strong>on to that <strong>of</strong> my surplus labor power, <strong>is</strong> really not<br />

320 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

a compar<strong>is</strong>on at all, the increased wages <strong>is</strong> there to make me believe that I am doing well,<br />

when all it <strong>is</strong> there for <strong>is</strong> to put me in a state <strong>of</strong> “false consciousness”.<br />

Th<strong>is</strong> form <strong>of</strong> increased pay can also be used by the owner <strong>of</strong> the means <strong>of</strong> production to<br />

increase h<strong>is</strong> work force. Marx says, “Then the time comes round again when the suply <strong>of</strong><br />

labor <strong>is</strong> less than the demand, wages r<strong>is</strong>e and so on.” Th<strong>is</strong> <strong>is</strong> where Marx <strong>is</strong> addressing the<br />

problem with the reserve army work force, which by simple definition to me <strong>is</strong> the people<br />

who do not have jobs but are willing to work when work <strong>is</strong> given to them, and in the mean<br />

time they suffer with poverty and homelessness. The quote Marx gives <strong>is</strong> a pivital point<br />

in understanding the economy as a whole, the economy <strong>is</strong> as we can see controled by the<br />

owners <strong>of</strong> production. When times are good and people are recieving lots <strong>of</strong> money for their<br />

labor power then they can afford to have children, and replent<strong>is</strong>h the work force, for the<br />

future. It <strong>is</strong> also scary to see how th<strong>is</strong> can be true for the opposite. The wage labor that<br />

one gives to a product seems so far removed, he <strong>is</strong> not getting money in respect to it, but <strong>is</strong><br />

getting paid by what the economy <strong>is</strong> dictating , which economy <strong>is</strong> directed by the powerful,<br />

rich, bourgeo<strong>is</strong>e “elite”.<br />

Another aspect <strong>of</strong> th<strong>is</strong> chapter that I found very informative and at the same tine d<strong>is</strong>couraging,<br />

<strong>is</strong> that <strong>of</strong> competition. I have previously written in one <strong>of</strong> my subm<strong>is</strong>sions that I have<br />

opened a new store (with friends, we all work at the store and we are all owners so I don’t<br />

find myself to be a capital<strong>is</strong>t!), now that it has been open a little while I have found out that<br />

a bigger more establ<strong>is</strong>hed store in a different part <strong>of</strong> town <strong>is</strong> going to put a new store near<br />

by. Marx says that in competition a few things must be present one <strong>is</strong> that “the battle <strong>of</strong><br />

competition <strong>is</strong> fought by the cheapining <strong>of</strong> commodities”. I can see th<strong>is</strong> going to happen to<br />

my little store and I (and my friends) can not afford to lower our commodity price, thus we<br />

will be a victem <strong>of</strong> the all to powerful large-scale industry. I am very angry about th<strong>is</strong> and<br />

the more I try to understand the less I do, but what I do know <strong>is</strong> that it <strong>is</strong> very unfair, and<br />

something needs to be done about it.<br />

These are the two main points that I got out <strong>of</strong> Marx in chapter 25, what it boils down<br />

to <strong>is</strong> that we the “proletarian” are being exploited by those who have gotten control over the<br />

means <strong>of</strong> production. If those that have the control really feel that we should be grateful to<br />

them for all that they do for us, well I think that they should look around and see all that<br />

we do for them, for without the laborers where would the capital<strong>is</strong>t be? There would be no<br />

capital.<br />

Hans: Good personal report. But you seem to allude to the theory that high wages lead to more children and<br />

therefore to an oversupply <strong>of</strong> labor that depresses wages again. Th<strong>is</strong> <strong>is</strong> Malthus’s mechan<strong>is</strong>m which Marx argued<br />

against. Marx has a different mechan<strong>is</strong>m.<br />

First Message by Jupiter <strong>is</strong> [126].<br />

[566] Skyler: essay <strong>of</strong> chapter twenty-five I’ve chosen to do an indepth study <strong>of</strong> section<br />

one <strong>of</strong> chapter twenty-five. Th<strong>is</strong> chapter focuses on the growth <strong>of</strong> capital on the working<br />

class, focusing on the composition <strong>of</strong> capital and the process <strong>of</strong> accumulation. Composition<br />

<strong>of</strong> capital <strong>is</strong> broken down into two areas. The value-composition <strong>of</strong> capital as the ratio <strong>of</strong><br />

constant to variable capital; c/v, measured in values. The second <strong>is</strong> technical composition <strong>of</strong><br />

capital; the pool <strong>of</strong> means <strong>of</strong> production relative to the employed labor <strong>is</strong> its counterpart in<br />

use-value terms. Marx also explains that organic composition <strong>is</strong> the understanding when he<br />

refers to the composition <strong>of</strong> capital. Organic composition <strong>is</strong> defined; “value-composition <strong>of</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 321<br />

capital in so far as it <strong>is</strong> determined by its technical composition and mirrors the changes <strong>of</strong><br />

the latter.” Pg. 762 The average <strong>of</strong> individual capitals invested into a branch <strong>of</strong> production<br />

gives us the composition <strong>of</strong> the total capital in the branch <strong>of</strong> production being considered. So<br />

the overall average <strong>of</strong> a composition from each branch <strong>of</strong> production gives us the compostion<br />

<strong>of</strong> the total social capital <strong>of</strong> a country. “To figure the average composition <strong>of</strong> capital, one<br />

includes the ‘value or organic’ composition <strong>of</strong> the complete capital <strong>of</strong> a country.”<br />

Growth <strong>of</strong> capital implies growth in labour-power. Labor power <strong>is</strong> the main factor in<br />

allowing capital to grow. Businesses function because <strong>of</strong> the laborer doing the work. When<br />

capital accumulates, demand for labour-power increases,although the supply may be less<br />

than the demand, causing an increase in wages. The reproduction <strong>of</strong> labour-power increases<br />

the amount <strong>of</strong> capital<strong>is</strong>ts and wage-laborers. Accumulaton <strong>of</strong> capital <strong>is</strong> therefore a multiplication<br />

<strong>of</strong> the working class. John Bellers said that a rich man <strong>is</strong> not rich unless there <strong>is</strong> a<br />

laborer in the field to do the work <strong>of</strong> the rich man’s assets.<br />

In a free country where slaves are not allowed, the <strong>wealth</strong>y survive on a multitude <strong>of</strong><br />

laborious poor. “To make the society ... happy and people easier under the meanest circumstances,<br />

it <strong>is</strong> requ<strong>is</strong>ite that great numbers <strong>of</strong> them should be ignorant as well as poor;<br />

knowledge both enlarges and multiplies our desires, and the fewer things a man w<strong>is</strong>hes for,<br />

the more easily h<strong>is</strong> necessities may be supplied.” Marx pg. 764:1/o<br />

The mechan<strong>is</strong>m <strong>of</strong> accumulation increases capital as well as labouring poor. The valorization<br />

<strong>of</strong> growing capital <strong>is</strong> increased because <strong>of</strong> labour-power from the wage-labourers.<br />

The laborer <strong>is</strong> dependant upon the product in the capital<strong>is</strong>t system. Becasue <strong>of</strong> th<strong>is</strong>, workers<br />

place themselves in a state <strong>of</strong> easy and liberal dependance. Individuals with great fortune almost<br />

always owe their advantages to the abilities <strong>of</strong> others. The ability to command laborers<br />

separates the rich from the poor.<br />

The workers relationship <strong>of</strong> dependence becomes more extensive than intensive when the<br />

price <strong>of</strong> labor increases due to accumulating capital. In other words, chain around the laborers<br />

neck <strong>is</strong> loosened just alittle as time goes on.The buyers aim <strong>is</strong> production <strong>of</strong> commodities<br />

which include an amount <strong>of</strong> unpaid labor. Th<strong>is</strong> law <strong>of</strong> production <strong>is</strong> based on the surplusvalue<br />

(additional pr<strong>of</strong>its.) So as wages increase, the amount <strong>of</strong> unpaid labor decreases.<br />

A r<strong>is</strong>e in the price <strong>of</strong> labour due to the accumulation <strong>of</strong> capital includes to alternatives:<br />

1 Either the price <strong>of</strong> labour keeps on r<strong>is</strong>ing, because its r<strong>is</strong>e does not interfere with the<br />

progress <strong>of</strong> accumulation. 2 Accumulation slackens as a result <strong>of</strong> the r<strong>is</strong>e in the price <strong>of</strong><br />

labour, because the stimulus <strong>of</strong> gain <strong>is</strong> blunted. In case one, the dim<strong>is</strong>hed rate mor the increased<br />

labour-power were the cause <strong>of</strong> excess capital. The capital made the exploitable<br />

labour-power insufficiently. In case two, not the increased rate, but the relative reduction<br />

in the amount <strong>of</strong> capital caused the exploitable labour-power or price to be in excess. Accumulation<br />

<strong>is</strong> the independant, rate <strong>of</strong> wage <strong>is</strong> the dependant. A general r<strong>is</strong>e in the price<br />

<strong>of</strong> commodities <strong>is</strong> expressed as a fall in the relative value <strong>of</strong> money. The law <strong>of</strong> capital<strong>is</strong>t<br />

production <strong>is</strong> simply the relation between the unpaid labor and the paid labor in the same<br />

working population. Wages can r<strong>is</strong>e by the addition <strong>of</strong> a paid labour if the quantity <strong>of</strong> unpaid<br />

labour, accumulated by capital<strong>is</strong>ts increases to fast. When th<strong>is</strong> happens, unpaid labour begins<br />

to diminsh in return, and a point <strong>is</strong> reached that caused smaller returns in capital, slow<br />

322 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

downs in accumulation and a r<strong>is</strong>e in wages. “The r<strong>is</strong>e in wages <strong>is</strong> therefore confined within<br />

limits that not only leave intact the foundations <strong>of</strong> the capital<strong>is</strong>t system, but also secure its<br />

reproduction on an increasing scale.” Marx Pg. 771. So workers are there to sat<strong>is</strong>fy the need<br />

for valorization <strong>of</strong> commodities. In conclusion, “Just as man <strong>is</strong> governed, in religion, by the<br />

products <strong>of</strong> h<strong>is</strong> own brain, so, in capital<strong>is</strong>t production, he <strong>is</strong> governed by the products <strong>of</strong> h<strong>is</strong><br />

own hand.” Marx Pg. 771.<br />

Message [566] referenced by [596] and [615]. First Message by Skyler <strong>is</strong> [97].<br />

[573] Chocolate, KALISPEL, and Punani: The fate <strong>of</strong> the working class!! Th<strong>is</strong> essay<br />

will show the importance <strong>of</strong> the composition <strong>of</strong> capital, and the changes it undergoes in the<br />

course <strong>of</strong> the process <strong>of</strong> accumulation. IT will show how the accumulation <strong>of</strong> capital has an<br />

adverse effect on the wages <strong>of</strong> the working class. Th<strong>is</strong> essay will describe how the drive to<br />

produce more <strong>is</strong> not necessarily good for the working class. On the other side <strong>of</strong> the coin<br />

we will d<strong>is</strong>cuss how mainstream economics claims that th<strong>is</strong> drive <strong>is</strong> essential to economic<br />

prosperity.<br />

I. A growing demand for labor-power accompanies accumulation if the composition <strong>of</strong><br />

capital remains the same.<br />

All capital <strong>is</strong> divided into means <strong>of</strong> production and living labor power. Labor power <strong>is</strong><br />

called the value composition and means <strong>of</strong> production <strong>is</strong> the technical composition. Value<br />

composition <strong>is</strong> dollars divided by dollars and technical composition <strong>is</strong> capital divided by<br />

hours <strong>of</strong> labor. These are the two parts <strong>of</strong> capital accumulation; the value side and the<br />

technical side. An overall look at value and technical composition <strong>is</strong> referred to as organic<br />

composition, by Marx. Marx points out the relationship between value and technical composition.<br />

The <strong>is</strong>sue, however, <strong>is</strong> important since the dynamics <strong>of</strong> the composition <strong>of</strong> capital in<br />

value terms are central to Marx’s analys<strong>is</strong> <strong>of</strong> the industrial cycle and wage movements, <strong>of</strong><br />

unemployment, and <strong>of</strong> the rate <strong>of</strong> pr<strong>of</strong>it. A change in the OCC (oraganic composition <strong>of</strong><br />

capital) <strong>is</strong> simply a value change in the TCC. Changes in OCC are proportional to changes<br />

in TCC. Thus, a r<strong>is</strong>e in the TCC always produces a r<strong>is</strong>e in the OCC. The total effect <strong>is</strong> found<br />

in the VCC (variable cost <strong>of</strong> capital) which may or may not r<strong>is</strong>e.<br />

These compositions are important because they all have the ability to valorize themselves.<br />

Capital<strong>is</strong>ts seek pr<strong>of</strong>its and in doing so introduce machinery. Workers are able to produce<br />

more and more in the same amount <strong>of</strong> time. The value <strong>of</strong> the outputs fall and th<strong>is</strong> creates<br />

more pr<strong>of</strong>its for the capital<strong>is</strong>t. Because adjustments to th<strong>is</strong> process take time d<strong>is</strong>crepancies<br />

appear. Old values must be adjusted to current values. Th<strong>is</strong> can cause an economic cr<strong>is</strong><strong>is</strong>.<br />

Marx point out that adjustment <strong>of</strong> these compositions can be abrupt and continuous.<br />

These relationships lead to an increase <strong>of</strong> the working class. Marx points out three points<br />

here. 1- “Capital can only increase by exchanging itself for labor-power, by calling wagelabor<br />

to life.” In other words, in order to be able to accumulate, capital needs more and<br />

more wage labor. Th<strong>is</strong> may cause an excess demand for labor, higher wages, better working<br />

conditions. 2- “The labor-power <strong>of</strong> the wage worker can only exchange itself for capital by<br />

increasing capital, by strengthening the power whose slave it <strong>is</strong>.” In th<strong>is</strong> second aspect <strong>of</strong><br />

the relation between wage-labor and capital, the relationship or power between the two <strong>is</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 323<br />

reversed: Wage labor <strong>is</strong> only then usefl for capital if its price <strong>is</strong> low enough. 3- “Hence,<br />

increase <strong>of</strong> capital <strong>is</strong> increase <strong>of</strong> the proletariat, that <strong>is</strong>, <strong>of</strong> the working class.” Th<strong>is</strong> <strong>is</strong> to be<br />

understood in the sense: accumulation <strong>of</strong> capital can only go on if the size <strong>of</strong> the working<br />

class increases as well.<br />

II. A relative diminution <strong>of</strong> the variable part <strong>of</strong> capital occurs in the course <strong>of</strong> the further<br />

progress <strong>of</strong> accumulation and <strong>of</strong> the concentration accompanying it.<br />

It <strong>is</strong> here Marx points out a qualitative change in the compositon <strong>of</strong> capital by r<strong>is</strong>ing the<br />

organic composition. He presents the following arguments: 1- Capital accumulation leads<br />

to higher technology 2- higher technology leads to higher organic composition. Th<strong>is</strong> <strong>is</strong> like<br />

a big snowball to who knows where. The reason for doing th<strong>is</strong> <strong>is</strong> to make it so a smaller<br />

quantity <strong>of</strong> labor <strong>is</strong> needed to produce a greater quantity <strong>of</strong> work.<br />

Th<strong>is</strong> capital<strong>is</strong>t accumulation leads to a concentration <strong>of</strong> production sites. Th<strong>is</strong> concentration<br />

leads to producting even higher forms <strong>of</strong> technology. Higher technology leads to higher<br />

technical composition and <strong>is</strong> reflected in a higher value composition.<br />

Marx makes an important point. ....A POINT <strong>is</strong> regularly reached in the course <strong>of</strong> accumulation<br />

at which the development <strong>of</strong> the productivity <strong>of</strong> social labor becomes the most<br />

powerful lever <strong>of</strong> accumulation.<br />

Here we can see a contradiction. The accumulation tends to increase wages, but on the<br />

other hand it sets laborers free and therefore tends to reduce wages. Ultimately, the point <strong>is</strong><br />

that labor <strong>is</strong> subjective and never will be objective as it <strong>is</strong> claimed to be by capital<strong>is</strong>t society.<br />

III. The progressive production <strong>of</strong> a relative surplus population or industrial reserve army.<br />

Th<strong>is</strong> section d<strong>is</strong>cusses the effect <strong>of</strong> both kinds <strong>of</strong> accumulation on the working class, the<br />

creation <strong>of</strong> a relative surplus population, and the reaction <strong>of</strong> the surplus-populationon the<br />

accumulation <strong>of</strong> capital.<br />

Here Marx adds the point that the organic composition will outpace accumulation and<br />

thus create a relative surplus-populaton. Why?<br />

1- Central<strong>is</strong>ation <strong>of</strong> individual capitals, and the technical progress which th<strong>is</strong> increase <strong>of</strong><br />

the individual firms enables, can take place even if the total mass <strong>of</strong> capital does not increase.<br />

2- Technical innovation in the additional capital forces also the original capital to innovate,<br />

which may result in an absolute loss <strong>of</strong> jobs. 3- Number <strong>of</strong> industries which are seized by<br />

increasing organic composition increases. 4- Intermediate pauses in which accumulation<br />

takes place with constant composition <strong>of</strong> capital are shortened.<br />

The qualitative change <strong>of</strong> capital succeeds at the expense <strong>of</strong> its variable component (workers).<br />

Marx points out here that the demand for labor <strong>is</strong> determined by its variable constituent<br />

alone. Demand falls progressively with the growth <strong>of</strong> the total capital, instead <strong>of</strong> r<strong>is</strong>ing<br />

in proportion to it as was previously assumed and put forth as doctrine by mainstream<br />

econom<strong>is</strong>ts. Th<strong>is</strong> makes sense because if you remember where pr<strong>of</strong>its come from; gathering<br />

<strong>of</strong> surplus value. Th<strong>is</strong> the variable value <strong>is</strong> really the bottom line or foundational value<br />

<strong>of</strong> the economic picture.<br />

324 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Marx points out that the wages fall at an accelerated rate as the magnitude <strong>of</strong> capital<br />

increases.<br />

Th<strong>is</strong> looks as if the growth <strong>of</strong> the working population outpaced that <strong>of</strong> capital. In other<br />

words, it looks as if it wsa the laborers’ own fault that they do not get high wages; they are<br />

too many.<br />

Th<strong>is</strong> <strong>is</strong> an accelerated process. The variable component accompanies the increase <strong>of</strong> the<br />

total capital and moves more rapidly with th<strong>is</strong> increase. The increase <strong>of</strong> the TCC component<br />

<strong>is</strong> faster than the increse <strong>of</strong> the VCC component, but the TCC component does speed up the<br />

VCC component.<br />

Thus, workers lose jobs and wages in response to capital growth. Th<strong>is</strong> shows that it <strong>is</strong><br />

obvious that the capital<strong>is</strong>t aim to grow <strong>is</strong> not goint to create a better society.<br />

IV. Different Forms <strong>of</strong> Ex<strong>is</strong>tence <strong>of</strong> the Relative Surplus Population. The General Law <strong>of</strong><br />

Capital<strong>is</strong>t Accumulation.<br />

Relative surplus population? Capital accumulation forces people to accept less desirable<br />

work because <strong>of</strong> the threat <strong>of</strong> starvation, homelessness etc. Marx calls these workers repelled<br />

by the accumulation <strong>of</strong> capital. Th<strong>is</strong> <strong>is</strong> because there may be no alternatives available.<br />

There <strong>is</strong> a floating surplus population. The repulsion <strong>of</strong> old workers <strong>is</strong> outweighed by the<br />

attraction <strong>of</strong> young workers, what <strong>is</strong> why they are part <strong>of</strong> the floating surplus-population.<br />

Marx points out that capital accumulation needs young workers. Once you reach maturity<br />

only a very small number continues to find employment in the same branches <strong>of</strong> industry,<br />

while the majority are regularly d<strong>is</strong>m<strong>is</strong>sed. Th<strong>is</strong> majority grows with the branches <strong>of</strong> that<br />

industry. Some emigrate following capital. The natural increase <strong>of</strong> workers does not sat<strong>is</strong>fy<br />

the requirements <strong>of</strong> the accumulation <strong>of</strong> capital and at the same time exceeds those requirements.<br />

On the one hand there <strong>is</strong> complaining <strong>of</strong> a shortage <strong>of</strong> workers and on the other hand<br />

there are many out <strong>of</strong> work. The div<strong>is</strong>ion <strong>of</strong> labor has chained workers to individual industries.<br />

Each individual industries reserve army <strong>of</strong> labor <strong>is</strong> the bargaining tool capital<strong>is</strong>ts need<br />

to obtain pr<strong>of</strong>its.<br />

One interesting sidenote Marx points out that the upper-class lived to be 38 years old and<br />

the proletariat only 17. Industry takes the toll <strong>of</strong> life.<br />

Here <strong>is</strong> an example that will conclude and simplify chapter 25. Bill and Ted have just<br />

become owners <strong>of</strong> a new shirt factory. They have invested a lot <strong>of</strong> money in the factory and<br />

need workers desperately. It <strong>is</strong> like hot coals in their hands. It must produce. They hire<br />

workers and train them. These workers are paid at subs<strong>is</strong>tence level wages. As production<br />

increases they buy more plants and more capital. Their new type <strong>of</strong> shirt manufacture requires<br />

special training. Wages begin to r<strong>is</strong>e because there <strong>is</strong> more capital to be manned than<br />

workers available. Th<strong>is</strong> causes more workers to come to the industry. Then, as technology<br />

increases and productivity increases then the workers are able to produce much more commodities<br />

with less labor hours. Th<strong>is</strong> causes lay<strong>of</strong>fs <strong>of</strong> workers. The company now has a<br />

reserve army <strong>of</strong> labor because <strong>of</strong> the workers training and maturity level. Th<strong>is</strong> now makes<br />

it possible to lower the wages <strong>of</strong> the workers because those on unemployment are paid so<br />

much less (i.e. barely surviving). Th<strong>is</strong> accumulation has helped the worker in the beginning,


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 325<br />

but has actutally been a chain to drag the majority down to lower levels <strong>of</strong> living. People<br />

actually give their lives to the capital<strong>is</strong>t’s desire for pr<strong>of</strong>its.<br />

Hans: Good work! There are a few minor glitches: your definition <strong>of</strong> organic composition <strong>is</strong> not quite right,<br />

and you are not really explaining the snowball effect, and you are also not quite presenting the argument why<br />

unemployment <strong>is</strong> not a sign that there are too many workers. But overall you got the thrust <strong>of</strong> it. I also like the<br />

following sentence, which <strong>is</strong> not a point Marx makes in Chapter 25, but which <strong>is</strong> an important point nonetheless:<br />

Ultimately, the point <strong>is</strong> that labor <strong>is</strong> subjective and never will be objective as it <strong>is</strong> claimed to<br />

be by capital<strong>is</strong>t society.<br />

First Message by Chocolate <strong>is</strong> [5].<br />

[577] Femme, Kalle, Pizza, and Positive: Chapter 25 Section 1 Chapter 25: The<br />

General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation Section I. A Growing Demand For Labour-Power<br />

Accompanies Accumulation If The Composition <strong>of</strong> Capital Remains The Same<br />

Our goal in th<strong>is</strong> essay <strong>is</strong> to summarize Section One <strong>of</strong> Chapter Twenty-Five. Section one<br />

looks at the growth <strong>of</strong> capital, its composition and the changes it undergoes in the process <strong>of</strong><br />

accumulation. The composition <strong>of</strong> capital <strong>is</strong> looked at in two ways; as value and as material.<br />

The value <strong>is</strong> determined by the proportion that’s divided into constant capital, or the value<br />

<strong>of</strong> the means <strong>of</strong> production and variable capital, or the value <strong>of</strong> labour-power that <strong>is</strong> the<br />

sum <strong>of</strong> total wages. As material, all capital <strong>is</strong> divided into means <strong>of</strong> production and living<br />

labour-power. Th<strong>is</strong> <strong>is</strong> further categorized into two parts; one, the value-composition which <strong>is</strong><br />

determined by the relation between the mass <strong>of</strong> the means <strong>of</strong> production employed and two,<br />

the technical composition <strong>of</strong> capital that <strong>is</strong> the mass labour necessary for their employement.<br />

The value-composition <strong>of</strong> capital <strong>is</strong> determined by its technical composition on the organic<br />

composition.<br />

The growth <strong>of</strong> capital implies growth <strong>of</strong> its variable constituents or the part invested<br />

in labour-power. Th<strong>is</strong> <strong>is</strong> due to the fact that surplus-value that has been transformed into<br />

additional capital has to always be re-transformed into additional labour-fund or variable<br />

capital. If one assumes that all factors are constant, naturally the composition <strong>of</strong> capital<br />

remains constant, or the mass <strong>of</strong> labour-power <strong>is</strong> the same. Now if capital increases, than<br />

the demand for labour-power and the fund for the subs<strong>is</strong>tence <strong>of</strong> the workers increases by<br />

the same increment. But capital produces a surplus-value per year where a percentage <strong>is</strong><br />

added to the original capital. As th<strong>is</strong> capital increases and there <strong>is</strong> opening <strong>of</strong> new markets,<br />

a percentage <strong>of</strong> the surplus-value/product, <strong>is</strong> divided into capital and revenue which results<br />

in an accumulation <strong>of</strong> capital that exceeds the growth in the labour-power; the demand for<br />

labour increases, the supply decreases, the result <strong>is</strong> an increase in wages. Th<strong>is</strong> only results<br />

if all factors other than capital remain constant.<br />

In the capital relation when reproduction constantly reproduces itself; you get the presence<br />

<strong>of</strong> capital<strong>is</strong>t at one end and the wage laborers on the opposing end. The reproduction <strong>of</strong><br />

labour-power, according to Marx, <strong>is</strong> enslaved to the capital<strong>is</strong>t because the laborers must sell<br />

themselves and their labor for the capital<strong>is</strong>t to reproduce and for the laborers to reproduce.<br />

Th<strong>is</strong> <strong>is</strong> part <strong>of</strong> the capital as its means <strong>of</strong> valorization. The laborer makes a pr<strong>of</strong>it for the<br />

capital<strong>is</strong>t, the more labourer a capital<strong>is</strong>t has, the larger pr<strong>of</strong>it margin he can attain. So the<br />

accumulation <strong>of</strong> capital <strong>is</strong> the accumulation <strong>of</strong> the laborer.<br />

As capital accumulation increases under the assumptions that have been made, th<strong>is</strong> increases<br />

the exploitation and domination <strong>of</strong> the laborer. It’s true that as wages increase the<br />

326 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

labourer can delve into purchases that increases their enjoyment but th<strong>is</strong> only makes the<br />

labourer more dependent on the capital<strong>is</strong>t. Also one must look at the essential factor that the<br />

worker will always provide a percentage <strong>of</strong> the labor that he does not get paid for. Under the<br />

capital<strong>is</strong>t system, labour-power <strong>is</strong> not purchased for the personal sat<strong>is</strong>faction <strong>of</strong> the buyer by<br />

its service or through the product. The goal <strong>of</strong> the buyer <strong>is</strong> the valorization <strong>of</strong> h<strong>is</strong> capital,<br />

production <strong>of</strong> capital that contains more labour than what he paid for. Labour-power reproduces<br />

its own value as capital by selling itself so that means <strong>of</strong> production <strong>is</strong> maintained and<br />

it provides a source <strong>of</strong> additional capital in the shape <strong>of</strong> unpaid labour. The unpaid labor that<br />

<strong>is</strong> built into the nature <strong>of</strong> wages. Even when there <strong>is</strong> an increase in wages and a decrease<br />

in price <strong>of</strong> labour the result <strong>is</strong> a reduction in the amount <strong>of</strong> unpaid labour supplied, not an<br />

abol<strong>is</strong>hment <strong>of</strong> unpaid labour.<br />

So what are the alternatives ? 1. A r<strong>is</strong>e in the price <strong>of</strong> labour resulting from accumulation<br />

<strong>of</strong> capital as long as the increase in the price <strong>of</strong> labour does not interfere with the progress<br />

<strong>of</strong> accumulation. According to Adam Smith th<strong>is</strong> can work; due to h<strong>is</strong> theory that a great<br />

stock with a smaller pr<strong>of</strong>it margin will increase at a more rapid pace than small stock with a<br />

larger pr<strong>of</strong>it margin. Therefore a reduction in the amount <strong>of</strong> unpaid labour will not interfere<br />

with the progress <strong>of</strong> accumulation. 2. The capital accumulation slows down as a result <strong>of</strong> an<br />

increase in the price <strong>of</strong> labour-power, because pr<strong>of</strong>its decrease. The decrease in the amount<br />

<strong>of</strong> capital causes the price <strong>of</strong> unpaid labour-power to be in excess.<br />

Capital production <strong>is</strong> based on the ‘Natural Law <strong>of</strong> Population’ which says : the relationship<br />

between capital, accumulation and the rate <strong>of</strong> wages <strong>is</strong> the relation between the unpaid<br />

labour that has been turned into capital and the additional paid labour that <strong>is</strong> needed to set in<br />

motion additional capital. It <strong>is</strong> the relation <strong>of</strong> paid and un-paid labour within a working population.<br />

For example if the number <strong>of</strong> unpaid labour accumulated by the capital<strong>is</strong>t increases<br />

so fast that the capital<strong>is</strong>t needs surplus-labour, than wages increase and the unpaid labourer<br />

decreases. But if surplus-labour <strong>is</strong> not supplied as needed, accumulation decreases, a smaller<br />

part <strong>of</strong> revenue <strong>is</strong> capitalized and you get a slow increase in wages. The r<strong>is</strong>e <strong>of</strong> wages <strong>is</strong> limited<br />

within the foundation <strong>of</strong> the capital<strong>is</strong>t system leaving the laborer to be governed by the<br />

products made with h<strong>is</strong> own hands.<br />

Hans: Higher wages do not make the laborer dependent on the capital<strong>is</strong>t because he enjoys himself more.<br />

Your essay <strong>is</strong> ok, but the explanations were not quite cr<strong>is</strong>p and clear enough.<br />

First Message by Femme <strong>is</strong> [207.1].<br />

[579] Jake: term paper For my term paper I chose to look at section one <strong>of</strong> chapter<br />

25. Th<strong>is</strong> chapter begins with Marx clarifying the differences in capital. “As value, it <strong>is</strong><br />

determined by the the proportion in which it <strong>is</strong> divided into constant capital, or the value <strong>of</strong><br />

the means <strong>of</strong> production, and variable capital, or the value <strong>of</strong> labour-power, the sum total <strong>of</strong><br />

wages. As material, as it functions in the process <strong>of</strong> production, all capital <strong>is</strong> divided into<br />

means <strong>of</strong> production and living labour-power. Th<strong>is</strong> latter composition <strong>is</strong> determined by the<br />

relationship between the mass <strong>of</strong> the means <strong>of</strong> production employed on the one hand, and<br />

the mass <strong>of</strong> labour necessary for their employment on the other.” Marx goes on to say that<br />

one <strong>is</strong> value composition and the other technical composition.<br />

Capital grows by the returning <strong>of</strong> the pr<strong>of</strong>its to the original capital source. For capital to<br />

truly grow the surplus <strong>of</strong> growth must be retransformed into additional labor. When capital


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 327<br />

grows without the labor side changing the result will be an increase in the wages because <strong>of</strong><br />

demand for workers being larger than supply.<br />

The chapter d<strong>is</strong>cusses a quote from Mandeville. He goes on to make the point that the<br />

rich are only rich because <strong>of</strong> the poor. He makes the point that the poor do all the work for<br />

the rich. He then makes the point that the poor must be kept at a level that they need the<br />

rich to survive, but also the rich keep them at a level that they continue to have there labor<br />

available. He makes the point that too much money can make a man lazy, where as too little<br />

can make a man desperate. Mandevilles makes the point that the surest <strong>wealth</strong> in a country<br />

can be considered the laborious work force. Th<strong>is</strong> <strong>wealth</strong> then can be trapped if the society<br />

can keep the workers both ignorant as well as poor. Th<strong>is</strong> being the case because “knowledge<br />

both enlarges and multiplies our desires, and the fewer things a man w<strong>is</strong>hes for, the more<br />

easily h<strong>is</strong> necessities may be supplied.”<br />

Marx goes on to point out that Mandeville has neglected to realize that the accumulation<br />

<strong>of</strong> capital process also increases the mass <strong>of</strong> the laboring poor. By giving the laborer wages,<br />

its possible to lull the employee into being content. Th<strong>is</strong> <strong>is</strong> when the exploitation process<br />

begins. The worker <strong>is</strong> able to buy necessities that may bring some sat<strong>is</strong>faction, and possibly<br />

save a little, th<strong>is</strong> little sat<strong>is</strong>faction <strong>is</strong> just a fraction <strong>of</strong> the efforts given to capital<strong>is</strong>t by the<br />

worker. Marx somewhat compares th<strong>is</strong> to the little sat<strong>is</strong>faction a slave might receive with a<br />

room and board.<br />

The capital<strong>is</strong>t gain comes from the workers unpaid labor. Th<strong>is</strong> <strong>is</strong> what the capital<strong>is</strong>t thrive<br />

on. If the worker was to be fully compensated for h<strong>is</strong> labor, capital<strong>is</strong>m would not ex<strong>is</strong>t.<br />

Capital<strong>is</strong>m will not let th<strong>is</strong> process happen. “The relation between capital, accumulation and<br />

the rate <strong>of</strong> wages <strong>is</strong> nothing other than the relation between the unpaid labour which has<br />

been transformed into capital and the additional paid labour necessary to set in motion th<strong>is</strong><br />

additional capital. <strong>What</strong> then becomes important <strong>is</strong> the relation <strong>of</strong> the unpaid labor and the<br />

paid labor <strong>of</strong> the working class. Wages will r<strong>is</strong>e when the capital<strong>is</strong>t has a sharp increase in the<br />

accumulation <strong>of</strong> capital, th<strong>is</strong> being the case because <strong>of</strong> the need for more labor. The opposite<br />

effect occurs also, as the accumulation <strong>of</strong> capital slows down, revenue that <strong>is</strong> capitalized<br />

drops causing the need for additional labor to dimin<strong>is</strong>h. Thus causing wages to drop. The<br />

capital<strong>is</strong>t nature then can be responsible for every r<strong>is</strong>e and drop in wages. Because <strong>of</strong> the<br />

nature <strong>of</strong> capital<strong>is</strong>m: ‘just as man <strong>is</strong> governed, in religion, by the products <strong>of</strong> h<strong>is</strong> own brain,<br />

so, in capital<strong>is</strong>t production, he <strong>is</strong> governed by the products <strong>of</strong> h<strong>is</strong> own hand.’”<br />

Hans: You picked out some good key quotes, but the argument with which you connected these quotes <strong>is</strong> not quite<br />

prec<strong>is</strong>e enough.<br />

First Message by Jake <strong>is</strong> [41].<br />

[581] TOAD: Chapter 25 For my term paper I have chosen to d<strong>is</strong>cuss section 4 <strong>of</strong><br />

chapter 25. In th<strong>is</strong> section Marx talks about the three forms that relative surplus population<br />

possesses. However I think that there could be six forms. Marxs’ three forms are:the floating,<br />

the latent, and the stagnant. After reading th<strong>is</strong> section a number <strong>of</strong> times I feel the six forms<br />

that he d<strong>is</strong>cusses are: the floating, the latent, the stagnent, the pauper, the orphans and pauper<br />

children, and the cripple.<br />

The floating form: Th<strong>is</strong> form <strong>of</strong> surplus population <strong>is</strong> that which has reached and exceeded<br />

maturity. Once a member <strong>of</strong> the male population reaches maturity they are not<br />

328 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

considered to be prime for employment, th<strong>is</strong> makes it hard for them to continue to find<br />

employment in ther same branches <strong>of</strong> industery. Thus they are left to emigrate and follow<br />

capital which has itself emigrated. Hence they are considered floating.<br />

The Latent form: Th<strong>is</strong> form <strong>of</strong> surplus population <strong>is</strong> that which <strong>is</strong> out there to be exploited,<br />

but it <strong>is</strong> not done so unless there <strong>is</strong> a demand for there labor. Marx says that the latent<br />

population ex<strong>is</strong>ts in agriculture and that there wages are so low that they already ex<strong>is</strong>t with<br />

one foot in pauper<strong>is</strong>m (the poor house).<br />

The Stagnent form: Th<strong>is</strong> form <strong>of</strong> surplus population <strong>is</strong> that which cons<strong>is</strong>ts <strong>of</strong> those with<br />

irregular employment. Meaning that they can’t hold a job. So for capitol th<strong>is</strong> means an “inexhaustible<br />

reservoir <strong>of</strong> labor-power” or that there are allot <strong>of</strong> people to be taken advantage<br />

<strong>of</strong>. These people are those that typically will work for a maximum <strong>of</strong> hours with minimum<br />

wages because they cant find work and they need to survive.<br />

Th<strong>is</strong> <strong>is</strong> where I don’t follow Marx, because he said in the beginning <strong>of</strong> th<strong>is</strong> section that<br />

there were only three forms <strong>of</strong> surplus population. However after he fin<strong>is</strong>hes d<strong>is</strong>cussing<br />

those three forms he goes on to explain the three forms <strong>of</strong> pauper<strong>is</strong>m that ex<strong>is</strong>t under surplus<br />

population, doesen’t th<strong>is</strong> make six. he says that the three forms <strong>of</strong> pauper<strong>is</strong>m are: those<br />

that are able to work but don’t; orphans and pauper children, these are candidates for the<br />

industrial reserve army to be exploited in times <strong>of</strong> prosperity. And third the demoralized the<br />

raged and those unable to work; basicaly, the old, the widowed, the sickly, the mutilated, and<br />

those who have fallen victim to dangerous machinery. Marx explains that capital transfers<br />

the resoponsibility <strong>of</strong> these to the working class and the petty bourgeo<strong>is</strong>ie.<br />

Marx continues and concludes the rest <strong>of</strong> th<strong>is</strong> section by talking about the Venetian monk<br />

Ortes, one <strong>of</strong> the great economic writers <strong>of</strong> the eighteenth century. Ortes explains h<strong>is</strong> view <strong>of</strong><br />

<strong>wealth</strong>, and how if there <strong>is</strong> <strong>wealth</strong> there <strong>is</strong> an equal amount <strong>of</strong> poverty to <strong>of</strong>fset that <strong>wealth</strong>.<br />

He says that there cannot be success without failure and good without evil, basicaly the<br />

natural balance <strong>of</strong> life. Marx closes with a quote from Destutt de Tracy “in poor nations the<br />

people are comfortable, in rich nations they are generally poor.” The reason I feel that th<strong>is</strong><br />

<strong>is</strong>, <strong>is</strong> because in poor nations the people have nothing to compare themselves to, and in rich<br />

nations they do.<br />

Hans: The difference between the three forms <strong>of</strong> relative surplus population (floating, latent, and stagnant), and<br />

pauper<strong>is</strong>m <strong>is</strong>: pauper<strong>is</strong>m <strong>is</strong> a consequence <strong>of</strong> the ex<strong>is</strong>tence <strong>of</strong> unemployment. Unemployment <strong>is</strong> caused by the<br />

accumulation <strong>of</strong> capital, and pauper<strong>is</strong>m <strong>is</strong> caused by unemployment.<br />

Marx does not just “talk about” Ortes, he heartily d<strong>is</strong>agrees with him! He would also d<strong>is</strong>agree with your<br />

interpretation that the povery amidst plenty <strong>is</strong> only an artefat <strong>of</strong> the compar<strong>is</strong>on effect.<br />

First Message by TOAD <strong>is</strong> [10].<br />

[585] Super and Lamma: Chapter 25 Term Paper Chapter 25, Section 4<br />

In th<strong>is</strong> section Marx <strong>is</strong> talking about the different forms <strong>of</strong> the relative surplus population.<br />

According to Marx surplus population <strong>is</strong> the group <strong>of</strong> workers who are only partially employed<br />

or completely unemployed. Marx breaks th<strong>is</strong> surplus population into three different<br />

forms; floating, latent, and stagnant.<br />

The floating form <strong>of</strong> surplus population occurs when workers are laid <strong>of</strong>f and then recalled<br />

back to work in a greater number. In Marx’s time workers in factories and workshops<br />

were mostly male. Once they reached maturity only a small number <strong>of</strong> these workers could


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 329<br />

continue employment in the same industry. The majority <strong>of</strong> them found work elsewhere. It<br />

was th<strong>is</strong> group who found work in a different industry which made up the floating surplus<br />

population. Marx brings up a contradiction with the accumulation <strong>of</strong> capital. Capital<strong>is</strong>ts will<br />

complain <strong>of</strong> a shortage in labor while at the same time many people are out <strong>of</strong> work because<br />

<strong>of</strong> the div<strong>is</strong>ion <strong>of</strong> labor which restricts them to a particular industry. After their prime working<br />

years they are sifted out and ex<strong>is</strong>t in the floating surplus population. The floating form <strong>of</strong><br />

population <strong>is</strong>, “...rapid replacement <strong>of</strong> one generation <strong>of</strong> workers by another (th<strong>is</strong> law does<br />

not hold for the other classes <strong>of</strong> the population).” p. 795.<br />

The agricultural population provides us with a good example <strong>of</strong> latent surplus population.<br />

Advances in technology decrease the demand for the rural working population. Therefore<br />

th<strong>is</strong> group <strong>of</strong> workers are in a constant movement finding work in the urban or manufacturing<br />

industries. It <strong>is</strong> th<strong>is</strong> group that constitutes a laten surplus population. Because <strong>of</strong> th<strong>is</strong> surplus<br />

labor their wages are reduced to a minimum and the workers are forced to live in poverty.<br />

The last form <strong>is</strong> the stagnant population. The group <strong>is</strong> made up <strong>of</strong> those workers with<br />

very irregular employment. Th<strong>is</strong> can be seen in industries where machinery and technology<br />

<strong>is</strong> taking the place <strong>of</strong> handmade types <strong>of</strong> manufacturing. “It <strong>is</strong> characterized by a maximum<br />

<strong>of</strong> working time and a minimum <strong>of</strong> wages.” p. 796. The growth <strong>of</strong> th<strong>is</strong> working class <strong>is</strong><br />

continuously increasing. Th<strong>is</strong> creates a large group <strong>of</strong> the working class who continually<br />

reach deeper levels <strong>of</strong> pauper<strong>is</strong>m.<br />

Marx divides the stagnant population into three categories. The first are those workers<br />

who are able to work but choose not to. The second category are orphans and the pauper<br />

children. Third are those who are unable to work or are not able to adapt to the constant<br />

changing industries.<br />

The mechan<strong>is</strong>m <strong>of</strong> capital<strong>is</strong>t production <strong>is</strong> driven by the creation <strong>of</strong> th<strong>is</strong> relative surplus<br />

population. Workers are taught that they should adapt their number <strong>of</strong> workers to the requirements<br />

<strong>of</strong> capital. Marx states that th<strong>is</strong> <strong>is</strong> fool<strong>is</strong>h because in capital accumulation the more<br />

the workers sell their own labor power, the higher the increases <strong>of</strong> capital<strong>is</strong>t <strong>wealth</strong>. Capital<br />

accumulation ra<strong>is</strong>es the social productivity <strong>of</strong> labor at the expense <strong>of</strong> the individual worker.<br />

Or in other words, development <strong>of</strong> production leads to further exploitation <strong>of</strong> the worker.<br />

“It follows therefore that in proportion as capital accumulates, the situation <strong>of</strong> the worker,<br />

be h<strong>is</strong> payment high or low, must grow worse.” p. 799. Marx argues that th<strong>is</strong> exploitation<br />

<strong>of</strong> the worker <strong>is</strong> a necessary force in the accumulation <strong>of</strong> capital. The <strong>wealth</strong> <strong>of</strong> capital<strong>is</strong>ts<br />

corresponds inversely to the degradation <strong>of</strong> the poor and less fortunate. Throughout society<br />

there must be opposition in all things in order to have an equilibrium. For example there<br />

cannot be good without evil. The same <strong>is</strong> true for the <strong>wealth</strong> <strong>of</strong> a nation, riches must be<br />

<strong>of</strong>fset by lack <strong>of</strong> subs<strong>is</strong>tence for the indigent class. “ ‘It seems to be a law <strong>of</strong> Nature that the<br />

poor should be to a certain degree improvident’...’that there may always be some to fulfill<br />

the most servile, the most sordid, and the most ignoble <strong>of</strong>fices in the community.’ ” p. 800.<br />

Marx quotes Storch in order to explain the advantage <strong>of</strong> the degradation <strong>of</strong> the masses in<br />

capital<strong>is</strong>t societies. Storch says security <strong>is</strong> the only benefit. He does not expand upon what<br />

type <strong>of</strong> security or how the security ex<strong>is</strong>ts. We think he <strong>is</strong> talking about the economic security<br />

<strong>of</strong> the ex<strong>is</strong>ting owners <strong>of</strong> <strong>wealth</strong>. They can maintain their high standard <strong>of</strong> living by<br />

feeding <strong>of</strong>f the consumption <strong>of</strong> the poor.<br />

330 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Due to increasing advances in technology and manufacturing the accumulation <strong>of</strong> capital<br />

has created a necessary exploitation <strong>of</strong> the working class. Th<strong>is</strong> creates a greater div<strong>is</strong>ion<br />

<strong>of</strong> classes between the rich and the poor. The three type <strong>of</strong> surplus population reveal the<br />

different outcomes <strong>of</strong> the capital<strong>is</strong>t exploitation <strong>of</strong> labor.<br />

Hans: Your characterization <strong>of</strong> the floating, latent, and stagnant overpopulation <strong>is</strong> ok. But you m<strong>is</strong>understand<br />

pauper<strong>is</strong>m: th<strong>is</strong> <strong>is</strong> not part <strong>of</strong> the stagnant overpopulation, but <strong>is</strong> the effect <strong>of</strong> all three kinds <strong>of</strong> overpopulation. If<br />

Marx says that some <strong>of</strong> the paupers are able to work, th<strong>is</strong> does not mean, as you write, that they “choose not to.” At<br />

the end you seem to think that Marx quoted certain authors with approval which he was really critical <strong>of</strong>. How can<br />

one “feed <strong>of</strong>f the consumption <strong>of</strong> the poor”? The rich are so rich because they make the poor work for them.<br />

Message [585] referenced by [596]. First Message by Super <strong>is</strong> [169].<br />

[590] Gilligan, Skippy, and Kia: term paper We have chosen to write a section by<br />

section description <strong>of</strong> chapter 25.<br />

Section 1: Capital <strong>is</strong> just like the commodity that we have studied so intensely. It <strong>is</strong><br />

compr<strong>is</strong>ed <strong>of</strong> two components, constant capital or the value <strong>of</strong> the means <strong>of</strong> production,<br />

and variable capital which takes into account labor power and its total wages paid to those<br />

laborers. Labor power has a partner known as subs<strong>is</strong>tence which <strong>is</strong> a part <strong>of</strong> capital and it<br />

helps in defining labor power.<br />

When capital grows or increases it <strong>is</strong> dealing with the variable component, which stated<br />

above tells us that it directly affects labor power and most importantly the subs<strong>is</strong>tence factor.<br />

So as capital grows the same amount <strong>of</strong> surplus value gained must be “retransformed into<br />

variable capital.” “The demand for labor, and the fund for subs<strong>is</strong>tence <strong>of</strong> workers, both<br />

clearly increase in the same proportion as the capital, and with the same rapidity.” 763:1/o<br />

Capital<strong>is</strong>t need the laborers as well as laborers need the capital<strong>is</strong>t in order to survive. John<br />

Bellers makes a great point when he says, “For if one had a hundred thousand acres<strong>of</strong> land<br />

and as many pounds in money, and as many cattle, without a laborer, what would the rich<br />

man be but a laborer?” Th<strong>is</strong> statement <strong>is</strong> vital and an important quote even today. If you take<br />

Bill Gates for insatnce and take all h<strong>is</strong> laborers away from him and leave him with money,<br />

micros<strong>of</strong>t wouldn’t be anything, because he <strong>is</strong> so dependant upon the workers. People who<br />

labor for another are a very important key to the growing fortunes <strong>of</strong> the capital<strong>is</strong>t himself.<br />

Sir F.M. Eden says, “persons <strong>of</strong> independent fortunes .. owe their superoir advantages by<br />

no means to any superior abilities <strong>of</strong> their own, but almost entirely... to the industry <strong>of</strong> others.”<br />

We laborers are dependent upon them in that we work for our subs<strong>is</strong>tence, we ensalve<br />

ourselves because we need to live.<br />

As wages r<strong>is</strong>e we think we’re better <strong>of</strong>f but do new clothes, more food,and increased joy<br />

really define themselves as such. No. they don’t, its the key factor in the exploitation process,<br />

and as our surplus r<strong>is</strong>es we are eploited to an even greater extent. The consumer doesn’t pay<br />

a price that reflects the amount <strong>of</strong> labor that was put into an item, its called unpaid labor.<br />

Th<strong>is</strong> exploitation will always be because if their wasn’t such a thing the domain <strong>of</strong> capital<br />

would be d<strong>is</strong>turbed. We don;t recogn<strong>is</strong>e the exploitation process and usually feel some self<br />

valor from the wages that we receive.<br />

“The relation between capital, accumulation and the rate <strong>of</strong> wages <strong>is</strong> nothing other than<br />

the relation between unpaid labor which has been transformed into capital and the additional<br />

paid labor necessary to set in motion th<strong>is</strong> additional capittal.”


section 2<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 331<br />

Marx reminds us that capital <strong>is</strong> not constant as we thought , but rather variable. The laborers<br />

productivity <strong>is</strong> increased due to th<strong>is</strong> variablity <strong>of</strong> captital. So, as thought, the production<br />

<strong>of</strong> the laborers increases right along with the r<strong>is</strong>e in organic capital. “With the increased<br />

productivity <strong>of</strong> labor, the mass <strong>of</strong> the means <strong>of</strong> production consumed by labor increases, but<br />

their value in compar<strong>is</strong>on with their masses dimin<strong>is</strong>hes.” (774) Th<strong>is</strong> has an inverse effect on<br />

the value, it goes down since the productivity has r<strong>is</strong>en.<br />

The Lager Companies, for example are driving the little guys right out <strong>of</strong> business because<br />

their able to purchase more and kep more on hand than the little co.. through th<strong>is</strong> method<br />

they are able to make drastic price reductions where the smaller firm doesn’t have that type <strong>of</strong><br />

power or even the same opportunity. Th<strong>is</strong> promotes centralization from the larger companies,<br />

which maximizes the effeciency rates <strong>of</strong> labor. Company takeovers, buy outs, and liquidation<br />

<strong>of</strong> these smaller firms <strong>is</strong> what <strong>is</strong> known as centralization.<br />

section 3 In section 3 Marx reminds that accumulation <strong>of</strong> capital comes to life through<br />

a continuing increase <strong>of</strong> its constant component at the expense <strong>of</strong> its variable component.<br />

The production mode <strong>of</strong> capital<strong>is</strong>ts, labor, does not keep pace with the change in society<br />

and its <strong>wealth</strong> <strong>of</strong> accumulation on hand, capital changes form from constant to variable.<br />

Also the demand <strong>of</strong> labor does not keep up with proportions to accumulation because, the<br />

variable capital that falls compares to the growth. At an advantage, not employing additional<br />

workers, capital<strong>is</strong>t enjoy the surplus population.<br />

As technology increases the less workers are needed. Th<strong>is</strong> <strong>is</strong> the current situation that<br />

<strong>is</strong> seen today in many manufacturing industries. Reason being that the machines employed<br />

don’t have to be paid or they aren’t affected by the subs<strong>is</strong>tent component. Capital<strong>is</strong>t make<br />

grand pr<strong>of</strong>its from innovations such as these. The more money firm makes the more likely it<br />

will increase its production i.e. franch<strong>is</strong>ing.<br />

Workers wages will increase as the firms output increases. However, at the end , the<br />

higher wges become vulnerable. Because the surpus population that brings in workers allows<br />

capital<strong>is</strong>t to set wages. The more supply <strong>of</strong> labor there <strong>is</strong> the lower the wages will drop. With<br />

more available workers the chance <strong>of</strong> losing your job <strong>is</strong> greater, because that prson might be<br />

wiling to accept a smaller wage than you. Its all about maximization.<br />

section 4<br />

The 4 parts to the reserve labor army are the: floating, Latent, Stagnant, and the Paupers.<br />

The floating surplus cons<strong>is</strong>ts <strong>of</strong> the population <strong>of</strong> workrs that cause dimin<strong>is</strong>hining returns<br />

for the co. As stated on page 798 “once the workers reach the age <strong>of</strong> maturity, only a<br />

few number <strong>of</strong> them continue to find employment in the same branches <strong>of</strong> industry.” The<br />

unemplouyed that are left over make up the floating surplus.<br />

The Latent surplus happens when the capital<strong>is</strong>ts take over the agricultural aspects forcing<br />

the rural working population to fall as the capital employed by agriculture r<strong>is</strong>es. Th<strong>is</strong> <strong>is</strong> done<br />

without compensationas done with nonagricultural industry. The people go into the industry<br />

looking for opportunities to complete the transformation. Th<strong>is</strong> also causes the wages <strong>of</strong> the<br />

agriculture worker to fall to a minimum being on the edge <strong>of</strong> pauper<strong>is</strong>m.<br />

332 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The stagnant population cons<strong>is</strong>ts <strong>of</strong> the left over population <strong>of</strong> the Latent workers and the<br />

Floating forces. These people work maximum hours for minimal pay. These are the people<br />

that capital easily exploits. “Its extent grows in proportion as, with the growth in the extent<br />

and the energy <strong>of</strong> accumulation, the creation <strong>of</strong> a surplus population also advances.”(796)<br />

The population <strong>of</strong> the Paupers that are able to work “increases with the cr<strong>is</strong><strong>is</strong> <strong>of</strong> trade and<br />

dimin<strong>is</strong>hes with every revival.”<br />

As stated by Marx these Paupers are good candidates for the reserves.<br />

The third <strong>is</strong> the excess weight or the fat <strong>of</strong> the population. They have passed their time <strong>of</strong><br />

being productive and are <strong>of</strong> little use to society.<br />

Hans: There are some m<strong>is</strong>understandings. Is the following a joke?<br />

Labor power has a partner known as subs<strong>is</strong>tence which <strong>is</strong> a part <strong>of</strong> capital and it helps in<br />

defining labor power.<br />

Also your concept <strong>of</strong> unpaid labor <strong>is</strong> not at all what Marx was talking about:<br />

The consumer doesn’t pay a price that reflects the amount <strong>of</strong> labor that was put into an item,<br />

its called unpaid labor.<br />

Also the following sentence does not make sense and <strong>is</strong> incongruous with the rest <strong>of</strong> what you are writing:<br />

The production mode <strong>of</strong> capital<strong>is</strong>ts, labor, does not keep pace with the change in society and<br />

its <strong>wealth</strong> <strong>of</strong> accumulation on hand, capital changes form from constant to variable.<br />

Finally, regarding your last sentence:<br />

They have passed their time <strong>of</strong> being productive and are <strong>of</strong> little use to society.<br />

You are perhaps not aware <strong>of</strong> it, but usefulness to society <strong>is</strong> a bad standard to judge people by. You should rather<br />

ask whether society <strong>is</strong> useful to people.<br />

First Message by Gilligan <strong>is</strong> [60].<br />

[592] Homer: chapter 25 Th<strong>is</strong> essay will d<strong>is</strong>cuss part 2 <strong>of</strong> Chapter 25: The General Law<br />

<strong>of</strong> Capital<strong>is</strong>t Accumulation and some <strong>of</strong> my own thoughts pertaining to th<strong>is</strong> section.<br />

As machines become a larger and larger part <strong>of</strong> the production process,the ratio between<br />

constant and variable capital (hereafter referred to as the organic compostion <strong>of</strong> capital)<br />

needed for a business to earn an average pr<strong>of</strong>it increases. Any new businesses must have<br />

th<strong>is</strong> same, higher, organic composition <strong>of</strong> capital in order to be successful. The effect <strong>of</strong><br />

th<strong>is</strong> <strong>is</strong> that in any industry, the average size <strong>of</strong> each firm increases. Because <strong>of</strong> competition,<br />

those firms most likely to succeed will have an organic composition <strong>of</strong> capital that <strong>is</strong> above<br />

average. These firms will have the most funds for keeping up with the rate <strong>of</strong> technological<br />

change.<br />

These processes lead to the centralization and concentration <strong>of</strong> capital. A large number<br />

<strong>of</strong> small firms are either driven out <strong>of</strong> business or absorbed by a small number <strong>of</strong> large firms.<br />

The means <strong>of</strong> production become centralized in the hands <strong>of</strong> a few large firms. Smaller<br />

capitals can only find entry into business in those areas which are new or have for some other<br />

reason been neglected by larger capital. In reference to th<strong>is</strong>, Marx writes, “Here competition<br />

rages in direct proportion to the number, and in inverse proportion to the magnitude <strong>of</strong> rival<br />

capitals. It always ends in the ruin <strong>of</strong> many small capital<strong>is</strong>ts, whose capitals partly pass into<br />

the hands <strong>of</strong> their conquerors, and partly van<strong>is</strong>h completely.” (pg. 777:2) Small firms, which<br />

have higher production costs, go bankrupt. In times <strong>of</strong> economic recession, th<strong>is</strong> can happen<br />

to a large number <strong>of</strong> these enterpr<strong>is</strong>es within a short span <strong>of</strong> time.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 333<br />

<strong>What</strong> happens to the entrepreneurs who have had their businesses fail? A few are able<br />

to take middle-class jobs as managers if their firm <strong>is</strong> absorbed by a larger one. While the<br />

more fortunate ones maintain their status <strong>of</strong> middle-class, it <strong>is</strong> a new middle class that does<br />

not own the means <strong>of</strong> production. The rest undergo a reversal <strong>of</strong> roles and are forced to sell<br />

their labor-power . Th<strong>is</strong> process <strong>of</strong> the transformation <strong>of</strong> owners <strong>of</strong> capital into owners <strong>of</strong><br />

only labor-power <strong>is</strong> fascinating and can be stat<strong>is</strong>tically demonstrated:<br />

percent <strong>of</strong> the employed population <strong>of</strong> the USA<br />

1880 1890 1900 1910 1920 employees <strong>of</strong> all kinds: 62 65 67.9 71.9 73.9 entrepreneurs<br />

<strong>of</strong> all kinds: 36.9 33.8 30.8 26.3 23.5<br />

1930 1940 1950 1960 1965 76 78.2 79.8 84.2 86.3 20.3 18.8 17.1 14.0 12.4<br />

(The information for the years 1880-1939 <strong>is</strong> from Productivity, Wages, and National<br />

Income by Spurgeon Bell. The figures for 1950 are from the U.S. Stat<strong>is</strong>tical Absrtact, 1958.<br />

The figures for 1960 and 1965 are from the U.S. Stat<strong>is</strong>tical Absract, 1965)<br />

Th<strong>is</strong> process thrusts some pro-capital<strong>is</strong>t arguments into a new light. When d<strong>is</strong>cussing<br />

the virtues <strong>of</strong> capital<strong>is</strong>m, its proponents <strong>of</strong>ten chant the mantra, “Anyone who wants to,<br />

can ‘make it’. Anyone who has no job or doesn’t like their job can simply start their own<br />

business.” Th<strong>is</strong> may have been a somewhat true and relevant statement 100 years ago. However,in<br />

the present time, it just doesn’t hold water, and becomes more unreal<strong>is</strong>tic as time<br />

passes. Th<strong>is</strong> process also leads to a rebuttal <strong>of</strong> another common theme: the virtues <strong>of</strong> competition.<br />

The supporters <strong>of</strong> the capital<strong>is</strong>t system zealously assert, “Competition promotes<br />

innovation and efficiency. If you think that you can do something better than someone else,<br />

start your own business and beat them in competition.” Again, th<strong>is</strong> may have been feasible<br />

in an earlier stage <strong>of</strong> capital<strong>is</strong>m, but <strong>is</strong> no longer true. Competition has winners and losers.<br />

The enormous, global corporations and “old” capital<strong>is</strong>t families (e.g. the Rockefellers, Du<br />

Ponts, etc.) have won and the competition <strong>is</strong> over. The only competition now <strong>is</strong> among<br />

corporate oligarchs (who either implicitly or explicitly coordinate their activities) for pieces<br />

<strong>of</strong> market share. Some people will say, “but I know a guy who started h<strong>is</strong> own business,<br />

what about that?” It <strong>is</strong> true that some people are able to become entrepreneurs. However,<br />

how many <strong>of</strong> these new entrepreneurs are involved in the production <strong>of</strong> any durable goods?<br />

The vast majority are in the reselling <strong>of</strong> commodities produced by large capital or in service<br />

industries. They are merely scrambling for table scaps.<br />

Hans: Interesting data!<br />

Next Message by Homer <strong>is</strong> [593].<br />

[594] Emma: Marx-right and wrong As a theme for th<strong>is</strong> essay, I have chosen to take<br />

a closer look at a theme <strong>is</strong> section three which Marx characterizes as “one <strong>of</strong> the great<br />

exploits <strong>of</strong> economic apologetics.” The <strong>is</strong>sue seems to fit closely with the purpose <strong>of</strong> the<br />

entire chapter as described in the first line, that being, to “consider the influence <strong>of</strong> growth<br />

<strong>of</strong> capital on the fate <strong>of</strong> the working class” and so seems to be worth careful consideration.<br />

Given how Marx, the master word-smith, uses the word fate here the reader might suspect<br />

that Marx’s thoughts on the accumulation and growth <strong>of</strong> capital do not bode well for workers.<br />

He’d be right. However, I hope to show that while Marx was correct in h<strong>is</strong> explanation <strong>of</strong><br />

the effects <strong>of</strong> capital accumulation on workers, as far as it goes, he didn’t go far enough.<br />

<strong>What</strong> Marx m<strong>is</strong>sed was the corollary to capital<strong>is</strong>m that manifests itself as it matures. It also<br />

334 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

represents one <strong>of</strong> its essential dynamic forces that while at times causes the stress and social<br />

destruction that Marx decries so well, as <strong>is</strong> <strong>of</strong>ten the case, out <strong>of</strong> such destruction comes new<br />

opportunity for growth and life. The “great exploit” that Marx refers to <strong>is</strong> the tendency for<br />

the accumulation <strong>of</strong> capital to ultimately drive into irrelevance the vary factors (i.e., workers)<br />

that produced it.<br />

Marx sets up the problem by establ<strong>is</strong>hing a lengthy and detailed definition <strong>of</strong> capital,<br />

complete with various constant and variable components that have been described by others<br />

in the class. The nub <strong>of</strong> Marx’s argument concerning the deleterious effects <strong>of</strong> the accumulation<br />

<strong>of</strong> capital for workers has to do with h<strong>is</strong> contention that “With the growth <strong>of</strong> the<br />

total capital, its variable constitent or the labour incorporated in it, also does increase, but<br />

in a constantly dimin<strong>is</strong>hing proportion...In fact it <strong>is</strong> capital<strong>is</strong>tic accumulation itself that constantly<br />

produces...a relatively redundant population <strong>of</strong> labourers...” The cause <strong>of</strong> the “redundant”<br />

or “surplus-population” stems from the idea that as capital accumulates it <strong>is</strong> reinvested<br />

in better and more efficient machinery equipment. Tools, so to say, which by design are<br />

made simpler while more efficient than those which they replace. In th<strong>is</strong> way, the number <strong>of</strong><br />

wokers required to operate the new generation <strong>of</strong> machines <strong>is</strong> fewer and the skills required<br />

are less. Th<strong>is</strong> has the dual advantage for capital<strong>is</strong>ts <strong>of</strong> requiring less human labor power in<br />

absolute numbers and less skilled labor power that can be replaced more easily than before<br />

and by extension will require less compensation, that <strong>is</strong>, wages. As Marx says, “We have<br />

seen that the development <strong>of</strong> the capital<strong>is</strong>t mode <strong>of</strong> production and the productive power <strong>of</strong><br />

labor...enables the capital<strong>is</strong>t with the same outlay <strong>of</strong> variabale capital, to set in action more<br />

labor by greater exploitation <strong>of</strong> each individual labour-power. We have further seen that the<br />

capital<strong>is</strong>t buys with the same capital a greater mass <strong>of</strong> labour-power, as he progressively replaces<br />

skilled labourers by less skilled, mature labour-power by immature, male by female,<br />

that <strong>of</strong> adults by that <strong>of</strong> young persons or children.”<br />

Toward the end <strong>of</strong> the section Marx drops the technical aspects <strong>of</strong> h<strong>is</strong> language in favor <strong>of</strong><br />

real passion. It’s clear that he believes strongly in h<strong>is</strong> arguments and h<strong>is</strong> role as protector <strong>of</strong><br />

workers. He say, “As soon therefore as the labourers learn the secret, how it comes to pass<br />

that in the same measure as they work more, as they produce more <strong>wealth</strong> for others, and<br />

as the productive power <strong>of</strong> their labour increases, so in the same measure their function as<br />

a means <strong>of</strong> self expansion <strong>of</strong> capital becomes more and more precarious for them...so soon<br />

capital and its sycophant, political economy, cry out at the infringement <strong>of</strong> the ‘eternal’ and<br />

so to say ‘sacred’ law <strong>of</strong> supply and demand.”<br />

My critic<strong>is</strong>m <strong>of</strong> Marx on th<strong>is</strong> particular line <strong>of</strong> attack on capital<strong>is</strong>m <strong>is</strong> two-fold. First,<br />

buried deep within one <strong>of</strong> Marx’s examples <strong>of</strong> th<strong>is</strong> exploitation <strong>is</strong> a qualifying phrase concerning<br />

the effects <strong>of</strong> capital accumulation “and in a more productive form.” Marx <strong>is</strong> here<br />

referring to one <strong>of</strong> the ancillary effects <strong>of</strong> capital accumulation. It makes production more<br />

efficient. Is th<strong>is</strong> in itself enough reason to justify the social d<strong>is</strong>placement caused by capital<br />

accumulaton that Marx describes. Probably not. However, Marx has m<strong>is</strong>sed an essential,<br />

albeit accidental, component <strong>of</strong> capital<strong>is</strong>m as it relates to human nature. <strong>What</strong> we see in<br />

every day life <strong>is</strong> that when technology improves and <strong>is</strong> implemented in the work place workers<br />

are d<strong>is</strong>placed, for a time. (<strong>What</strong> <strong>is</strong> the current unemployment rate?) And there <strong>is</strong> a lag<br />

period between the time the workers are d<strong>is</strong>placed and the time the workers can become


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 335<br />

employable in a new or related field. That “down” period can be traumatic, to say the least,<br />

but shouldn’t and need not be excessive. After all, what <strong>is</strong> the alternative to the temporary<br />

trauma? Should we not seek to improve technolgy through the accumulation <strong>of</strong> capital?<br />

Should we not create greater efficiencies <strong>of</strong> production that Marx himself admits come from<br />

capital accumulation? Where would we be now if we hadn’t improved technology in order<br />

to feed the growing world’s population? Unless we decide to force a zero population growth<br />

and accept the current standard <strong>of</strong> living worldwide, we will need to improve technolgy and<br />

accept the social consequences. Perhaps what needs greater emphas<strong>is</strong> <strong>is</strong> education, training,<br />

and retraining in a capital<strong>is</strong>t society and the responsibility for such placed on the worker.<br />

Government may also be help in th<strong>is</strong> regard but should strive to stay out as much as possible.<br />

My second critic<strong>is</strong>m centers around Marx’s “us-against-them” mentality that he exploits.<br />

He states that as workers produce more <strong>wealth</strong> “they produce more <strong>wealth</strong> for others.” As<br />

if the workers are not benefitted in the process. Th<strong>is</strong> <strong>is</strong> nonsense and a bad-faith effort to<br />

egregiously increase class conflict unnecessarily. When production <strong>is</strong> more efficient all society<br />

benefits through greater supply and lower costs. Clearly capital<strong>is</strong>ts also benefit, and<br />

perhpas out <strong>of</strong> proportion. But what do capital<strong>is</strong>ts do, by definition, with their “tainted”<br />

money? Unless they literally stick it under their mattresses they invest it and put it to work<br />

for themselves and the benefit <strong>of</strong> the economy and consumers (workers) in particular (the<br />

relatively inconsequential conspicuous consumption <strong>of</strong> some capital<strong>is</strong>ts, usually later generations,<br />

notwithstanding). After all, capital<strong>is</strong>ts need above all else a market for their goods. If,<br />

as Marx contends, workers do not gain any <strong>of</strong> the benefit <strong>of</strong> their labors, who <strong>is</strong> consuming<br />

all the capital<strong>is</strong>ts’ goods?<br />

We should remember that Marx wrote over a hundred years ago. H<strong>is</strong> comments came<br />

at a time when there were almost not labor laws to protect workers including children. It<br />

was a time <strong>of</strong> raw and unbridled capitalsim that cried out for reform. Marx was one <strong>of</strong> the<br />

strongest voices crying out and he almost singlehandedly provided a theoretical bas<strong>is</strong> for<br />

workers rights. That should not be forgotten and has great relevance even today. Which<br />

<strong>is</strong> why every potential and actual capital<strong>is</strong>t should study Marx and h<strong>is</strong> thoughts, but not<br />

uncritically.<br />

Hans: Th<strong>is</strong> was a thoughtful and sincere contribution. As counterarguments I can recommend that you read pages<br />

798/9 in the book. But I respect your unwillingness to make th<strong>is</strong> a casus belli against the system.<br />

Next Message by Emma <strong>is</strong> [597].<br />

[595] Reidar: Final paper Section IV Review Chpt. 25<br />

In section IV <strong>of</strong> Chapter 25, Marx separates the relative surplus population, or the surplus<br />

working population into three categories; 1)floating, 2)latent, and 3)stagnant. Floating<br />

surplus laborers could be compared to the cyclical unemployed which we study in basic economics.<br />

In the industrial sector, many workers are thrown out <strong>of</strong> employment and simply<br />

“float” until they are called back to work or until the find employment in other fields.<br />

Marx describes latent unemployment as those workers who have been d<strong>is</strong>placed in the<br />

agricultural sector through the effects <strong>of</strong> the inception <strong>of</strong> capital<strong>is</strong>m. They are on the edge<br />

<strong>of</strong> the industrial employment area, and stand ready to commute to employment in the towns<br />

where industrial employment <strong>is</strong> found.<br />

336 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The stagnant labor population are those laborers who have been employed but are the<br />

loest paid laborers. They usually are employed in the lowest paid positions and work the<br />

longest days. They rarely remain employed.<br />

Below the stagnant laborers are the paupers. Usually they are unable to adapt to the above<br />

categories and are in the lowest <strong>of</strong> poverty levels.<br />

Section IV begins with the classification <strong>of</strong> laborers into the relative surplus population,<br />

but continues with a few points which I found much more interesting.<br />

Marx explains on pg. 798 paragraph 3, that the “worker does not employ the means <strong>of</strong><br />

production, but the means <strong>of</strong> production employ the worker.” In section three <strong>of</strong> th<strong>is</strong> chapter,<br />

Marx explained that there <strong>is</strong> a contradiction present in capital accumulation. The more<br />

capital that <strong>is</strong> accumulated does not go toward paying the laborer more or for increasing the<br />

amount <strong>of</strong> hired labor, but for the purchase <strong>of</strong> greater means <strong>of</strong> production.<br />

With a relative surplus labor population, Marx describes the laborer as standing with one<br />

foot on the edge <strong>of</strong> joining th<strong>is</strong> surplus population. The laborer can be forced to work longer<br />

hours without greater compensation in order to use the new means <strong>of</strong> production which the<br />

capital<strong>is</strong>t has purchased with h<strong>is</strong> accumulation <strong>of</strong> capital.<br />

Th<strong>is</strong> goes to explain Marx’s statement on pg 799, “all methods <strong>of</strong> production <strong>of</strong> surplusvalue<br />

are at the same time methods <strong>of</strong> accumulation, and every extension <strong>of</strong> accumulation<br />

becomes, conversely, a means for the development <strong>of</strong> those methods. It follows therefore<br />

that in proportion as capital accumulates, the situation <strong>of</strong> the worker...must grow worse.”<br />

Capital accumulation therefore worsens the state that the laborers are in.<br />

In footnote 23 pg. 799, Marx explains that the relative surplus labor population <strong>is</strong> increased<br />

by the role which capital accumulation plays among the bourgo<strong>is</strong> classes. “in the<br />

same relation in which <strong>wealth</strong> <strong>is</strong> produced, poverty <strong>is</strong> produced also...these relations produce<br />

bourgeo<strong>is</strong> <strong>wealth</strong>...only by annihilating the <strong>wealth</strong> <strong>of</strong> the individual members <strong>of</strong> th<strong>is</strong> class<br />

and by producing an ever-growing proletariat.”<br />

Marx says that the competition <strong>of</strong> the bourgeo<strong>is</strong> class not only forces the laborers to<br />

accept less pay, but also increase the proletariat by forcing more members <strong>of</strong> the bourgeo<strong>is</strong>ie<br />

into the proletariat. Thus the relative surplus labor population increases. It appears therefore<br />

that capital accumulation harms not only the proletariat, but also those in the bourgeo<strong>is</strong>ie<br />

who are unable to compete with their elite bourgeo<strong>is</strong> competitors.<br />

Hans: I like it! Your characterization <strong>of</strong> the floating surplus population <strong>is</strong> wrong, but the others are good, and the<br />

selection <strong>of</strong> points at the end <strong>is</strong> indeed interesting.<br />

First Message by Reidar <strong>is</strong> [100].<br />

[596] Brumbys and MUCHO: Termpaper for chapter 25 SECTION 1<br />

In section one, ‘Growing Demand for Labour-power Accompanies Accumulation if the<br />

Composition <strong>of</strong> capital Remains the same’, Marx explains the growth <strong>of</strong> capital on the working<br />

class. By doing th<strong>is</strong>, he uses two concepts: the value composition <strong>of</strong> capital and the<br />

technical composition <strong>of</strong> capital and the technical composition <strong>of</strong> capital. The value composition<br />

<strong>of</strong> capital. The value composition <strong>of</strong> capital <strong>is</strong> the ration <strong>of</strong> constant to variable<br />

capital; (c/v), measured in values. Technical composition <strong>of</strong> capital <strong>is</strong> the mass <strong>of</strong> means <strong>of</strong><br />

production relative to the employed labor in use value terms. Marx explains that the average


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 337<br />

<strong>of</strong> a composition from each production gives us the composition <strong>of</strong> the total social capital<br />

<strong>of</strong> a country. Labor-power plays an important role in a capital growth, therefore, if there <strong>is</strong><br />

growth in capital then there <strong>is</strong> an automatic growth in labor-power.<br />

Capital<strong>is</strong>m occurs because the poor (laborer) <strong>is</strong> dependent upon the product in the capital<strong>is</strong>t<br />

system. Therefore, there will always be a separation between the rich and the poor.<br />

With th<strong>is</strong> system, the richer gets richer, and poor gets poorer. So basically, Marx <strong>is</strong> saying<br />

that in calculating the average composition <strong>of</strong> capital, the total social capital <strong>of</strong> the entire<br />

country must be used.<br />

SECTION 2<br />

In th<strong>is</strong> section, there are three main <strong>is</strong>sues. They are; Constant <strong>of</strong> capital, Centralization,<br />

and Credit system. Among the three <strong>is</strong>sues, the book mainly focuses on Constant <strong>of</strong> capital.<br />

Constant <strong>of</strong> capital <strong>is</strong> represented by value <strong>of</strong> the means <strong>of</strong> production. The variable <strong>of</strong> the<br />

capital <strong>is</strong> payment made for labor. Means <strong>of</strong> production such as machines and technology<br />

increase then a labor portion <strong>of</strong> capital <strong>is</strong> dimin<strong>is</strong>hed because labor become more productive.<br />

The reason <strong>is</strong> simple: with the increasing productivity <strong>of</strong> labor, the mass <strong>of</strong> the means<br />

<strong>of</strong> production consumed by labor increases, but their value in compar<strong>is</strong>on with their mass<br />

dimin<strong>is</strong>hes. Accumulation <strong>of</strong> capital or <strong>wealth</strong> becomes the means <strong>of</strong> new accumulation or<br />

<strong>wealth</strong>.<br />

Centralization <strong>is</strong> attraction <strong>of</strong> capital. The larger capitals beat the smaller. Because,<br />

the battle <strong>of</strong> competition <strong>is</strong> fought by the cheapening <strong>of</strong> commodities. The cheapness <strong>of</strong><br />

commodities depends on, all other circumstances remaining the same, on the productivity <strong>of</strong><br />

labor, and th<strong>is</strong> depends in turn on the scale <strong>of</strong> production.<br />

Credit system becomes a new and terrible weapon in the battle <strong>of</strong> competition and <strong>is</strong><br />

finally transformed into an enormous social mechan<strong>is</strong>m for the centralization <strong>of</strong> capital.<br />

However, credit system <strong>is</strong> one <strong>of</strong> the big factor that supports today’s economic system.<br />

SECTION 3<br />

In the section three, Marx d<strong>is</strong>cusses that as the composition <strong>of</strong> capital r<strong>is</strong>es, the demand<br />

for labor-power falls relatively, since a larger part <strong>of</strong> capital <strong>is</strong> invested into the means <strong>of</strong><br />

production than into employment <strong>of</strong> workers. Th<strong>is</strong> seems very logical. Because, capital<strong>is</strong>ts<br />

prefer to invest more into the means <strong>of</strong> production such as machines and technologies than<br />

labor-power to be more productive and efficient. Th<strong>is</strong> factor leads to the presence <strong>of</strong> relative<br />

surplus-population which holds wages down to the value <strong>of</strong> labor-power.<br />

Marx d<strong>is</strong>agrees with Malthus’ theory on demographic explanation <strong>of</strong> wages and population.<br />

He explains an industrial cycle only lasts seven to ten years in total, while demographic<br />

reaction takes much longer than an industrial cycle. He also argues the theory <strong>of</strong> compensation<br />

which he <strong>is</strong> absolutely against it.<br />

SECTION 4<br />

In th<strong>is</strong> section, Marx explains the employed and unemployed in the population.<br />

338 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

By doing th<strong>is</strong>, he breaks the population into four. One, floating surplus workers <strong>is</strong> when<br />

an individual gets laid <strong>of</strong>f and then rehired. These individuals may have a hard time finding<br />

a job due to the age. So they end up as floating surplus workers. Two, latent surplus<br />

population, these individuals are in a constant movement finding work in the urban or manufacturing<br />

industries. These workers usually get paid very little and live in poverty. Three,<br />

there <strong>is</strong> stagnant population these are people who are not cons<strong>is</strong>tent with their employment.<br />

Because <strong>of</strong> high technology, they are being replaced, therefore th<strong>is</strong> leads them to pauper<strong>is</strong>m.<br />

Four, paupers, are divided into three: those workers who are able to work but choose not<br />

to. The second are orphans and third are those who cannot keep up with the constant job<br />

changing. These four different types <strong>of</strong> surplus population creates the <strong>wealth</strong> <strong>of</strong> capital<strong>is</strong>ts.<br />

The rich live <strong>of</strong>f the poor by exploiting <strong>of</strong> the workers. Therefore, these four types <strong>of</strong> surplus<br />

population reveal the different outcomes <strong>of</strong> the capital<strong>is</strong>t exploitation <strong>of</strong> labor.<br />

Hans: I would have liked it better if you had gone to the original text, instead <strong>of</strong> taking over formulations from the<br />

other termpapers [566], [551], [585].<br />

Next Message by Brumbys <strong>is</strong> [617.2].<br />

[599] Angela, Caren, and Wolf: Essay on Ch.25 The General Law <strong>of</strong> Capital<strong>is</strong>t Accumulation<br />

Growth <strong>of</strong> capital implies growth <strong>of</strong> its variable constituent, in other words the part invested<br />

in labour-power. Since the capital produces a surplus-value every year, <strong>of</strong> which one<br />

part <strong>is</strong> added every year to the original capital; since th<strong>is</strong> increment itself grows every year<br />

along with the augmentation <strong>of</strong> the capital already functioning; and since, lastly, under conditions<br />

especially liable to stimulate the drive for self-enrichment, such as the opening <strong>of</strong><br />

new markets, or <strong>of</strong> new spheres for the outlay <strong>of</strong> capital resulting from newly developed social<br />

requirements, the scale <strong>of</strong> accumulation may suddenly be extended merely by a change<br />

in the proportion in which the surplus-value or the surplus-product <strong>is</strong> divided into capital<br />

and revenue- for all these reasons the requirements <strong>of</strong> accumulating capital may exceed the<br />

growth in labour-power or in the number <strong>of</strong> workers; the demand for workers may outstrip<br />

the supply, and thus wages may r<strong>is</strong>e. Th<strong>is</strong> must indeed ultimately be the case if the conditions<br />

assumed above continue to prevail. For since in each year more workers are employed<br />

than in the preceding year, sooner or later a point must be the customary supply <strong>of</strong> labour,<br />

and a r<strong>is</strong>e <strong>of</strong> wages therefore takes place.<br />

It <strong>is</strong> <strong>of</strong> course true that “under the conditions <strong>of</strong> accumulation assumed so far, conditions<br />

which are the most favorable to the workers, But their relation <strong>of</strong> dependence on capital<br />

takes on forms which are endurable. Instead <strong>of</strong> becoming more intensive with the growth <strong>of</strong><br />

capital, th<strong>is</strong> relation <strong>of</strong> dependence only becomes more extensive, i.e. the sphere <strong>of</strong> capital’s<br />

exploitation and domination merely extends with its own dimensions and the number <strong>of</strong><br />

people subjected to it. A larger part <strong>of</strong> the workers’ own surplus-product, which <strong>is</strong> always<br />

increasing and <strong>is</strong> continually being transformed into additional capital, comes back to them<br />

in the shape <strong>of</strong> means <strong>of</strong> payment, so that they can extend the circle <strong>of</strong> their enjoyments,<br />

make additions to their consumption fund <strong>of</strong> clothes, furniture etc. and lay by a small reserve<br />

fund <strong>of</strong> money. But these things no more abol<strong>is</strong>h the exploitation <strong>of</strong> the wage-labour, and h<strong>is</strong><br />

situation <strong>of</strong> dependence, than do better clothing, food and treatment, and a larger peculium<br />

in the case <strong>of</strong> the slave. A r<strong>is</strong>e in the price <strong>of</strong> labour, as a consequence <strong>of</strong> the accumulation<br />

<strong>of</strong> capital, only means in fact that the wage-labourer has already forged for himself.”


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 339<br />

THE WAGE LABORER WORKS WITH AND CONTROLS THE CAPITAL (LARGE<br />

MACHINERY) THUS, THE CAPITALISTS ARE AT THEIR MERCY, IN THE EVENT<br />

THAT THE LABORER MISTREATS THE CAPITAL FORCING THE CAPITALISTS<br />

TO REINVEST IN THE SAME CAPITAL WITH THEIR ACCUMULATION AND NOT<br />

ALLOWING FOR AN INCREASE IN TECHNOLOGY, MORE CAPITAL=INCREASED<br />

PRODUCTION AND COMPLETE EXPLOITATION. LEADING TO THE FORMATION<br />

OF UNIONS, INSURANCE, AND PENSIONS.<br />

A allow it to be loosened somewhat. It implies “at the best <strong>of</strong> times a merely quantitative<br />

reduction in the amount <strong>of</strong> unpaid labour the worker has to supply. Th<strong>is</strong> reduction can never<br />

go so far as to threaten the system itself. Th<strong>is</strong> <strong>is</strong> because : ”Either the price <strong>of</strong> labour keeps<br />

on r<strong>is</strong>ing, because its r<strong>is</strong>e does not interfere with the progress <strong>of</strong> accumulation. In th<strong>is</strong> case<br />

it <strong>is</strong> evident that a reduction in the amount <strong>of</strong> unpaid labour in no way interferes with the<br />

extension <strong>of</strong> the domain <strong>of</strong> capital. Or, the other alternative, accumulation slackens as a<br />

result <strong>of</strong> the r<strong>is</strong>e in the price <strong>of</strong> labour, because the stimulus <strong>of</strong> gain <strong>is</strong> blunted. The rate<br />

<strong>of</strong> accumulati but th<strong>is</strong> means that the primary cause <strong>of</strong> that lessening itself van<strong>is</strong>hes,i.e. the<br />

d<strong>is</strong>proportion between capital and exploitable labour-power. The mechan<strong>is</strong>m <strong>of</strong> the process<br />

<strong>of</strong> capital<strong>is</strong>t production removes the very obstacle it temporarily creates. The price <strong>of</strong> labour<br />

falls again to a level corresponding with capital’s requirements for self valor<strong>is</strong>ation, whether<br />

th<strong>is</strong> level <strong>is</strong> below, the same as, or above that which was normal before the r<strong>is</strong>e <strong>of</strong> wages<br />

took place.<br />

Marx concludes, the r<strong>is</strong>e <strong>of</strong> wages <strong>is</strong> therefore confined within limits that not only leave<br />

intact the foundations <strong>of</strong> the capital<strong>is</strong>t system, but also secure its reproduction on an increasing<br />

scale. The law <strong>of</strong> capital<strong>is</strong>t accumulation in fact expresses the situation that the<br />

very nature <strong>of</strong> accumulation excludes every r<strong>is</strong>e in the price <strong>of</strong> labour, which could seriously<br />

imperil the continual reproduction, on an ever larger scale, <strong>of</strong> the capital-relation.<br />

Marx underlined not only the possibility, but also the necessity <strong>of</strong> an increase in real<br />

wages during the prosperity phase <strong>of</strong> the industrial cycle. In fact, the growing demand for<br />

labour-power’ <strong>is</strong> examined under the assumption that the composition <strong>of</strong> capital remains the<br />

same. That <strong>is</strong> without taking into account the ex<strong>is</strong>tence <strong>of</strong> the industrial reserve army. Now,<br />

let us look at Marx’s very important doctrine <strong>of</strong> relative wages. Wages are also detemined<br />

by their relation to the gain, to the pr<strong>of</strong>it <strong>of</strong> the capital<strong>is</strong>t-comparative, relative wages. Real<br />

wages express the price <strong>of</strong> labour in relation to the price <strong>of</strong> other commodities; relative<br />

wages, on the other hand, express the share <strong>of</strong> direct labour in the new value it has created<br />

in relation to the share which falls to accumulated labour to capital.<br />

For the position <strong>of</strong> the working class under capital<strong>is</strong>m, real wages may stay the same, the<br />

even r<strong>is</strong>e, and yet relative wages may fall. Suppose that all means <strong>of</strong> subs<strong>is</strong>tence have gone<br />

down in price by two-thirds while wages per day have only fallen by one-third, that <strong>is</strong> to say,<br />

for example, from three marks to two marks. Although the worker can command a greater<br />

amount <strong>of</strong> commodities with these two marks than he previously could with three marks,<br />

yet h<strong>is</strong> wages have gone down in relation to the pr<strong>of</strong>it <strong>of</strong> the capital<strong>is</strong>t. The pr<strong>of</strong>it <strong>of</strong> the<br />

capital<strong>is</strong>t (for example the manufacturer) has increased by one mark; that <strong>is</strong> for a smaller sum<br />

<strong>of</strong> exchange-values which he pays to the worker, the latter must produce a greater amount <strong>of</strong><br />

exchange-values than before. The share <strong>of</strong> capital relative to labour has r<strong>is</strong>en. The div<strong>is</strong>ion<br />

340 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>of</strong> social <strong>wealth</strong> between capital and labour has become still more unequal. With the same<br />

capital, the capital<strong>is</strong>t commands a greater quantity <strong>of</strong> labour. The power <strong>of</strong> the capital<strong>is</strong>t<br />

class over the worker has grown, the social position <strong>of</strong> the worker has deteriorated, has been<br />

depressed one step further below that <strong>of</strong> the capital<strong>is</strong>t.<br />

Capital<strong>is</strong>t production cannot take one step forward without squeezing the workers’ share<br />

<strong>of</strong> the machinery, every new application <strong>of</strong> steam and electricity in production and commerce,<br />

the worker’s share in the product gets smaller, and that <strong>of</strong> that capital<strong>is</strong>t, larger. It <strong>is</strong><br />

th<strong>is</strong> quite inv<strong>is</strong>ible power, a simple mechanical effect <strong>of</strong> commodity production and competition,<br />

which deprives the worker <strong>of</strong> a larger share <strong>of</strong> h<strong>is</strong> product. The personal role <strong>of</strong> the<br />

exploiter <strong>is</strong> still v<strong>is</strong>ible where the question <strong>is</strong> that <strong>of</strong> absolute wages, i.e. real living standard<br />

<strong>of</strong> living <strong>of</strong> the workers, <strong>is</strong> a v<strong>is</strong>ible attack by the capital<strong>is</strong>ts against the workers, and will<br />

be responded to with an immediate struggle wherever the influence <strong>of</strong> the unions extends.<br />

The effects <strong>of</strong> all these forms <strong>of</strong> progress on the relative wage <strong>of</strong> the worker result quite<br />

automatively from commodity production and the commodity-character <strong>of</strong> labour-power i.e.<br />

against capital<strong>is</strong>t production as a whole. Thus the struggle against the fall in relative wages <strong>is</strong><br />

no longer a struggle on the bas<strong>is</strong> <strong>of</strong> the commodity economy, but a revolutionary, subversive<br />

attack on the ex<strong>is</strong>tence <strong>of</strong> th<strong>is</strong> economy.<br />

There are some general elements <strong>of</strong> the theory <strong>of</strong> the industrial reserve army. In the first<br />

place, that the r<strong>is</strong>e in the organic composition <strong>of</strong> capital, which <strong>is</strong> necessarily bound up with<br />

the progress <strong>of</strong> capital<strong>is</strong>t production, would have to lead to a proportionate reduction in the<br />

variable part <strong>of</strong> capital, intended for the purchase <strong>of</strong> labour-power. Of course, capital<strong>is</strong>t<br />

production continually extends itself, and as a consequence the demand for labour-power<br />

grows too, in the long run; but it grows in a “continually declining proportion”. the situation<br />

was quite different in capital<strong>is</strong>m’s period <strong>of</strong> infancy: “The composition <strong>of</strong> capital underwent<br />

only every gradual changes. By and large therefore, the proportional growth in the demand<br />

for labour has corresponded to the accumulation <strong>of</strong> capital. However, th<strong>is</strong> was a period in<br />

which the variable capital, laid out in the form <strong>of</strong> wages, heavily outweighed that laid out for<br />

machinery, i.e. in which manufacture still predominated and large-scale industry was only<br />

in its infancy. The accumulation <strong>of</strong> capital was identical with a continuously r<strong>is</strong>ing demand<br />

for labour, and a continual r<strong>is</strong>e in wages, and that the level <strong>of</strong> wages was simply determined<br />

by the relation <strong>of</strong> the absolute number <strong>of</strong> workers to the size <strong>of</strong> the productive capital.”<br />

In fact the development <strong>of</strong> large-scale industry has rendered th<strong>is</strong> optim<strong>is</strong>tic view obsolete.<br />

Capital<strong>is</strong>ts were compelled, on pain <strong>of</strong> extinction, to constantly introduce new machinery<br />

and perfect the machinery they already had; but perfection <strong>of</strong> machinery means making<br />

human labour superfluous. Owing to the expansion <strong>of</strong> the machine system , the relation <strong>of</strong><br />

constant to variable capital must change to the advantage <strong>of</strong> the former.<br />

CAPITALISTS WERE/ARE ALSO COMPELLED TO GIVE IN TO NEPOTISM, MAKE<br />

UP SOMETHING LIKE FILING FOR CHAPTER 11 (BANKRUPTCY) AND OR SELL-<br />

ING THEIR COMPANY TO A FRIEND OR RELATIVE IN THE FORM OF A CORPO-<br />

RATE MERGER/TAKEOVER AND THEN TAKING AWAY THE LABORERS’ BENE-<br />

FITS AND PENSION PLANS. IF THEY DIDN’T LIKE IT THEY COULD FIND A JOB<br />

ELSEWHERE. WHICH IS NOT FAIR IT IS EXPLOITATION.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 341<br />

However, since the demand for labour <strong>is</strong> determined not by the extent <strong>of</strong> the total capital<br />

but by its variable constituent alone, that demand falls progressively with the growth <strong>of</strong> the<br />

total capital, instead <strong>of</strong> r<strong>is</strong>ing in proportion to it, as was previously assumed. It falls relatively<br />

to the magnitude <strong>of</strong> the total capital, and at an accelerated rate, as th<strong>is</strong> magnitude increases.<br />

Th<strong>is</strong> tendency explains the empirically given fact <strong>of</strong> a relative surplus population <strong>of</strong> workers,<br />

i.e. a population which exceeds the average valor<strong>is</strong>ation requirements <strong>of</strong> capital. The surplus<br />

population <strong>is</strong> expressed in enormous armies <strong>of</strong> unemployed during periods <strong>of</strong> cr<strong>is</strong><strong>is</strong>, which<br />

almost trickle away during periods <strong>of</strong> high prosperity, but always remain in ex<strong>is</strong>tence. The<br />

burden <strong>of</strong> providing th<strong>is</strong> population with a m<strong>is</strong>erable level <strong>of</strong> subs<strong>is</strong>tence falls partly on society<br />

and partly on the employed work-force. <strong>What</strong> function does th<strong>is</strong> surplus population have<br />

in capital<strong>is</strong>t production? It <strong>is</strong> ind<strong>is</strong>pensable to capital for two reasons. Firstly, it places as its<br />

d<strong>is</strong>posal a mass <strong>of</strong> human material which can be exploited for capital’s changing valor<strong>is</strong>ation<br />

requirements, which it can either employ, or put onto the streets. Capital<strong>is</strong>t production can<br />

by no means content itself with the quantity <strong>of</strong> d<strong>is</strong>posable labour-power which the natural<br />

increase <strong>of</strong> population yields. It requires for its unrestricted activity and industrial reserve<br />

army which <strong>is</strong> independent <strong>of</strong> these natural limits. And secondly, the industrial reserve army<br />

acts as a powerful regulator <strong>of</strong> wages which holds the wage demands <strong>of</strong> the work-force in<br />

check. For in a developed capital<strong>is</strong>t society, it <strong>is</strong> prec<strong>is</strong>ely the fact <strong>of</strong> relative surplus population<br />

which <strong>is</strong> the background against which the law <strong>of</strong> the demand and supply <strong>of</strong> labour<br />

does its work. It confines the field <strong>of</strong> action <strong>of</strong> th<strong>is</strong> law to the limits absolutely convenient to<br />

capital’s drive to exploit and dominate the workers. During periods <strong>of</strong> economic stagnation<br />

and at the beginning <strong>of</strong> upswings it presses down on the active army <strong>of</strong> workers’, by not<br />

allowing them to push their wage demands too high; and in periods <strong>of</strong> cr<strong>is</strong><strong>is</strong> it <strong>of</strong>ter pervents<br />

them from making use <strong>of</strong> their living standards. In th<strong>is</strong> sense the general movements <strong>of</strong><br />

wages are exclusively regulated by the expansion and contraction <strong>of</strong> the industrial reserve<br />

army and th<strong>is</strong> in turn corresponds to the periodic alternations <strong>of</strong> the industrial cycle. They<br />

are not regulated by the variations <strong>of</strong> the absolute numbers <strong>of</strong> the working class <strong>is</strong> divided<br />

into an active army and a reserve army by the increase <strong>of</strong> diminution in the relative amount<br />

<strong>of</strong> the surplus population by the extent to which it <strong>is</strong> alternately absorbed and set free.<br />

In th<strong>is</strong> chapter, Marx stresses the fact that capital can increase its supply <strong>of</strong> labor more<br />

quickly than its demand for workers, by extorting a larger quantity <strong>of</strong> work from the same<br />

number <strong>of</strong> employed workers, by prolonging working-time. The overwork <strong>of</strong> the employed<br />

part <strong>of</strong> the working class swells the ranks <strong>of</strong> its reserve, while, conversely, the greater pressure<br />

that the reserve by its competition exerts on the employed workers forces these to submit<br />

to overwork and subjects them to the dictates <strong>of</strong> capital. The production <strong>of</strong> a relative surplus<br />

population, or the setting free <strong>of</strong> workers, therefore proceeds still more rapidly than technical<br />

transformation <strong>of</strong> the process <strong>of</strong> production that accompanies the advance <strong>of</strong> accumulation<br />

and <strong>is</strong> accelerated by it, and more rapidly than corresponding diminution <strong>of</strong> the variable part<br />

<strong>of</strong> capital as compared with the constant.<br />

THIS CHAPTER AlSO SHOWS THAT THE STRUGGLE FOR EXPENSION IS AN<br />

INTEGRAL AND INEXTRICABLE ELEMENT IN THE EVOLUTION OF CAPITALISM<br />

AS A PERIOD OF HISTORY YET AT THE SAME TIME THIS EXPANSIVE ASPECT<br />

IS CONSTANTLY UNDERMINING THE VIABILITY OF THE LARGER SYSTEM AND<br />

NUMBERS OF PEOPLE (THUS, INCREASING UNEMPLOYMENT)<br />

342 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

In all, capital<strong>is</strong>t accumulation can be seen as an expression <strong>of</strong> thr class strugle, in which<br />

the capital<strong>is</strong>ts/ dominant calss seeks to maintain it’s position <strong>of</strong> superiority. It maintains<br />

such, by constantly renewing and expanding its accumulation <strong>of</strong> capital-the way it enforces<br />

its power over labor. And there <strong>is</strong> one last thing we would like to touch on and that <strong>is</strong> that<br />

pr<strong>of</strong>it drives capital<strong>is</strong>ts to do the above to some degree. But there <strong>is</strong> also something else that<br />

<strong>is</strong> a force in the market place between capital<strong>is</strong>ts, and labourers alike that runs even deeper<br />

than the thurst for pr<strong>of</strong>it. Some call it survival (instinct) we prefer to call it COMPETION.<br />

Competion manifests itself in the on going threat that every capital(<strong>is</strong>t) poses to every other,<br />

and threat that can only be dealt with by ongoing agressive and expansive strategies. In th<strong>is</strong><br />

light, in order to survive capital<strong>is</strong>ts are FORCED to accumulate and expand.<br />

In addition, the fact that in compar<strong>is</strong>on to cooperation, competition <strong>is</strong> where something<br />

<strong>is</strong> always lost or wasted. Where as in cooperation something <strong>is</strong> always gained. For example<br />

if two people were to bulid a house, if they both worked together they might have a place to<br />

stay for winter and can use the capital/machienery to build the next house for the other. But,<br />

if they are in competition and do not work together and share there are inumerable wastes<br />

and they both may not have a place to stay for the winter.<br />

Hans: You drowned your paper in literal quotes from Marx and also a re-run <strong>of</strong> your earlier subm<strong>is</strong>sion [401]. The<br />

capitalized paragraphs may have been the starting point for interesting thought pieces.<br />

Next Message by Angela <strong>is</strong> [617.1].<br />

[600] Chacci and Karl: Term Paper:Sections 1 and 4 Chapt. 25 Sections 1 and 4<br />

Section 1<br />

The subject <strong>of</strong> th<strong>is</strong> section <strong>is</strong> an explanation <strong>of</strong> how a growing demand for labor-power<br />

accompanies accumulation if the composition <strong>of</strong> the capital remains the same. He begins the<br />

section with an explanation <strong>of</strong> the composition <strong>of</strong> capital. He then defines the composition<br />

<strong>of</strong> the total social capital <strong>of</strong> a country and states th<strong>is</strong> <strong>is</strong> what he <strong>is</strong> concerned with. Marx then<br />

states that a growth in capital implies growth <strong>of</strong> the investment in labor-power. He states<br />

that if all else <strong>is</strong> held constant that there <strong>is</strong> a growth in demand for labor and the fund for the<br />

substinence <strong>of</strong> the workers. He states that both <strong>of</strong> these grow in the same proportion. Marx<br />

then proves that the accumulation <strong>of</strong> capital multiplies the presence <strong>of</strong> the wage earner. In<br />

other words in order to multiply capital there must be a wage earner. Without th<strong>is</strong> proletariat<br />

a capital<strong>is</strong>t could not accumulate capital. Marx then states that the capital<strong>is</strong>t uses th<strong>is</strong> un-paid<br />

labor in order to produce a surplus for himself. Marx states, ‘Labor-power can be sold only<br />

to the extent that it preserves and maintains the means <strong>of</strong> production as capital reproduces it<br />

own value as capital and provides a source <strong>of</strong> additional capital in the shape <strong>of</strong> unpaid labor’.<br />

Thus if the capital<strong>is</strong>t desires the accumulation <strong>of</strong> capital and the composition <strong>of</strong> capital <strong>is</strong><br />

held constant, there must be a growth in demand for labor power.<br />

Marx then relates wages and the accumulation <strong>of</strong> capital. He sums it up when he states<br />

‘the relation between capital, accumulation and the rate <strong>of</strong> wages <strong>is</strong> nothing other than the<br />

relation between un-paid labor which has been transformed into capital and the additional<br />

paid labor necessary to set in motion th<strong>is</strong> additional capital’. In other words Marx <strong>is</strong> saying<br />

that there <strong>is</strong> a relation between how wages react when un-paid labor increase or decreases,<br />

because the rate <strong>of</strong> wages <strong>is</strong> dependent on the accumulation <strong>of</strong> capital.<br />

Section 4


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 343<br />

One <strong>of</strong> the key elements <strong>of</strong> chapter 25 that Marx d<strong>is</strong>cusses <strong>is</strong> the concept <strong>of</strong> the “floating<br />

surplus population”, or the reserve army. Marx describes that in the process <strong>of</strong> capital accumulation<br />

the workers are chained by their labor to a “particular branch <strong>of</strong> industry.” Th<strong>is</strong><br />

keeps the workers in specialized div<strong>is</strong>ions only for as long as they are useful, and pr<strong>of</strong>itable<br />

for the capital<strong>is</strong>t in h<strong>is</strong> quest to exploit, and skim <strong>wealth</strong> <strong>of</strong> the laborers. Marx said that large<br />

numbers <strong>of</strong> male workers are employed but only to the pooint <strong>of</strong> maturity. The capital<strong>is</strong>t will<br />

not invest in labor at th<strong>is</strong> point, but will seek additional youthful labor. Th<strong>is</strong> surplus <strong>is</strong> caused<br />

by th<strong>is</strong>, or a natural increase <strong>of</strong> women over men. Th<strong>is</strong> <strong>is</strong> the cause <strong>of</strong> the “reserve army”<br />

or surplus population. In th<strong>is</strong> situation the Capital<strong>is</strong>t will complain that he has a shortage <strong>of</strong><br />

labor, while in reality Marx said, “many thousands are out <strong>of</strong> work, because the div<strong>is</strong>ion <strong>of</strong><br />

labor chains them to a particular branch <strong>of</strong> industry.” Marx believed that the reserve army<br />

was a tool the capital<strong>is</strong>t could always hang over the laborer, like a hammer ready to blow,<br />

that would keep wages low, and cause a sense <strong>of</strong> insecurity in the labor market.<br />

Marx <strong>is</strong> also concerned with the law <strong>of</strong> capital accumulation, which <strong>is</strong> as Marx said,<br />

“The relative mass <strong>of</strong> the industrial reserve army thus increases with the potential energy <strong>of</strong><br />

<strong>wealth</strong>. But the greater th<strong>is</strong> reserve army in proportion to the active labor army , the greater<br />

<strong>is</strong> the mass <strong>of</strong> consolidated surplus population, whose m<strong>is</strong>ery <strong>is</strong> in inverse ratio to the amount<br />

<strong>of</strong> torture it has to undergo in the form <strong>of</strong> labour.” Marx believed that for the capital<strong>is</strong>t to<br />

acquire <strong>wealth</strong>, and constant capital, it would only mean that h<strong>is</strong> variable capital (the laborer)<br />

would end up as a m<strong>is</strong>erable pauper <strong>of</strong> a human being. One <strong>of</strong> the great descriptive narratives<br />

by Marx concerning th<strong>is</strong> takes place in section 4 <strong>of</strong> chapter 25. Here Marx at some length<br />

makes one <strong>of</strong> the best descriptions <strong>of</strong> the working proletariat class, and the m<strong>is</strong>ery, and<br />

drudgery caused by the bourgeo<strong>is</strong> capital<strong>is</strong>t. Here he describes the unbearable pains <strong>of</strong> the<br />

laborer, and humilation <strong>of</strong> exploitation, becoming a mindless “appendage to the capital<strong>is</strong>t’s<br />

machinery.” Marx said <strong>of</strong> th<strong>is</strong> accumulation and m<strong>is</strong>ery,<br />

“Accumulation <strong>of</strong> <strong>wealth</strong> at one pole <strong>is</strong>, therefore, at the same time accumulation<br />

<strong>of</strong> m<strong>is</strong>ery, the torment <strong>of</strong> labour, slavery, ignorance, brutalization,<br />

and moral degradation.”<br />

An interesting point that Marx quotes <strong>is</strong> the concept that in the poor nations, people in<br />

general are comfortable, but in the <strong>wealth</strong>y nations people are poor, and m<strong>is</strong>erable. Th<strong>is</strong> law<br />

<strong>of</strong> accumulation <strong>is</strong> akin to the adage, one man’s loss, <strong>is</strong> another man’s fortune.<br />

Hans: Your excerpt <strong>of</strong> Section 1 <strong>is</strong> a typical case <strong>of</strong>: how to excerpt an article without understanding a thing that<br />

<strong>is</strong> written in it. Section 4 <strong>is</strong> a little better.<br />

First Message by Chacci <strong>is</strong> [14].<br />

[601] Snake and Chuck: term paper In th<strong>is</strong> paper we plan to present the argument that<br />

social<strong>is</strong>m <strong>is</strong> a slow means <strong>of</strong> production as compared to capital<strong>is</strong>m. First we would like to<br />

argue that there <strong>is</strong> a lack <strong>of</strong> incentive with the Social<strong>is</strong>t system. Second, we would like to<br />

show alternatives to the means <strong>of</strong> production within Social<strong>is</strong>m. Finally, we would like to<br />

show that Social<strong>is</strong>m <strong>is</strong> better suited for small market economies.<br />

We feel that there <strong>is</strong> a lack <strong>of</strong> incentive within Social<strong>is</strong>m. One reason for th<strong>is</strong> <strong>is</strong> people<br />

are not rewarded for the ideas that they come up with. For instance, if Bill Gates were living<br />

within a Social<strong>is</strong>t economy he would not be able to advance the products that he creates<br />

because there would not be the resevoir <strong>of</strong> capital. Within in the Capital<strong>is</strong>tic society people<br />

344 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

are rewarded for the ideas that they have, if the people are willing to buy the products that are<br />

created, then the company creating them will not last very long. Th<strong>is</strong> shows that the market<br />

<strong>is</strong> in control <strong>of</strong> what <strong>is</strong> being produced. Within the Social<strong>is</strong>t society the government decides<br />

what will be produced whether the people want th<strong>is</strong> product or not. Putting the power <strong>of</strong><br />

production in the governments hands creates inefficiency.<br />

Within the Social<strong>is</strong>t society the means <strong>of</strong> production <strong>is</strong> slow because there <strong>is</strong> not a structured<br />

management system. If the manager <strong>is</strong> not paid any more than the worker, he will not<br />

ahve the incentive to make them work. The workers would have to be put on some sort <strong>of</strong> a<br />

pr<strong>of</strong>it sharing method or they would have no desire to produce goods. In the Social<strong>is</strong>t system<br />

there <strong>is</strong> no reason to work hard. An example <strong>of</strong> th<strong>is</strong> would be a company that was set up on<br />

the idea <strong>of</strong> production through assembly lines. If the product was half way through production,<br />

and the people at the end <strong>of</strong> the line decided to take a break, the production <strong>is</strong> instanly<br />

slowed. That <strong>is</strong> why it <strong>is</strong> necessary for a production team to have a specific management<br />

system with incentives to have the people work. With the Capital<strong>is</strong>t society the workers are<br />

put on specific schedules and they are better able to produce goods efficiently. Within the<br />

Capital<strong>is</strong>t society wages are set to maximize the units <strong>of</strong> labor per dollar expenditure. Th<strong>is</strong><br />

<strong>is</strong> the reason for the management system. It <strong>is</strong> not there to act as a slave driving system, but<br />

for the purpose <strong>of</strong> creating an environment where the worker <strong>is</strong> able to produce goods with<br />

the least amount <strong>of</strong> expense for the company. Th<strong>is</strong> <strong>is</strong> a system where a person always has to<br />

be in charge <strong>of</strong> others because th<strong>is</strong> creates the ability for the production to run smoothly.<br />

Within small market economy social<strong>is</strong>m <strong>is</strong> better suited to an area in which people <strong>of</strong><br />

the twon know one another, and where communications among one another <strong>is</strong> relatively<br />

available. In the confines <strong>of</strong> a small area the rate <strong>of</strong> product advancement declines due to<br />

present level <strong>of</strong> subs<strong>is</strong>tence the town has come to maintain. The idea that they have become<br />

more <strong>of</strong> a trade and barter system than a high production system. The small community <strong>is</strong><br />

set up trading commodities that are produced by individuals. Th<strong>is</strong> forces the communities<br />

to stay small because there <strong>is</strong> only so much time and space for the trade and barter system.<br />

Once the system starts to grow larger there must be people who act as middle men to get the<br />

goods from the individuals and sell them to others. Once th<strong>is</strong> becomes the norm the middle<br />

man must be able to make some money, or he will have no commodity to trade for other<br />

goods. If a society <strong>is</strong> to grow above the trade and barter set up the people must be able to<br />

make money in order to survive. Th<strong>is</strong> <strong>is</strong> where we get into the problem <strong>of</strong> efficiency. The<br />

man who <strong>is</strong> able to buy and sell the most amount <strong>of</strong> goods in a given period <strong>of</strong> time should<br />

be rewarded for h<strong>is</strong> efforts. In the Social<strong>is</strong>t society the man would have to give up most <strong>of</strong><br />

the pr<strong>of</strong>its that he had made in order to fair to everyone else. Th<strong>is</strong> <strong>is</strong> what creates the lack <strong>of</strong><br />

incentive within the Social<strong>is</strong>t system.<br />

We have shown why there <strong>is</strong> a lack <strong>of</strong> incentives and efficiency within the Social<strong>is</strong>t society.<br />

First, the people are not rewarded for the efforts that they make to produce more.<br />

Second, there <strong>is</strong> a lack <strong>of</strong> efficiency within the system due to the problem <strong>of</strong> m<strong>is</strong>management.<br />

Th<strong>is</strong> <strong>is</strong> a problem because the people have no reason to encourage the workers to<br />

produce more. For these reasons we feel that Capital<strong>is</strong>m <strong>is</strong> the superior way to run any area<br />

that has grown beyond the trade and barter system.<br />

————————————-


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 345<br />

Hans: You m<strong>is</strong>sed the subject. In [604], I gave you perm<strong>is</strong>sion to resubmit, and I even announced it in class, but<br />

you did not respond.<br />

Message [601] referenced by [604]. First Message by Snake <strong>is</strong> [172.2].<br />

[602] Ramb<strong>is</strong> and Dunny: term paper! In Section 4 <strong>of</strong> Chapter 25, Marx d<strong>is</strong>cusses the<br />

different forms <strong>of</strong> ex<strong>is</strong>tence <strong>of</strong> the relative surplus population as they relate to the general<br />

law <strong>of</strong> capital<strong>is</strong>t accumulation. According to Marx “every worker belongs to [the relative<br />

surplus population] when he <strong>is</strong> only partially employed or wholly unemployed.” (pg. 794)<br />

Marx demarcates these workers into three subgroups or forms cons<strong>is</strong>ting <strong>of</strong> the floating form,<br />

the latent form, and the stagnant form. Others have already analyzed thoroughly th<strong>is</strong> section<br />

based on the content alone, so in our quest to differentiate th<strong>is</strong> term paper from the others,<br />

it <strong>is</strong> our aim to examine the different forms <strong>of</strong> th<strong>is</strong> relative surplus population and how they<br />

relate to modern, mainstream economics.<br />

The first <strong>of</strong> these forms, the floating form, occurs when workers are repelled and attracted<br />

from industry resulting in an overall increase in employment but d<strong>is</strong>proportionate to<br />

the growth <strong>of</strong> output. Th<strong>is</strong> <strong>is</strong> a form <strong>of</strong> structural unemployment caused by the reallocation<br />

<strong>of</strong> labor from industries that are shrinking, or regions that are depressed, to areas that are<br />

growing. Workers caught up in th<strong>is</strong> continuous fluctuation and movement are like anthropomorphic<br />

flotsam and jetsam being swept to and from the beach <strong>of</strong> prosperity by changing<br />

economic tides. In Marx’s model, workers who reach the age <strong>of</strong> maturity are no longer considered<br />

prime for employment and therefore find it difficult to find continued employment<br />

in the selected field. These workers end up following the migration <strong>of</strong> capital and achieve<br />

employment only as they are able to follow capital’s movement and perform the very menial<br />

labor. The resultant fluctuations <strong>of</strong> the employment level causes a form <strong>of</strong> cyclical unemployment<br />

because the economy’s output and employment are below full-employment levels.<br />

The second form, or the latent form, <strong>is</strong> expressed in the group <strong>of</strong> the relative surplus<br />

population which <strong>is</strong> forced to “pass over” from one type <strong>of</strong> economic framework to another,<br />

as given in the example <strong>of</strong> the agricultural society moving towards the urban industries.<br />

Th<strong>is</strong> form <strong>of</strong> the surplus population <strong>is</strong> characterized by “wages reduced to a minimum...with<br />

one foot already in the swamp <strong>of</strong> pauper<strong>is</strong>m.” (pg. 796) In modern economics, th<strong>is</strong> <strong>is</strong> a<br />

kind <strong>of</strong> frictional unemployment where workers search for suitable jobs and firms search<br />

for suitable workers. Due to the heavy migration <strong>of</strong> individuals from the one framework (in<br />

th<strong>is</strong> example, the rural agricultural workers) to another (the manufacturing industries), labor<br />

supply in the newly emphasized framework greatly exceeds labor demand, thus driving down<br />

the wage paid to the workers, leading to the circumstance <strong>of</strong> low wage bordering pauper<strong>is</strong>m<br />

expressed earlier.<br />

The third form, or stagnant form, <strong>is</strong> characterized by “a maximum <strong>of</strong> working time and<br />

a minimum <strong>of</strong> wages.” (pg. 796) Workers who make up a part <strong>of</strong> th<strong>is</strong> form “<strong>of</strong>fer capital an<br />

inexhaustible reservoir <strong>of</strong> d<strong>is</strong>posable labour-power” and as a result experience “extremely<br />

irregular employment.” (pg. 796) “Its conditions <strong>of</strong> life sink below the average normal level<br />

<strong>of</strong> the working class, and it <strong>is</strong> prec<strong>is</strong>ely th<strong>is</strong> which makes it a broad foundation for special<br />

branches <strong>of</strong> capital<strong>is</strong>t exploitation.” (pg. 796) Workers in the stagnant form <strong>of</strong> the reserve<br />

surplus population can be considered as the unemployed members <strong>of</strong> the modern economic<br />

labor force; either they didn’t work in the past few weeks but were looking for employment,<br />

346 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

or else they held erratic employment and weren’t able to stay with a job with any stability or<br />

weren’t able to find employment in a stable job.<br />

Below th<strong>is</strong> stagnant form <strong>is</strong> another group, “those in the sphere <strong>of</strong> pauper<strong>is</strong>m,” (pg. 797)<br />

which Marx describes as containing “first, those able to work....second, orphans and pauper<br />

children....[and] third, the demoralized, the ragged, and those unable to work...” (pg.<br />

797) Those in the first subgroup, or “those able to work” make up both the employed and<br />

unemployed members <strong>of</strong> the labor force. The “orphans and pauper children” are among<br />

the chronically unemployable, those who are unemployed a large part <strong>of</strong> the time and because<br />

<strong>of</strong> their personal circumstances have difficulty in overcoming their environment to<br />

find employment. These have low skills and are characterized by the lackada<strong>is</strong>ical attitude<br />

with which they approach the employment search. Lastly, the “demoralized, the ragged, and<br />

those unable to work” account for those suffering from the d<strong>is</strong>couraged worker effect, the<br />

unemployed members <strong>of</strong> the labor force, and those out <strong>of</strong> the labor force. Marx describes<br />

the ‘contribution’ <strong>of</strong> th<strong>is</strong> class <strong>of</strong> paupers by saying, “Pauper<strong>is</strong>m <strong>is</strong> the hospital <strong>of</strong> the active<br />

labour-army and the dead weight <strong>of</strong> the industrial reserve army.” (pg. 797) In other words,<br />

the pauper class <strong>is</strong> where the ‘sick’ members <strong>of</strong> the labour-army or those not able to keep<br />

up or adjust with the changes in the economy eventually end up, while the industrial reserve<br />

army <strong>is</strong> held back by the “dead weight” burdens placed on it by th<strong>is</strong> class <strong>of</strong> paupers.<br />

Hans: Interesting attempt to rconcile the modern categories <strong>of</strong> structural unemployment, frictional unemployment,<br />

and d<strong>is</strong>couraged workers with Marx’s categories. The stagnant surplus population can perhaps be seen as the “dual”<br />

labor market cons<strong>is</strong>ting <strong>of</strong> the minimum wages and part time jobs. But in any case, the categories do not quite fit<br />

because they tacitly assume quite different mechan<strong>is</strong>ms than Marx’s. By the way, I had to laugh about the<br />

anthropomorphic flotsam and jetsam being swept to and from the beach <strong>of</strong> prosperity by<br />

changing economic tides.<br />

But it sounds like blaming the victim if you say the victims <strong>of</strong> unemployment are “characterized by the lackada<strong>is</strong>ical<br />

attitude with which they approach the employment search,” and if you complain about the burden which they place<br />

on the other workers.<br />

First Message by Ramb<strong>is</strong> <strong>is</strong> [95].<br />

[603] Peaches: Term Paper: Chapter 25 I will d<strong>is</strong>cuss Section IV: DIFFERENT<br />

FORMS OF EXISTENCE OF THE RELATIVE SURPLUS POPULATION. THE GEN-<br />

ERAL LAW OF CAPITALIST ACCUMULATION.<br />

Marx describes relative surplus population as a person being partially employed or wholly<br />

unemployed. Marx breaks out relative surplus population into three categories: the floating,<br />

the latent, and the stagnant.<br />

The floating population are those who generally are rejected, then asked to come back,<br />

sometimes at higher volumnes so that the number <strong>of</strong> those employed increases on the whole<br />

although in a constantly dimin<strong>is</strong>hing proportion to the scale <strong>of</strong> production.<br />

The latent population are those large numbers <strong>of</strong> male workers who are employed up to<br />

the age <strong>of</strong> maturity, and not beyond. Once these men reach maturity, it becomes harder for<br />

them to find employment in the same branch <strong>of</strong> industry. The majority <strong>of</strong> these men stay unemployed.<br />

These majority who stay unemployed are part <strong>of</strong> the floating surplus population<br />

which grows within each branch <strong>of</strong> industry. Th<strong>is</strong> causes a contradiction in that the economy<br />

<strong>is</strong> saying that there <strong>is</strong> a shortage <strong>of</strong> workers when in fact there <strong>is</strong> an excess <strong>of</strong> unemployed<br />

workers who have reached beyond that maturity stage, and cannot find employment. Th<strong>is</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 347<br />

causes the female population to grow more rapidly because the div<strong>is</strong>ion <strong>of</strong> labour <strong>is</strong> looking<br />

for people who will fit into these “maturity age d<strong>is</strong>criminations.”<br />

The stagnant population <strong>is</strong> a part <strong>of</strong> the active labour army, but with extremely irregular<br />

employment. Th<strong>is</strong> population exploits the worker by creating a life conditioned below the<br />

normal average working class. It allows capital an inexhaustible reservoir <strong>of</strong> d<strong>is</strong>posable<br />

labour power. Th<strong>is</strong> means more hours at less wages.<br />

Marx adds another final category, pauper<strong>is</strong>m. In th<strong>is</strong> final stage, Marx divides it into three<br />

more categories: those able to work; orphans and pauper children; and the demoralized, the<br />

ragged, and those unable to work. Pauper<strong>is</strong>m <strong>is</strong> the hospital <strong>of</strong> the active labour army, and<br />

the dead weight <strong>of</strong> the industrial reserve army. Its production <strong>is</strong> included in that <strong>of</strong> the<br />

relative surplus population.<br />

The relative mass <strong>of</strong> the industrial reserve army increases with the potential energy <strong>of</strong><br />

<strong>wealth</strong>. The greater th<strong>is</strong> reserve army in proportion to the active labour army, the greater <strong>is</strong><br />

the mass <strong>of</strong> a consolidated surplus population. Marx says that the more extensive the pauperized<br />

sections <strong>of</strong> the working class and the industrial reserve army, the greater <strong>is</strong> <strong>of</strong>ficial<br />

pauper<strong>is</strong>m. Th<strong>is</strong> <strong>is</strong> the absolute general law <strong>of</strong> capital<strong>is</strong>t accumulation. Therefore, Marx<br />

states, the higher the productivity <strong>of</strong> labour, the greater <strong>is</strong> the pressure <strong>of</strong> the workers on the<br />

means <strong>of</strong> employment, the more precarious becomes the condition for their ex<strong>is</strong>tence, the<br />

sale <strong>of</strong> their own labour power for the increase <strong>of</strong> alien <strong>wealth</strong>, or the self-valorization <strong>of</strong><br />

capital.<br />

It follows that in proportion to capital accumulation, the situation <strong>of</strong> the worker, be h<strong>is</strong><br />

payment high or low, must grow worse. It makes an accumulation <strong>of</strong> m<strong>is</strong>ery a necessary<br />

condition to the accumulation <strong>of</strong> <strong>wealth</strong>.<br />

As the Venetian monk Ortes stated, “the poor and idle are a necessary consequence <strong>of</strong> the<br />

rich and active.”<br />

First Message by Peaches <strong>is</strong> [7].<br />

[604] Kevin and Hans: Re: term paper Kevin, our outside observer, sent me some<br />

remarks about Snake and Chuck’s [601], which I am forwarding to the l<strong>is</strong>t here. Snake<br />

and Chuck must have m<strong>is</strong>understood the assignment. They have my perm<strong>is</strong>sion to submit a<br />

termpaper which <strong>is</strong> really about Chapter 25 late, but since it will be late, I am asking them<br />

not to duplicate what others have written but perhaps to criticize it and to build on it. In their<br />

case, I will pay much more attention to th<strong>is</strong> than with the other papers. So far, Hans has been<br />

speaking. Now here <strong>is</strong> their paper interspersed with Kevin’s comments. I want to publicly<br />

express my gratitude to Kevin’s contributions to th<strong>is</strong> class. Hans. Everything else below th<strong>is</strong><br />

here <strong>is</strong> Kevin.<br />

In th<strong>is</strong> paper we plan to present the argument that social<strong>is</strong>m <strong>is</strong> a slow means<br />

<strong>of</strong> production as compared to capital<strong>is</strong>m. First we would like to argue that<br />

there <strong>is</strong> a lack <strong>of</strong> incentive with the Social<strong>is</strong>t system. Second, we would<br />

like to show alternatives to the means <strong>of</strong> production within Social<strong>is</strong>m. Finally,<br />

we would like to show that Social<strong>is</strong>m <strong>is</strong> better suited for small market<br />

economies.<br />

348 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Though I am not grading it, I feel strongly th<strong>is</strong> paper <strong>is</strong> insufficient because it does not define<br />

adequately the social<strong>is</strong>m that the author <strong>is</strong> d<strong>is</strong>cussing. No definition <strong>is</strong> given <strong>of</strong> social<strong>is</strong>m<br />

besides “the government owns everything, and divides it up amongst the people.”<br />

Emma wrote a very solid paper criticizing the applicability <strong>of</strong> Marx’s critic<strong>is</strong>m <strong>of</strong> capital<strong>is</strong>m,<br />

and though I have d<strong>is</strong>agreements with specific points; she presents her arguments<br />

cogently, and most importantly argues something she has some knowledge <strong>of</strong>. In th<strong>is</strong> Econ<br />

class you read Capital, which again <strong>is</strong> a critic<strong>is</strong>m <strong>of</strong> capital<strong>is</strong>m and not a blueprint for social<strong>is</strong>m;<br />

if you want to learn about social<strong>is</strong>m I’ve recommended several books and given a<br />

few mini-lectures <strong>of</strong> my own.<br />

We feel that there <strong>is</strong> a lack <strong>of</strong> incentive within Social<strong>is</strong>m. One reason for<br />

th<strong>is</strong> <strong>is</strong> people are not rewarded for the ideas that they come up with.<br />

<strong>What</strong> “fundamental law <strong>of</strong> nature” in even a centrally planned social<strong>is</strong>m dictates that the<br />

people cannot and will not chose to allocate a small percentage <strong>of</strong> their income (i.e. taxes)<br />

to setup funds to reward entrapeneurs as an incentive to spur growth?<br />

For instance, if Bill Gates were living within a Social<strong>is</strong>t economy he would<br />

not be able to advance the products that he creates because there would not<br />

be the resevoir <strong>of</strong> capital. Within in the<br />

Advance the products HE creates? I’ve never understood th<strong>is</strong> massive obsession with<br />

Bill Gates, perhaps its the work <strong>of</strong> the media which plays him <strong>of</strong>f as the “new individual<strong>is</strong>t<br />

man” everytime he <strong>is</strong> featured. Of course Newsweek, and Time completely ignore how the<br />

man made h<strong>is</strong> money; by massively exploiting the work <strong>of</strong> others. I’ll send a few references<br />

if you want to learn about how alienating Micros<strong>of</strong>t Corp. <strong>is</strong>. Perhaps I’ll lecture on th<strong>is</strong><br />

theme, and delusion about Gates’s genius later.<br />

Within the Social<strong>is</strong>t society the government decides what will be produced<br />

whether the people want th<strong>is</strong> product or not. Putting the power <strong>of</strong> production<br />

in the governments hands creates inefficiency.<br />

The first sentence <strong>is</strong> complete ignorance, and uses “social<strong>is</strong>m” to mean a society more<br />

like the former Soviet Union where the working people are not able to decide the general<br />

plan. Th<strong>is</strong> <strong>is</strong> not what social<strong>is</strong>ts want.<br />

Within the Social<strong>is</strong>t society the means <strong>of</strong> production <strong>is</strong> slow because there<br />

<strong>is</strong> not a structured management system. If the manager <strong>is</strong><br />

Bullshit, that’s exactly what you’re talking. Even the Soviet Union had a structured management<br />

system where, at various times in its h<strong>is</strong>tory, workers could elect, and recall their<br />

managers.<br />

not paid any more than the worker, he will not ahve the incentive to make<br />

them work. The workers would have to be put on some sort <strong>of</strong> a pr<strong>of</strong>it<br />

sharing method or they would have no desire to produce goods. In the<br />

Social<strong>is</strong>t system there <strong>is</strong> no reason to work hard. An example <strong>of</strong> th<strong>is</strong> would<br />

be a company that was set up on the idea <strong>of</strong> production through assembly


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 349<br />

lines. If the product was half way through production, and the people at the<br />

end <strong>of</strong> the line decided to take a break, the production <strong>is</strong> instanly slowed.<br />

If the worker’s have a financial interest in meeting their production quotas they will decide<br />

to schedule breaks at the same time.<br />

That <strong>is</strong> why it <strong>is</strong> necessary for a production team to have a specific management<br />

system with incentives to have the people work. With the Capital<strong>is</strong>t<br />

society the workers are put on specific schedules and they are better able<br />

to produce goods efficiently. Within the Capital<strong>is</strong>t society wages are set to<br />

maximize the units <strong>of</strong> labor per dollar expenditure. Th<strong>is</strong> <strong>is</strong> the reason for<br />

the management system. It <strong>is</strong> not there to act as a slave driving system,<br />

but for the purpose <strong>of</strong> creating an environment where the worker <strong>is</strong> able to<br />

produce goods with the least amount <strong>of</strong> expense for the company.<br />

You completely confuse management with class exploitation. They are separatable from<br />

each other in social<strong>is</strong>m, though united under capital<strong>is</strong>m.<br />

Class exploitation - Boss extracts surplus value from worker by “making the worker produce<br />

the most goods at the lowest wages” that he later re-sales to make a pr<strong>of</strong>it. Th<strong>is</strong> pr<strong>of</strong>it<br />

<strong>is</strong> not d<strong>is</strong>tributed back to the workers.<br />

Management - Middle managers are occasionally productive workers, but their main job<br />

<strong>is</strong> to make sure that productive workers are able to complete their jobs efficiently. Depending<br />

on the industry their role varies in its <strong>is</strong>olation from the working class, and their closeness<br />

with the capital<strong>is</strong>t. Management under a social<strong>is</strong>m, where each worker receives the fullvalue<br />

<strong>of</strong> their labor by a div<strong>is</strong>ion <strong>of</strong> pr<strong>of</strong>its or aggregate social product, can be democratically<br />

regulated and serves not to maximize the pr<strong>of</strong>its that the capital<strong>is</strong>t receives, but rather makes<br />

sure that the plan the worker’s agreed upon <strong>is</strong> carried out.<br />

Within small market economy social<strong>is</strong>m <strong>is</strong> better suited to an area in which<br />

people <strong>of</strong> the twon know one another, and where communications among<br />

one another <strong>is</strong> relatively available. In the confines <strong>of</strong> a small area the rate <strong>of</strong><br />

product advancement declines due to present level <strong>of</strong> subs<strong>is</strong>tence the town<br />

has come to maintain. The idea that they have become more <strong>of</strong> a trade and<br />

barter system than a high production system. The small community <strong>is</strong> set<br />

up trading commodities that are produced by individuals.<br />

The system you have just described <strong>is</strong> one <strong>of</strong> the past in the developed world. Marx<br />

describes why a society like th<strong>is</strong> <strong>is</strong> NOT capital<strong>is</strong>t towards the very end <strong>of</strong> the 1st chapter in<br />

Capital after h<strong>is</strong> d<strong>is</strong>cussion <strong>of</strong> the commodity.<br />

We have shown why there <strong>is</strong> a lack <strong>of</strong> incentives and efficiency within the<br />

Social<strong>is</strong>t society. First, the people are not rewarded for the efforts that they<br />

make to produce more. Second, there <strong>is</strong> a lack <strong>of</strong> efficiency within the<br />

system due to the problem <strong>of</strong> m<strong>is</strong>management. Th<strong>is</strong> <strong>is</strong> a problem because<br />

the people have no reason to encourage the workers to produce more. For<br />

350 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

these reasons we feel that Capital<strong>is</strong>m <strong>is</strong> the superior way to run any area<br />

that has grown beyond the trade and barter system.<br />

Message [604] referenced by [601]. First Message by Kevin <strong>is</strong> [112].<br />

[606] Snowman: The part <strong>of</strong> chapter twenty five that most struck me was the analys<strong>is</strong> <strong>of</strong><br />

the development <strong>of</strong> the separation <strong>of</strong> <strong>wealth</strong>. That <strong>is</strong> straight from the start <strong>of</strong> the chapter the<br />

parallel <strong>of</strong> the capital<strong>is</strong>t economy described by Marx and that which we live in <strong>is</strong> directly<br />

appearent. Though as <strong>of</strong> late it has been easier and easier for the middle class to attain higher<br />

and higher levels <strong>of</strong> comfort their relative plight in society <strong>is</strong> still a loosing relation. That <strong>is</strong><br />

the power and bredth <strong>of</strong> the large corporations still grows slowly subverting more and more<br />

people int o the subserviant relation <strong>of</strong> laborer to sustain their level <strong>of</strong> sus<strong>is</strong>tance.<br />

The growth <strong>of</strong> both forms <strong>of</strong> capital do tend to supplement one another to the extent that<br />

as one grows so must the other. And as the embodiment <strong>of</strong> labor becomes more accustomed<br />

to the new level <strong>of</strong> capital the relation becomes more dependent. The laborer even to day,<br />

in our society, continues to become more and more comfortable where they are, and with<br />

the influence <strong>of</strong> pecuniary emulation only w<strong>is</strong>hes to further their acquirements, for example<br />

nicer clothes, and faster cars. But little thought <strong>is</strong> given to the slave type relation one <strong>is</strong><br />

putting themselves into through the acqu<strong>is</strong>tion <strong>of</strong> these things. Pecuniary emulation state that<br />

the strongest drive <strong>of</strong> the individual worker <strong>is</strong> to show their relatively better lot as compared<br />

to their neighbor. The pro<strong>of</strong> <strong>of</strong> their lot <strong>is</strong> d<strong>is</strong>played in conspicuous consumption, or the<br />

aqcu<strong>is</strong>iton <strong>of</strong> commodities that are a ready example <strong>of</strong> <strong>wealth</strong>. According to th<strong>is</strong> theory by<br />

Veblen th<strong>is</strong> <strong>is</strong> the strongest motivation in capital<strong>is</strong>t society. Th<strong>is</strong> <strong>is</strong> also the very motivation<br />

leads to the need for the broadening <strong>of</strong> the accumumlation <strong>of</strong> capital, especially in the form<br />

<strong>of</strong> surplus labor paid as wages.<br />

Now because the laborer puts him or herself in the position <strong>of</strong> constant need for greater<br />

amounts <strong>of</strong> surplus labor and wages, and there for furthering the bond to that which provides<br />

the wages, the capital<strong>is</strong>t, the separation <strong>of</strong> <strong>wealth</strong> <strong>is</strong> furthered. The purchase <strong>of</strong> labor by the<br />

capital<strong>is</strong>t never equals the return expected form that input. The capital<strong>is</strong>t always arranges, or<br />

at least it <strong>is</strong> h<strong>is</strong> aim, for the value <strong>of</strong> the inputs used to be more than the payments actually<br />

made for their acqu<strong>is</strong>ition. So as the relation <strong>of</strong> the laborer increases in need for surplus<br />

labor, couples with the increase in the quantity <strong>of</strong> laborers, so does the span that separates<br />

the div<strong>is</strong>ions <strong>of</strong> <strong>wealth</strong>.<br />

Basically what the capital<strong>is</strong>t society then forms <strong>is</strong> a ever increasing gap between the states<br />

<strong>of</strong> <strong>wealth</strong> and relations <strong>of</strong> the laborers to the capital<strong>is</strong>ts. Or as Marx put it “He who was<br />

previously the money-owner now stride out in front as a capital<strong>is</strong>t; the possessor <strong>of</strong> labourpower<br />

follows as h<strong>is</strong> worker. The one smirks self-importantly and <strong>is</strong> intent on business; the<br />

other <strong>is</strong> timid and holds back, like someone who has brought h<strong>is</strong> own hide to market and<br />

now has nothing else to expect but - a tanning.”<br />

Hans: Your essay illustrates well the modern forms <strong>of</strong> “easy and liberal dependence.” The illusion <strong>of</strong> economic<br />

success masks the dependency on capital.<br />

Next Message by Snowman <strong>is</strong> [607].<br />

[613] Panacea: Re: Term Paper: Chapter 25 Plenty has already been written about the<br />

structure and impact <strong>of</strong> chapter 25. Most significantly, in my opinion, many have written


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 351<br />

about section four, where Marx has explained h<strong>is</strong> 3+1 div<strong>is</strong>ion <strong>of</strong> labour: floating, latent and<br />

stagnant labour populations, and the a-productive (or anti-productive, as you like) paupers.<br />

In recapping h<strong>is</strong>/her essay, I found the quotation submitted by Peaches to be very controversial:<br />

As the Venetian monk Ortes stated, “the poor and idle are a necessary consequence<br />

<strong>of</strong> the rich and active.”<br />

Th<strong>is</strong> reads, for me, almost as an excuse. I havn’t seen the source, nor do I know the<br />

context <strong>of</strong> the statement, but it has similarities with the quotations provided by Marx from<br />

Malthus and Harriet Martineau, both found on page 787, in chapter 25 <strong>of</strong> Kapital. It <strong>is</strong> th<strong>is</strong><br />

aspect <strong>of</strong> the chapter I would like to address.<br />

Reverend Malthus, a major capital<strong>is</strong>t theor<strong>is</strong>t who influenced Ricardo and others greatly,<br />

<strong>is</strong> known for h<strong>is</strong> extreme views on labour, marriage, and virtue <strong>of</strong> the lower classes working<br />

in industry. Marx quotes him in order to illustrate and substantiate h<strong>is</strong> analys<strong>is</strong> <strong>of</strong> surplus<br />

population: “”Prudential habits with regard to marriage, carried to a considerable extent<br />

among the labouring class <strong>of</strong> a country mainly depending on manufactures and commerce,<br />

might injure it...“” Malthus has seen the light - but th<strong>is</strong> <strong>is</strong> a two faced answer, forming a<br />

paradox for the labour class which proves impossible to escape from, but which even many<br />

today readily buy into.. One <strong>of</strong> Malthus’s basic tenets was that the lower classes WERE<br />

lower classed because <strong>of</strong> their lack <strong>of</strong> virtue. The were simply immoral, and constantly<br />

procreated like rabbits (because who could call th<strong>is</strong> virtue? sex all day! shame on the lower<br />

classes for having time for such pleasure because they are out <strong>of</strong> work!) Any r<strong>is</strong>e in wages<br />

provides the lower class with more chance to be lazy and immoral and sexual - so wages need<br />

to be kept right at subs<strong>is</strong>tence levels in order to keep the lower class from overpopulating<br />

itself and putting resources at r<strong>is</strong>k.<br />

Now, in th<strong>is</strong> quote Marx takes from Malthus’ Principles <strong>of</strong> Political Economy, Malthus<br />

explains that “prudence” on the part <strong>of</strong> the lower classes would actually injure capital<strong>is</strong>m.<br />

If the lower class would suddenly begin to have only two kids instead <strong>of</strong> twelve, if they<br />

would cease having illegitimate children and all manner <strong>of</strong> immoralities, then it could bring<br />

capital<strong>is</strong>m to it’s knees, for there would be no longer any substantial reserve army <strong>of</strong> labour.<br />

The paradox? The people are lower class because they are immoral. Malthus explains<br />

that the only way for them to r<strong>is</strong>e in class <strong>is</strong> to struggle to be more virtuous. Here in Marx’s<br />

quotation, we see that if the lower class ever actually become virtuous, then they can cripple<br />

capital<strong>is</strong>m - and then where would be?<br />

In th<strong>is</strong> light, indeed, the monk’s quote sounds like a sick apology. Maybe Malthus would<br />

have written “the immoral and unvirtuous are the necessary result <strong>of</strong> the moral and <strong>wealth</strong>y.”<br />

Marx notes other apolog<strong>is</strong>ts, who dare to make similar statements directly to the ‘redundant’<br />

workers: (th<strong>is</strong> <strong>is</strong> from Harriet) “We manufacturers do what we can for you, whilst we<br />

are increasing that capital on which you must subs<strong>is</strong>t, and you must do the rest by accommodating<br />

your numbers to the means <strong>of</strong> subs<strong>is</strong>tence.”<br />

352 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

How could someone have taken th<strong>is</strong> person seriously? Who <strong>is</strong> creating capital? Who <strong>is</strong><br />

dependant on whom? Malthus understands that without unemployment then it might spell<br />

d<strong>is</strong>aster for the capital<strong>is</strong>ts. Th<strong>is</strong> chapter <strong>is</strong> significant for me because it unmasks the truth<br />

behind statements like h<strong>is</strong> and the Harriet one. Marx <strong>is</strong> telling us - never again believe your<br />

employer again when he says “Look, we are doing you a favour, providing you with a job<br />

and doing all we can, so you had better just accept the wages we <strong>of</strong>fer...”<br />

The capital<strong>is</strong>t <strong>is</strong> a parasite, he needs the worker, and what <strong>is</strong> even more d<strong>is</strong>heartening, he<br />

needs to pay them low and keep some unemployed in order to reap h<strong>is</strong> benefits. And we do<br />

not need to have poor and unemployed in order to have <strong>wealth</strong>y and employed, there must<br />

be another way.<br />

Panacea<br />

“...we won’t vote conservative, because we never have - everyone lies...” MOZ<br />

Hans: The Ortes quote <strong>is</strong> on p. 800, and <strong>of</strong> Marx d<strong>is</strong>agrees with him to some extent. Ortes saw the contradictions<br />

<strong>of</strong> capital<strong>is</strong>t society, but he attributed them to eternal laws <strong>of</strong> balance.<br />

You are recognizing well the explosive situation implied in the dialectic that the worker’s dependence on capital<br />

<strong>is</strong> created by the workers’ own product.<br />

First Message by Panacea <strong>is</strong> [38].<br />

[615] Hans: A few common m<strong>is</strong>takes in the termpapers Skyler’s termpaper [566] <strong>is</strong> a<br />

good try to work through some complex material. Skyler went to the text, instead <strong>of</strong> relying<br />

on other sources. It <strong>is</strong> a honest effort, and if there are m<strong>is</strong>takes, th<strong>is</strong> should not bother us<br />

too much, because it <strong>is</strong> the kind <strong>of</strong> m<strong>is</strong>takes we can learn from. Before explaining two <strong>of</strong><br />

h<strong>is</strong> m<strong>is</strong>takes to you, I want to remark that h<strong>is</strong> paper has a correct definition <strong>of</strong> “organic<br />

composition”,<br />

Organic composition <strong>is</strong> defined; “value-composition <strong>of</strong> capital in so far as<br />

it <strong>is</strong> determined by its technical composition and mirrors the changes <strong>of</strong> the<br />

latter.” Pg. 762<br />

I.e., if the value composition increases because the value <strong>of</strong> the materials used r<strong>is</strong>es,<br />

without a change in the technology, Marx would not call it a r<strong>is</strong>e in “organic composition.”<br />

On the other hand, organic composition <strong>is</strong> not the value composition in constant dollars, as<br />

some other papers said.<br />

But now I have to be critical, and perhaps you may think I am splitting hairs. Please read<br />

the following passage for its logic:<br />

Labor power <strong>is</strong> the main factor in allowing capital to grow. Businesses<br />

function because <strong>of</strong> the laborer doing the work. ... The reproduction <strong>of</strong><br />

labour-power increases the amount <strong>of</strong> capital<strong>is</strong>ts and wage-laborers. Accumulaton<br />

<strong>of</strong> capital <strong>is</strong> therefore a multiplication <strong>of</strong> the working class.<br />

The last <strong>of</strong> these four sentences <strong>is</strong> a quote <strong>of</strong> Marx which <strong>is</strong> used in a wrong way. The “<strong>is</strong>”<br />

in th<strong>is</strong> sentence, as Marx used it, means “entails”. To summarize the first three sentences,<br />

Marx would have said that the multiplication <strong>of</strong> the working class <strong>is</strong> (entails) accumulation<br />

<strong>of</strong> capital. But Marx argues in h<strong>is</strong> Chapter exactly that it <strong>is</strong> the other way round. Although<br />

one should think capital depends so much on labor that the accumulation <strong>of</strong> capital depends


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 353<br />

on the growth <strong>of</strong> the working class, capital manages to overcome th<strong>is</strong> dependency: capital<br />

controls the growth <strong>of</strong> the labor force and it makes sure that there <strong>is</strong> enough labor supply.<br />

Th<strong>is</strong> <strong>is</strong> the “general law <strong>of</strong> capital<strong>is</strong>t accumulation.”<br />

Here <strong>is</strong> another point, which <strong>is</strong> not quite as subtle:<br />

The laborer <strong>is</strong> dependant upon the product in the capital<strong>is</strong>t system. Becasue<br />

<strong>of</strong> th<strong>is</strong>, workers place themselves in a state <strong>of</strong> easy and liberal dependance.<br />

Th<strong>is</strong> sounds as if the capital<strong>is</strong>t system produces the goodies for the workers and keeps<br />

them dependent. Suddenly it’s not only the welfare recipients, but all workers. You forget<br />

that in Marx’s view the workers are producing all value.<br />

First Message by Hans <strong>is</strong> [2].<br />

[616] Scott: Chapter 25 Marx builds the bas<strong>is</strong> for h<strong>is</strong> conclusions on the accumulation<br />

<strong>of</strong> capital in a logical order. First, he proceeds to define the terms, which he utilizes in h<strong>is</strong><br />

critiques <strong>of</strong> Capital<strong>is</strong>m. Marx then <strong>of</strong>fers h<strong>is</strong> conclusion that accumulation <strong>of</strong> capital <strong>is</strong> the<br />

multiplication <strong>of</strong> the proletariat, and then intersperses h<strong>is</strong> argument with fine analogies. One<br />

choice analogy <strong>is</strong> “ A r<strong>is</strong>e in the price <strong>of</strong> labor, as a consequence <strong>of</strong> accumulation <strong>of</strong> capital,<br />

only means, in fact, that the length and weight <strong>of</strong> the golden chain the wage-worker has<br />

already forged for himself, allow <strong>of</strong> a relaxation <strong>of</strong> the tension <strong>of</strong> it.” Marx then continues<br />

with explanations concerning the technical and the value composition <strong>of</strong> capital and their<br />

inter-relationship. Next, he points out that every accumulation <strong>of</strong> capital becomes the means<br />

<strong>of</strong> new accumulation.<br />

Centralization ass<strong>is</strong>ts accumulation in expanding due to economies <strong>of</strong> scale. Additionally,<br />

competition leads to centralization and to the over-working <strong>of</strong> the employed portion <strong>of</strong> the<br />

labor force. Then Marx asserts another key point,<br />

“The condemnation <strong>of</strong> one part <strong>of</strong> the working class to enforced idleness by the overwork<br />

<strong>of</strong> the other part, and the converse, becomes the means <strong>of</strong> enriching the individual<br />

capital<strong>is</strong>ts and accelerates at the same time the production <strong>of</strong> the industrial reserve army on<br />

a scale corresponding with the advance <strong>of</strong> social accumulation.”<br />

Th<strong>is</strong> <strong>is</strong> a central point because it <strong>is</strong> the industrial reserve army which drags down the<br />

active labor army. Th<strong>is</strong> relative surplus population <strong>is</strong> the pivot point between the supply<br />

and demand <strong>of</strong> labor. Marx also asserts that the accumulation <strong>of</strong> capital through the consumption<br />

<strong>of</strong> labor power proceeds so intensely that the laborer <strong>is</strong> consummed before h<strong>is</strong> life<br />

has attained its’ mid-point. Naturally, the capital<strong>is</strong>t can buy more <strong>of</strong> th<strong>is</strong> commodity from<br />

a reproduceable source. Th<strong>is</strong> reproduction <strong>is</strong> critical to the capital<strong>is</strong>t. He must pay what<br />

he perceives to be a “sustenance wage” in order to perpetuate the wage labor force. Th<strong>is</strong><br />

must be the minimal<strong>is</strong>t amount in order that the capital<strong>is</strong>t may still maximize pr<strong>of</strong>it yet, the<br />

laborer may reproduce.<br />

Marx also maintains that the size <strong>of</strong> the family <strong>is</strong> inversely related to the height <strong>of</strong> wages.<br />

It appears that th<strong>is</strong> may have changed since Marxs’ time, and I would venture that size <strong>of</strong><br />

families may be more cultural / religious in the present day. ( Th<strong>is</strong> <strong>is</strong> at least in regards to<br />

my knowledge <strong>of</strong> the Islamic, Catholic, and Mormon faiths.) Also, the trend <strong>of</strong> the more<br />

affluent towards smaller families <strong>is</strong> on-going. However, th<strong>is</strong> <strong>is</strong> a slight digression.<br />

354 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The preceeding argument leads to the statement, that the accumulation <strong>of</strong> capital for the<br />

capital<strong>is</strong>t, <strong>is</strong> merely the accumulation <strong>of</strong> m<strong>is</strong>ery, and exploitation to the wage-laborer. It<br />

appears to be a vicious circle for the wage-laborer, and a miraclous circle for the capital<strong>is</strong>t.<br />

Hans: Th<strong>is</strong> was a good essay, but out <strong>of</strong> fairness to the others I had to duck your grade because it came long after<br />

the deadline.<br />

First Message by Scott <strong>is</strong> [94].<br />

<strong>Question</strong> 301 Thread 301<br />

[57] KALISPEL: How to beat capital<strong>is</strong>m in less than 50 years? I would like to start a<br />

thread that will expose capital<strong>is</strong>t tendencies and give empowerment to members <strong>of</strong> the class<br />

at the same time. In the introduction <strong>of</strong> Karl Mark’s book Capital it states that capital<strong>is</strong>m<br />

<strong>is</strong> unlikely to last another fifty years. Assuming that the author <strong>of</strong> the introduction was<br />

not underestimating the strength <strong>of</strong> the capital<strong>is</strong>t system we will see the “overthrow” <strong>of</strong><br />

capital<strong>is</strong>m in most <strong>of</strong> our lifetimes. Me, I am too impatient to wait fifty years. How can it be<br />

done today.<br />

The goal, <strong>of</strong> course, <strong>is</strong> to be rich. If you are rich then you get all the goods and can<br />

have le<strong>is</strong>ure time and can also pursue intrinsic values which produce happiness. As Marx<br />

has stated, we have a right as human beings to develop personalities and follow what we<br />

believe <strong>is</strong> important. I am in no way advocating eating cakes all day in the shade <strong>of</strong> an apple<br />

tree. I am advocating the first law <strong>of</strong> any type <strong>of</strong> happiness and that <strong>is</strong> freedom. I am not a<br />

commodity. I am a human being with desires and wants. Th<strong>is</strong> thread I want to d<strong>is</strong>cuss the<br />

true nature <strong>of</strong> happiness and how to become truly free under capital<strong>is</strong>m in less than 50 years.<br />

How to be rich. Nearly all “pr<strong>of</strong>essional” jobs in society pay about the same. The range<br />

<strong>is</strong> from 25,000 to 35,000 dollars a year. Unskilled workers are paid much less and there are<br />

those who are in the “lucky” jobs can make around 60-100 thousand dollars a year.<br />

Here’s the thing. If you get married and have kids and want a house and a car and want to<br />

go to the movie once in a while your wages just will not allow you to save enough money to<br />

obtain capital. It <strong>is</strong> almost impossible and that <strong>is</strong> why few people have done it, in compar<strong>is</strong>on<br />

with the rest <strong>of</strong> the population. Those who make the high salaries are few and most are in<br />

the upward parts <strong>of</strong> their careers. They are old. Why wait until your old to have cash and<br />

freedom? Then again most people never obtain much <strong>of</strong> either. There <strong>is</strong> a constant push and<br />

pull.<br />

The way to get the most cash, <strong>of</strong> course, <strong>is</strong> to be the capital<strong>is</strong>t. You could start your own<br />

business. In th<strong>is</strong> way your surplus labor power <strong>is</strong> not robbed and you can rob the labor power<br />

<strong>of</strong> others (let’s not d<strong>is</strong>cuss the moral dilemmas <strong>of</strong> capital<strong>is</strong>m here. Let’s d<strong>is</strong>cuss the how <strong>of</strong><br />

it all). Once you start to get a lot <strong>of</strong> money you can hire skilled and unskilled workers to<br />

operate your capital while you go on vacation in the Bahamas with your family, <strong>of</strong> course<br />

there are a lot <strong>of</strong> bosses who can’t do th<strong>is</strong> a lot, but many can. I have never seen the owner<br />

<strong>of</strong> the company I work for.<br />

Of course to get the capital to start the business you must obtain large sums <strong>of</strong> money. It<br />

<strong>is</strong> obvious that the standard wages 25-35 thousand dollars a year will not cut it unless your<br />

sleeping under a porch. So, what can you do? You can get in an illustious career. Top paid


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 355<br />

fields include lawyers, doctors, stock brokers, insurance, and real estate. These are some <strong>of</strong><br />

the people who can actually start saving some cash to obtain capital.<br />

Time <strong>is</strong> short, but I would like feedback on the “How” <strong>of</strong> dealing with a way to break out<br />

<strong>of</strong> capital<strong>is</strong>m on a personal level, not as a society. Please leave out moral implications. We<br />

can d<strong>is</strong>cuss that later on. Do you see loopholes in the system? Who do you know that has<br />

“made it” in capital<strong>is</strong>t society? I would appreciate anyone’s comments.<br />

Next Message by KALISPEL <strong>is</strong> [133].<br />

[77] Peace: How to beat capital<strong>is</strong>m in less than 50 years? i am picking up on Kal<strong>is</strong>pel’s<br />

d<strong>is</strong>cussion thread.<br />

First, i am unable to locate where in the introduction that it says it <strong>is</strong> unlikely that capital<strong>is</strong>m<br />

will last another 50 years[?].<br />

In fact Mandel’s introduction in section 11 seems to attempt to defend against these types<br />

<strong>of</strong> “inevitable collapse <strong>of</strong> capital<strong>is</strong>m” interpretations <strong>of</strong> Marx.<br />

Secondly, i am a bit troubled by Kal<strong>is</strong>pel’s idea that capital<strong>is</strong>m can be transcended by<br />

the individual. Moreover, that the way the individual transcends capital<strong>is</strong>m <strong>is</strong>, in Kal<strong>is</strong>pel’s<br />

words, by “[t]he goal, <strong>of</strong> course, <strong>is</strong> to be rich”.<br />

Next, Kal<strong>is</strong>pel introduces philosophical terms such as happiness and freedom ... wants<br />

and desires. Stating that the “first law <strong>of</strong> any type <strong>of</strong> happiness [...] <strong>is</strong> freedom”. i especially<br />

d<strong>is</strong>like and d<strong>is</strong>agree with th<strong>is</strong> formulation. However, Kal<strong>is</strong>pel seems (quite unsuccessfully)<br />

to be trying to develop some sort <strong>of</strong> notion <strong>of</strong> self- determination; or in some sense <strong>of</strong><br />

minimizing the coercive (social) forces that confront each individual.<br />

Kal<strong>is</strong>pel states: “I am not a commodity.” Th<strong>is</strong> i like very much. Th<strong>is</strong> idea <strong>is</strong> important<br />

to Marx, and seems very related to h<strong>is</strong> notions <strong>of</strong> commodity fet<strong>is</strong>h<strong>is</strong>m and alienation.<br />

However, th<strong>is</strong> <strong>is</strong> not the line that Kal<strong>is</strong>pel decides to pursue or develop.<br />

Kal<strong>is</strong>pel’s question <strong>is</strong> not ‘how to overcome alienation’, but rather “[h]ow to be rich”.<br />

Noting that most people in a capital<strong>is</strong>t society are and cannot be rich. But that “old” people<br />

can achieve “cash” and consequently “freedom.”<br />

Kal<strong>is</strong>pel ends with the question “how” to “break out <strong>of</strong> capital<strong>is</strong>m on a personal level, not<br />

as a society. Please leave out moral implications.”<br />

Th<strong>is</strong> entire analys<strong>is</strong> <strong>is</strong> full <strong>of</strong> moral implications, so i am unsure what <strong>is</strong> meant by leaving<br />

them out. But more importantly it seems that Kal<strong>is</strong>pel has made a m<strong>is</strong>take to believe that<br />

an individual by hirself can transcend the coercive (social) forces <strong>of</strong> capital<strong>is</strong>m by becoming<br />

“rich.” i would argue that a rich person confronts the coercive (social) forces on a different<br />

level.<br />

The m<strong>is</strong>take seems to be in equating “cash” with “freedom”; th<strong>is</strong> <strong>is</strong> especially to remain in<br />

a capital<strong>is</strong>t consciousness (however, i would agree that a “rich” individual has more choices<br />

than the poor individual; but i do not want to equate th<strong>is</strong> with a notion <strong>of</strong> “freedom” or<br />

“self-determination”).<br />

i would further add that an individual can change class status in capital<strong>is</strong>m, but that no<br />

individual by hirself can “break” out <strong>of</strong> capital<strong>is</strong>t social relations. Th<strong>is</strong> requires a social<br />

356 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

transformation. There are certain boundary conditions (<strong>of</strong> freedom) in a capital<strong>is</strong>t society;<br />

a philosophical notion freedom cannot be achieved within the boundary conditions <strong>of</strong> capital<strong>is</strong>m.<br />

Likew<strong>is</strong>e, “freedom” by definition could not have been achieved in a (Greek) Slave<br />

economy or in a Feudal economy.<br />

The individual can achieve emancipation from the tyranny <strong>of</strong> being a member <strong>of</strong> the<br />

welfare class or the working class; but the individual cannot achieve freedom from capital<strong>is</strong>m<br />

within capital<strong>is</strong>t relations.<br />

Next Message by Peace <strong>is</strong> [80].<br />

[133] KALISPEL: How to beat capital<strong>is</strong>m in less than 50 years. I enjoyed peace’s<br />

ideas on how to beat capital<strong>is</strong>m in less than 50 years, however I have many unanswered<br />

questions to what he/she said. It, although, did get me to think more about the notion <strong>of</strong><br />

beating capital<strong>is</strong>m.<br />

Peace could not find the phrase in the introduction to Marx’s Capital. It <strong>is</strong> the last paragraph<br />

which states: It <strong>is</strong> most unlikely that capital<strong>is</strong>m will survive another half-century<br />

because <strong>of</strong> the cr<strong>is</strong>es which have occurred since 1914. It <strong>is</strong> most probable, moreover, that<br />

Capital and what it stands for-namely a scientific analys<strong>is</strong> <strong>of</strong> bourgeo<strong>is</strong> society which represents<br />

the proletariat’s class consciousness at its highest level-will in the end prove to have<br />

made a dec<strong>is</strong>ive contribution to capital<strong>is</strong>m’s replacement by a classless society <strong>of</strong> associated<br />

producers.<br />

First peace states that the individual cannot transcend capital<strong>is</strong>m. I agree with th<strong>is</strong> statement,<br />

but not completely. Of course you can never break out <strong>of</strong> capital<strong>is</strong>tic social relations,<br />

but you can “save yourself.” Marx reveals many <strong>of</strong> the crimes involved under capital<strong>is</strong>m<br />

such as exploitation and human commodities and the like. These negative aspects can be<br />

eliminated through transcending class states such as that <strong>of</strong> the welfare and the working<br />

class.<br />

For example, Joe <strong>is</strong> a factory worker and must work 50-65 hours per week to keep h<strong>is</strong><br />

job. It <strong>is</strong> hard labor and he doesn’t have much energy left over to really enjoy life. He has<br />

become a human commodity, or in other words, the typical every day wage slave. He <strong>is</strong> not<br />

able to pursue intrinsic interests and h<strong>is</strong> growth as a human being are stifled. Few would<br />

argue with th<strong>is</strong>.<br />

Another example, Sally <strong>is</strong> a mother <strong>of</strong> 3 and <strong>is</strong> on welfare. She doesn’t have a car that<br />

works and can barely buy food and pay rent. Her entertainment and ability to pursue intrinsic<br />

values <strong>is</strong> also greatly stifled.<br />

Billy Bob, <strong>is</strong> a capital<strong>is</strong>t. He worked hard at a lucrative job and saved up lots <strong>of</strong> cash. He<br />

invested h<strong>is</strong> money and makes a return <strong>of</strong> 15% a year. Th<strong>is</strong> gives him a salary above that <strong>of</strong><br />

Sally, and Joe. <strong>What</strong> does Billy have that Sally and Joe do not. He has both the time and the<br />

means to pursue h<strong>is</strong> interests as a human being. He has broken out <strong>of</strong> the coercive powers<br />

<strong>of</strong> capital<strong>is</strong>m. He can do what he wants whenever he wants and has enough money to do<br />

most anything within reason. Billy Bob may not have truly transcended capital<strong>is</strong>tic social<br />

relations, but why would he care? He has h<strong>is</strong> cake and <strong>is</strong> eating it too. Morally, th<strong>is</strong> may be<br />

a bad approach, but in Capital<strong>is</strong>m it <strong>is</strong> rob, or be robbed.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 357<br />

I do not at all understand what you mean by saying that freedom <strong>is</strong> not necessary for<br />

happiness. How can a person be happy under coercive powers? If I love to make music and I<br />

am a street sweeper am I truly happy? Maybe not completely unhappy, but if you are allowed<br />

to choose what you want to do with your time you will, or course, find more happiness. If<br />

I have a talent for music and due to capital<strong>is</strong>m I must search for the buck and do something<br />

that turns me into a commodity, how can I be truly happy. I am not a philosopher, but I can<br />

see that any kind <strong>of</strong> “pr<strong>is</strong>on” does not lead to happiness. To me, it seems fundamental. Why<br />

<strong>is</strong>n’t the capital<strong>is</strong>m free? He doesn’t have to go to work. He <strong>is</strong> not under coercive powers<br />

like h<strong>is</strong> boss yelling at him. He <strong>is</strong> able to do most <strong>of</strong> what he w<strong>is</strong>hes as long as it <strong>is</strong>n’t killing<br />

people or something crazy like th<strong>is</strong>.<br />

On the one hand everyone can say choose th<strong>is</strong>, choose that, it’s all up to you, but most<br />

people never break the coerciveness <strong>of</strong> capital<strong>is</strong>m. How many people love to go to work<br />

every day? If they do not love it when why do they do it. They have to. Likew<strong>is</strong>e, the<br />

capital<strong>is</strong>t can go to the Bahamas one weekend and produce a music album the next by choice.<br />

I believe it <strong>is</strong> immoral to be a capital<strong>is</strong>t, but as I said before it <strong>is</strong> rob or be robbed. It <strong>is</strong> also<br />

immoral to let someone rob from me and not do anything about it, also. It’s a paradox, but<br />

as Marx said blame the system, not the capital<strong>is</strong>t.<br />

Lastly, I think it would do many <strong>of</strong> the marx<strong>is</strong>ts a lot <strong>of</strong> good if they became capital<strong>is</strong>ts.<br />

Why? First, they understand the nature <strong>of</strong> how capital operates. Secondly, how else can a<br />

difference be made at all. The “establ<strong>is</strong>hment” known as the ruling class are not going to let<br />

a bunch <strong>of</strong> d<strong>is</strong>content Marx<strong>is</strong>ts overthrow the system they rule. Powerful men (power=cash)<br />

who have the means and time need to band together and change the system. The slaves and<br />

serfs didn’t like their systems much, but what good did it do them. Changes must come<br />

from the top down, thus some Marx<strong>is</strong>ts need to go to the top and start working on it. It may<br />

seem immoral to the Marx<strong>is</strong>t to pursue cash by becoming a capital<strong>is</strong>t, but I think it <strong>is</strong> just as<br />

immoral to allow someone to exploit you as a commodity your whole life. I believe that to<br />

beat the system you must first show that you have mastered it. Fighting a system you have<br />

no control over, or in, in my estimation, does little good. It <strong>is</strong> not probable that the world will<br />

be converted to marx<strong>is</strong>m and capital<strong>is</strong>m has proved how easy it <strong>is</strong> to manipulate the masses.<br />

I believe we are talking about a change that will take too many lifetimes. It’ll be like Star<br />

Trek the next generation before there <strong>is</strong> th<strong>is</strong> complete social consciousness when everyone<br />

<strong>is</strong> treated equally etc.<br />

Peace, I am interested in what your notion <strong>of</strong> happiness <strong>is</strong> and I want to know how to<br />

live in a capital<strong>is</strong>tic society until it either self-destructs or <strong>is</strong> overturn. There must be some<br />

empowering strategies someone can take. Presently, I believe that the best thing to do <strong>is</strong><br />

become a capital<strong>is</strong>t and work at bringing about social consciousness <strong>of</strong> these <strong>is</strong>sues. I may<br />

not be able to change the world, but maybe I can make a “mark” towards a better society by<br />

becoming involved in the lives <strong>of</strong> others. If I let the capital<strong>is</strong>t rob me bleed me and pilpher<br />

me than what have I become?<br />

Note: Rick Majerus adv<strong>is</strong>ed Keith Van Horn about the money he would be giving up if<br />

he stayed another year. Van Horn decided to stay at the U with an insurance policy <strong>of</strong> about<br />

a million if he got hurt. D<strong>is</strong>cussing the <strong>is</strong>sue Majerus said something interesting. He said,<br />

“Money can buy happiness and if anyone thinks th<strong>is</strong> <strong>is</strong> not so then they have never had it<br />

358 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

and are naive.” I believe th<strong>is</strong> notion that money doesn’t buy happiness <strong>is</strong> one <strong>of</strong> the “songs”<br />

sung by the capital<strong>is</strong>t to keep himself in ruling power.<br />

Next Message by KALISPEL <strong>is</strong> [144].<br />

[186] Jupiter: How to beat capital<strong>is</strong>m in less than 50 years? I find the topic very<br />

interesting and want to join in on the answer (if there <strong>is</strong> one?). I have found in Marx that<br />

throughout h<strong>is</strong>tory for the most part there has been different severities <strong>of</strong> exploitation <strong>of</strong><br />

groups <strong>of</strong> people, th<strong>is</strong> <strong>is</strong> not limited to Marx himself but even in all our school texts, from<br />

the time we were able to read to the present. There are two main classes; those who do own<br />

the means <strong>of</strong> production and those who do not, th<strong>is</strong> gives r<strong>is</strong>e to class conflict. Here <strong>is</strong> just a<br />

brief h<strong>is</strong>tory:<br />

Period Mode <strong>of</strong> Production Major classes<br />

Primitive Primitive communal -none-<br />

Ancient Slavery-1st h<strong>is</strong>torical Master/slave act <strong>of</strong> property<br />

Middle ages Feudal<strong>is</strong>m/Estates Lords/Serfs<br />

Modern period Capital<strong>is</strong>m Bourgeosie/Proletariate<br />

Future Social<strong>is</strong>m/Commun<strong>is</strong>m -none-<br />

Th<strong>is</strong> brief h<strong>is</strong>tory does not encompass all forms <strong>of</strong> class conflict but it shows some major<br />

themes that have happened in h<strong>is</strong>tory. Changes were brought about in each era by a certain<br />

group or event, revolutions which brought about a change. For example “Freemen” brought<br />

about a change from slavery to Feudla<strong>is</strong>m, Capital<strong>is</strong>ts (National<strong>is</strong>ts) brought about a change<br />

from Feudal<strong>is</strong>m to Capital<strong>is</strong>m, they did th<strong>is</strong> because the Lords had to much power in both<br />

the political and economic markets so the Lords were done away with.<br />

I think what we are in for in th<strong>is</strong> society <strong>is</strong> not good! It <strong>is</strong> not har to see an end to our<br />

resources comming, what to do? I say to do away with a system that <strong>is</strong> failing in many ways.<br />

For starters I have a strong opinion that the welfare system in th<strong>is</strong> county <strong>is</strong> so bogus that<br />

it really makes me sick to my stomach. I say th<strong>is</strong> because I know people who are on it that<br />

shop at Nordstoms and JMR. How they do th<strong>is</strong> <strong>is</strong> simple they get pregnant and have a baby<br />

then they get a rich boyfriend who gives them money while at the same time they get money<br />

from me (the Tax payer). Th<strong>is</strong> <strong>is</strong> not the case for all people I do realize.<br />

Th<strong>is</strong> <strong>is</strong> just one point that <strong>is</strong> a dowmfall in our economy, which falls back on those who<br />

are on the floor in congress making it easier for people to get on welfare. They should get a<br />

better handle on it and make it tougher for people to get on welfare and once on they should<br />

follow up on that person. My comment may be trivial to some and <strong>of</strong>fend others but it <strong>is</strong> the<br />

little things that are going to reform th<strong>is</strong> country back into equalibrium.<br />

Next Message by Jupiter <strong>is</strong> [276].<br />

[237] Peace: How to beat capital<strong>is</strong>m in less than 50 years i too find th<strong>is</strong> thread interesting.<br />

i did not check the citation about cr<strong>is</strong><strong>is</strong> and the dem<strong>is</strong>e <strong>of</strong> capital in fifty years. i<br />

find it supr<strong>is</strong>ing that E. Mandel would say th<strong>is</strong>. i do not at all believe that cr<strong>is</strong>es will be the<br />

dem<strong>is</strong>e <strong>of</strong> capital<strong>is</strong>m. Marx and Engels can be forgiven for having a faith in th<strong>is</strong> mechan<strong>is</strong>m<br />

or contradiction <strong>of</strong> capital<strong>is</strong>m as causing its own downfall; but capital<strong>is</strong>m <strong>is</strong> quite capable <strong>of</strong><br />

transforming itself, as it has done in world wide Great Cr<strong>is</strong>es <strong>of</strong> 1820’s; 1870’s; 1930’s; and


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 359<br />

1970’s. Business cycles which occur quite <strong>of</strong>ten are not de-stablizing, but rather the business<br />

cycle <strong>is</strong> what seems to give capital<strong>is</strong>m its stablity or its strength to endure, reproduce and<br />

transform when it has to.<br />

Cr<strong>is</strong>es do not bring individuals (the working class) together but rather fragment them,<br />

putting them into competition with one another. Cr<strong>is</strong>es should not be understood as the<br />

causal mechan<strong>is</strong>m for the fall <strong>of</strong> capital<strong>is</strong>m; it <strong>is</strong> much more enduring than th<strong>is</strong>.<br />

Moreover, i no longer believe that the proletariat are the universal consciousness (either<br />

in Marx or Lukacs). The working class are not in any material condition to gain universal<br />

class consciousness. i reject th<strong>is</strong> teleological faith in the working class consciousness the<br />

emancipatory potential we must depend.<br />

Also i remain in d<strong>is</strong>agreement that becoming rich somehow “saves yourself”. But i think<br />

the main d<strong>is</strong>agreement here <strong>is</strong> in our levels <strong>of</strong> abstraction. It <strong>is</strong> true that being <strong>wealth</strong>y in<br />

capital<strong>is</strong>m can make for a less m<strong>is</strong>erable life for any individual; but when i look around<br />

and see the conditions for the vast majority <strong>of</strong> people in th<strong>is</strong> world, something <strong>is</strong> deadly<br />

wrong. Namely, the individual does not matter, and there <strong>is</strong> very little room for (individual<br />

or otherw<strong>is</strong>e) human agency. Because i am the exploiter and receive a greater amount <strong>of</strong> the<br />

surplus value produced does not make me feel emancipated. Only in capital<strong>is</strong>m would such<br />

a belief ex<strong>is</strong>t. Does winning the lottery really mean emancipation; come on! Does becoming<br />

a criminal mean that you have transcended being a victim?<br />

i am very d<strong>is</strong>couraged by th<strong>is</strong> statement: “Morally, th<strong>is</strong> may be a bad approach, but in<br />

Capital<strong>is</strong>m it <strong>is</strong> rob, or be robbed.” With th<strong>is</strong> you have suggested that virtue does not ex<strong>is</strong>t<br />

for the individual under capital<strong>is</strong>t relations. i very much want to d<strong>is</strong>agree and firmly reject<br />

th<strong>is</strong>. There are many examples <strong>of</strong> virtuous individuals facing and within capital<strong>is</strong>t relations.<br />

i think you have m<strong>is</strong>understood my comments about freedom. Did i say that freedom<br />

<strong>is</strong> not necessary for happiness? If so th<strong>is</strong> <strong>is</strong> certainly not what i mean at all. <strong>What</strong> i mean<br />

<strong>is</strong> that freedom cannot be reduced to the a utilitiarian<strong>is</strong>t feeling <strong>of</strong> happiness (pleasure) and<br />

avoidence <strong>of</strong> pain. But freedom itself will <strong>of</strong> course entail happiness. And i do not believe<br />

you when you say freedom <strong>is</strong> not having to go to work. Freedom <strong>is</strong> still something different<br />

to me.<br />

i find myself agreeing with you when you say it must start from the top down. i am not<br />

sure th<strong>is</strong> <strong>is</strong> the answer, but to begin to transform social relations into (at least less) nonexploitative<br />

social relations it must be more than the working class. But i would d<strong>is</strong>agree<br />

that to make a difference you must be a capital<strong>is</strong>t. The h<strong>is</strong>tory <strong>of</strong> social<strong>is</strong>t thought has had<br />

many capital<strong>is</strong>ts (e.g. F. Engels and Robert Owen).<br />

We must try to understand how capital<strong>is</strong>t relations function; and must educate one another<br />

about th<strong>is</strong>. Happiness has something to do with virtue and ethics. But even with th<strong>is</strong> we<br />

can be fated for an “Unhappy Consciousness”. Allowing one’s self to give up one’s virtue<br />

and inner ethic <strong>is</strong> the greatest form <strong>of</strong> self-estrangement that a human being can face. Not<br />

everyone can develop such a virtue; but it would be a great d<strong>is</strong>appointment to believe that<br />

the only way to become virtuous <strong>is</strong> to become capital<strong>is</strong>t.<br />

360 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

However, i certainly agree that we fet<strong>is</strong>hize money and people that have money in th<strong>is</strong><br />

society. Moreover, having money certainly makes an individual’s life easier in capital<strong>is</strong>t<br />

relations. Yes, we need to understand th<strong>is</strong>, but at what (social) cost are people becoming rich.<br />

Th<strong>is</strong> <strong>is</strong> why we need to understand the dynamics and mechan<strong>is</strong>ms <strong>of</strong> capital<strong>is</strong>m. We must<br />

understand the unacknowledged conditions that enable us and constrain us as individuals;<br />

and we must begin to understand the unintended consequences <strong>of</strong> our individual action,<br />

when we have accepted the unacknowledged conditions as normal.<br />

Message [237] referenced by [2001fa:523]. Next Message by Peace <strong>is</strong> [238].<br />

[240] KALISPEL: How to beat capital<strong>is</strong>m in less than 50 years. Peace, I appreciate<br />

your comments. I can see where you d<strong>is</strong>agree, but I am having a hard time understanding<br />

where you are going.<br />

First you say that the proletariat <strong>is</strong> not capable materially <strong>of</strong> universal class cosciousness.<br />

Yes, th<strong>is</strong> <strong>is</strong> true if you are a proletariat, but what if I am a successful capital<strong>is</strong>t. For example,<br />

Ross perot has “radical political ideas” and has not been able to get the Republicans or the<br />

Democrats to sponsor him. If he was a proletariat no one would know h<strong>is</strong> name. Why do<br />

we all know who he <strong>is</strong>? He has money. He can buy ads and put them on t.v. and travel the<br />

world giving speeches and can hire speech writers and people to write books for him, it’s<br />

enless. I believe that if several Marx<strong>is</strong>ts became rich then they could in fact generate class<br />

consciousness.<br />

Peace says that being rich does not save yourself. He agrees that it will produce an easier<br />

life, but won’t save you. Th<strong>is</strong>, I believe <strong>is</strong> a small point to make. It <strong>is</strong> merely your level<br />

<strong>of</strong> abstraction. Peace brings up that if you win the lottery you will not gain emancipation<br />

or that if you are a criminal you have not transcended being a victim. Th<strong>is</strong> <strong>is</strong> true if you<br />

want to look at it as completely emancipated or completely non victim. But, a capital<strong>is</strong>t can<br />

certainly gain more emancipation than the proletariat.<br />

Rob or be robbed. Peace states that th<strong>is</strong> would mean that there <strong>is</strong> no virtue under capital<strong>is</strong>t<br />

relations. I do not believe peace meant no virtue at all because <strong>of</strong> course that would mean<br />

we are all evil in every way. I believe peace was saying that capital<strong>is</strong>t social relations are<br />

not virtuous. Yes, th<strong>is</strong> was my point exactly. Virtue does not ex<strong>is</strong>t under capital<strong>is</strong>t relations.<br />

It <strong>is</strong> immoral to exploit someone and likew<strong>is</strong>e immoral to allow the system to exploit you<br />

freely. I don’t care if the capital<strong>is</strong>t goes to church every week and gives h<strong>is</strong> workers the<br />

minimum wage. Inequality <strong>is</strong> immoral and we all know the capital<strong>is</strong>tic system thrives on<br />

th<strong>is</strong> inequality. It’s the root <strong>of</strong> the motivation. Society says, “Oh, I can be the capital<strong>is</strong>t<br />

one day and I will be rich so it’s ok that I am exploited today.” Here’s the problem. If your<br />

motivation <strong>is</strong> impure then you cannot be moral. Some people may want to change the system<br />

and may say, I am operating under correct principles. However, a problem ex<strong>is</strong>ts here. For<br />

example, if I know it <strong>is</strong> wrong to steal and then end up doing it because my buddies are<br />

peer pressuring me, <strong>is</strong> th<strong>is</strong> ok. Likew<strong>is</strong>e, if I accept capital<strong>is</strong>tic relations that are immoral<br />

and think, “Oh, it’s ok because I want things to be different.” Th<strong>is</strong>, I would say makes th<strong>is</strong><br />

person immoral. Therefore, there <strong>is</strong> no virtue under the capital<strong>is</strong>t relations. Most people<br />

accept th<strong>is</strong> unvirtue because they do not want to live the alternative even though they know<br />

it <strong>is</strong> a far more moral choice.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 361<br />

Freedom <strong>is</strong> not having to go to work. Why do you d<strong>is</strong>agree? Is it because I can choose<br />

the job I want to have? The problem <strong>is</strong> I cannot choose the job I want to have? I must take<br />

what I can when I can to survive. 40-60 hours a week <strong>of</strong> pr<strong>is</strong>on <strong>is</strong> not freedom. Maybe there<br />

<strong>is</strong> greater freedom out there, ie. the level <strong>of</strong> abstraction again, but right now most people<br />

need to focus on th<strong>is</strong> first very important hurdle. Once again, I do not advocate not working,<br />

but being paid fairly to do the kind <strong>of</strong> work you love to do.<br />

Peace says something very interesting and very bold. He says that happiness <strong>is</strong> a result<br />

<strong>of</strong> a virtuous and ethical life. Th<strong>is</strong> I will strongly agree with, although, it <strong>is</strong> hard to determine<br />

what <strong>is</strong> virtuous and what <strong>is</strong> ethical. Additionally, there are a lot <strong>of</strong> m<strong>is</strong>erable religious<br />

zealots. Th<strong>is</strong> would mean that true virtue and ethics appear in multivariate forms within each<br />

and every religion. I do have a question here. If a person enters immorally into capital<strong>is</strong>tic<br />

relations and knows these relations are immoral, and the person does th<strong>is</strong> because the alternatives<br />

reveal a harder life than what they desire what kind <strong>of</strong> happiness will th<strong>is</strong> person<br />

have. If virtue and ehtics create happiness than there are portions <strong>of</strong> human happiness that<br />

cannot ex<strong>is</strong>t under capital<strong>is</strong>m. In fact, the bible points th<strong>is</strong> out. For example, the city <strong>of</strong><br />

Enoch.<br />

<strong>What</strong> I find are two prevailing attitudes that people have. The first say that capital<strong>is</strong>m <strong>is</strong><br />

necessary for everyone to be better <strong>of</strong>f. Capital<strong>is</strong>m gets people to work hard. Marx<strong>is</strong>ts have<br />

never been able to deal with the motivation <strong>is</strong>sue. If I am able to get the same pay no matter<br />

how hard I work most people will simply not work hard. Marx<strong>is</strong>ts cannot deal effectively<br />

with th<strong>is</strong> <strong>is</strong>sue because they just plain do not know how it could work either.<br />

The other <strong>is</strong> one <strong>of</strong> indifference. For example I was talking to a friend about Marx<strong>is</strong>t<br />

theory and they said, “I do not believe in exploitation and do not believe Marx<strong>is</strong>t theory.” I<br />

asked them why and they said, “There are only a few bad capital<strong>is</strong>ts we cannot give them all<br />

a bad rap.” Th<strong>is</strong> may be naive, but I questioned further and my friend said th<strong>is</strong>, “Why would<br />

anyone want to believe in Marx<strong>is</strong>m. Who wants to believe they are being exploited and being<br />

”used up“ by the greedy capital<strong>is</strong>t. Th<strong>is</strong> would make me very angry and unhappy to believe<br />

th<strong>is</strong>.” Here’s the thing, if you accept what Marx wrote then you must make a choice to either<br />

be immoral by accepting and living peacably under capital<strong>is</strong>t relations (th<strong>is</strong> will cause you<br />

to suffer self-enstrangement), or you can pay a heavy price by leaving the system. Making a<br />

statement by the way in which you live your life.<br />

I think the less you know the better <strong>of</strong>f you are because th<strong>is</strong> leads to self-enstrangement<br />

and anger. Maybe I should just refute Marx<strong>is</strong>m and convince myself that inequality <strong>is</strong> good<br />

and equality <strong>is</strong> bad.<br />

Message [240] referenced by [255]. Next Message by KALISPEL <strong>is</strong> [304].<br />

[255] Peace: How to beat capital<strong>is</strong>m in less than 50 years. Kal<strong>is</strong>pel said in [240]:<br />

Peace, I appreciate your comments. I can see where you d<strong>is</strong>agree, but I am<br />

having a hard time understanding where you are going.<br />

Yes so do i. But the point i initially attempted to make <strong>is</strong> a protest against the form <strong>of</strong><br />

emancipation you but forth.<br />

362 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

i think i also said that our differences are one <strong>of</strong> abstraction. Th<strong>is</strong> <strong>is</strong> propably true. However,<br />

there are also some ontological differences involved. That <strong>is</strong> to say i don’t believe terms<br />

like “freedom” and “emancipation” actually characterize your arguments. You are talking<br />

about practical types <strong>of</strong> survival within material conditons.<br />

i guess that i want to use such terms in a more traditional philosphical sense. In th<strong>is</strong> sense<br />

i do not think you are being very philosophically careful in your use <strong>of</strong> such terms. We can<br />

agree that being rich has certain advantages (but we could also talk about d<strong>is</strong>advantages);<br />

but i do not want to use “freedom” and “emancipation” to charactize the arguments you are<br />

attempting to put forth.<br />

The argument you are making has to do with social mobility, but not emancipation and<br />

freedom. i want to say or argue that the slave-master himself <strong>is</strong> not emancipated until the<br />

slavery itself <strong>is</strong> an absence. If slavery <strong>is</strong> present then there <strong>is</strong> no emancipation and freedom<br />

<strong>is</strong> the absence.<br />

Th<strong>is</strong> <strong>is</strong> not merely a philosophical argument, but i believe it to be a religious position also.<br />

That <strong>is</strong> for example, most religious people would hate the notion <strong>of</strong> Jesus coming back as a<br />

capital<strong>is</strong>t. In fact, th<strong>is</strong> seems quite contradictory.<br />

When you say: “Inequality <strong>is</strong> immoral and we all know the capital<strong>is</strong>tic system thrives on<br />

th<strong>is</strong> inequality. It’s the root <strong>of</strong> the motivation.” Then emancipation <strong>is</strong> absent in a philosohical<br />

sense. But again th<strong>is</strong> <strong>is</strong> not merely a differenece in abstraction or defination. The difference<br />

<strong>is</strong> ontological, i am arguing that emancipation and freedom, in the sense that economic liberal<strong>is</strong>m<br />

prom<strong>is</strong>ed and in the sense that neo-liberial<strong>is</strong>m (i.e. political conservativ<strong>is</strong>m) prom<strong>is</strong>es<br />

can be achieved within capital<strong>is</strong>t relations cannot be achieved; it <strong>is</strong> an absence <strong>of</strong> the system<br />

in an ontological sense.<br />

i am fond <strong>of</strong> saying it th<strong>is</strong> way: in capital<strong>is</strong>t relations some notion <strong>of</strong> limited freedom for<br />

any individual can be achieved; but freedom, even limited in a capital<strong>is</strong>t sense, cannot be<br />

achieve for all individuals. That <strong>is</strong> merely to say that capital<strong>is</strong>m <strong>is</strong> a class society, and when<br />

one person’s success <strong>is</strong> achieved by the exploitation <strong>of</strong> others, (in a dialectical sense) there<br />

ex<strong>is</strong>ts no freedom, or freedom <strong>is</strong> absent in that society.<br />

Thus, i agree when you say:<br />

“Th<strong>is</strong> would mean that true virtue and ethics appear in multivariate forms<br />

within each and every religion. [...] If a person enters immorally into capital<strong>is</strong>tic<br />

relations and knows these relations are immoral, and the person<br />

does th<strong>is</strong> because the alternatives reveal a harder life than what they desire<br />

what kind <strong>of</strong> happiness will th<strong>is</strong> person have. If virtue and ethics create<br />

happiness then there are portions <strong>of</strong> human happiness that cannot ex<strong>is</strong>t under<br />

capital<strong>is</strong>m. In fact, the bible points th<strong>is</strong> out. For example, the city <strong>of</strong><br />

Enoch.”<br />

However, we should not have to rely on religion for your morality, nor virtue. In saying<br />

th<strong>is</strong>, i reveal that i am in some way a moral real<strong>is</strong>t.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 363<br />

i believe th<strong>is</strong> statement has nothing to do with the point: “If I am able to get the same<br />

pay no matter how hard I work most people will simply not work hard.” Human<strong>is</strong>m (in a<br />

philosophical or religious for) has nothing to do with making human being work hard(er);<br />

any more than animal right activ<strong>is</strong>m has to do with getting animal to do better tricks.<br />

When you say the following it reminded me <strong>of</strong> the questions that Wight put forward:<br />

I was talking to a friend about Marx<strong>is</strong>t theory and they said, “I do not believe<br />

in exploitation and do not believe Marx<strong>is</strong>t theory.” I asked them why<br />

and they said, “There are only a few bad capital<strong>is</strong>ts we cannot give them all<br />

a bad rap.” Th<strong>is</strong> may be naive, but I questioned further and my friend said<br />

th<strong>is</strong>, “Why would anyone want to believe in Marx<strong>is</strong>m. Who wants to believe<br />

they are being exploited and being ‘used up’ by the greedy capital<strong>is</strong>t.<br />

Th<strong>is</strong> would make me very angry and unhappy to believe th<strong>is</strong>.” Here’s the<br />

thing, if you accept what Marx wrote then you must make a choice to either<br />

be immoral by accepting and living peacably under capital<strong>is</strong>t relations (th<strong>is</strong><br />

will cause you to suffer self-enstrangement), or you can pay a heavy price<br />

by leaving the system. Making a statement by the way in which you live<br />

your life.<br />

I think the less you know the better <strong>of</strong>f you are because th<strong>is</strong> leads to selfenstrangement<br />

and anger. Maybe I should just refute Marx<strong>is</strong>m and convince<br />

myself that inequality <strong>is</strong> good and equality <strong>is</strong> bad.<br />

i would not put it exactly the way you have above, but these are the general problems. If<br />

we understand capital<strong>is</strong>m as a system <strong>of</strong> cr<strong>is</strong><strong>is</strong> (and exploitation); then we must struggle to<br />

absent these social ills and attempt to construct better ones. One big problem <strong>is</strong> that we do<br />

not very well understand exactly how capital<strong>is</strong>m functions, but empirically we know it <strong>is</strong> a<br />

system <strong>of</strong> cr<strong>is</strong><strong>is</strong> and welfare (or m<strong>is</strong>ery without welfare); there <strong>is</strong> no reason that we have to<br />

understand everything about an alternative, anymore than we need to understand everything<br />

about capital<strong>is</strong>m before we change. The point would be to create a system and structure that<br />

we can change in the future and not create and build ideologies to protect and reproduce it.<br />

We know there will be m<strong>is</strong>takes, but it seems silly to believe, or have such a loss <strong>of</strong> faith<br />

in human beings, that their ultimate fate <strong>is</strong> capital<strong>is</strong>m and market relations.<br />

Next Message by Peace <strong>is</strong> [257].<br />

<strong>Question</strong> 302 Thread 302<br />

[63] Hans: Invitation to join the Bhaskar reading As you may have noticed, the Annotations<br />

<strong>of</strong>ten make reference to the philosopher Roy Bhaskar. There <strong>is</strong> an international<br />

email d<strong>is</strong>cussion l<strong>is</strong>t about Bhaskar, and as it so happens, right now they are starting a collective<br />

reading <strong>of</strong> Bhaskar’s works. It <strong>is</strong> serious philosophy, quite difficult to read, but in my<br />

view extremely relevant not only for Marx<strong>is</strong>ts but also for any scient<strong>is</strong>t today. The first work<br />

which will be read, Bhaskar’s “Real<strong>is</strong>t Theory <strong>of</strong> Science”, argues that positiv<strong>is</strong>m <strong>is</strong> wrong<br />

even in the natural sciences. Those in th<strong>is</strong> class who have an interest in these methodologial<br />

matters are invited to join us in the bhaskar reading. Announcement and explanations how<br />

to join follow below. There <strong>is</strong> <strong>of</strong> course no charge for th<strong>is</strong>.<br />

364 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

BHASKAR <strong>is</strong> a (virtual) community committed to the d<strong>is</strong>cussion <strong>of</strong> the<br />

philosophy <strong>of</strong> Roy Bhaskar and Critical Real<strong>is</strong>m as a philosophy for science<br />

and as a movement for further human emancipation.<br />

In Bhaskar early writings, h<strong>is</strong> concern <strong>is</strong> developing a philosophy for science (and social<br />

science). Bhaskar’s philosophy for science has “Lockean” motives, as the underlaborer,<br />

and sometimes midwife <strong>of</strong> science itself. Moreover, there are “Popperian” motives in that<br />

Bhaskar attempts to explain what scient<strong>is</strong>ts are doing when they are doing science (or the<br />

dialectic <strong>of</strong> scientific activity). But were Popper commitments himself to falsification criteria<br />

(committing what Bhaskar calls the ep<strong>is</strong>temic fallacy), Bhaskar constructs an explicit<br />

ontological realm to understood the driving force <strong>of</strong> scientific progress.<br />

Bhaskar’s philosophy for science emerges after 150 years <strong>of</strong> critique toward empiric<strong>is</strong>m,<br />

and more recently the positiv<strong>is</strong>t tradition. Movements away from the empiric<strong>is</strong>t/positiv<strong>is</strong>t<br />

conceptions <strong>of</strong> the philosophy <strong>of</strong> science have quite <strong>of</strong>ten had thinkers committed to pragmat<strong>is</strong>m,<br />

convention and relativ<strong>is</strong>m, or an abandonment <strong>of</strong> philosophy altogether.<br />

Bhaskar does not choose any <strong>of</strong> these routes, but rather constructs a philosophy for science<br />

which <strong>is</strong> capable <strong>of</strong> supporting an explicit ontological realm, which Bhaskar calls<br />

“depth real<strong>is</strong>m,” which has been dubbed Critical Real<strong>is</strong>m.<br />

Critical Real<strong>is</strong>m <strong>is</strong> a hybrid term, which refers to the philosophy for science <strong>of</strong> a number<br />

<strong>of</strong> philosophers and thinkers <strong>of</strong> who Roy Bhaskar has come to be know as the figure head.<br />

The philosophical position <strong>of</strong> Bhaskar’s first book, A Real<strong>is</strong>t Theory <strong>of</strong> Science was dubbed<br />

“transcendental real<strong>is</strong>m”, and h<strong>is</strong> second book, The Possibility <strong>of</strong> Natural<strong>is</strong>m, “critical natural<strong>is</strong>m”,<br />

hence the hybrid term “Critical Real<strong>is</strong>m”.<br />

One could argue that in part the significance <strong>of</strong> Bhaskar’s philosophy <strong>is</strong> the further development<br />

<strong>of</strong> human knowledge <strong>of</strong>: the world, society, human beings themselves and the<br />

universe, along with further human emancipation and freedom.<br />

For many people today the practical, philosophical and emancipatory importance <strong>of</strong> Roy<br />

Bhaskar’s philosophy cannot be understated. It <strong>is</strong> the aim <strong>of</strong> th<strong>is</strong> l<strong>is</strong>t to bring forth and<br />

d<strong>is</strong>cuss th<strong>is</strong> importance. Moreover, Bhaskar’s work <strong>is</strong> <strong>of</strong>ten held to be quite dense, deep in<br />

philosophical prose, and in short – difficult. The Bhaskar l<strong>is</strong>t hopes and aims to relieve a bit<br />

<strong>of</strong> the anxiety from the Bhaskar reader.<br />

The l<strong>is</strong>t further hopes to bring together those who may be applying h<strong>is</strong> philosophy to their<br />

own work, and introduce and d<strong>is</strong>cuss the work being done within the framework <strong>of</strong> Critical<br />

Real<strong>is</strong>m.<br />

The aim <strong>of</strong> the Bhaskar l<strong>is</strong>t will be to d<strong>is</strong>cuss Critical Real<strong>is</strong>m as a philosophy for science<br />

and as a philosophy for human emancipation. Depending on the will <strong>of</strong> the l<strong>is</strong>ts members,<br />

the Bhaskar l<strong>is</strong>t <strong>is</strong> capable <strong>of</strong> supporting different forums, for example:<br />

1) an open d<strong>is</strong>cussion forum. In th<strong>is</strong> forum there will be an open d<strong>is</strong>course <strong>of</strong> Critical<br />

Real<strong>is</strong>m.<br />

2) seminars on specific articles and publication <strong>of</strong> pertaining to the work <strong>of</strong> Roy Bhaskar<br />

and Critical Real<strong>is</strong>m


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 365<br />

3) A Bhaskar reading group. Those who desire such a forum would together decide what<br />

they would like to read, d<strong>is</strong>cuss and archive.<br />

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Next Message by Hans <strong>is</strong> [64].<br />

<strong>Question</strong> 308 Thread 308<br />

[114] Caren: Marx’s dialectic was material<strong>is</strong>t! Marx’s study <strong>of</strong> capital<strong>is</strong>m was grounded<br />

in a philosophy that was both dialectical and material<strong>is</strong>t. With dialectics, the changes and<br />

366 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

interactions that anything undergoes are brought into focus and emphasized and special attention<br />

<strong>is</strong> devoted to whatever patterns emerge. Th<strong>is</strong> method enabled Marx to keep in view<br />

both the broader interactions that made up the whole and the past and future development<br />

<strong>of</strong> present phenomena. From my point <strong>of</strong> view, Marx’s dialectic was material<strong>is</strong>t. Marx was<br />

primarily concerned with capital<strong>is</strong>m as lived rather that as thought about, but people’s lives<br />

also involve consciousness. Marx’s material<strong>is</strong>m puts ideas back into the heads <strong>of</strong> living people<br />

and treats both as parts <strong>of</strong> a world that <strong>is</strong> forever being remade through human activities,<br />

particularly in production. In th<strong>is</strong> dialectical process, ideas also affect the social conditions<br />

and behavior that more generally shape them. Anyone think differently???<br />

Message [114] referenced by [116]. Next Message by Caren <strong>is</strong> [115].<br />

[116] Hans: A less heroic view <strong>of</strong> dialectics, please I am very happy about the subject<br />

which Caren broached in her [114], but let me play the devil’s advocate and pour some cold<br />

water on it. Caren wrote:<br />

With dialectics, the changes and interactions that anything undergoes are<br />

brought into focus and emphasized and special attention <strong>is</strong> devoted to whatever<br />

patterns emerge. Th<strong>is</strong> method enabled Marx to keep in view both the<br />

broader interactions that made up the whole and the past and future development<br />

<strong>of</strong> present phenomena.<br />

Critics will at best say that th<strong>is</strong> <strong>is</strong> nothing any serious scient<strong>is</strong>t will not do, it <strong>is</strong> odd to<br />

use the name “dialectics” for a practice which all scient<strong>is</strong>ts engage in. At worst, however,<br />

the critics will diagnose here a total<strong>is</strong>ing point <strong>of</strong> view, which claims to have the correct<br />

view on the world as a whole (both present, past, and future), and which bears the seeds<br />

<strong>of</strong> totalitarian dictatorships – because only the Commun<strong>is</strong>t Party has the correct, proletarian<br />

“world outlook.” In fact, both these critic<strong>is</strong>ms have recently been ra<strong>is</strong>ed in the “big” marx<strong>is</strong>m<br />

l<strong>is</strong>t.<br />

Now I will formulate some serious and very difficult questions, and I invite all the experts<br />

lurking in the background to plunge in: I claim that the portion <strong>of</strong> Caren’s description quoted<br />

above on the one hand has errors, some things it says are wrong, and on the other hand has<br />

om<strong>is</strong>sions, i.e., some things which would have been necessary to say were not said. <strong>What</strong><br />

are they?<br />

And another <strong>Question</strong>: can you identify things d<strong>is</strong>cussed so far in th<strong>is</strong> class which are<br />

dialectic, i.e., have we done dialectics yet? Or to make th<strong>is</strong> <strong>Question</strong> a little easier: can you<br />

d<strong>is</strong>cern things in our d<strong>is</strong>cussion which are so different from the mainstream that they are<br />

under the suspicion to belong to a different philosophical paradigm? It you point some out,<br />

I may be able to come to your help and show to what extent they are indeed “dialectical”.<br />

Next Message by Hans <strong>is</strong> [119].<br />

<strong>Question</strong> 311 Thread 311<br />

[187] Karl: Marx vs. Friedman I have noticed in various d<strong>is</strong>cussions a tendency to use<br />

the neo-classical analys<strong>is</strong> to explain Marx’s view <strong>of</strong> a societal aggregate. I must say that th<strong>is</strong><br />

<strong>is</strong> a major d<strong>is</strong>appointment to me, in that it seems fitting that we stop using our ethnocentric<br />

capital<strong>is</strong>tic views to explain Marx. Sure we need to give examples, but there <strong>is</strong> a difference


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 367<br />

between Marx’s definition <strong>of</strong> society and Friedman’s. Not that there <strong>is</strong> a definite superiority<br />

<strong>of</strong> either theory but there <strong>is</strong> a definite difference we should respect.<br />

For instance in Snowman’s [138] it was obvious to me that there <strong>is</strong> a definite use <strong>of</strong> the<br />

neo-classical definition <strong>of</strong> society.=) He uses the neo-classical sigma summation <strong>of</strong> societal<br />

aggregates to explain Marx, which <strong>is</strong> completely contradictory to what Marx meant, I won’t<br />

go into details—research it.=)<br />

Marx believed that society <strong>is</strong> not reducible to the actions <strong>of</strong> the individual, and therefore<br />

cannot be looked at as a summation <strong>of</strong> individual actions or preferences. Marx stated, “Society<br />

does not cons<strong>is</strong>t <strong>of</strong> individuals, but expresses the sum <strong>of</strong> connections, relations, in which<br />

these individuals stand in respect (keyword) to each other.” Society <strong>is</strong> not viewed as a mere<br />

group <strong>of</strong> individuals tied together by aggregate dec<strong>is</strong>ions or intentions.<br />

Does anyone else back th<strong>is</strong> opinion, or want to critique, or enhance it?<br />

Next Message by Karl <strong>is</strong> [295].<br />

<strong>Question</strong> 312 Thread 312<br />

[190] Wight: Capital<strong>is</strong>m - <strong>is</strong> it all bad? I wanted to comment on an observation that<br />

I have made thus far throughout the quarter. In th<strong>is</strong> class, we ruthlessly critique capital<strong>is</strong>m<br />

through Marx’s eyes. Granted there are many unfair, oppressive aspects to a capital<strong>is</strong>t system,<br />

but then why <strong>is</strong> it the dominant economic system in the world? One could basically<br />

assume at th<strong>is</strong> point that commun<strong>is</strong>m has failed. WIth the end <strong>of</strong> the cold war and a cease<br />

to commun<strong>is</strong>m in Eastern Europe, there are very few commun<strong>is</strong>t countries left, which seem<br />

to be near collapse as well. I have found th<strong>is</strong> class enlightening in terms <strong>of</strong> a new perspective<br />

and a different approach to economics. But, I guess my question <strong>is</strong> if capital<strong>is</strong>m <strong>is</strong> so<br />

evil, why <strong>is</strong> it the reigning economic paradigm worldwide? Is it our competitive nature as<br />

individuals - survival <strong>of</strong> the fittest? Just a point for d<strong>is</strong>cussion I thought I would bring up if<br />

anyone would like to respond???<br />

Message [190] referenced by [191] and [340]. Next Message by Wight <strong>is</strong> [192].<br />

[191] Kevin: Re: Capital<strong>is</strong>m - <strong>is</strong> it all bad? In response to Wight’s [190]:<br />

That question <strong>of</strong> why capital<strong>is</strong>m <strong>is</strong> still the reigning system worldwide has been the subject<br />

<strong>of</strong> much debate amongst Marx<strong>is</strong>t academic circles for decades. That field <strong>of</strong> Marxian<br />

debate has come to be known as “subjectivity theory.” The field looks at the subjective motivations<br />

for overthrowing capital<strong>is</strong>m amongst mainly aggregate groupings <strong>of</strong> individuals.<br />

When I have extra time I’ll write an introduction to subjectivity, unless Hans would like to<br />

fuel th<strong>is</strong> debate.<br />

The second thing, which I think Hans has tried to focus attention on throughout the class,<br />

to realize <strong>is</strong> that Das Kapital <strong>is</strong> not a blueprint for social<strong>is</strong>m; it <strong>is</strong> an analys<strong>is</strong> <strong>of</strong> capital<strong>is</strong>m.<br />

Thus, the mode <strong>of</strong> production formed in the ex-Soviet Union are not necessarily representative<br />

to the ideal solution to the problems <strong>of</strong> capital<strong>is</strong>m. Its a nice piece <strong>of</strong> propaganda<br />

for pundits from such corporate think-tanks as the Freedom House to decree the “failure <strong>of</strong><br />

Marxian economics” in the Soviet Union; implying that capital<strong>is</strong>m <strong>is</strong> the obvious remaining<br />

answer. But in truth, Marxian economic analys<strong>is</strong> <strong>is</strong> not a blueprint for social<strong>is</strong>m, rather its<br />

368 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

an analys<strong>is</strong> <strong>of</strong> capital<strong>is</strong>m and its changes and foundations with special analys<strong>is</strong> given to the<br />

contradictions which emerge along class lines within the system.<br />

At th<strong>is</strong> point, we can now descend onto an analys<strong>is</strong> <strong>of</strong> the Soviet Union’s planned economy.<br />

The most influential Marx<strong>is</strong>t analys<strong>is</strong> <strong>of</strong> it thus so far comes from the theoretical<br />

tradition <strong>of</strong> Leon Trotsky. The first book I would recommend for an introduction to th<strong>is</strong><br />

analys<strong>is</strong> would be “The Revolution Betrayed” which <strong>is</strong> availible online to read on the Marx-<br />

Engels Archive. Trotsky basically analys<strong>is</strong> the faults <strong>of</strong> the “Soviet” economy on the bas<strong>is</strong><br />

<strong>of</strong> its anti-democratic character which led to the establ<strong>is</strong>hment <strong>of</strong> an ar<strong>is</strong>tocratic bureaucracy<br />

which, instead <strong>of</strong> fulfilling the “revolutionary dictatorship <strong>of</strong> the proletariat with the support<br />

<strong>of</strong> the peasantry” that Lenin had decreed as the goal <strong>of</strong> Bolshevik<strong>is</strong>m, then “betrayed” the<br />

revolution along the path <strong>of</strong> state capital<strong>is</strong>m.<br />

Trotsky defines state capital<strong>is</strong>m as a system which <strong>is</strong> neither social<strong>is</strong>t nor capital<strong>is</strong>t, rather<br />

its controlled by a bureaucratic class; which in Trotsky’s state capital<strong>is</strong>m draws the surplus<br />

value from the proletariat to fund its own extravagant lifestyle, or to fund the production <strong>of</strong><br />

bombs, instead <strong>of</strong> bread. Thus a contradiction emerges in which the state <strong>is</strong> no longer under<br />

the central control <strong>of</strong> the proletariat (dictatorship <strong>of</strong> the proletariat) but rather a bureaucratic<br />

class which <strong>is</strong> <strong>is</strong>olated from it. The institutions <strong>of</strong> workplace democracy, like the worker’s<br />

councils, have all been crushed and exploitation and alienation are becoming more prevelant.<br />

Trotsky, until h<strong>is</strong> murder by an agent <strong>of</strong> Josef Stalin in 1940, held that th<strong>is</strong> system was a<br />

“degenerated worker’s state” which, in my opinion, becomes contradictory with h<strong>is</strong> analys<strong>is</strong><br />

in which worker’s no-longer own the means <strong>of</strong> production. Anyway, regardless <strong>of</strong> h<strong>is</strong> faults,<br />

Trotsky became a rallying cry against Stalin<strong>is</strong>m after being exiled from Russia in 1928 (?).<br />

Another popular tradition, though not nearly as popular as Trotsky’s, focuses strongly on<br />

not only the anti-democratic nature <strong>of</strong> Russia’s planning system but also its anti-democratic<br />

political character which stifled the creativity which could be unleashed in social<strong>is</strong>m by the<br />

people. Th<strong>is</strong> tradition <strong>is</strong> mainly represented by Rosa Luxemburg in her writings, and strong<br />

debates with V.I. Lenin.<br />

All <strong>of</strong> these traditions also hold, like Lenin did, that the Soviet Union, regardless <strong>of</strong><br />

its democratic character, was economically doomed unless social<strong>is</strong>t revolution (even state<br />

capital<strong>is</strong>t) took place in the more advanced countries in the West like Germany, England, or<br />

America within a decade or so.<br />

Other traditions hold that the Soviet Union’s system <strong>of</strong> planning was not only un-democratic,<br />

but also not advanced enough. Th<strong>is</strong> position generally holds that decentralized, or centralized<br />

planning <strong>is</strong> possible; but only with the aid <strong>of</strong> computers, telecommunications, and a<br />

more efficient monetary system. Th<strong>is</strong> position <strong>is</strong> held by Paul Cockshott in h<strong>is</strong> book “Towards<br />

a New Social<strong>is</strong>m” which <strong>is</strong> also availible online. In th<strong>is</strong> book he constructs a technical<br />

model <strong>of</strong> a feasible social<strong>is</strong>m involving computers.<br />

Many have also now embraced a market social<strong>is</strong>m, in ways similar to the system that<br />

was used in Yugoslavia, that allows for such democratic institutions as worker’s control <strong>of</strong><br />

factories, and macroeconomic planning; but allows for markets and competition amongst<br />

worker owned firms. Th<strong>is</strong> model <strong>is</strong> represented in several recent books, most accessibly


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 369<br />

being David McNally’s “Markets and Social<strong>is</strong>m” and David Scheickwert’s (sp?) “Against<br />

Capital<strong>is</strong>m.”<br />

I’ll be sure to get some <strong>of</strong> the addresses where you can find these things, and perhaps the<br />

d<strong>is</strong>cussion can go from there.<br />

Kevin An Outside Observer<br />

Next Message by Kevin <strong>is</strong> [225].<br />

[196] Panacea: Perhaps it <strong>is</strong> only natural that we defend what we know and have from<br />

that which we don’t understand. Das Kapital <strong>is</strong> Marx’s tool for helping us overcome th<strong>is</strong><br />

human frailty, because it helps us see the fundamental problems which we tend to overlook.<br />

Capital<strong>is</strong>m <strong>is</strong> not a perfect system, and has incredible weaknesses. Few want to talk about<br />

them, but Marx examines them more thoroughly than any have ever done.<br />

Why can’t we admit that capital<strong>is</strong>m <strong>is</strong> bankrupt economically as well as morally? Maybe<br />

because we see only one alternative out there - soviet style police states under the gu<strong>is</strong>e <strong>of</strong><br />

‘marx<strong>is</strong>m’. So we struggle on, and the poor get poorer and the rich get richer, and we write<br />

odes to the likes <strong>of</strong> Donald Trump and Bill Gates for their ability to create money, and forget<br />

the worth <strong>of</strong> human life - any human life - from the crack-babies in the Bronx to Rodeo<br />

Drive.<br />

Capital<strong>is</strong>m <strong>is</strong> the reigning paradigm, we must admit. But don’t draw from th<strong>is</strong> the idea<br />

that it <strong>is</strong> moral, it <strong>is</strong> natural, or it <strong>is</strong> the “best <strong>of</strong> all possible worlds.” In my opinion, th<strong>is</strong> <strong>is</strong> a<br />

horrible lie on all three accounts. We need to criticly study capital<strong>is</strong>m, know its faults, and<br />

be ready to change - to search for change. Marx <strong>is</strong> helpful in th<strong>is</strong> regard.<br />

Panacea<br />

“...no amnesty for the murderurs <strong>of</strong> the working class. Rope or gas?...” Beautiful South<br />

Next Message by Panacea <strong>is</strong> [223].<br />

[205] Pinky: Drama at its worst Let me first d<strong>is</strong>claim my following response to<br />

Panacea’s comment on capital<strong>is</strong>m by conceeding that indeed, Marx provides an immensely<br />

insightful and intriguing evaluation <strong>of</strong> capital<strong>is</strong>m. A social system that does not undergo a<br />

great deal <strong>of</strong> scrutiny and constant adaptation would be awful. <strong>What</strong>s more, you can never<br />

understand any <strong>is</strong>sue truly unless you understand the flaws and the opposition.<br />

Th<strong>is</strong> in mind, I completed the first paragraph <strong>of</strong> Panacea’s recent subm<strong>is</strong>sion in total<br />

agreement. Then Panacea’s Prozac seems to run out. She appears to be under the impression<br />

that Bill Gates was born with a Bazillion dollars in h<strong>is</strong> diaper. Gates was about as middleclass<br />

as you could get. Anyhow, th<strong>is</strong> somehow leads naturally into the conclusion that since<br />

there are such people, no one cares about crack-babies. The logic there <strong>is</strong>.......? Forget logic,<br />

Panacea goes for the drama.<br />

Capital<strong>is</strong>m has great faults. Commun<strong>is</strong>m has great faults. <strong>What</strong>ever they call the society<br />

in Star Trek has great faults. My neices ballet class has great faults. Why? Because people,<br />

no matter what kind <strong>of</strong> ideal society you come up with will have to be in it. Th<strong>is</strong> <strong>is</strong> a problem<br />

because: NEWSFLASH: People have great faults. If only that annoying aspect didn’t have<br />

to play a role in our self-righteous pontifications <strong>of</strong> what society should be.<br />

370 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

The search for the perfect society <strong>is</strong> futile as long as people have natural instincts to<br />

compete. All we are left with then <strong>is</strong> how we can best manage th<strong>is</strong> reality. There will be<br />

horrible, self<strong>is</strong>h people, sure. There will also be generous and loving people. <strong>What</strong>ever they<br />

will be, they must decide on their own. They must have the desire to be kind. It can never be<br />

sucessfully forced upon someone; forcing, if anything will only make them more res<strong>is</strong>tant<br />

to change.<br />

Message [205] referenced by [224] and [231]. Next Message by Pinky <strong>is</strong> [212.2].<br />

[223] Panacea: Capital<strong>is</strong>m - <strong>is</strong> it all bad? Perhaps it <strong>is</strong> only natural that we defend what<br />

we know and have from that which we don’t understand. Das Kapital <strong>is</strong> Marx’s tool for helping<br />

us overcome th<strong>is</strong> human frailty, because it helps us see the fundamental problems which<br />

we tend to overlook. Capital<strong>is</strong>m <strong>is</strong> not a perfect system, and has incredible weaknesses. Few<br />

want to talk about them, but Marx examines them more thoroughly than any have ever done.<br />

Why can’t we admit that capital<strong>is</strong>m <strong>is</strong> bankrupt economically as well as morally? Maybe<br />

because we see only one alternative out there - soviet style police states under the gu<strong>is</strong>e <strong>of</strong><br />

‘marx<strong>is</strong>m’. So we struggle on, and the poor get poorer and the rich get richer, and we write<br />

odes to the likes <strong>of</strong> Donald Trump and Bill Gates for their ability to create money, and forget<br />

the worth <strong>of</strong> human life - any human life - from the crack-babies in the Bronx to Rodeo Drive.<br />

We focus on leg<strong>is</strong>lature aimed at protecting our hallowed flag, and make cuts in Medicare<br />

and Medicaid, upon which many are forced to rely on for their very survival. We invade<br />

foriegn countries under the cloak <strong>of</strong> ‘intervention into human rights abuses and political<br />

oppression’, yet our country cons<strong>is</strong>tently turns up on Amnesty International’s l<strong>is</strong>tings <strong>of</strong><br />

countries committing such abuses - and, believe it or not, we too have political d<strong>is</strong>sidents<br />

impr<strong>is</strong>oned under no other pretense than their political views. If you don’t believe it, study<br />

the facts.<br />

Capital<strong>is</strong>m <strong>is</strong> the reigning paradigm, we must admit. But don’t draw from th<strong>is</strong> the idea<br />

that it <strong>is</strong> moral, it <strong>is</strong> natural, or it <strong>is</strong> the “best <strong>of</strong> all possible worlds.” In my opinion, th<strong>is</strong> <strong>is</strong> a<br />

horrible lie on all three accounts. We need to value human life equally, without preference<br />

because <strong>of</strong> someone’s ecomonic status and regardless as to whether or not they are legal<br />

residents. Human <strong>is</strong> human. We need to criticly study capital<strong>is</strong>m, know its faults, and be<br />

ready to change - to search for change.<br />

Marx <strong>is</strong> helpful in th<strong>is</strong> regard.<br />

“...no amnesty for the murderurs <strong>of</strong> the working class. Rope or gas?...” Beautiful South<br />

Next Message by Panacea <strong>is</strong> [256].<br />

[224] Franz: Capital<strong>is</strong>m - <strong>is</strong> it all bad: Pinky World Pinky wrote in [205]<br />

Capital<strong>is</strong>m has great faults. Commun<strong>is</strong>m has great faults. <strong>What</strong>ever they<br />

call the society in Star Trek has great faults. My neices ballet class has great<br />

faults.<br />

You forgot San Andreas.<br />

Why? Because people, no matter what kind <strong>of</strong> ideal society you come up<br />

with will have to be in it. Th<strong>is</strong> <strong>is</strong> a problem because: NEWSFLASH: People<br />

have great faults.


???<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 371<br />

The search for the perfect society <strong>is</strong> futile as long as people have natural<br />

instincts to compete.<br />

How about th<strong>is</strong> for a more perfect society . . .<br />

1) nationalize all companies.<br />

2) instead <strong>of</strong> paying pr<strong>of</strong>its to shareholders, ra<strong>is</strong>e wages.<br />

Jon Huntsman will cry cause he won’t be able to exploit you any more. . . Jon Huntsman<br />

will cry cause h<strong>is</strong> kids will attend the same school as you. . .<br />

I don’t see how the economy will be any worse <strong>of</strong>f because <strong>of</strong> the change, in fact – would<br />

probably be a very positive stimulus.<br />

Next Message by Franz <strong>is</strong> [226].<br />

[231] Homer: Capital<strong>is</strong>m - <strong>is</strong> it all bad? Pinky wrote in [205]<br />

The search for the perfect society <strong>is</strong> futile as long as people have natural<br />

instincts to compete. All we are left with then <strong>is</strong> how we can best manage<br />

th<strong>is</strong> reality. There will be horrible, self<strong>is</strong>h people, sure. There will also be<br />

generous and loving people. <strong>What</strong>ever they will be, they must decide on<br />

their own. They must have the desire to be kind. It can never be sucessfully<br />

forced upon someone; forcing, if anything will only make them more<br />

res<strong>is</strong>tant to change.<br />

It <strong>is</strong> true that people have faults that may make it impossible to form a “perfect” society.<br />

But th<strong>is</strong> <strong>is</strong> not what Marx had in mind. Marx only wanted to make a better society. Marx<br />

saw that the evolution <strong>of</strong> social systems had a general trend toward an increase in human<br />

liberty. He saw that capital<strong>is</strong>m had a purpose and was a necessary step in th<strong>is</strong> process.<br />

Social<strong>is</strong>m and later, commun<strong>is</strong>m, were seen by Marx as the next steps in a continual<br />

process. By no means did he think that commun<strong>is</strong>m would be the perfect and final system<br />

<strong>of</strong> mankind. Marx knew that commun<strong>is</strong>m would give r<strong>is</strong>e to new problems and that these<br />

problems would have to be solved by people in the future.<br />

As far as the behavior <strong>of</strong> people, Marx would definitely d<strong>is</strong>agree with Pinky’s statement<br />

that “...they must decide on their own.” Human beings are social creatures and their behavior<br />

<strong>is</strong> to a large extent shaped by society. Therefore, Pinky <strong>is</strong> able to observe “horrible, self<strong>is</strong>h”<br />

people that were brought up in a capital<strong>is</strong>t society. That people act a certain way in a capital<strong>is</strong>t<br />

system does not prove how people brought up in a true social<strong>is</strong>t society would behave<br />

(not the Soviet Union, the book “The Revolution Betrayed” by Leon Trotsky was brought<br />

up earlier; it explains how and why the USSR was not social<strong>is</strong>t. There are at least two copies<br />

available in the Marriott Library).<br />

Next Message by Homer <strong>is</strong> [303].<br />

[232] Chacci: Capital<strong>is</strong>m - <strong>is</strong> it all bad? I find it hypocritical that people could use the<br />

word capital<strong>is</strong>m and moral in the same sentence. Capital<strong>is</strong>m <strong>is</strong> defined as using capital to<br />

produce products at a pr<strong>of</strong>it. Some capital<strong>is</strong>t do th<strong>is</strong> at the expense <strong>of</strong> human lives. We could<br />

look at h<strong>is</strong>torical examples <strong>of</strong> physical violence against peaceful labor protests, capital<strong>is</strong>t<br />

372 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

paying workers low wages while they live in shacks. For example on April 20, 1914 armed<br />

state militia men and company guards shot at unarmed striking workers, striking against<br />

John D. Rockefeller’s company Colorado Fuel and Iron, killing eighteen. Is th<strong>is</strong> moral? I’m<br />

not stating that a person <strong>is</strong> immoral if he/she <strong>is</strong> a capital<strong>is</strong>t. I’m just stating that he has<br />

a propensity to become greedy, and thus immoral, or at least in my eyes immoral. These<br />

occurances <strong>of</strong> injustice to workers <strong>is</strong> not just a rare occasion either, does anyone else have<br />

any other examples?<br />

Next Message by Chacci <strong>is</strong> [279].<br />

[238] Peace: Capital<strong>is</strong>m - <strong>is</strong> it all bad? Wight brings forth some very important questions.<br />

Marx<strong>is</strong>ts should not be defensive about th<strong>is</strong>. Why capital<strong>is</strong>m endures <strong>is</strong> <strong>of</strong> the utmost<br />

importance, and i do not believe the answer <strong>is</strong> necessarily in the work <strong>of</strong> Marx (although he<br />

can certainly help us understand th<strong>is</strong>).<br />

Kevin did a very nice job <strong>of</strong> explaining why we should not say the failure <strong>of</strong> the Soviet(like)<br />

command economies <strong>is</strong> a feather in the cap <strong>of</strong> capital<strong>is</strong>m. Moreover, he also pointed<br />

out reasons why these societies are not necessarily Marx<strong>is</strong>ts. They are (or were) Marx<strong>is</strong>t<br />

in the sense that they were protests against the social constraints <strong>of</strong> capital<strong>is</strong>m. They are<br />

non-Marx<strong>is</strong>t in the sense they were not necessarily emancipatory for individuals.<br />

Trotsky <strong>is</strong> an important figure in th<strong>is</strong>, especially in that he himself was a Bolshevik; but<br />

the Western Marx<strong>is</strong>t tradition has had a long h<strong>is</strong>tory <strong>of</strong> critique against the Soviet Union (i.e.<br />

S. Hook in the U.S., the Frankfurt School, etc.).<br />

In fact Frankfurt School literature might be more to the point <strong>of</strong> Wight’s question. Th<strong>is</strong><br />

i would be happy to expound on. The Frankfurt School was a group <strong>of</strong> intellectuall at<br />

<strong>University</strong> <strong>of</strong> Frankfurt, will rehearsed in Marxian thought, who ran for their lives with the<br />

r<strong>is</strong>e <strong>of</strong> the Naz<strong>is</strong>. Many came to the U.S.. Much <strong>of</strong> their thought <strong>is</strong> psychological, but mostly<br />

social and philosophical.<br />

Thus, i am not sure why Kevin says the field <strong>of</strong> Marxian debate <strong>is</strong> known as “subjectivity<br />

theory”. It <strong>is</strong> much more broad then th<strong>is</strong>. How and why capital<strong>is</strong>m reproduces itself and<br />

endures, <strong>is</strong> like the subject <strong>of</strong> capital<strong>is</strong>m itself, i.e., it cannot be reduced to the motivation <strong>of</strong><br />

the individual. The Post-Structual<strong>is</strong>t tradition has made some important contributions in th<strong>is</strong><br />

respect.<br />

We must pursue th<strong>is</strong> further.<br />

Next Message by Peace <strong>is</strong> [253].<br />

[248] Brumbys: Re: Capital<strong>is</strong>m - <strong>is</strong> it all bad? I do agree. Capital<strong>is</strong>m <strong>is</strong> not the best<br />

moral way to go but for some reason it works in th<strong>is</strong> society. The poorer are getting poorer<br />

and the rich are getting richer. That <strong>is</strong> why I believe that money <strong>is</strong> power although you lose<br />

human value. It <strong>is</strong> only natural that an individual <strong>is</strong> greedy but sometimes that individual<br />

forgets where they come from. They take things for granted but then at the same time they<br />

the rich can say the same to the poor that the poor have no idea what life <strong>is</strong> really about. It<br />

really goes both ways. Th<strong>is</strong> society will become more greedy. For example, I Chr<strong>is</strong>tmas and<br />

many other holidays have become so commercialized. It <strong>is</strong>n’t a celebration <strong>of</strong> happiness it<br />

<strong>is</strong> how much you get. I believe th<strong>is</strong> will only get worse.<br />

Next Message by Brumbys <strong>is</strong> [318.2].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 373<br />

[261] Emma: Capital<strong>is</strong>m - <strong>is</strong> it all bad? It seems that the majority <strong>of</strong> the critic<strong>is</strong>ms <strong>of</strong><br />

capital<strong>is</strong>m that I have read following th<strong>is</strong> thread derive from m<strong>is</strong>understandings <strong>of</strong> capital<strong>is</strong>m’s<br />

mandate. Capital<strong>is</strong>m aspires to create an economic condition, not a moral condition.<br />

As such, capital<strong>is</strong>m’s goal <strong>is</strong> to create an environment in which the most people enjoy the<br />

most economic benefit. It’s not interested in equality <strong>of</strong> classes or the equal d<strong>is</strong>tribution <strong>of</strong><br />

<strong>wealth</strong> or any other moral <strong>is</strong>sue, except to the extent that such matters affect productivity.<br />

Sound harsh, well let’s see. Rather than focusing on the extreme high end <strong>of</strong> th<strong>is</strong> condition,<br />

it might be useful to concentrate on the low end. In capital<strong>is</strong>tic societies there may very well<br />

be a growing cravass between the classes. But more importantly, the lower classes enjoy a<br />

higher average standard <strong>of</strong> living than in other noncapital<strong>is</strong>tic societies. These are the facts.<br />

No other system has shown that it can foster an environment so conducive to ra<strong>is</strong>ing everyone’s<br />

standard <strong>of</strong> living so cons<strong>is</strong>tently. Isn’t that what an economic system <strong>is</strong> supposed to<br />

do? That some people are becoming very rich as a result should not bother anyone so long<br />

as the base <strong>is</strong> moving cons<strong>is</strong>tently upward, which it <strong>is</strong>, with some occassional, short-term<br />

slips. Can someone show me a noncapital<strong>is</strong>t society that enjoys the standard <strong>of</strong> living that<br />

we do? After having traveled through Europe, Asia and other parts <strong>of</strong> the world I can say<br />

none ex<strong>is</strong>ts. Why else are so many quasi- social<strong>is</strong>t countries beating a hasty retreat toward<br />

capital<strong>is</strong>m or have been outright eliminated in recent h<strong>is</strong>tory? Capital<strong>is</strong>m’s sole goal <strong>is</strong> to<br />

maximize consumption, and it does that better than anything else we have come accross. It’s<br />

not interested in equality <strong>of</strong> consumption or class.<br />

Does th<strong>is</strong> mean that there <strong>is</strong> no room for compassion or morality in society? That everything<br />

<strong>is</strong> just dog-eat-dog? Well, as far as capital<strong>is</strong>m <strong>is</strong> concerned the answer <strong>is</strong> yes. But<br />

society can choose to intervene on a moral bas<strong>is</strong> and s<strong>of</strong>ten capital<strong>is</strong>m’s edges. That <strong>is</strong>, in<br />

capital<strong>is</strong>m you have to take care <strong>of</strong> yourself. You also know that you will be the recipient<br />

<strong>of</strong> the product <strong>of</strong> your labor. If you work more that the next guy, you get more. Capital<strong>is</strong>m<br />

panders unashamedly. It also recognizes and exploits human self<strong>is</strong>hness for the benefit <strong>of</strong><br />

everyone. When was the last time you got a job from a poor guy? That <strong>is</strong> self-interest at its<br />

best and has been demonstrated to be the best motivation in human h<strong>is</strong>tory and <strong>is</strong> the reason<br />

why capital<strong>is</strong>m succeeds and social<strong>is</strong>m, including Marx<strong>is</strong>m, fails as a system intending to<br />

maximize consumption. Social<strong>is</strong>m can’t deal with the realities <strong>of</strong> human nature, motivation,<br />

laziness, etc. It assumes away too much in theory. The practice? ... well now we have a<br />

few generations <strong>of</strong> data,and the results aren’t encouraging, as much as we might w<strong>is</strong>h otherw<strong>is</strong>e.<br />

(Emphas<strong>is</strong> on w<strong>is</strong>h.) If your goal <strong>is</strong> not to maximize consumption, you may have a<br />

legitimate quarrel with capital<strong>is</strong>m. But such <strong>is</strong> not the case for most people.<br />

But capital<strong>is</strong>m has no heart. It’s not supposed to have one. And to criticize it for not<br />

having one <strong>is</strong> absurd. It’s like criticizing a f<strong>is</strong>h for not having fur. It doesn’t make sense<br />

and a f<strong>is</strong>h doesn’t require fur to function; indeed it would suffer if it had fur. Capital<strong>is</strong>m’s<br />

only purpose <strong>is</strong> to create the most <strong>wealth</strong> possible for the most people. It’s up to society<br />

to supply the heart in the way <strong>of</strong> support for people incapable <strong>of</strong> competing successfully<br />

in the jungle <strong>of</strong> capital<strong>is</strong>m through some limited measure <strong>of</strong> <strong>wealth</strong> red<strong>is</strong>tribution. That <strong>is</strong><br />

a perfectly legitimate function <strong>of</strong> government. (One <strong>of</strong> its few.) The trick <strong>is</strong> in the extent<br />

<strong>of</strong> the intervention because any intervention d<strong>is</strong>torts the market and ultimately suppresses<br />

growth to some extent. We need to be careful not to squeeze the golden goose too hard, he<br />

(she) might croak. (It’s also up to society to impose a conscience on capital<strong>is</strong>m with regard<br />

374 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

to the environment, ecological matters, d<strong>is</strong>sipation <strong>of</strong> natural resources, etc. Capital<strong>is</strong>m, per<br />

se, <strong>is</strong> not designed and cannot be expected to consider these matters. There <strong>is</strong> no such thing<br />

as something policing itself.)<br />

Hard line capital<strong>is</strong>ts don’t want any d<strong>is</strong>tortion or red<strong>is</strong>tributions <strong>of</strong> <strong>wealth</strong> in the market<br />

and are far too willing to live with the human suffering <strong>of</strong> those who can’t compete. Social<strong>is</strong>ts<br />

are far too quick to create d<strong>is</strong>incentives to work through giveaways without accountability,<br />

excessive social nets that end up encouraging the behavior they hope to eradicate and<br />

higher taxes on those who are fortunate enough to be able to compete successfully to such<br />

an extent that the producers don’t have enough incentive to take the r<strong>is</strong>ks associated with<br />

producing. Somewhere in between those two positions <strong>is</strong> where we need to be. But its not a<br />

static point and a constant dynamic <strong>is</strong> in play, as it should be.<br />

To paraphrase some one else talking about something else, capital<strong>is</strong>m <strong>is</strong> the worst economic<br />

system around, except for all the rest.<br />

Next Message by Emma <strong>is</strong> [292].<br />

[265] Panacea: Re: Thread 312 Emma wrote recently:<br />

It seems that the majority <strong>of</strong> the critic<strong>is</strong>ms <strong>of</strong> capital<strong>is</strong>m that I have read following<br />

th<strong>is</strong> thread derive from m<strong>is</strong>understandings <strong>of</strong> capital<strong>is</strong>m’s mandate.<br />

Capital<strong>is</strong>m aspires to create an economic condition, not a moral condition.<br />

As such, capital<strong>is</strong>m’s goal <strong>is</strong> to create an environment in which the most<br />

people enjoy the most economic benefit. It’s not interested in equality <strong>of</strong><br />

classes or the equal d<strong>is</strong>tribution <strong>of</strong> <strong>wealth</strong> or any other moral <strong>is</strong>sue, except<br />

to the extent that such matters affect productivity.<br />

Emma, th<strong>is</strong> <strong>is</strong> exactly what most <strong>of</strong> us are criticizing. Many <strong>of</strong> us believe that it <strong>is</strong> invalid<br />

to separate the normative from the positive - to say that capital<strong>is</strong>m <strong>is</strong> amoral, which <strong>is</strong> how I<br />

understand your statement, <strong>is</strong> to justify th<strong>is</strong> separation.<br />

But I can’t agree with you - see your other statement:<br />

Does th<strong>is</strong> mean that there <strong>is</strong> no room for compassion or morality in society?<br />

That everything <strong>is</strong> just dog-eat-dog? Well, as far as capital<strong>is</strong>m <strong>is</strong> concerned<br />

the answer <strong>is</strong> yes. But society can choose to intervene on a moral bas<strong>is</strong> and<br />

s<strong>of</strong>ten capital<strong>is</strong>m’s edges. That <strong>is</strong>, in capital<strong>is</strong>m you have to take care <strong>of</strong><br />

yourself.<br />

Emma, these are normative judgements - these are values which you say are inherent in<br />

capital<strong>is</strong>m. Your cover <strong>is</strong> blown, capital<strong>is</strong>m, by your own description, <strong>is</strong> no longer amoral.<br />

My response, then, <strong>is</strong> a normative one: I cannot agree with these values. I do not believe<br />

that a ‘dog-eat-dog’ world in which ‘there <strong>is</strong> no room for compassion or morality’ <strong>is</strong> a viable<br />

nor sat<strong>is</strong>factory economic system. Your statements reveal the very reason for criticizing<br />

capital<strong>is</strong>m. Many <strong>of</strong> us believe that there are other, better answers - economic bases which<br />

do not force us to screw each other all the time.<br />

Capital<strong>is</strong>m panders unashamedly. It also recognizes and exploits human<br />

self<strong>is</strong>hness for the benefit <strong>of</strong> everyone.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 375<br />

Th<strong>is</strong> <strong>is</strong> not a virtue, emma. Can you look someone in the eye and claim that self<strong>is</strong>hness<br />

<strong>is</strong> a human virtue? I’m sorry, but th<strong>is</strong> <strong>is</strong> not amoral, but immoral<br />

That <strong>is</strong> self-interest at its best and has been demonstrated to be the best<br />

motivation in human h<strong>is</strong>tory and <strong>is</strong> the reason why capital<strong>is</strong>m succeeds and<br />

social<strong>is</strong>m, including Marx<strong>is</strong>m, fails as a system intending to maximize consumption.<br />

Social<strong>is</strong>m can’t deal with the realities <strong>of</strong> human nature, motivation,<br />

laziness, etc. It assumes away too much in theory. The practice? ...<br />

well now we have a few generations <strong>of</strong> data,and the results aren’t encouraging,<br />

as much as we might w<strong>is</strong>h otherw<strong>is</strong>e. (Emphas<strong>is</strong> on w<strong>is</strong>h.)<br />

Emma, again, emphasizing self-interest <strong>is</strong> a great example how capital<strong>is</strong>m turns recognized<br />

basic human faults and transforms them into virtues. Th<strong>is</strong> <strong>is</strong> a lie. Your condemnation<br />

<strong>of</strong> social<strong>is</strong>t movements cannot conceal th<strong>is</strong>. As to whether or not social<strong>is</strong>m has enjoyed any<br />

success, you seem to lump every third-world movement into a pot called ‘social<strong>is</strong>m’ and call<br />

them all failures. Certainly, soviet style ‘commun<strong>is</strong>m’ has failed the world over, I agree. But<br />

justifying capital<strong>is</strong>m based on the faults <strong>of</strong> various alternatives <strong>is</strong> illogical. A man in a very<br />

leeky boat filling with water finds little solace in noticing those drowning around him - it<br />

would be better that he recognize h<strong>is</strong> predicament and take action to change it.<br />

But capital<strong>is</strong>m has no heart. It’s not supposed to have one. And to criticize<br />

it for not having one <strong>is</strong> absurd.<br />

But Emma, we want an economic base that allows US to have a heart, not one like capital<strong>is</strong>m<br />

that makes us all HEARTLESS. You say capital<strong>is</strong>m’s only purpose <strong>is</strong> to create the<br />

most possible <strong>wealth</strong> for the most people - I say you have m<strong>is</strong>understood Adam Smith and<br />

the rest <strong>of</strong> them: Smith wrote in Wealth <strong>of</strong> Nations that government’s role <strong>is</strong> to protect the<br />

rich from the poor - th<strong>is</strong> <strong>is</strong> exactly what capital<strong>is</strong>m does: creates the most possible <strong>wealth</strong><br />

for a few people. Malthus, another leading capital<strong>is</strong>t thinker, even advocated keeping the<br />

working class on subs<strong>is</strong>tence wages in order to control them. Ricardo agrees.<br />

Hard line capital<strong>is</strong>ts don’t want any d<strong>is</strong>tortion or red<strong>is</strong>tributions <strong>of</strong> <strong>wealth</strong> in<br />

the market and are far too willing to live with the human suffering <strong>of</strong> those<br />

who can’t compete. Social<strong>is</strong>ts are far too quick to create d<strong>is</strong>incentives to<br />

work through giveaways without accountability, excessive social nets that<br />

end up encouraging the behavior they hope to eradicate and higher taxes on<br />

those who are fortunate enough to be able to compete successfully to such<br />

an extent that the producers don’t have enough incentive to take the r<strong>is</strong>ks<br />

associated with producing.<br />

Th<strong>is</strong> I agree with, yet th<strong>is</strong> opposition <strong>of</strong> which you speak <strong>is</strong> the ‘welfare capital<strong>is</strong>t’ response.<br />

Once recognize that capital<strong>is</strong>m DOES have a normative ex<strong>is</strong>tence, and <strong>is</strong> not neutral<br />

(again, you explained th<strong>is</strong> in your own comments), than we see that patching the system<br />

up will not help. Th<strong>is</strong> <strong>is</strong> nothing but welfare capital<strong>is</strong>m, producing the problems you mention<br />

above. Seeking a stance in between the two does not solve the underlying problem -<br />

only scrapping the system for a new one will actually solve the problem. Emma, the ills you<br />

speak <strong>of</strong>: d<strong>is</strong>incentives, accountability, excessive social nets, etc.: these are problems related<br />

376 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

with s<strong>of</strong>tening capital<strong>is</strong>m - not with social<strong>is</strong>m. Social<strong>is</strong>m <strong>is</strong> a whole new economic base and<br />

superstructure.<br />

The main points, then: 1) capital<strong>is</strong>m <strong>is</strong> not amoral, or neutral, but has necessary normative<br />

effects which cannot be overcome by ‘s<strong>of</strong>tening’: self<strong>is</strong>hness <strong>is</strong> the governing character<strong>is</strong>tic.<br />

2) Justifying capital<strong>is</strong>m by finding fault with a few other systems <strong>is</strong> not logical - it <strong>is</strong> a<br />

fallacy, I believe, which <strong>is</strong> referred to in classical logic as ‘ad hominem’, or an appeal to<br />

truth on the bas<strong>is</strong> <strong>of</strong> what the masses believe or do. (Th<strong>is</strong> may be a strong argument in some<br />

cases, but always invalid and therefore illogical. In th<strong>is</strong> case it <strong>is</strong> not strong, but weak.)<br />

3) Finding a midpoint between capital<strong>is</strong>m and social<strong>is</strong>m results in a paradox: welfare<br />

capital<strong>is</strong>m which neither hardline capital<strong>is</strong>ts nor social<strong>is</strong>ts can accept, because it <strong>is</strong> merely<br />

patching up a sinking boat (in the social<strong>is</strong>t view) or hampering self<strong>is</strong>hness (in the capital<strong>is</strong>t<br />

view).<br />

I would enjoy a response to these thoughts - especially from Peace - in order that we<br />

might continue productive debate. And I must admit I found Emmas posting quite thought<br />

provoking.<br />

Panacea<br />

“...the kind people have a wonderful dream - Margeret Thatcher on the guillotine...” Moz<br />

Next Message by Panacea <strong>is</strong> [285].<br />

[340] Franz: “we” Wight wrote in [190]<br />

I wanted to comment on an observation that I have made thus far throughout<br />

the quarter. In th<strong>is</strong> class, we ruthlessly critique capital<strong>is</strong>m through Marx’s<br />

eyes.<br />

Where <strong>is</strong> the “ruthlessness?” Dr. Ehrbar <strong>is</strong> a scient<strong>is</strong>t. He does not express personal<br />

opinions about what “should be.”<br />

If you are including Dr. Ehrbar and Marx in your definition <strong>of</strong> “we,” please provide<br />

quotations.<br />

Econom<strong>is</strong>ts don’t make value judgements. They just tell you like it <strong>is</strong>.<br />

Next Message by Franz <strong>is</strong> [351].<br />

[350] Jupiter: Is capital<strong>is</strong>m all bad? I do not know if capital<strong>is</strong>m ia all bad, but I am<br />

begining to question it. I just recently opened a store with some other people, so I have been<br />

excited about it, but as I have progressed in th<strong>is</strong> class I am begining to question whether I<br />

should be all that excited about it. I have another job right now and will continue to work<br />

there, it <strong>is</strong> not the greatest job and I do not get paid even close to what I should be, I guess<br />

you could say that I am an exploited worker. In posessing these two very contradictory traits,<br />

that <strong>of</strong> being an entrepenuer and that <strong>of</strong> an exploited worker, I find myself thinking that a<br />

society in which all could have decent jobs that are rewarded in a like manner with little or<br />

no exploitation, begins to make more sense to me than looking at the world we know now,<br />

and having to exploit others inn order to get to the top. But on the contrary what if I make it<br />

to the top wont that be great to have power, property, and be <strong>of</strong> high socioeconomic status,<br />

where everybody wants to be like me!


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 377<br />

I guess that I do not have to say that capital<strong>is</strong>m <strong>is</strong> all bad, I just w<strong>is</strong>h that we could refine<br />

it and be able to protect more peoples rights as laborers. One other thing we should try and<br />

bring the middle class back, because right now it <strong>is</strong> “the rich are getting richer and the poor<br />

are getting poorer”, the middle class <strong>is</strong> being wiped out. Something in th<strong>is</strong> country will have<br />

to change one day because it can not survive at the rate in which it <strong>is</strong> going!<br />

Message [350] referenced by [351]. Next Message by Jupiter <strong>is</strong> [467].<br />

[351] Franz: Jupiter’s Capital<strong>is</strong>m Jupiter wrote in [350]<br />

I just recently opened a store with some other people, so I have been excited<br />

about it.<br />

I have another job right now and will continue to work there, it <strong>is</strong> not the<br />

greatest job and I do not get paid even close to what I should be.<br />

In posessing these two very contradictory traits, that <strong>of</strong> being an entrepenuer<br />

and that <strong>of</strong> an exploited worker,<br />

that <strong>of</strong> being a capital<strong>is</strong>t and that <strong>of</strong> an exploited worker<br />

I find myself thinking that a society in which all could have decent jobs that<br />

are rewarded in a like manner with little or no exploitation, begins to make<br />

more sense to me than looking at the world we know now, and having to<br />

exploit others inn order to get to the top.<br />

but <strong>is</strong>n’t that exactly what you are doing? How do you pay the workers you employ? Do<br />

you divide up the pr<strong>of</strong>its at the end <strong>of</strong> the month and d<strong>is</strong>tribute to each employee according<br />

to the hours they worked? Or do you stuff them into your own pocket?<br />

But on the contrary what if I make it to the top wont that be great to have<br />

power, property, and be <strong>of</strong> high socioeconomic status, where everybody<br />

wants to be like me!<br />

Isn’t it “great” to rip <strong>of</strong>f your employees so that you will be able to live next to Jon<br />

Huntsman?<br />

I guess that I do not have to say that capital<strong>is</strong>m <strong>is</strong> all bad, I just w<strong>is</strong>h that<br />

we could refine it and be able to protect more peoples rights as laborers<br />

why not nationalize all businesses (it means the government owns instead <strong>of</strong> Jon Huntsman)?<br />

At the end <strong>of</strong> each week, add up all the income and d<strong>is</strong>tribute it amongst the people<br />

who produced the product/service.<br />

One other thing we should try and bring the middle class back, because<br />

right now it <strong>is</strong> “the rich are getting richer and the poor are getting poorer”,<br />

the middle class <strong>is</strong> being wiped out. Something in th<strong>is</strong> country will have to<br />

change one day because it can not survive at the rate in which it <strong>is</strong> going!<br />

The revolution <strong>is</strong> coming. . .<br />

378 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Uncle Sam <strong>is</strong> going to take away your ability/property right to keep your store’s pr<strong>of</strong>it.<br />

Instead, the “pr<strong>of</strong>its” will be d<strong>is</strong>tributed to the people who actually performed the labor.<br />

Next Message by Franz <strong>is</strong> [352].<br />

[444] Jake: Capital<strong>is</strong>m <strong>is</strong> it all bad? Capital<strong>is</strong>m <strong>is</strong> the reason for technology. Though<br />

th<strong>is</strong> class pointed out the many negatives <strong>of</strong> capital<strong>is</strong>m, it has also showed what the possible<br />

outcomes <strong>of</strong> not th<strong>is</strong> society could be. We can sit back and analyze all the different social<br />

systems today and point out where we have gone wrong and what could <strong>of</strong> been done different.<br />

Is there really a system that <strong>is</strong> perfect that leads people away from there natural desires?<br />

Would we all be happy in a world based on marx<strong>is</strong>t principles? With humans nowhere near<br />

perfect, I don’t think such a system could work even if you were able to brain wash everyone<br />

and erase all such memorys <strong>of</strong> capital<strong>is</strong>m and start anew. People are self<strong>is</strong>h, they will<br />

eventually find a way back into making gain from one another. People also tend to be lazy.<br />

Would marx<strong>is</strong>m provide for those who chose not enter the market with commodities? Even<br />

with full effort and compensation would there really be equality?<br />

Message [444] referenced by [467]. Next Message by Jake <strong>is</strong> [579].<br />

[467] Jupiter: Thread 312 <strong>is</strong> capital<strong>is</strong>m all bad? I would like to respond to a few<br />

comments that Jake made [444]. To be honest I don’t know that you can say that technology<br />

<strong>is</strong> a by product <strong>of</strong> capital<strong>is</strong>m, if we take a quick look at the former Soviet Union they had<br />

some great leads in the technology, it was just focused in the form <strong>of</strong> national defense. Look<br />

at China a “red country” they seem to be pretty advanced in theirs as well, just look around<br />

and you will probably see some item that <strong>is</strong> made there. So I can not agree with the idea that<br />

technology comes from capital<strong>is</strong>m.<br />

You asked the question Would we bee happy in a Marx<strong>is</strong>t frame work? (or something<br />

similar to that) I would respond how many people in the United States are really happy? I<br />

think that the answers would be skewed to the side that most are not to pleased. We just might<br />

be happier in a society which will bring about some form <strong>of</strong> equality among its members.<br />

As for the term you used “brain washed”, who <strong>is</strong> to say that we are not now brain washed?<br />

Sure we have our free choice to do as we please, or do we? Looking at the consequences<br />

<strong>of</strong> our actions I would say that we don’t have as much freedom as we think. If I don’t go<br />

to school then I will not have a good job, if I do not have a good job then I will not make<br />

money, if I do not make money than I will be poor, if I am poor than i will be a failure to<br />

society, and nothing but a state aid recipient free loading on a society <strong>of</strong> sucsesful peers. I<br />

think that we may be “brain washed”.<br />

One more item that I would like to address <strong>is</strong> that the natural man <strong>is</strong> not a brut<strong>is</strong>h savage<br />

beast, which you make it sound like. Man <strong>is</strong> not by nature a self<strong>is</strong>h beast, just look way back<br />

to the Primitive Communal order which there was no inequality among the members. They<br />

lived a communal law which was to the benefit the group as a whole not certain individuals.<br />

The turn <strong>of</strong> events ocured when property was given to cultivate and people began to be<br />

obsessive with it and wanted more, so I say property <strong>is</strong> the bas<strong>is</strong> og all th<strong>is</strong> evil. Would it<br />

not be great to live in such a simple communal order? I think it would be, and <strong>is</strong> it not ironic<br />

that such a simple thing <strong>is</strong> so far removed from us that to have th<strong>is</strong> life <strong>is</strong> to complex for us<br />

to achieve. Maybe we are the ones who are “brain washed” to forget about the communal<br />

life we could have!


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 379<br />

Next Message by Jupiter <strong>is</strong> [468].<br />

[474] VanHalen: Jupiters 312 entry Jupiter posed the question in h<strong>is</strong> d<strong>is</strong>cussion l<strong>is</strong>t<br />

comments <strong>of</strong> how many people in the United States are really happy. Then he answers<br />

himself and says that the answer <strong>is</strong> probably skewed more toward most people are unhappy.<br />

Happiness <strong>is</strong> relative. If most people in the US aren’t happy thats ok but I wonder if they<br />

would want to come back to the US if they were told to live in the old Soviet Union or China<br />

or anywhere like that. It <strong>is</strong> easy to complain when you don’t see how other people live and<br />

the conditions they are subject to. Granted there <strong>is</strong> injustices everywhere in every country<br />

and <strong>of</strong> course it occurs here in the US. But I wonder if a lot <strong>of</strong> complainers would have a<br />

change <strong>of</strong> attitude if they were sent to live in one <strong>of</strong> the countries Jupiter used in h<strong>is</strong> entry.<br />

The US may not be perfect but everytime I leave the country which has been numerous times<br />

I’m always glad to get back to the US. country than the US.<br />

Next Message by VanHalen <strong>is</strong> [497].<br />

<strong>Question</strong> 313 Thread 313<br />

[201] Jake: Could marx<strong>is</strong>m work today? Giving back the excess So far the main point<br />

that Marx seems to be stressing <strong>is</strong> how Capital<strong>is</strong>m robs the worker from the full pr<strong>of</strong>its or<br />

gain that comes from production. The point being that workers aren’t fully compensated for<br />

the work they do. The excess r<strong>is</strong>es to the top <strong>of</strong> the pyramid to the owners or stockholders.<br />

My question <strong>is</strong> there a way to reverse the current trend and change capital<strong>is</strong>m into some<br />

form <strong>of</strong> social<strong>is</strong>m. The workers could become the owners <strong>of</strong> factories and stores and have<br />

the excess be compensated in the direct wage the individuals receive. Though th<strong>is</strong> seems to<br />

be attempting to solve the exploitation <strong>of</strong> the common worker, I don’t think it <strong>is</strong> possible to<br />

turn from capital<strong>is</strong>m. We as a society have been conditioned to play the capital<strong>is</strong>m game.<br />

Self<strong>is</strong>h individuals will always seek ways to reap excess pr<strong>of</strong>its. For society to change today<br />

it would require change in the resources available to man. With different resources endowed<br />

to certain societies, there will be dependencies formed, allowing pr<strong>of</strong>its to be continually<br />

sought after.<br />

?<br />

Next Message by Jake <strong>is</strong> [294].<br />

[210] Reidar: Can Marx<strong>is</strong>m work? I am responding to the remarks and questions ra<strong>is</strong>ed<br />

by Jake in h<strong>is</strong> submittal to th<strong>is</strong> thread. He asked I capital<strong>is</strong>m could be transformed to a form<br />

<strong>of</strong> social<strong>is</strong>m in which workers receive the pr<strong>of</strong>its <strong>of</strong> their labors.<br />

I would propose that th<strong>is</strong> <strong>is</strong> the idea behind the employee owned factories which we hear<br />

so much about. An example <strong>of</strong> th<strong>is</strong> could be Saturn Automobile Co. which advert<strong>is</strong>es its<br />

employee owned status. Although I am not sure what makes them an employee owned<br />

franch<strong>is</strong>e, I assume that it <strong>is</strong> simply a pseud<strong>of</strong>orm <strong>of</strong> the social<strong>is</strong>m you are talking about.<br />

Surely, Saturn as a s<strong>is</strong>ter company <strong>of</strong> GM <strong>is</strong> giving some stock/holdings to its employees as<br />

a part <strong>of</strong> their benefits package, but they probably are not modern day cooperative.<br />

Without complete collapse <strong>of</strong> the capital<strong>is</strong>t system which we live under, I do not believe<br />

that it <strong>is</strong> possible to move change the capital<strong>is</strong>t state into a social<strong>is</strong>t state. For the time being,<br />

companies will probably only use employee ownership as an advert<strong>is</strong>ing gimmic.<br />

Next Message by Reidar <strong>is</strong> [211.2].<br />

380 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Question</strong> 314 Thread 314<br />

[202] Gottlieb: Ein sehr vertracktes Ding Marx was right on when he talked about some<br />

characters <strong>of</strong> the commodity being “mysterious.” Hans l<strong>is</strong>ted some things such as inflation<br />

and stock market crashes. One that came to my mind was the foreign exchange market. I<br />

want to stress that I agree with the idea that the mystery in these “happenings” are not due to<br />

a lack <strong>of</strong> knowledge about the subject but because the “happening” seems to occur by itself<br />

as a result <strong>of</strong> magic.<br />

Perhaps out <strong>of</strong> necessity I have been forced to pay close attention to the foreign exchange<br />

market. These markets seem to balance out if there <strong>is</strong> an inequality among the exchange<br />

rates. If the interest rates in Germany are higher than they are in the United States, it does<br />

not last very long. Magically, the difference d<strong>is</strong>appears due to a lowering <strong>of</strong> the interest rate<br />

or <strong>of</strong> an increase in the inflation rate.<br />

Although occasional momentous efforts are made by countries to “readjust” the worth <strong>of</strong><br />

important currencies, most adjustments are made by the inv<strong>is</strong>ible Wechsel in the sky.<br />

Message [202] referenced by [229]. Next Message by Gottlieb <strong>is</strong> [250].<br />

[229] Franz: Mysterious Gottlieb Gottlieb writes in [202]:<br />

Marx was right on when he talked about some characters <strong>of</strong> the commodity<br />

being “myserious.” One that came to my mind was the foreign exchange<br />

market. I want to stress that I agree with the idea that the mystery in these<br />

“happenings” are not due to a lack <strong>of</strong> knowledge about the subject but because<br />

the “happening” seems to occur by itself as a result <strong>of</strong> magic.<br />

so lack <strong>of</strong> knowledge <strong>is</strong> not what makes something mysterious.<br />

Perhaps out <strong>of</strong> necessity I have been forced to pay close attention to the<br />

foreign exchange market. These markets seem to balance out if there <strong>is</strong><br />

an inequality among the exchange rates. If the interest rates in Germany<br />

are higher than they are in the United States, it does not last very long.<br />

Magically, the difference d<strong>is</strong>appears due to a lowering <strong>of</strong> the interest rate<br />

or <strong>of</strong> an increase in the inflation rate.<br />

Although occasional momentous efforts are made by countries to “readjust”<br />

the worth <strong>of</strong> important currencies, most adjustments are made by the<br />

inv<strong>is</strong>able Wechsel in the sky.<br />

so Wechsel <strong>is</strong> what makes something mysterious.<br />

To study which factors influence the supply and demand <strong>of</strong> a currency, would you take a<br />

Bible class instead <strong>of</strong> International Monetary Relations?<br />

Next Message by Franz <strong>is</strong> [338].<br />

<strong>Question</strong> 316 Thread 316<br />

[222] Camera: An Ugly Rumor I am wondering if anyone has studied Karl Marx in<br />

a more sociological setting. <strong>What</strong> type <strong>of</strong> person <strong>is</strong> he? <strong>What</strong> could drive a man to be (as


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 381<br />

it seems) so absorbed in the bourgeo<strong>is</strong>e/proletariate state <strong>of</strong> capital<strong>is</strong>m? Did he have a bad<br />

childhood experience; maybe some other kid down the street had more lincoln logs than he?<br />

I am very curious to know what h<strong>is</strong> driving force <strong>is</strong>. I would like to know what Freud would<br />

think <strong>of</strong> a man like he.<br />

Perhaps I am getting a false impression <strong>of</strong> him. I only know him from what he writes. It<br />

<strong>is</strong> possible that he could write so passionately about the subject <strong>of</strong> capital<strong>is</strong>m without being<br />

totally absorbed by it; it just doesn’t seem probable.<br />

I would like to be more familiar with the environmental influences Marx was subject to.<br />

Where did he grow up? <strong>What</strong> exact time period? <strong>What</strong> was going on economically, socially,<br />

at the time? I’m sure th<strong>is</strong> played an important part <strong>of</strong> why he feels the way he does about<br />

capital<strong>is</strong>m.<br />

When I mentioned th<strong>is</strong> class to a friend <strong>of</strong> mine, he replied,“Isn’t that the guy who was<br />

so absorbed in h<strong>is</strong> work he let h<strong>is</strong> children starve to death?” Is there any truth to th<strong>is</strong> rumor?<br />

Message [222] referenced by [225]. Next Message by Camera <strong>is</strong> [332.6].<br />

[225] Kevin: An Ugly Rumor Camera wrote in [222]:<br />

I am wondering if anyone has studied Karl Marx in a more sociological<br />

setting. <strong>What</strong> type <strong>of</strong> person <strong>is</strong> he? <strong>What</strong> could drive a man to be (as it<br />

seems) so absorbed in the bourgeo<strong>is</strong>e/proletariate state <strong>of</strong> capital<strong>is</strong>m? Did<br />

he have a bad childhood experience; maybe some other kid down the street<br />

had more lincoln logs than he? I am very curious to know what h<strong>is</strong> driving<br />

force <strong>is</strong>. I would like to know what Freud would think <strong>of</strong> a man like he.<br />

Marx was definitely not a psychopath, or any immature little kid in h<strong>is</strong> youth. It was more<br />

h<strong>is</strong> interest in getting to the bottom <strong>of</strong> problems, as influenced by Hegel. Through h<strong>is</strong> study<br />

<strong>of</strong> Hegel<strong>is</strong>m he was drawn into Par<strong>is</strong>, and the Young Commun<strong>is</strong>ts from which he became<br />

friends with Frederick Engels. From that point on Marx, and Engels immersed themselves<br />

into the worker’s movements which where gaining great strength after the revolutions <strong>of</strong> the<br />

mid-1800s. Engels was the son <strong>of</strong> a factory owner, and from that position made most <strong>of</strong> h<strong>is</strong><br />

observations.<br />

Perhaps I am getting a false impression <strong>of</strong> him. I only know him from<br />

what he writes. It <strong>is</strong> possible that he could write so passionately about the<br />

subject <strong>of</strong> capital<strong>is</strong>m without being totally absorbed by it; it just doesn’t<br />

seem probable.<br />

Marx was definitely absorbed by h<strong>is</strong> work, spending uncountable long nights in the London<br />

Museum studying the political economy <strong>of</strong> h<strong>is</strong> time. Marx was passionate, but more<br />

passionate about debunking than anything. Like Freud he tried to debunk the structures<br />

which create our conscious, and environment.<br />

I would like to be more familiar with the environmental influences Marx<br />

was subject to. Where did he grow up? <strong>What</strong> exact time period? <strong>What</strong><br />

was going on economically, socially, at the time? I’m sure th<strong>is</strong> played an<br />

important part <strong>of</strong> why he feels the way he does about capital<strong>is</strong>m.<br />

382 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

There are many great biographies about Marx, some better than others; I’ll be sure to<br />

post some recommendations to the l<strong>is</strong>t. But since you seem to have absolutely no idea about<br />

Marx’s early years perhaps you should look him in the the Britannica Encyclopedia; they<br />

have a decent entry in the Marx and Marx<strong>is</strong>m section <strong>of</strong> the macropedia.<br />

For a quick summary he was born in 1818 in Trier, Prussia (now in Germany) from which<br />

he was educated in a liberal high school there. He then attended the <strong>University</strong> <strong>of</strong> Bonn from<br />

which he was introduced to Hegel’s philosophy, and thus began h<strong>is</strong> philosophical evolution.<br />

When I mentioned th<strong>is</strong> class to a friend <strong>of</strong> mine, he replied, “Isn’t that the<br />

guy who was so absorbed in h<strong>is</strong> work he let h<strong>is</strong> children starve to death?”<br />

Is there any truth to th<strong>is</strong> rumor?<br />

Karl had legitimately 7 children, only 3 <strong>of</strong> whom lived until maturity. He also had a child<br />

with h<strong>is</strong> maid, whose paternity was taken by Engels in order to keep Eleanor from finding<br />

out about Karl’s affairs. Anyways you can read about h<strong>is</strong> sex life in a biography. But as far<br />

as letting h<strong>is</strong> children starve, that’s rather untrue though there <strong>is</strong> some truth to the fact that<br />

because Karl refused to work, rather prefering to do research, the family may have suffered<br />

through unnecessary “pangs <strong>of</strong> capital<strong>is</strong>m” as Karl described it. But due to subsidies from<br />

Engels, who unlike Marx grew up in an upper-class family, the family managed to sustain<br />

itself.<br />

Kevin An Outside Observer<br />

Next Message by Kevin <strong>is</strong> [254].<br />

[246] Peaches: An Ugly Rumor I don’t have an answer to the question that Camera<br />

addressed, but another question to add to that. Did Marx ever teach? Where did he get<br />

h<strong>is</strong> degree from, what school, etc. I don’t know a lot about th<strong>is</strong> class and what Marx’s<br />

main “theory” was about and in order to understand h<strong>is</strong> writings, it might be a good idea<br />

on hearing some feedback on Marx so that I can better “understand” where Marx <strong>is</strong> coming<br />

from because I am having a hard time reading between the lines <strong>of</strong> Marx’s Das Capital! The<br />

Introduction <strong>of</strong> Capital <strong>is</strong> quite lengthy (86 pages!) about Marx. Perhaps someone has a<br />

synops<strong>is</strong> on who Marx <strong>is</strong>?!<br />

Next Message by Peaches <strong>is</strong> [273].<br />

[253] Peace: Who <strong>is</strong> Marx? i have some things to say about the life <strong>of</strong> Marx. i would<br />

like to find the time to write something up more formal, but do not have the time. i have<br />

read quite a bit about Marx, but will tell the story below from memory, so i will not provide<br />

citations.<br />

Marx was born in Germany, h<strong>is</strong> parents were Jew<strong>is</strong>h but converted to Protestant<strong>is</strong>m when<br />

Karl was a young boy. H<strong>is</strong> father wanted him to become a lawyer. Marx actually entered the<br />

<strong>University</strong> <strong>of</strong> Bonn to study law. He was not a very serious stundent, but liked very much the<br />

“night” life. He was virtually kicked out <strong>of</strong> Bonn, actually h<strong>is</strong> father believed that changing<br />

the environment might have Marx taking h<strong>is</strong> studies more serious.<br />

There are some interesting stories to tell about Marx’s correspondence with h<strong>is</strong> father and<br />

h<strong>is</strong> father’s worry about h<strong>is</strong> affections toward Jenny (h<strong>is</strong> future wife). However, memory<br />

does not serve me well on these details.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 383<br />

Marx left Bonn for the <strong>University</strong> <strong>of</strong> Berlin. H<strong>is</strong> father’s hopes were realized when Marx<br />

began to take h<strong>is</strong> studies quite serious. However, he focused changed from law to philosophy.<br />

More specifically, Marx became affiliated with a group <strong>of</strong> graduate and post-graduate<br />

students know as the Left (or Young) Hegelians.<br />

Th<strong>is</strong> was very significant in intellectual development <strong>of</strong> Marx. He had entered the <strong>University</strong><br />

<strong>of</strong> Berlin very shortly after the death <strong>of</strong> the infamous German philosophier G.W.F.<br />

Hegel (1832?). Following the death <strong>of</strong> Hegel there was a struggle over the interpretation <strong>of</strong><br />

Hegel’s philosophy. More specifically, the struggle was over the respective place <strong>of</strong> Religion<br />

within the Hegelian Philosophical System.<br />

The Left Hegelians were very uneasy with Hegel’s desire to reconcile religion (Chr<strong>is</strong>tianity;<br />

especially in its Protestant form) with philosophy (there <strong>is</strong> still great debate about<br />

Hegel’s intentions with religion and philosophy). For example, Ludwig Feuerbach (at one<br />

time the figure head <strong>of</strong> the Left Hegelians) believed that it was a metaphysical m<strong>is</strong>take to<br />

conflate Religion with Philosophy in the way he understood the intentions <strong>of</strong> Hegel.<br />

The Left Hegelians (for example Strauss, Bauer and Feuerbach) wanted to show that the<br />

doctrine and (unintended) aims <strong>of</strong> religion were out <strong>of</strong> phase with philosophy. There are<br />

many important stories to be told here (about dozens <strong>of</strong> Left Hegelians), but let me focus on<br />

Feuerbach.<br />

Feuerbach argues that not only <strong>is</strong> religion out <strong>of</strong> phase and dogmatic (as emphasized<br />

by other Left Hegelians) but the subject <strong>of</strong> religion, namely human beings, are reduced to<br />

predicates <strong>of</strong> the religion itself. In other words the religion becomes more important then<br />

human beings themselves. Feuerbach, unlike any <strong>of</strong> the Left Hegelians before him, also<br />

maintained that th<strong>is</strong> so-called inversion was not only character<strong>is</strong>tic <strong>of</strong> religions h<strong>is</strong>torically,<br />

but it <strong>is</strong> further the h<strong>is</strong>tory <strong>of</strong> philosophy.<br />

That <strong>is</strong> philosophy has human beings as the subject, but the actual human being <strong>is</strong> reduced<br />

to being a predicate <strong>of</strong> Thought, and Thought itself becomes the subject. Th<strong>is</strong> <strong>is</strong> epitomized<br />

in the Hegelian system according to Feuerbach (again Feuerbach’s work <strong>is</strong> extermely interesting<br />

and there are many more important aspect with regards to Marx’s development within<br />

it).<br />

All the Left Hegelians were quickly Feuerbachized with the publication <strong>of</strong> Feuerbach’s<br />

The Essence <strong>of</strong> Chr<strong>is</strong>tianity (1841). Feuerbach argues that Religion <strong>is</strong> nothing but the reflection<br />

<strong>of</strong> human being’s own potential, to knows a human being’s God <strong>is</strong> to know the human<br />

being. Moreover, God <strong>is</strong> the human being ra<strong>is</strong>ed infinitity. To parapharse Feuerbach, ‘first<br />

man creates God in h<strong>is</strong> own image, and then God procedes to create man in h<strong>is</strong> own image’.<br />

Feuerbach was Marx’s mentor and friend. He very much began writing in the style and<br />

spirit <strong>of</strong> Feuerbach.<br />

The important development <strong>of</strong> Marx via Feuerbach <strong>is</strong> h<strong>is</strong> material<strong>is</strong>m (actually the term<br />

real<strong>is</strong>m <strong>is</strong> less confussing here) and human<strong>is</strong>m. That <strong>is</strong> Feuerbach argued that philosophy<br />

(and religion) should begin with the material conditions <strong>of</strong> human beings (their “real” human<br />

conditions) and human beings themselves always must remain the subject. That <strong>is</strong> the<br />

384 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

primary concern should not be with pleasing some deity or holding a particular faith, but<br />

with the betterment <strong>of</strong> human beings themselves.<br />

It <strong>is</strong> significant to mention that Feuerbach was not an athe<strong>is</strong>t, h<strong>is</strong> critique pivots on the<br />

h<strong>is</strong>torical development <strong>of</strong> religion not the ex<strong>is</strong>tence or non-ex<strong>is</strong>tence <strong>of</strong> God. There <strong>is</strong> some<br />

debate still today whether Feuerbach <strong>is</strong> a de<strong>is</strong>t or the<strong>is</strong>t, but th<strong>is</strong> <strong>is</strong> not important in our story.<br />

At the same time Marx becomes a Feuerbachian real<strong>is</strong>t human<strong>is</strong>t, he <strong>is</strong> introduced to<br />

economic by h<strong>is</strong> friend F. Engels. Moreover, he also comes in correspondence with social<strong>is</strong>ts<br />

(e.g. Proudhon). He comes to understand the inversion that Feuerbach <strong>is</strong> emphasizing <strong>is</strong> not<br />

restricted to philosophy and religion, but in fact the inversion <strong>of</strong> philosophy and religion <strong>is</strong> a<br />

special case <strong>of</strong> the inversion that occurs in human social reality. That <strong>is</strong> to say human being<br />

create their own society, much like they create their own religion, but then become objects<br />

<strong>of</strong> society (and religion). Or in other words human beings create society to make their lives<br />

better, but the society takes on a (virtual) life <strong>of</strong> its own and begins to rule over human beings<br />

rather than being ruled by them.<br />

Like Feuerbach had demonstrated about religions, Marx argues that human beings lost<br />

faith in their own Powers and potential <strong>of</strong> changing their conditions. Social Structure <strong>is</strong><br />

taken to be “natural” and/or “fixed.” Marx’s arugment <strong>is</strong> that Social Structure are humanly<br />

created construction which have an h<strong>is</strong>torical ex<strong>is</strong>tence. Moreover, capital<strong>is</strong>m <strong>is</strong> understood<br />

to be a specific Socio-economic Structure that emerged h<strong>is</strong>torical and must be reproduced in<br />

specific ways, and can be and sometimes <strong>is</strong> tranformed.<br />

Let me bring th<strong>is</strong> to an end by saying as Marx becomes more familiar with philosophy<br />

he d<strong>is</strong>tances himself from that <strong>of</strong> Feuerbach’s (th<strong>is</strong> <strong>is</strong> break away from Feuerbach <strong>is</strong> the part<br />

<strong>of</strong> the aim <strong>of</strong> Marx and Engels’ German Ideology and h<strong>is</strong> the captured in h<strong>is</strong> “Theses on<br />

Feuerbach”). As he becomes more familiar with economics and the dynamics <strong>of</strong> capital<strong>is</strong>m<br />

<strong>is</strong> able to bring the philosophically argued critiques down to the concrete level <strong>of</strong> human (or<br />

empirical) reality.<br />

Marx also has a great advantage over the other Left Hegelians and scient<strong>is</strong>ts in general<br />

in that he has a firm grasp in the philosophy <strong>of</strong> science (much <strong>of</strong> it developed from a return<br />

to Hegel, especially h<strong>is</strong> Science <strong>of</strong> Logic). Marx understand that reality, both natural and<br />

social, does not immediately reveal itself to human perception. Thus, the impover<strong>is</strong>hment<br />

<strong>of</strong> empiric<strong>is</strong>m and positiv<strong>is</strong>m that maintain(ed) th<strong>is</strong> belief. Marx realizes he must go behind<br />

the appearences and begin to understand the “essence” or what Bhaskar calls the “generative<br />

mechan<strong>is</strong>ms” (i.e. the domain <strong>of</strong> the real). Somewhere Marx says: (to paraphrase from<br />

memory) ‘all science understands th<strong>is</strong> principle but political economy’ (actually he gives<br />

other sciences and especially the philosophiers <strong>of</strong> others science to much credit).<br />

thats all for now.<br />

Next Message by Peace <strong>is</strong> [255].<br />

[331] Scott: An Ugly Rumor Who <strong>is</strong> Marx?<br />

Marx, although without question a brillant man, brings to my mind a contradiction between<br />

how he allowed h<strong>is</strong> life to evolve, and one <strong>of</strong> h<strong>is</strong> major condemnations <strong>of</strong> capital<strong>is</strong>m.<br />

It seems to me that h<strong>is</strong> own life, and that <strong>of</strong> h<strong>is</strong> family was indeed neglected for the “good”<br />

<strong>of</strong> society. For example, most <strong>of</strong> the bibliographies which I have read include phrases such


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 385<br />

as “extreme financial problems”, or “desititute poverty”. It has even been implied that h<strong>is</strong><br />

refusal to obtain a means <strong>of</strong> income during h<strong>is</strong> life, may have hastened h<strong>is</strong> own death, and<br />

lead to the death <strong>of</strong> many <strong>of</strong> h<strong>is</strong> children. Granted, infant mortality was much higher in h<strong>is</strong><br />

day, but the lack <strong>of</strong> doctor’s care or medications certainly did not bode well for the Marx<br />

family. I can easily understand the hatred which Marx d<strong>is</strong>played for the capital<strong>is</strong>t system<br />

under these dire circumstances. We are indebted to Engels for Marxs’ survival even though<br />

the Engels family money was a product <strong>of</strong> capital<strong>is</strong>m. Some irony there. My point <strong>is</strong> that<br />

it appears that Marx was a slave to h<strong>is</strong> work, as much as he indicates that a worker in our<br />

society <strong>is</strong> a slave to the capital<strong>is</strong>t.<br />

It <strong>is</strong> <strong>of</strong>ten said that an art<strong>is</strong>t or a writer needs to experience strife in one’s life in order to<br />

have a better perspective. I think that Marx experienced more than h<strong>is</strong> share <strong>of</strong> hardship, and<br />

I venture to say that it contributed to h<strong>is</strong> intensity in pursuing h<strong>is</strong> lifes’ work even though he<br />

had become a slave to it.<br />

On a separate note, I am curious as to whether Marx had ever written anything which was<br />

cheerful or celebrated the human spirit? Did he ever write poetry, or something light that I<br />

don’t have to re-read to have it sink in???<br />

Message [331] referenced by [338]. Next Message by Scott <strong>is</strong> [390].<br />

[333] Panacea: Re: An Ugly Rumor Scott wrote recently:<br />

Who <strong>is</strong> Marx?<br />

Marx, although without question a brillant man, brings to my mind a contradiction<br />

between how he allowed h<strong>is</strong> life to evolve, and one <strong>of</strong> h<strong>is</strong> major<br />

condemnations <strong>of</strong> capital<strong>is</strong>m. It seems to me that h<strong>is</strong> own life, and that<br />

<strong>of</strong> h<strong>is</strong> family was indeed neglected for the “good” <strong>of</strong> society. For example,<br />

most <strong>of</strong> the bibliographies which I have read include phrases such as<br />

“extreme financial problems”, or “desititute poverty”. It has even been implied<br />

that h<strong>is</strong> refusal to obtain a means <strong>of</strong> income during h<strong>is</strong> life, may have<br />

hastened h<strong>is</strong> own death, and lead to the death <strong>of</strong> many <strong>of</strong> h<strong>is</strong> children.<br />

Why should Marx’s personal life be necessarily in sync with what he writes? Few writers<br />

accompl<strong>is</strong>h th<strong>is</strong>. We need to separate than man’s personal life from h<strong>is</strong> phil<strong>is</strong>ophical projects.<br />

He could have been a rich land owner or a beggar on the street - th<strong>is</strong> does not effect the<br />

validity <strong>of</strong> h<strong>is</strong> philosophy.<br />

On a separate note, I am curious as to whether Marx had ever written anything<br />

which was cheerful or celebrated the human spirit? Did he ever write<br />

poetry, or something light that I don’t have to re-read to have it sink in???<br />

Has any written poetry or light-hearted and cheerful novel had more <strong>of</strong> a positive and<br />

emancipatory effect on the world than Das Kapital? Marx’s entire phil<strong>is</strong>ophical goal was<br />

understanding reality in order to know how to change it - the ultimate in ‘celebrating the<br />

human spirit’ would be to emancipate those enslaved in the current economic form.<br />

These were just a few responses to Scott’s message.<br />

Panacea “...they’re laughing and a-drinking on the swill <strong>of</strong> overtime...” Beautiful South<br />

386 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Next Message by Panacea <strong>is</strong> [341.7].<br />

[338] Franz: Slave-boy Marx Scott wrote in [331]<br />

I can easily understand the hatred which Marx d<strong>is</strong>played for the capital<strong>is</strong>t<br />

system under these dire circumstances.<br />

Where do you see “the hatred” in any <strong>of</strong> Marx’s work?<br />

It <strong>is</strong> a scientific study <strong>of</strong> Capital<strong>is</strong>m – similar to your Micro 201 textbook.<br />

Please provide “hatred” quotations.<br />

My point <strong>is</strong> that it appears that Marx was a slave to h<strong>is</strong> work, as much as he<br />

indicates that a worker in our society <strong>is</strong> a slave to the capital<strong>is</strong>t.<br />

but there <strong>is</strong> a difference. . . worker-slave <strong>is</strong> exploited.<br />

I am curious as to whether Marx had ever written anything which was cheerful<br />

or celebrated the human spirit?<br />

Marx was known for h<strong>is</strong> scientific work. Publ<strong>is</strong>her probably rejected h<strong>is</strong> poetry.<br />

Next Message by Franz <strong>is</strong> [339].<br />

[429] Peace: Marx <strong>is</strong> a nut-burger Kevin your comments and thoughts about social<strong>is</strong>t<br />

economies have been a nice additon to the d<strong>is</strong>cussion. i have been reading them with interest.<br />

But where and when did Marx and Engels say they subscribe to centralized planning?<br />

Certainly they believed in democracy, and rule by the proletariat, but i know <strong>of</strong> no place<br />

that Marx or Engels explicate a model or even a(n) (explicit) suggestion <strong>of</strong> centralized planning.<br />

First Message by Peace <strong>is</strong> [77].<br />

<strong>Question</strong> 317 Thread 317<br />

[239] Angela: Capital<strong>is</strong>m and Ecology I never know what <strong>is</strong> different between Capital<strong>is</strong>m<br />

and Social<strong>is</strong>m or other theories. I just know that I am living in the Capital<strong>is</strong>m society<br />

which might be changing a little bit because the governments and some strong unions and<br />

associations which might use their powers or polities to intervene our societies or economics<br />

environments. So I think that the society might not be really Capital<strong>is</strong>m Society. And I want<br />

to say something about the capital<strong>is</strong>m and ecology because I read a book - Green Business -<br />

which talk about new management ways in business. And I want to use th<strong>is</strong> idea to d<strong>is</strong>cuss<br />

the problem between Capital<strong>is</strong>m and Ecology in my country- Tawain.<br />

I came from the small <strong>is</strong>land - Tawain. And lots <strong>of</strong> people know that there was a miraclous<br />

economics development in Tawain. And I believed that in the pass 50 years, my<br />

country adopted the capital<strong>is</strong>m to carry out the miraclous economics and at the same time<br />

my living environment has been damaged every seriously. According to th<strong>is</strong> fact, it seems<br />

that capital<strong>is</strong>m always <strong>is</strong> against ecology. Because the capital<strong>is</strong>m will use all resource to<br />

create commodities which can bring lots <strong>of</strong> pr<strong>of</strong>its and make or increase our living standard<br />

or lever <strong>of</strong> income. Anyway before I read th<strong>is</strong> book, I always think that capital<strong>is</strong>m always<br />

damages the earth mother. But right now I think that no matter what kind <strong>of</strong> the theories we


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 387<br />

adopt, we always hurt out earth mother. For example, in the East European countries, before<br />

they become demoratic countries and they did’nt adopt the capital<strong>is</strong>m in their countries. But<br />

their environments still are damaged seriously. So no matter what kind <strong>of</strong> theories still will<br />

bring the ecology problems.<br />

I think the capital<strong>is</strong>m will still be the mainstream in the world even it will bring lots <strong>of</strong><br />

ecological problems. But the smart capital<strong>is</strong>ts will figure out the best benefit way that <strong>is</strong> to<br />

consider how to protect our environoments and let the damages <strong>of</strong> our earth mother decrease.<br />

I think that the developed countries become to consider these problems and try to it better.<br />

So in the Asian countries should take these experiences.<br />

I do’nt know that my opinion about th<strong>is</strong> topic <strong>is</strong> right or not. And I do’nt know it <strong>is</strong> fitting<br />

the course which we study. I think th<strong>is</strong> <strong>is</strong> what I know that !! If there <strong>is</strong> any wrong for my<br />

opinion, please tell me and tell me what <strong>is</strong> your opinion, thank you.<br />

Next Message by Angela <strong>is</strong> [289].<br />

<strong>Question</strong> 320 Thread 320<br />

[245] Punani: Employer taste Output market <strong>is</strong> a monopoly and its operator has a<br />

taste for d<strong>is</strong>crimination; initially he won’t employ black workers at all if Ww <strong>is</strong> less than<br />

Wb+Di, black workers aren’t cheap enough to be employed hence the monopol<strong>is</strong>t <strong>is</strong> not<br />

pr<strong>of</strong>it-maximizing, he’s maximizing utility. As long as the firm can be sold and there’s a<br />

potential buyer without the taste for d<strong>is</strong>crimination, he should be able to buy the firm out.<br />

Message [245] referenced by [249]. Next Message by Punani <strong>is</strong> [407.1].<br />

[249] Lamma: Re: Your Subm<strong>is</strong>sion Returned I am not sure what it <strong>is</strong> that was returned<br />

to me in Punani’s [245] but it was not the response I had previously made to Punani. <strong>What</strong><br />

I did say <strong>is</strong> that when I read the ideas about Capital<strong>is</strong>m I got the impression that Punani<br />

thought there was all bad and no good in our present system. I d<strong>is</strong>agree. I feel that there<br />

are some good things like competition and the such that bring out the best in our society.<br />

If we swith to a completely social<strong>is</strong>t type system those things would have to be produced<br />

unaturally. So I’m simply saying that we should not be so quick to scrap the old plan because<br />

it does have some good things for us as a society.<br />

Next Message by Lamma <strong>is</strong> [283].<br />

<strong>Question</strong> 322 Thread 322<br />

[250] Gottlieb: Capital<strong>is</strong>ts or Hyppocrites? Capital<strong>is</strong>ts have heads up butts. How can<br />

some people still believe Marx<strong>is</strong>m can work? It seems like any time that a society has attempted<br />

to create th<strong>is</strong> perfect society they fail m<strong>is</strong>erably. With 20/20 hindsight they still can<br />

not find the m<strong>is</strong>takes in their very complicated theory. Think about it. Point out experiments<br />

in the Soviet Union. Marx<strong>is</strong>ts do not want to dwell on the ecological and more importantly<br />

spiritual destruction (No Franz, th<strong>is</strong> has nothing to do with religion) that occured. The only<br />

excuse Marx<strong>is</strong>ts can come up with <strong>is</strong> that “They didn’t practice true Marx<strong>is</strong>m.”<br />

<strong>What</strong> about the suppression that occured in East Germany. From one <strong>of</strong> the taller buildings<br />

in the West you could look over into the Eastern part <strong>of</strong> the town and see economic<br />

victimization <strong>of</strong> the whole society. The excuse was once more, “They practiced a broken<br />

388 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

social<strong>is</strong>m, not marx<strong>is</strong>m.” I would hope that after all <strong>of</strong> the experiments that have occured in<br />

Europe, Africa, South America, and that continue to pers<strong>is</strong>t in Asia, Marx<strong>is</strong>ts could come<br />

up with some better excuse for their tremendous failings than, “Oh, they were not practicing<br />

true Marx<strong>is</strong>m.” All I want <strong>is</strong> a good explanation.<br />

One Marx<strong>is</strong>m will not work <strong>is</strong> that in order for it to function everyone in the society must<br />

be a Marx<strong>is</strong>t. It <strong>is</strong> an extremely delicate system prone to failure. Those that do believe in<br />

the system tend to see themselves with a higher ‘enlightenment’ or ‘understanding’ <strong>of</strong> the<br />

human will. One example occurred to me last week. After class I followed a student who<br />

was speaking to a friend. He said <strong>of</strong> a d<strong>is</strong>cussion about Marx<strong>is</strong>m that took place in another<br />

class, “Most <strong>of</strong> the students felt like they had to stick up for Capital<strong>is</strong>m...they just had their<br />

heads stuck up their asses.”<br />

Th<strong>is</strong> <strong>is</strong> troubling because it tells us two thinks about th<strong>is</strong> Marx<strong>is</strong>t. First, he thinks that<br />

those that do not agree with him feel an obligation to defend Capital<strong>is</strong>m. Is it our lack <strong>of</strong><br />

understanding <strong>of</strong> ‘the real world?’ Please enlighten us if it <strong>is</strong>. Second, those that do not<br />

agree with him are naturally less intelligent because we “have our heads up our asses.” Why<br />

<strong>is</strong> it so difficult for him to understand that people can d<strong>is</strong>agree with him for a reason other<br />

than the reason stated above.<br />

It would be nice and dandy to have a society where people work for the society. It would<br />

be nice to have free pizza and gym passes, walk around bare footed in the springtime and<br />

hold hands as we join our fellow brothers and s<strong>is</strong>ters in song. These are wonderful ideas and<br />

you can not blame somebody for wanting it, but it will not ever happen. It <strong>is</strong> just as bad to<br />

assume that those who do not support the pursuit <strong>of</strong> th<strong>is</strong> unattainable dream somehow lost<br />

out when god handed out compassion and virtue.<br />

Face the facts. Marx<strong>is</strong>m does not work. It never has, and it never will. It looks good on<br />

paper and warms your heart though. If you do agree with th<strong>is</strong> idea, then fine.<br />

Next Message by Gottlieb <strong>is</strong> [282].<br />

[256] Panacea: Re: Capital<strong>is</strong>ts have heads up butts. Gottlieb recently said:<br />

How can some people still believe Marx<strong>is</strong>m can work? It seems like any<br />

time that a society has attempted to create th<strong>is</strong> perfect society they fail m<strong>is</strong>erably.<br />

With 20/20 hindsight they still can not find the m<strong>is</strong>takes in their<br />

very complicated theory. Think about it. Point out experiments in the Soviet<br />

Union. Marx<strong>is</strong>ts do not want to dwell on the ecological and more<br />

importantly spiritual destruction (No Franz, th<strong>is</strong> has nothing to do with religion)<br />

that occured. The only excuse Marx<strong>is</strong>ts can come up with <strong>is</strong> that,<br />

“They didn’t practice true Marx<strong>is</strong>m.”<br />

Guess what Gottlieb. The marx<strong>is</strong>ts say th<strong>is</strong> for one extremely good reason, which even<br />

mainstream neo-classical econom<strong>is</strong>ts are forced to agree with: Because they are right. The<br />

soviets did not practice Marx<strong>is</strong>t ideology, and they said th<strong>is</strong> themselves in the early birthpangs<br />

<strong>of</strong> their government in 1918. Read a book, for god’s sake. And then read Marx’s<br />

books - see for yourself, instead <strong>of</strong> invoking all sorts <strong>of</strong> main-stream and ignorant american<br />

inanities.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 389<br />

Again - if even the capital<strong>is</strong>t theoriticians admit they were practicing a bastardized form<br />

<strong>of</strong> marx<strong>is</strong>m, than maybe you should as well. Carry the argument forward...since the UdSSR<br />

was the main catalyst behind ‘Commun<strong>is</strong>m’ in th<strong>is</strong> century...perhaps all <strong>of</strong> the third world<br />

attempts at ‘commun<strong>is</strong>m’ have necessarily suffered similar fates...hmmm?<br />

<strong>What</strong> about the suppression that occured in East Germany. From one <strong>of</strong><br />

the taller buildings in the West you could look over into the Eastern part <strong>of</strong><br />

the town and see economic victimization <strong>of</strong> the whole society. The excuse<br />

was once more, “They practiced a broken social<strong>is</strong>m, not marx<strong>is</strong>m.” I would<br />

hope that after all <strong>of</strong> the experiments that have occured in Europe, Africa,<br />

South America, and that continue to pers<strong>is</strong>t in Asia, Marx<strong>is</strong>ts could come<br />

up with some better excuse for their tremendous failings than, “Oh, they<br />

were not practicing true Marx<strong>is</strong>m.” All I want <strong>is</strong> a good explanation.<br />

First, Gottlieb, get it right that East Germany recieved as much protest from Marx<strong>is</strong>ts<br />

the world over as the UdSSR did. Your argument <strong>is</strong> weak. Ever been to Germany? The<br />

only place you can experience what you mention <strong>is</strong> in West Berlin. Yes, there was a marked<br />

difference between the economic situations. But go there today and ask people in both the<br />

affluent western d<strong>is</strong>trict Zehlendorf and the blighted eastern d<strong>is</strong>trict Schoeneberg, and half<br />

the people will express d<strong>is</strong>sat<strong>is</strong>faction with the new turn <strong>of</strong> events in ‘the new Germany’.<br />

The wessies don’t like paying for it (hmmm. worried about money.) and the ossies are<br />

appalled at the moral degradation <strong>of</strong> western society. Rape, murder, robberies and other<br />

crimes suddenly climbed sky high after the fall <strong>of</strong> the wall.<br />

I do not defend East Germany - I only <strong>of</strong>fer you a different perspective. Here in america<br />

people too <strong>of</strong>ten tend to see things as absolute. You want a good explanation? You sure<br />

don’t sound like it. From your rhetoric, one easily sees how you’ve already made up your<br />

mind. The best explanation I’ve heard <strong>is</strong> exactly th<strong>is</strong>: capital<strong>is</strong>ts have their heads up their<br />

asses. Why do I say th<strong>is</strong>? Because the very judeo-chr<strong>is</strong>tian morals they believe support their<br />

economics actually condemn them. Where does Chr<strong>is</strong>t say “go forth, and charge them 19<br />

percent annual percentage rates..” Are you not familiar with the early chr<strong>is</strong>tian anti-usury<br />

laws, or the ‘just price’ <strong>of</strong> the middle ages?<br />

It would be nice and dandy to have a society where people work for the<br />

society. It would be nice to have free pizza and gym passes, walk around<br />

bare footed in the springtime and hold hands as we join our fellow brothers<br />

and s<strong>is</strong>ters in song. These are wonderful ideas and you can not blame<br />

somebody for wanting it, but it will not ever happen. It <strong>is</strong> just as bad to<br />

assume that those who do not support the pursuit <strong>of</strong> th<strong>is</strong> unattainable dream<br />

somehow lost out when god handed out compassion and virtue.<br />

Gottlieb, I find you very depressing as a person. Indeed, if Marx was m<strong>is</strong>guided in<br />

one point, it was that he BELIEVED in HUMANITY, instead <strong>of</strong> how the neo-classicals<br />

BELIEVE in making money <strong>of</strong>f HUMANITY. Why can’t society be like you describe?<br />

Because <strong>of</strong> attitudes like yours, so wake up. You say you want it, but I bet the lottery<br />

interests you more. Labile attitudes are at the root cause <strong>of</strong> many <strong>of</strong> societies ills.<br />

390 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Your chr<strong>is</strong>tian God believed in us. Why can’t you believe in us?<br />

Face the facts. Marx<strong>is</strong>m does not work. It never has, and it never will. It<br />

looks good on paper and warms your heart though.¿<br />

Another sad statement, lacking in evidence or logic.<br />

I would hope that mankind can face the evils <strong>of</strong> capital<strong>is</strong>m and focus on creating an<br />

alternative, be it social<strong>is</strong>m or something else. We cannot deny, however, that th<strong>is</strong> <strong>is</strong> NOT the<br />

best <strong>of</strong> all possible worlds.<br />

Panacea<br />

“...for too long the working class has stood at the window to the <strong>wealth</strong>y with their noses<br />

pressed against the glass. Th<strong>is</strong> Chr<strong>is</strong>tmas, take Chr<strong>is</strong>t, take Marx, take Hope...” The Housemartins<br />

Next Message by Panacea <strong>is</strong> [265].<br />

[257] Peace: Capital<strong>is</strong>ts have heads up butts. Panacea brings some very good points to<br />

Gottlieb’s comments. However, i suspect that Gottlieb will merely see th<strong>is</strong> as some sort <strong>of</strong><br />

apology.<br />

But i do agree with Panacea. Just because a reign that protests a (capital<strong>is</strong>t) social order<br />

<strong>is</strong> wearing a marx<strong>is</strong>t cloak; it does not necessarily make it emancipatory. Even in Marx there<br />

are tendencies against emancipation itself (at least particular interpretations <strong>of</strong> Marx). But<br />

th<strong>is</strong> should be expected. The point <strong>is</strong> the failures <strong>of</strong> the so-called social<strong>is</strong>t or better command<br />

economy does not make better the social ills that are present within capital<strong>is</strong>m.<br />

We have come to understand (via Marx, K. Polyani, or J.M. Keynes, etc.) that the immanent<br />

potential and indeed necessity <strong>of</strong> capital<strong>is</strong>m <strong>is</strong> cr<strong>is</strong><strong>is</strong>. Thus, it <strong>is</strong> also necessitated that<br />

the capital<strong>is</strong>t form <strong>of</strong> economic production must create welfare systems so to reproduce and<br />

enable capital<strong>is</strong>t relations to endure.<br />

It <strong>is</strong> a different agrument to say ‘th<strong>is</strong> <strong>is</strong> the best that humans can do’; from the claim <strong>of</strong><br />

economic liberial<strong>is</strong>m that all individuals can be rich or even free in capital<strong>is</strong>t relations.<br />

Thus, when Gottlieb asks: “How can some people still believe Marx<strong>is</strong>m can work?” He<br />

<strong>is</strong> asking: ‘why does anyone believe in human emancipation any longer’ – ‘the failures <strong>of</strong><br />

Eastern Bloc prove that emancipation <strong>is</strong> not possible.’ ‘Human beings are fated to the social<br />

ills <strong>of</strong> capital<strong>is</strong>m.’ Like Panacea th<strong>is</strong> <strong>is</strong> in some sense depressing, but more accurately th<strong>is</strong> <strong>is</strong><br />

a loss <strong>of</strong> faith in one’s own powers and possiblities.<br />

Th<strong>is</strong> <strong>is</strong> a Post-modern loss <strong>of</strong> faith in human potentiality itself. It <strong>is</strong> not merely the work<br />

<strong>of</strong> Marx<strong>is</strong>t to critique the failures <strong>of</strong> the command economies to achieve emanicpation from<br />

overly coercive social forces, but more important to re-establ<strong>is</strong>h a faith in the Powers and<br />

Potentialities <strong>of</strong> human being themselves.<br />

The Postmodern (at least in the sense i want to [m<strong>is</strong>-]use the term) <strong>is</strong> epitomized by Bev<strong>is</strong><br />

and Butthead, and the “why bother generation” that have find themselves inheriting social<br />

ills that seem to be overwhelming. And committing themselves to a “firm” belief in the<br />

potentiality <strong>of</strong> system rather than <strong>of</strong> human beings powers to change it.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 391<br />

Th<strong>is</strong> loss <strong>of</strong> faith <strong>is</strong> not merely an accident, but reflects the limits <strong>of</strong> capital<strong>is</strong>t social<br />

relations. It in fact reflects the failed attempts at absenting social ills.<br />

In any event i do not know if the Soviet Union was practicing “true Marx<strong>is</strong>m”, perhaps<br />

because i do not know what the meaning <strong>of</strong> th<strong>is</strong> term <strong>is</strong>. However, i am very willing, following<br />

Panacea, to say that the command economies failed to achieve human emancipation.<br />

In fact they turned the problems <strong>of</strong> emancipation into a technological engineering problem<br />

<strong>of</strong> efficiently producing products. Th<strong>is</strong> <strong>is</strong> not the problem that needs to be solved. In<br />

fact, capital<strong>is</strong>m <strong>is</strong> a “great success” in th<strong>is</strong> sense (with the exception <strong>of</strong> the capital<strong>is</strong>t necessity<br />

<strong>of</strong> cr<strong>is</strong><strong>is</strong>, but emancipation cannot be reduced to the absenting <strong>of</strong> economic cr<strong>is</strong>es;<br />

although th<strong>is</strong> <strong>is</strong> necessary it <strong>is</strong> not sufficient).<br />

However, emancipation has very little to do with efficiency problems. And in th<strong>is</strong> sense,<br />

Panacea and especially Kevin have given good arguments not to put our emancipatory hopes<br />

in command economies. Moreover, as Kevin pointed out th<strong>is</strong> was a critique <strong>of</strong> the Soviet<br />

Union in a very short time within the Marx<strong>is</strong>t literature.<br />

However, i do believe that Gottlieb <strong>is</strong> correct to be critical <strong>of</strong> those people that hold to<br />

a faith in system merely in name or in prom<strong>is</strong>e. Th<strong>is</strong> <strong>is</strong> one <strong>of</strong> the major problems human<br />

beings make toward capital<strong>is</strong>m and economic liberal<strong>is</strong>m’s prom<strong>is</strong>e to achieve universal<br />

freedom within capital<strong>is</strong>t relations. And we should be careful not to (re-)commit it.<br />

i agree with Gottlieb on th<strong>is</strong> point:<br />

“I would hope that after all <strong>of</strong> the experiments that have occured in Europe,<br />

Africa, South America, and that continue to pers<strong>is</strong>t in Asia, Marx<strong>is</strong>ts could<br />

come up with some better excuse for their tremendous failings than, ‘Oh,<br />

they were not practicing true Marx<strong>is</strong>m.’ All I want <strong>is</strong> a good explanation.”<br />

There <strong>is</strong> lots <strong>of</strong> literature on th<strong>is</strong>. But these experiments did not fail because they were or<br />

weren’t (necessarily) Marx<strong>is</strong>t. They failed in the problems they tried to solve and the social<br />

ills which they themselves created.<br />

Moreover, there must be instituted politically certain degree <strong>of</strong> flexibility and possiblity<br />

for change. So-called social<strong>is</strong>t countries have failed at th<strong>is</strong> as much or more than the<br />

capital<strong>is</strong>t societies. There are contradictions, unacknowledged conditions and unintended<br />

consequences in (most) all human action, thus we must expect th<strong>is</strong> to be a feature <strong>of</strong> social<br />

experiments. Hence, politically we must be capable institutionally to absent social ills as<br />

they emerge from our unintended consequences. Th<strong>is</strong> <strong>is</strong> something capital<strong>is</strong>t political institution<br />

have not taken very seriously; in fact most intellectual economic contructs deny the<br />

possibility <strong>of</strong> cr<strong>is</strong><strong>is</strong> with their commitments to the so-called “Say’s Law” and “Walras’ Law”<br />

Moreover, we must face the contradictions that ex<strong>is</strong>ts socially and understand and absent<br />

them accordingly. Perhaps th<strong>is</strong> means a particular and specific type <strong>of</strong> government, not <strong>of</strong><br />

politicians but <strong>of</strong> social thinkers and philosophers?<br />

Next Message by Peace <strong>is</strong> [429].<br />

[259] Femme: Capital<strong>is</strong>ts or Hypocrites? It appears to me that there’s a lot <strong>of</strong> emotions<br />

floating around and a lot <strong>of</strong> finger pointing, perhaps that’s the definition <strong>of</strong> conversing with<br />

392 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

another party. I don’t think that Capita<strong>is</strong>m <strong>is</strong> such an ugly and cruel intervention perhaps<br />

because I’m fond <strong>of</strong> Darwin’s theory <strong>of</strong> “survival <strong>of</strong> the fittest”. I feel that if you are weak<br />

and inept and not contributing to society you may not be able to survive with in a capital<strong>is</strong>tic<br />

economy for a very long time. I like to think <strong>of</strong> it as a filtering process. I think that when<br />

people progress within our economy they are not out to intentionally screw their neighbor<br />

inorder to get ahead or make a buck. I really believe that people have good intentions and<br />

try to follow through with them. I don’t think any one wants to carry the burden <strong>of</strong> someone<br />

else when the other party <strong>is</strong> wilingly not trying. I’m all for helping those who can’t help<br />

themselves but not for helping those who choose not to help themselves. In a capital<strong>is</strong>tic<br />

society we are forced to help ourselves and advance where I don’t see that occuring in any<br />

other model. Marxian theory sounds wonderful but real<strong>is</strong>tically looking at it I don’t think it<br />

can work. Femme<br />

Next Message by Femme <strong>is</strong> [297].<br />

[312] Wight: Capital<strong>is</strong>ts have heads up butts I wanted to respond to Gottlieb’s comment<br />

about h<strong>is</strong> perception <strong>of</strong> Marx<strong>is</strong>ts view <strong>of</strong> Capital<strong>is</strong>ts. I think he/she brought up a good point<br />

in asking why we have never seen a society more oriented towards Marx<strong>is</strong>t ideals survive.<br />

Granted, commun<strong>is</strong>m <strong>is</strong> the closest system we have experienced, but it still lacked some<br />

Marx<strong>is</strong>t ideals. It seems to be the outline <strong>of</strong> a fair economic and social system - so why<br />

has it never been in ex<strong>is</strong>tence? I think that most people would agree that capital<strong>is</strong>m has<br />

some seriuos shortcomings - it <strong>is</strong> not fair, it exploits certain memebers <strong>of</strong> the system, etc. -<br />

nonetheless, capital<strong>is</strong>m seems to thrive in all successful, industrialized countries. It <strong>is</strong> the<br />

only economic system that functions successfully. Maybe it <strong>is</strong> because human beings are<br />

instinctively self-serving and motivated by greed, as much as we all hate to admit it. The<br />

one thing that I do see a dangerous <strong>is</strong> when we begin to d<strong>is</strong>count other people’s opinions<br />

that differ from ours as “unenlightened.” Th<strong>is</strong> <strong>is</strong> one perception that Gottlieb addressed that<br />

I feel <strong>is</strong> very important. Everyone has a different slant on <strong>is</strong>sues. It <strong>is</strong> important to always<br />

respect people’s point <strong>of</strong> view even if you don’t agree. Ultimately, what <strong>is</strong> right or wrong<br />

or truthful or false <strong>is</strong> subjective based on the belief’s <strong>of</strong> the individual. Marx<strong>is</strong>m seemsin<br />

theory to be a great idea but Gottlieb’s right in stating that it will never work.<br />

Message [312] referenced by [313]. Next Message by Wight <strong>is</strong> [339.1].<br />

[313] Kevin: Re: Capital<strong>is</strong>ts have heads up butts Wight wrote in [312]<br />

Marx<strong>is</strong>m seems in theory to be a great idea but Gottlieb’s right in stating<br />

that it will never work.<br />

He <strong>is</strong>? Why so? It seems a few here are jumping to quick conclusions about the validity<br />

<strong>of</strong> social<strong>is</strong>m (used as a syn. for Marx<strong>is</strong>m) without having much idea about the nature <strong>of</strong><br />

social<strong>is</strong>m; as Hans emphasized Das Kapital <strong>is</strong> not a blueprint for social<strong>is</strong>m.<br />

Gottlieb cites the collapse <strong>of</strong> the former Soviet Union as a negation <strong>of</strong> Marx<strong>is</strong>m, and<br />

somehow the victory <strong>of</strong> capital<strong>is</strong>m because “after all, we’re all just greedy and self<strong>is</strong>h.”<br />

But he forgets that th<strong>is</strong> <strong>is</strong> not utopian social<strong>is</strong>m we are talking about. Marx made a point<br />

<strong>of</strong> d<strong>is</strong>m<strong>is</strong>sing the idea that capital<strong>is</strong>ts could be convinced, for the good <strong>of</strong> society, to give<br />

up their <strong>wealth</strong> 140 years ago. <strong>What</strong> <strong>is</strong> unworkable about workers expropriating capital<strong>is</strong>t<br />

property themselves?


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 393<br />

Philosophers, until now, have only interpreted the world; the point <strong>is</strong> to change it, to paraphrase<br />

Marx. I would suggest that you research some more before drawing your conclusions<br />

so hastily. I would suggest publications like the Monthly Review, and books like Mandel’s<br />

“Marx<strong>is</strong>t Economic Theory” or David Scheickwert’s (sp?) “Against Capital<strong>is</strong>m” or Paul<br />

Cockshott’s “Towards a New Social<strong>is</strong>m” as a starting point. Perhaps Hans could compile a<br />

recommended reading l<strong>is</strong>t before the class <strong>is</strong> through?<br />

Something was also said to the effect that since the Soviet Union collapsed that “well,<br />

capital<strong>is</strong>m must be all we are stuck with.” If anything, perhaps with more reading, you’ll<br />

realize the collapse <strong>of</strong> the Soviet Union may have done more to actually validate Marx<strong>is</strong>t<br />

theory than anything else by showing how impossible it <strong>is</strong> to build social<strong>is</strong>m in an <strong>is</strong>olated,<br />

backward country without going through the stages <strong>of</strong> capital<strong>is</strong>t accumulation and modernization<br />

first. You may also get a better conception <strong>of</strong> the Marx<strong>is</strong>t dialectical conception <strong>of</strong><br />

h<strong>is</strong>tory, and h<strong>is</strong>torical analys<strong>is</strong>.<br />

Next Message by Kevin <strong>is</strong> [363].<br />

<strong>Question</strong> 323 Thread 323<br />

[252] Chocolate: Re: Labor theory <strong>of</strong> value. The labor theory <strong>of</strong> value which David<br />

Ricardo and Adam Smith studied and d<strong>is</strong>cussed dearly throughout their lives has been a<br />

great interest <strong>of</strong> mine ever since I first studied economics. <strong>What</strong> I would like to know <strong>is</strong> how<br />

would Marx’s relate to Ricardo’s theory and if he would or would not agree with them.<br />

It <strong>is</strong> my understanding that the labor theory <strong>of</strong> value has to do with the cost <strong>of</strong> producing<br />

a certain commodity (direct cost) and other factors added on to the final cost aside from the<br />

production process. For example, suppose it only takes five minutes <strong>of</strong> total labor to produce<br />

a light-bulb. Th<strong>is</strong> <strong>is</strong> the direct cost. The inderect cost that <strong>is</strong> added on to the final price <strong>is</strong> the<br />

cost <strong>of</strong> the tools that was used to produce the light-bulb. Other inderect cost would be the<br />

cost <strong>of</strong> the factory that was used to make the product. Without the factory and the tools to<br />

make the light-bulb, then the light-bulb would have never been made.<br />

But another question <strong>is</strong>, does the maker <strong>of</strong> the tools that <strong>is</strong> used to produce the light-bulb<br />

recieve a fair compensation for the tools final use.<br />

Next Message by Chocolate <strong>is</strong> [288].<br />

<strong>Question</strong> 324 Thread 324<br />

[260] Neaner: group d<strong>is</strong>cussion Last night in class we mentioned how a capital<strong>is</strong>tic<br />

society <strong>is</strong> self serving and self<strong>is</strong>h as a whole. There can be no doubt that th<strong>is</strong> <strong>is</strong> true. I<br />

couldn’t get th<strong>is</strong> thought from my head and wondered do all people realize how bad we<br />

must look?<br />

For an economic system to function, we primarily each have to have the same goal. Right<br />

now that would have to be the accumulation <strong>of</strong> <strong>wealth</strong>. We are conditioned to believe that<br />

money brings happiness and a lack <strong>of</strong> money brings unhappiness. Does it have to be so?<br />

Can we do anything to make ourselves happy that does not have a price tag affixed?<br />

Family, friends, school, outdoors, sports, reading, t.v., music, volunteer service and etc. If<br />

it doesn’t cost money it costs time and in our society are we not taught that time <strong>is</strong> money?<br />

394 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

How can we do the things that make us happy without worrying about how we are going<br />

to get the money. <strong>What</strong> a lousy way to live. We are all making trade<strong>of</strong>fs <strong>of</strong> some sort in<br />

order to maximize our happiness. Are there better ways or a better system? Is Marx<strong>is</strong>m the<br />

answer? I don’t know.<br />

[308] Gilligan: should money create happiness? In regards to money I agree that we<br />

have all been to a certain extent brainwashed and think that the only way to find or experience<br />

happiness <strong>is</strong> to be <strong>wealth</strong>y. The capital<strong>is</strong>t society that we live in today creates an image that<br />

says, “ the more money you have the more powerful you are and therefore the more happy<br />

you are.” Take the O.J. Simpson trial for example, he has a lot <strong>of</strong> money and with it he was<br />

able to buy h<strong>is</strong> freedom even though he committed a horrible crime. Th<strong>is</strong> only serves as<br />

a definition and a great example <strong>of</strong> the capital<strong>is</strong>t system and why we as members <strong>of</strong> th<strong>is</strong><br />

society tend to crave money and think <strong>of</strong> it as the only means <strong>of</strong> happiness. Money doesn’t<br />

buy happiness but when thats all we hear and talk about we can’t help but be a part <strong>of</strong><br />

something that actually creates a large portion <strong>of</strong> the inequality that ex<strong>is</strong>ts today. I lived<br />

in Guatemala for 2 years and I have never seen poorer people in my life. People that live<br />

in huts made <strong>of</strong> tree branches and a ro<strong>of</strong> made <strong>of</strong> leaves, people that have 5 children and<br />

all they have to eat are corn tortillas each and every day, floors made <strong>of</strong> the earth itself, no<br />

work, people that have only one pair <strong>of</strong> clothes and those being the ones on their bodies.<br />

no bathrooms, no showers, people that go to the desease infested river to bathe or to wash<br />

there clothes on a rock, BUT for some odd reason every time a came i contact with these<br />

people they greeted me with a smile and were happy. They never complained or spoke <strong>of</strong><br />

money, they just smiled and enjoyed life just for the sake <strong>of</strong> being alive. Should or does<br />

money buy happiness? I think not but do to self<strong>is</strong>hness and the competition to beat out your<br />

fellow brither we have created a monster that causes the majority <strong>of</strong> our problems here in<br />

the wonderful land <strong>of</strong> PROMISE!!<br />

Message [308] referenced by [354]. Next Message by Gilligan <strong>is</strong> [417].<br />

[354] Franz: Gilligan’s Guatemalans Gilligan wrote in [308]:<br />

I lived in Guatemala for 2 years and I have never seen poorer people in<br />

my life. People that live in huts made <strong>of</strong> tree branches and a ro<strong>of</strong> made <strong>of</strong><br />

leaves, people that have 5 children and all they have to eat are corn tortillas<br />

each and every day, floors made <strong>of</strong> the earth itself, no work, people that<br />

have only one pair <strong>of</strong> clothes and those being the ones on their bodies. no<br />

bathrooms, no showers, people that go to the desease infested river to bathe<br />

or to wash there clothes on a rock, BUT for some odd reason every time<br />

a came i contact with these people they greeted me with a smile and were<br />

happy. They never complained or spoke <strong>of</strong> money, they just smiled and<br />

enjoyed life just for the sake <strong>of</strong> being alive.<br />

find a Guatemalan. . .<br />

tell the Guatemalan he/she can work for you, and that you’ll pay him/her the value <strong>of</strong><br />

what he/she creates MINUS half which you will keep for yourself. . .<br />

then see if the Guatemalan greets you with a smile. . .


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 395<br />

wouldn’t the Guatemalan people be happier if they drove stakes through the hearts <strong>of</strong><br />

their Capital<strong>is</strong>t Vampire oppressors and kept their blood?<br />

wouldn’t you?<br />

I think not but do to self<strong>is</strong>hness and the competition to beat out your fellow<br />

brither we have created a monster that causes the majority <strong>of</strong> our problems<br />

here in the wonderful land <strong>of</strong> PROMISE!!<br />

write instead:<br />

Capital<strong>is</strong>m has created monster vampires that cause the majority <strong>of</strong> our problems here in<br />

the wonderful land <strong>of</strong> PROMISE!!<br />

Next Message by Franz <strong>is</strong> [360].<br />

[383] KALISPEL: Gilligan’s Guatemalans I follow you that money does not buy happiness,<br />

however I would like to explain your analogy a little farther.<br />

You say that the poor Guatemalans were happy. I believe that there are many happy poor<br />

people all over the world. If th<strong>is</strong> was not so then we must assume that at least 2/3 <strong>of</strong> the<br />

world <strong>is</strong> extremely m<strong>is</strong>erable.<br />

I believe m<strong>is</strong>ery <strong>is</strong> created not by the lack <strong>of</strong> money, but by inequalies. For example, I<br />

was on a fire crew in Idaho and was promoted and made more money than anyone else on<br />

the crew per hour. Several <strong>of</strong> the people found out and suddenly they were p<strong>is</strong>sed <strong>of</strong>f and not<br />

happy anymore. Look at children. Bring one home a present and not the other one and see<br />

what happens. Our society has norms that say everyone needs th<strong>is</strong> or needs that. If it seems<br />

that everyone has these things and we do not than we feel some d<strong>is</strong>comfort. If everyone lost<br />

everything we would feel much better than if everyone has everything and I have nothing.<br />

<strong>What</strong> I find interesting <strong>is</strong> that the rich do not feel bad about being rich. Maybe they do<br />

and ignore how they feel. I do not see how a rich person can feel good about him/her self<br />

when there are starving people all around them. Th<strong>is</strong> <strong>is</strong> why we should call all rich people<br />

rich bastards. Bastards to adjectiv<strong>is</strong>e a rich persons true nature.<br />

Next Message by KALISPEL <strong>is</strong> [384].<br />

<strong>Question</strong> 452 Thread 452<br />

[321] KALISPEL: Depressive Suburbia (m-c-m). Money as an end in itself has caused<br />

some ills to society. I would like to focus on that <strong>of</strong> depression. Th<strong>is</strong> came from an article I<br />

read in time magazine.<br />

Th<strong>is</strong> article points out that depression has evolved from the social relations <strong>of</strong> society.<br />

Depression comes from alienation from people. Lonely people are generally depressed.<br />

Society has caused people to be more vulnerable to th<strong>is</strong> d<strong>is</strong>ease.<br />

<strong>What</strong> happens <strong>is</strong> that we drive to work in our cars alone. Then we go home, park our<br />

car in the garage and then go into the house to do whatever we do. Each mother and father<br />

take care <strong>of</strong> only their children and pretty much like their privacy. It <strong>is</strong> part <strong>of</strong> the rugged<br />

individual<strong>is</strong>m brought forth in capital<strong>is</strong>m. Additionally, through div<strong>is</strong>ion <strong>of</strong> labor there are<br />

many rote jobs and jobs that force alienation on people. For example, you may work in a<br />

396 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

factory and talk to no one for 10 hours and then drive home alone in your car and go into your<br />

house. Th<strong>is</strong> leaves most <strong>of</strong> your living life alienated from people. Th<strong>is</strong> leads to depression<br />

because we all need each other to not only be happy, but also to achieve our potentials and<br />

live “rich” lives.<br />

Interestingly, scient<strong>is</strong>ts were sent back into tribes in Africa and Asia to study depression.<br />

They found that it did not ex<strong>is</strong>t. Scient<strong>is</strong>ts also went into the Am<strong>is</strong>h society to study depression<br />

there and found that it was virtually non-ex<strong>is</strong>tent in th<strong>is</strong> culture. Scient<strong>is</strong>ts concluded<br />

that the communal type living <strong>is</strong> what contributed to the greater elevation <strong>of</strong> happiness in<br />

these cultures. In the tribes, all <strong>of</strong> the women would take care <strong>of</strong> each others children together.<br />

The men would hunt for food together. Everything was done as a team effort and<br />

no one was left alone. Th<strong>is</strong> <strong>is</strong> the same principle the Am<strong>is</strong>h go by. They have a very strong<br />

sense <strong>of</strong> community and help each other out. There <strong>is</strong> no unemployment and homelessness<br />

and starvation and also there <strong>is</strong> no <strong>is</strong>olation.<br />

M-c-m provides an aim that doesn’t lead to happiness. It <strong>is</strong> imperative that the aim lead<br />

people to be authentic and happy human beings. Life <strong>is</strong> about being happy and happiness<br />

<strong>is</strong> not produced by what you are told will bring you happiness. It comes from within and <strong>is</strong><br />

different for everyone. Thus, M-c-m should be M-c-h or something like th<strong>is</strong>. Has society<br />

taken great leaps forward, or has it taken two steps forward and three backward?<br />

Next Message by KALISPEL <strong>is</strong> [341.3].<br />

<strong>Question</strong> 453 Thread 453<br />

[358] Karl: Where <strong>is</strong> the revolution? Marx talked about capital<strong>is</strong>m as a stage that would<br />

take place prior to commun<strong>is</strong>m. It <strong>is</strong> <strong>of</strong>ten heard from Marx<strong>is</strong>t students that capital<strong>is</strong>m will<br />

sow the seeds <strong>of</strong> it’s own destruction. Well as far as h<strong>is</strong>tory shows, there have been strikes,<br />

and even mass destruction <strong>of</strong> machinery in the industrial revolution. However, I have yet to<br />

see a mass revolt due to a class struggle that ends capital<strong>is</strong>m as we know it. The 2 reasons I<br />

give for th<strong>is</strong> <strong>is</strong> A) no system <strong>is</strong> perfect B) Marx <strong>is</strong> just a human, not the God everyone makes<br />

him out to be in th<strong>is</strong> class.<br />

First I would like to address point A. Marx wants us to believe that social<strong>is</strong>m, commun<strong>is</strong>m,<br />

and what other mask you want to use, <strong>is</strong> a utopian world far advanced from capital<strong>is</strong>m.<br />

Why did I say that. Simple, for those <strong>of</strong> you who are interested go talk to pr<strong>of</strong>essor Hua in<br />

the sociology dept. sometime. He will tell you that there are gross class struggles in the<br />

Marxian world. After all he was forced under the rule <strong>of</strong> Mao Tse-tung, in China,to eat<br />

grass and leaves in a pr<strong>is</strong>on camp, while Mao lived better than most kings capatil<strong>is</strong>m has<br />

produced. Is there conflict, and class struggles, yes. Now I know someone will say that what<br />

happened in China <strong>is</strong>n’t what Marx intended. The point <strong>is</strong> that there are exceptions to rules<br />

in both Marx, and Adam Smith’s line <strong>of</strong> thinking. Perhaps they aren’t the Gods we make<br />

them to be. I certainly don’t, because I am a free thinker, and I believe Marx was as well.<br />

I really don’t care what the school system or the world thinks <strong>of</strong> my interpretations . I like<br />

Marx am willing to take a beating from pr<strong>of</strong>essors, and be kicked out <strong>of</strong> countries for my<br />

views, as was Marx.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 397<br />

In my estimation, people m<strong>is</strong>s there own creativity, and joy in life if they follow like blind<br />

puppy dogs. There <strong>is</strong> a grave danger in associating your whole line <strong>of</strong> thinking in one group,<br />

such as to call yourself a Marx<strong>is</strong>t, a Capital<strong>is</strong>t or any other brand name. For in doing so<br />

you are like the blind leading the blind. I don’t think Marx really fully believed th<strong>is</strong> either,<br />

as Marx himself was very <strong>wealth</strong>y through the inheritance <strong>of</strong> h<strong>is</strong> Father’s work. Marx and<br />

Engels knew no harsh drudgery, but they weren’t afraid to give there opinion on the matter.<br />

So, we must ask ourselves, where <strong>is</strong> the revolution? Whether it <strong>is</strong> the strikes <strong>of</strong> labors in<br />

capital<strong>is</strong>m? Or <strong>is</strong> it the people throughing down the statues <strong>of</strong> Stalin in Russia? Or perhaps<br />

the person in Tenimin square facing a tank for h<strong>is</strong> bliefs? The point <strong>is</strong>, there <strong>is</strong> no one answer.<br />

In the words <strong>of</strong> the indigo girls, “The less I search my soul for some definitive, the closer I<br />

am to fine.”<br />

Message [358] referenced by [360] and [363]. Next Message by Karl <strong>is</strong> [361].<br />

[360] Franz: eating grass and leaves Karl wrote in [358]:<br />

First I would like to address point A. Marx wants us to believe that social<strong>is</strong>m,<br />

commun<strong>is</strong>m, and what other mask you want to use, <strong>is</strong> a utopian<br />

world far advanced from capital<strong>is</strong>m. Why did I say that. Simple, for those<br />

<strong>of</strong> you who are interested go talk to pr<strong>of</strong>essor Hua in the sociology dept.<br />

sometime.<br />

If the question <strong>is</strong>: (why did you say that?) The answer <strong>is</strong>: (you l<strong>is</strong>tened to some guy<br />

named Hua and did not read Marx.)<br />

After pouring through thousands <strong>of</strong> pages, you may find perhaps 20 to 30 pages (less<br />

than 1%) where Marx makes mention <strong>of</strong> what a “utopian” world it would be if we could rid<br />

ourselves <strong>of</strong> the master/slave relationship.<br />

sort <strong>of</strong> similar to lyrics found in John Lennon’s “Imagine.”<br />

Imagine a world where a vampire doesn’t suck surplus value outta your neck.<br />

Your Sociology pr<strong>of</strong> eats grass and leaves and th<strong>is</strong> <strong>is</strong> supposed to tie into K.M.’s writings?<br />

? ?<br />

How?<br />

If your pr<strong>of</strong> blames K.M. because Mao put him in a pr<strong>is</strong>on camp, I think that quite a leap.<br />

. .<br />

Now I know someone will say that what happened in China <strong>is</strong>n’t what Marx<br />

intended.<br />

You need to remove the name “Marx” and insert someone else’s name. Probably the<br />

name <strong>of</strong> the person the Chinese followed while setting up their society.<br />

The point <strong>is</strong> that there are exceptions to rules in both Marx, and Adam<br />

Smith’s line <strong>of</strong> thinking.<br />

<strong>What</strong> “rules?”<br />

Next Message by Franz <strong>is</strong> [414].<br />

398 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[363] Kevin: Re: Where <strong>is</strong> the revolution? Karl wrote in [358]:<br />

Marx talked about capital<strong>is</strong>m as a stage that would take place prior to commun<strong>is</strong>m.<br />

It <strong>is</strong> <strong>of</strong>ten heard from Marx<strong>is</strong>t students that capital<strong>is</strong>m will sow the<br />

seeds <strong>of</strong> it’s own destruction. Well as far as h<strong>is</strong>tory shows, there have been<br />

strikes, and even mass destruction <strong>of</strong> machinery in the industrial revolution.<br />

It should be noted that th<strong>is</strong> <strong>is</strong> “some” Marx<strong>is</strong>t students who make that assertion. Please<br />

understand that the idea <strong>of</strong> capital<strong>is</strong>m destroying itself in some sudden conflagulation has<br />

been <strong>of</strong> much controversy both among Marx<strong>is</strong>ts and non-Marx<strong>is</strong>ts for the last century.<br />

First I would like to address point A. Marx wants us to believe that social<strong>is</strong>m,<br />

commun<strong>is</strong>m, and what other mask you want to use, <strong>is</strong> a utopian world<br />

far advanced from capital<strong>is</strong>m. Why did<br />

Maybe a few others would like you to “believe” that, but Marx tries to make the case that<br />

capital<strong>is</strong>m’s inherant contradictions form the bas<strong>is</strong> from which that society can be formed.<br />

Not a perfect society, but one far better than the previous. It should also be noted that Marx<br />

really devoted much time to considering h<strong>is</strong> theory <strong>of</strong> the state and social<strong>is</strong>m; he spent much<br />

more time analyzing capital<strong>is</strong>m.<br />

I say that. Simple, for those <strong>of</strong> you who are interested go talk to pr<strong>of</strong>essor<br />

Hua in the sociology dept. sometime. He will tell you that there are gross<br />

class struggles in the Marxian world.<br />

For a “freethinker” you seem to still be constrained by some <strong>of</strong> the character<strong>is</strong>tics and the<br />

false dichotomy which punditry has semantically bestowed on the world; between the “free”<br />

world and the “Marx<strong>is</strong>t” or commun<strong>is</strong>t world. Actually if you’re pr<strong>of</strong>essor Hua was such a<br />

Marxian expert with experience in China he would realize the emphas<strong>is</strong> that Mao<strong>is</strong>m puts<br />

on class struggle and contradiction within all societies.<br />

In my estimation, people m<strong>is</strong>s there own creativity, and joy in life if they<br />

follow like blind puppy dogs. There <strong>is</strong> a grave danger in associating your<br />

whole line <strong>of</strong> thinking in one group, such as to call yourself a Marx<strong>is</strong>t,<br />

a Capital<strong>is</strong>t or any other brand name. For in doing so you are like the<br />

blind leading the blind. I don’t think Marx really fully believed th<strong>is</strong> either,<br />

as Marx himself was very <strong>wealth</strong>y through the inheritance <strong>of</strong> h<strong>is</strong> Father’s<br />

work. Marx and Engels knew no harsh drudgery, but they weren’t afraid to<br />

give there opinion on the matter.<br />

I like the first sentence. It reminds me <strong>of</strong> the great quote from Keynes in the “General<br />

Theory” in which he comments on individuals “becoming the slave <strong>of</strong> some defunct econom<strong>is</strong>t.”<br />

But two points; capital<strong>is</strong>t <strong>is</strong> not a “brand name” its actually a very specific label as defined<br />

by Marx to describe individuals in capital<strong>is</strong>m. Its much different than “Marx<strong>is</strong>t” which <strong>is</strong> a<br />

term that <strong>is</strong> widely d<strong>is</strong>agreed upon.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 399<br />

Next, before you make comments about Marx read a biography. Any biography, or perhaps<br />

Pr<strong>of</strong>essor Hua?, will tell you Marx was poor throughout the later part <strong>of</strong> h<strong>is</strong> life, and<br />

never rich in the former. Marx’s father was a lawyer, and certainly not <strong>of</strong> the capital<strong>is</strong>t class.<br />

Engels was the only one <strong>of</strong> the two with any money, he was a partner at a textile factory.<br />

But I fail to see how that relates to your comment about drudgery or slavery; as Marx and<br />

Engels hardly were “slaves <strong>of</strong> some defunct econom<strong>is</strong>t.” Actually they revolutionized political<br />

economy <strong>of</strong> the day, even most non-Marx<strong>is</strong>ts will acknowledge th<strong>is</strong>. Next, if you make<br />

the comment that they knew <strong>of</strong> “no drudgery” you must not have read Capital, or perhaps<br />

Engel’s “Condition <strong>of</strong> the Working Class in England.” But <strong>of</strong> course Adam Smith, nor Lord<br />

Keynes knew <strong>of</strong> “drudgery.” Neither did Ar<strong>is</strong>totle, or Socrates. If you consider the h<strong>is</strong>tory<br />

<strong>of</strong> philosophy and nearly every science, it <strong>is</strong> rarely the proletariat that has the time to argue<br />

their views with the rigor <strong>of</strong> the le<strong>is</strong>ured classes (with the exception <strong>of</strong> the great eye-lense<br />

grinder Spinoza).<br />

So, we must ask ourselves, where <strong>is</strong> the revolution? Whether it <strong>is</strong><br />

Obviously not here yet. Unless, <strong>of</strong> course, you feel strongly or “believe” that Stalin<strong>is</strong>t<br />

Russia or the quasi-fasc<strong>is</strong>t dictatorship in China can be adequately acquianted with the<br />

thought <strong>of</strong> Marx; anymore than Hitler’s Germany can be equated with the thought <strong>of</strong> Ayn<br />

Rand.<br />

Next Message by Kevin <strong>is</strong> [372].<br />

[371] Panacea: How many times? Karl recently wrote something which pains me on<br />

a h<strong>is</strong>torical level, which I and many others have already addressed over and over again - I<br />

recently had the chance to introduce to a freshman seminar the subject <strong>of</strong> Marx<strong>is</strong>m, and even<br />

they brought th<strong>is</strong> point up, and UNDERSTOOD IT. Why can’t students in a 500 level class<br />

understand it?<br />

A) no system <strong>is</strong> perfect B) Marx <strong>is</strong> just a human, not the God everyone<br />

makes him out to be in th<strong>is</strong> class.<br />

First I would like to address point A. Marx wants us to believe that social<strong>is</strong>m,<br />

commun<strong>is</strong>m, and what other mask you want to use, <strong>is</strong> a utopian world<br />

far advanced from capital<strong>is</strong>m. Why did I say that. Simple, for those <strong>of</strong><br />

you who are interested go talk to pr<strong>of</strong>essor Hua in the sociology department<br />

sometime. He will tell you that there are gross class struggles in the<br />

Marxian world. After all he was forced under the rule <strong>of</strong> Mao Tse-tung, in<br />

China,to eat grass and leaves in a pr<strong>is</strong>on camp, while Mao lived better than<br />

most kings capital<strong>is</strong>m has produced.<br />

Guess what, Karl. Marx<strong>is</strong>m <strong>is</strong> NOT ABOUT SOCIALISM OR COMMUNISM! As<br />

Fredric Jam<strong>is</strong>on, at h<strong>is</strong> seminar two weeks ago so eloquently put it (and I paraphrase): It<br />

<strong>is</strong> en vogue today to celebrate the ‘fall <strong>of</strong> marx<strong>is</strong>m’, yet post-modern capital<strong>is</strong>m must realize<br />

that as long as capital<strong>is</strong>m ex<strong>is</strong>ts, marx<strong>is</strong>m will ex<strong>is</strong>t along side <strong>of</strong> it - why? Because Marx<strong>is</strong>m<br />

<strong>is</strong> the critique <strong>of</strong> capital<strong>is</strong>m! They must coex<strong>is</strong>t like black and white!<br />

I feel for Hua, Karl. I had the opportunity to take a graduate pol<strong>is</strong>ci course up in Logan<br />

from one <strong>of</strong> the organizers <strong>of</strong> the Tianiman (sp) Square incident - it was a travesty.. But you<br />

400 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

and all the rest must realize that what goes on in China <strong>is</strong> MAOISM - thats what they call it,<br />

thats what we should call it. Eastern Europe was not representative <strong>of</strong> Marx<strong>is</strong>m, nor was the<br />

Soviet Union. Figure out what the terms mean, Karl, then you will understand.<br />

In my estimation, people m<strong>is</strong>s their own creativity, and joy in life if they<br />

follow like blind puppy dogs. There <strong>is</strong> a grave danger in associating your<br />

whole line <strong>of</strong> thinking in one group, such as to call yourself a Marx<strong>is</strong>t, a<br />

Capital<strong>is</strong>t or any other brand name. For in doing so you are like the blind<br />

leading the blind.<br />

Karl, th<strong>is</strong> <strong>is</strong> a real oversimplification. Try telling a black man to stop associating himself<br />

with blacks. It doesn’t work, Karl. I call myself a Marx<strong>is</strong>t not because I have deified Marx,<br />

but because I agree with h<strong>is</strong> critique <strong>of</strong> Capital<strong>is</strong>m, not because I’m some blind ignoramus<br />

who needs to follow something. I criticized capital<strong>is</strong>m before I knew who marx was.<br />

And can you see that a capital<strong>is</strong>t who says to himself “I’m not a capital<strong>is</strong>t!” and grins to<br />

himself - HE <strong>is</strong> the blind man? Marx, remember Karl, does not place normative judgemnets<br />

on individuals, but rather examines quite positively the system. Then, even the blind man<br />

can make normative judgements.<br />

I don’t think Marx really fully believed th<strong>is</strong> either, as Marx himself was<br />

very <strong>wealth</strong>y through the inheritance <strong>of</strong> h<strong>is</strong> Father’s work. Marx and Engels<br />

knew no harsh drudgery, but they weren’t afraid to give there opinion on the<br />

matter.<br />

OK, maybe you don’t know much about Marx. Please refer to subm<strong>is</strong>sions by Kevin and<br />

Peace to understand that, in th<strong>is</strong> case and the case <strong>of</strong> readers who agree with th<strong>is</strong> statement<br />

- you really are the blind leading the blind.<br />

As for the revolution, the beginnings lie in classes like th<strong>is</strong>, where we must decide whether<br />

or not to recognize problems in the system. Once enough <strong>of</strong> us can see capital<strong>is</strong>m for the<br />

po<strong>is</strong>on it <strong>is</strong>, the revolution will be inevitable.<br />

Panacea<br />

“...some men here, they know the full extent <strong>of</strong> your d<strong>is</strong>tress. They kneel and pray and<br />

they say, ‘Long may it last!’ - why don’t you find out for yourselves, and then you’ll see the<br />

glass hidden in the grass...”<br />

Moz<br />

Message [371] referenced by [372]. Next Message by Panacea <strong>is</strong> [409].<br />

[372] Kevin: Mao<strong>is</strong>m [was: How many more times?] Panacea wrote in [371]<br />

I feel for Hua, Karl. I had the opportunity to take a graduate pol<strong>is</strong>ci course<br />

up in Logan from one <strong>of</strong> the organizers <strong>of</strong> the Tianiman (sp) Square incident<br />

- it was a travesty.. But you and all the rest must realize that what goes on<br />

in China <strong>is</strong> MAOISM - thats what they call it, thats what we should call<br />

it. Eastern Europe was not representative <strong>of</strong> Marx<strong>is</strong>m, nor was the Soviet<br />

Union. Figure out what the terms mean, Karl, then you will understand.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 401<br />

Actually every Mao<strong>is</strong>t out there today, in the West at least, would strongly d<strong>is</strong>agree that<br />

China has much to do with Mao<strong>is</strong>m. The leaders <strong>of</strong> every small Mao<strong>is</strong>t group in the world<br />

acknowledge th<strong>is</strong>, as well as the leaders <strong>of</strong> the Commun<strong>is</strong>t Party <strong>of</strong> Peru; which has been<br />

fighting a Mao<strong>is</strong>t revolutionary war for 16 years now.<br />

Mao<strong>is</strong>m, in proper context, should refer more to the philosophical, economic, and military<br />

writings and theory <strong>of</strong> Mao; and <strong>of</strong>ten h<strong>is</strong> actions and policy, like the Cultural Revolution.<br />

China today really has very little to do with Mao outside <strong>of</strong> the party line that he was ‘70%<br />

correct.’ There are many excellent books on the events in China, especially after Mao’s<br />

death. I suggest you find some, perhaps try the newest one on Monthly Review Press entitled<br />

“White Tiger, Red Tiger.”<br />

Next Message by Kevin <strong>is</strong> [382].<br />

[389] KALISPEL: How many times? Panacea, I liked your subm<strong>is</strong>sion on Marx. However,<br />

I thought that last quote was by Morr<strong>is</strong>sey and not by Moz. Did Moz write the lyrics<br />

for Morr<strong>is</strong>sey?<br />

Next Message by KALISPEL <strong>is</strong> [413].<br />

[409] Panacea: Re: Mao<strong>is</strong>m [was: How many more times?] Kevin wrote:<br />

Actually every Mao<strong>is</strong>t out there today, in the West at least, would strongly<br />

d<strong>is</strong>agree that China has much to do with Mao<strong>is</strong>m. The leaders <strong>of</strong> every<br />

small Mao<strong>is</strong>t group in the world acknowledge th<strong>is</strong>, as well as the leaders <strong>of</strong><br />

the Commun<strong>is</strong>t Party <strong>of</strong> Peru; which has been fighting a Mao<strong>is</strong>t revolutionary<br />

war for 16 years now.<br />

Certainly, Kevin, just as ‘Lenin<strong>is</strong>m’ was supplanted with ‘Stalin<strong>is</strong>m’ and subsequently<br />

other ‘<strong>is</strong>ms’. It <strong>is</strong> however, valid to label a significant portion <strong>of</strong> Red China’s h<strong>is</strong>tory as<br />

‘Mao<strong>is</strong>m’ - we all like to rev<strong>is</strong>e h<strong>is</strong>tory a little.<br />

Mao<strong>is</strong>m, in proper context, should refer more to the philosophical, economic,<br />

and military writings and theory <strong>of</strong> Mao; and <strong>of</strong>ten h<strong>is</strong> actions and<br />

policy, like the Cultural Revolution. China today really has very little to<br />

do with Mao outside <strong>of</strong> the party line that he was ‘70% correct.’ There are<br />

many excellent books on the events in China, especially after Mao’s death.<br />

I suggest you find some, perhaps try the newest one on Monthly Review<br />

Press entitled “White Tiger, Red Tiger.”<br />

Again, I don’t d<strong>is</strong>agree. It <strong>is</strong> a rev<strong>is</strong>ion<strong>is</strong>t h<strong>is</strong>tory that tries to eliminate ‘Mao<strong>is</strong>m’ as the<br />

driving force behind China’s economic, social and secular h<strong>is</strong>tory. I’ll post some titles for<br />

th<strong>is</strong> if you would like - some <strong>of</strong> the most important China scholars are fairly even on th<strong>is</strong><br />

<strong>is</strong>sue. Your reference does seem interesting - I’ll look it up.<br />

The China <strong>of</strong> today <strong>is</strong> very different, I think you’ll agree, than the bulk <strong>of</strong> it’s Red h<strong>is</strong>tory<br />

- it <strong>is</strong> th<strong>is</strong> that I addressed in my previous posting. Thanks for the insight, Kevin.<br />

Panacea<br />

“...there are some bad people on the r<strong>is</strong>e... they’re saving their own skins by ruining<br />

people’s lives...” Moz<br />

Next Message by Panacea <strong>is</strong> [410].<br />

402 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

<strong>Question</strong> 455 Thread 455<br />

[373] Pinky: Marx <strong>is</strong> a nut-burger I was shocked to learn that Panacea believes that<br />

Marx’s personal practice held no importance in considering the value <strong>of</strong> h<strong>is</strong> philosophy. I<br />

think it <strong>is</strong> very dangerous when we refuse to see the people behind the philosophies we<br />

espouse. To claim that a man can be a leacherous egomaniac in h<strong>is</strong> life, but have some really<br />

good ideas regarding how we should work as a society <strong>is</strong> ludicrous. Especially, when the<br />

ideas center around giving up ego in exchange for an egalitarian society.<br />

Now, I will address those <strong>of</strong> you who are indignantly reading on asking yourselves how<br />

I can call him a leacherous egomaniac. Karl mentioned in a previous subm<strong>is</strong>sion that many<br />

in th<strong>is</strong> class tend to regard Marx as a god. I agree, and believe that there are substantial<br />

reasons for th<strong>is</strong>. Also, in answer to Scotts question about if Marx had ever written anything<br />

in celebration <strong>of</strong> the human spirit, (no, Panacea, I don’t think Das Kapital counts) he did. He<br />

celebrated h<strong>is</strong> own spirit and out <strong>of</strong> control lust for power as exemplified in the following<br />

passage <strong>of</strong> one <strong>of</strong> h<strong>is</strong> poems:<br />

Then I will wander godlike and victorious Through the ruins <strong>of</strong> the world<br />

And, giving my words an active force, I will feel equal to the creator.<br />

Franz proclaimed in one <strong>of</strong> h<strong>is</strong> messages that “The revolution <strong>is</strong> coming” One scholar has<br />

counted over fourty anticipations <strong>of</strong> revolutions in the correspondence between Marx and<br />

Engels. Franz <strong>is</strong> eagerly anticipating the day when h<strong>is</strong> real dream can come to fruition; the<br />

momentous day that he can finally make Jon Huntsman cry.<br />

Franz has also <strong>is</strong>sued the challenge to find a hateful statement in capital. Th<strong>is</strong> may well<br />

be a fruitless effort since the evaluations will be subjective. Rather, I found a quote from a<br />

fellow revolutionary on h<strong>is</strong> evaluation <strong>of</strong> Marx: “If h<strong>is</strong> heart had matched h<strong>is</strong> intellect, and<br />

if he possessed as much love as hate, I would have gone through fire for him, but a most<br />

dangerous personal ambition has eaten away all the good in him.” Marx was also known to<br />

glare at anyone who challenged h<strong>is</strong> conclusions and say “I will annihilate you!”<br />

Marx knew alot about exploitation. He did to everyone around him, especially h<strong>is</strong> own<br />

family. He exploited h<strong>is</strong> mother for a monthly allowance; threatening to “draw bills on<br />

her...and letting myself be locked up” if she failed to continue payment. Excuses have been<br />

made for the death <strong>of</strong> three <strong>of</strong> h<strong>is</strong> children by blaming it on h<strong>is</strong> poverty or better, the system.<br />

Despite the fact that the Marx’s did indeed live in poverty, h<strong>is</strong> known income was sufficinent<br />

for a lower middle family standard <strong>of</strong> living at that time, and was about three times the<br />

income <strong>of</strong> an unskilled worker.<br />

H<strong>is</strong> illegitimate son, Freddy Demuth was deprived <strong>of</strong> any relationship, let alone financial<br />

support from Marx. He was a sacrifice for Marx’s convenience and image. When, in order<br />

to substantiate h<strong>is</strong> income, he wanted German social<strong>is</strong>t Ferdinand Lassalle to find him some<br />

business, he cultivated him with flattery to h<strong>is</strong> face and contempt behind h<strong>is</strong> back; referring<br />

to h<strong>is</strong> book as an “exhibition <strong>of</strong> enormous erudition” when writing to Lassalle and a<br />

“Silly concoction” when writing to Engels. Marx added that Lassalle was a “Jew<strong>is</strong>h nigger,”


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 403<br />

(though crude, in practice Marx demonstrated that he was not a rac<strong>is</strong>t in the twentieth century’s<br />

sense.) He exploited the labor <strong>of</strong> many by non-payment <strong>of</strong> debts. Wow!, that may<br />

even be worse than low wages!<br />

Regarding exploitation, the phrase “takes one to know one” comes to my mind.<br />

The reality <strong>is</strong> that Marx’s v<strong>is</strong>ion <strong>of</strong> a society could not be realized if a man like him would<br />

have had to live in it. The people that would have to admin<strong>is</strong>ter h<strong>is</strong> kind <strong>of</strong> society would<br />

have to be completely honest and unself<strong>is</strong>h. If the man behind the social<strong>is</strong>t philosophy stands<br />

as a poor example <strong>of</strong> morality even in a capital<strong>is</strong>t society, giving the freedom <strong>of</strong> the masses<br />

up to him or even anyone else slightly less that chr<strong>is</strong>tlike would be d<strong>is</strong>astrous.<br />

As much as people will try and tell you otherw<strong>is</strong>e, CHARACTER DOES COUNT! Beware<br />

the people who tell you that it doesn’t; they most likely have clandestine motivation.<br />

Message [373] referenced by [382], [410], and [416]. Next Message by Pinky <strong>is</strong> [374].<br />

[374] Pinky: Clarification: Marx WAS a nut-burger Sorry, I used the present tense.<br />

Next Message by Pinky <strong>is</strong> [399].<br />

[382] Kevin: Re: Marx <strong>is</strong> a nut-burger Pinky wrote in [373]:<br />

I was shocked to learn that Panacea believes that Marx’s personal practice<br />

held no importance in considering the value <strong>of</strong> h<strong>is</strong> philosophy. I think it <strong>is</strong><br />

very dangerous when we refuse to see the people behind the philosophies<br />

we espouse. To claim that a man can be a leacherous egomaniac in h<strong>is</strong><br />

life, but have some really good ideas regarding how we should work as a<br />

society <strong>is</strong> ludicrous. Especially, when the ideas center around giving up ego<br />

in exchange for an egalitarian society.<br />

Your report on Marx was very good, and overall very true; yet I fail to see the connection<br />

between h<strong>is</strong> personality and h<strong>is</strong> economic perspective. Second where do you get the idea that<br />

Marx w<strong>is</strong>hes individuals to “give up their ego in exchange for an egalitarian society.” Th<strong>is</strong> <strong>is</strong><br />

nowhere near Marx’s conception <strong>of</strong> social<strong>is</strong>m, which was based on the idea that capital<strong>is</strong>m<br />

would reach a point in its development where the individual’s self-worth would be eroded<br />

both physically and mentally; thus social<strong>is</strong>m can provide a system where th<strong>is</strong> self-worth can<br />

be realized, away from exploitation and alienation. Marx was not an Owenite or some hippy<br />

commun<strong>is</strong>t; as you seem to think he was.<br />

spirit, (no, Panacea, I don’t think Das Kapital counts) he did. He celebrated<br />

h<strong>is</strong> own spirit and out <strong>of</strong> control lust for power as exemplified in the following<br />

passage <strong>of</strong> one <strong>of</strong> h<strong>is</strong> poems:<br />

Then I will wander godlike and victorious Through the ruins <strong>of</strong> the world<br />

And, giving my words an active force, I will feel equal to the creator.<br />

Where can th<strong>is</strong> be found, by the way?<br />

Franz proclaimed in one <strong>of</strong> h<strong>is</strong> messages that “The revolution <strong>is</strong> coming”<br />

One scholar has counted over fourty anticipations <strong>of</strong> revolutions in the correspondence<br />

between Marx and Engels. Franz <strong>is</strong> eagerly anticipating the<br />

404 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

day when h<strong>is</strong> real dream can come to fruition; the momentous day that he<br />

can finally make Jon Huntsman cry.<br />

Again, Franz <strong>is</strong> one <strong>of</strong> millions who call themselves Marx<strong>is</strong>ts around the world. He may<br />

be a “free-thinker” or perhaps a “slave <strong>of</strong> some defunct econom<strong>is</strong>t.” Or perhaps a little naive.<br />

Th<strong>is</strong> hardly means much for the general character<strong>is</strong>tics <strong>of</strong> the Marxian analys<strong>is</strong> <strong>of</strong> capital<strong>is</strong>m.<br />

Actually it seems as though neoclassical econom<strong>is</strong>ts <strong>of</strong>ten do no better in their predictions<br />

than Marx<strong>is</strong>ts.<br />

By the way, again, where are your sources? And what qualifies itself as “anticipation <strong>of</strong><br />

a revolution.” Just a simple reference to some unknown time, or a date, hour, minute, and<br />

second? When citing things you need to be more specific.<br />

Marx knew alot about exploitation. He did to everyone around him, especially<br />

h<strong>is</strong> own family. He exploited h<strong>is</strong> mother for a monthly allowance;<br />

threatening to “draw bills on her...and letting myself be locked up” if she<br />

failed to continue payment. Excuses have been made for the death <strong>of</strong> three<br />

<strong>of</strong> h<strong>is</strong> children by blaming it on h<strong>is</strong> poverty or better, the system. Despite<br />

the fact that the Marx’s did indeed live in poverty, h<strong>is</strong> known income was<br />

sufficinent for a lower middle family standard <strong>of</strong> living at that time, and was<br />

about three times the income <strong>of</strong> an unskilled worker. sense.) He exploited<br />

the labor <strong>of</strong> many by non-payment <strong>of</strong> debts. Wow!, that may even be worse<br />

than low wages!<br />

I fail to see what th<strong>is</strong> has to do with such questions as:<br />

- Can capital<strong>is</strong>m really collapse on its own? Is there any general trend towards the falling<br />

rate <strong>of</strong> pr<strong>of</strong>it?<br />

- How does the Third World fit in within global capital<strong>is</strong>m? Are planned economies<br />

beneficial to them? Did Marx anticipate any <strong>of</strong> th<strong>is</strong>, how about later Marx<strong>is</strong>ts like Trotsky,<br />

Cabral (Amilcar), or Guervara?<br />

- <strong>What</strong> contradictions do we find in capital<strong>is</strong>m today? <strong>What</strong> kind <strong>of</strong> social<strong>is</strong>m can demol<strong>is</strong>h<br />

these?<br />

- Can an economy be planned? Does the M<strong>is</strong>es-Hayek calculation hold true? Is there a<br />

type <strong>of</strong> market social<strong>is</strong>m which could work?<br />

It looks to me as though you’re simply trying to skip around some <strong>of</strong> these questions<br />

in order to “expose” Marx’s personal failings in order to somehow d<strong>is</strong>prove h<strong>is</strong> political<br />

economy by ad hominid attacks.<br />

completely honest and unself<strong>is</strong>h. If the man behind the social<strong>is</strong>t philosophy<br />

stands as a poor example <strong>of</strong> morality even in a capital<strong>is</strong>t society, giving<br />

the freedom <strong>of</strong> the masses up to him or even anyone else slightly less that<br />

chr<strong>is</strong>tlike would be d<strong>is</strong>astrous. As much as people will try and tell you<br />

otherw<strong>is</strong>e, CHARACTER DOES COUNT! Beware the people who tell you<br />

that it doesn’t; they most likely have clandestine motivation.


There <strong>is</strong> a line in the Internationale which goes:<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 405<br />

“No saviour from on high delivers No faith have we in prince or peer”<br />

Th<strong>is</strong> sums up very well the attitude <strong>of</strong> any serious social<strong>is</strong>t towards Earthly messiahs-tobe.<br />

But, <strong>of</strong> course you might not want to trust me, because I MIGHT HAVE CLANDES-<br />

TINE MOTIVATIONS!!!<br />

Kevin Church <strong>of</strong> Marx, the Scient<strong>is</strong>t - Archb<strong>is</strong>hop <strong>of</strong> the Columbus Diocese<br />

Next Message by Kevin <strong>is</strong> [411].<br />

[384] KALISPEL: Marx <strong>is</strong> a nut-burger CHARACTER <strong>is</strong> important on a personal<br />

level, but it doesn’t count in th<strong>is</strong> atmosphere. Marx does not claim to be the son <strong>of</strong> God.<br />

He’s human. Neither you or I can judge h<strong>is</strong> moral actions. If we do so then we are not<br />

chr<strong>is</strong>tlike.<br />

<strong>What</strong> level do we say he’s ok? Do we accept the fact that he stole a candy bar when he<br />

was 8 years old or do we accept the fact that he had premarital sex one time and then felt<br />

sorry for it? Do we judge h<strong>is</strong> actions as a provider? Can I personally say that because Marx<br />

wasn’t up to the moral average that he should be considered stupid also. Should we d<strong>is</strong>count<br />

Einsteins revelations on the bas<strong>is</strong> that he commited adultery several times. I think we should<br />

have just told Einstein that he was to be mute because he was a dreg <strong>of</strong> society for doing<br />

these things. The truth <strong>is</strong> we don’t know why Marx did what he did. To him it may have<br />

been a moral choice. Who are we to judge that?<br />

Look in the bible. Solomon had many concubines, yet he was considered one <strong>of</strong> the<br />

w<strong>is</strong>est kings that ever lived. David took upon Bathsheba. Are these people suddenly stupid<br />

and worthless?<br />

We all have weaknesses. We should judge theories based on their content, not on the<br />

perpetrators moral subjectiveness. Th<strong>is</strong> would indicate that we know the mind and will <strong>of</strong><br />

God and <strong>of</strong> the human involved, if we chose to do th<strong>is</strong>. Th<strong>is</strong>, <strong>of</strong> course, <strong>is</strong> impossible.<br />

By the way, clandestine means a secret or alterior motive to all <strong>of</strong> you out there who have<br />

never heard <strong>of</strong> it (<strong>is</strong> that everyone?). Marx must have wanted capital<strong>is</strong>m to thrive since he<br />

exploited h<strong>is</strong> wife and murdered h<strong>is</strong> children!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!<br />

Character does not count!!<br />

Next Message by KALISPEL <strong>is</strong> [389].<br />

[399] Pinky: Marx <strong>is</strong> a nut-burger Dear KALISPEL,<br />

Had Marx come up with the theory <strong>of</strong> relativity, I would in no way question its validity.<br />

The theory <strong>of</strong> relativity has nothing to do with human behavior. Social philosophy has<br />

everything to do with it. Either we accept that humans have major weaknesses, or we don’t.<br />

Commun<strong>is</strong>m demands that we don’t. If any leader posesses a quality that <strong>is</strong> not wholly<br />

pure, it will fail. My point <strong>is</strong>; if the man who wrote (with Engels, who <strong>is</strong> another story)<br />

the Commun<strong>is</strong>t Manifesto had such obvious moral frailty, how can we not see the blatant<br />

hypocr<strong>is</strong>y and the obviousness that man cannot build the kind <strong>of</strong> commun<strong>is</strong>t society Marx<br />

env<strong>is</strong>ioned?<br />

406 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Marx <strong>is</strong> the best example <strong>of</strong> why Commun<strong>is</strong>m will fail. Men are, have always been, and<br />

will always be imperfect. My moral judgement <strong>of</strong> him <strong>is</strong> limited to making the much-needed<br />

compar<strong>is</strong>on with h<strong>is</strong> philosophy.<br />

Message [399] referenced by [411] and [413]. Next Message by Pinky <strong>is</strong> [401.3].<br />

[410] Panacea: Marx <strong>is</strong> a nut-burger Pinky wrote in [373]:<br />

I was shocked to learn that Panacea believes that Marx’s personal practice<br />

held no importance in considering the value <strong>of</strong> h<strong>is</strong> philosophy. I think it <strong>is</strong><br />

very dangerous when we refuse to see the people behind the philosophies<br />

we espouse. To claim that a man can be a leacherous egomaniac in h<strong>is</strong> life,<br />

but have some really good ideas regarding how we should work as a society<br />

<strong>is</strong> ludicrous.<br />

Face it, Pinky. You’ll have a difficult time finding someone who doesn’t have skeletons<br />

in the closet. Remember Jefferson, the guy who wrote so much about human emancipation<br />

while having h<strong>is</strong> slaves bear h<strong>is</strong> illigitimate children? Look hard enough, Pinky, and you’ll<br />

find something. Even Washington’s limp, which he bravely told others was a war wound,<br />

was a revolutionary war lie. He got it climbing out <strong>of</strong> h<strong>is</strong> m<strong>is</strong>tresses window, the old lecher.<br />

We must separate the person from the work. Rousseau, Kant, Mann all come to mind.<br />

Few individuals can meld their personalities with their writings, as Goethe did. Although I<br />

don’t blame you for you’re hatred or d<strong>is</strong>gust with Marx’s personal life, I do think you are<br />

m<strong>is</strong>guided to equate that with h<strong>is</strong> writings.<br />

Now, I will address those <strong>of</strong> you who are indignantly reading on asking<br />

yourselves how I can call him a leacherous egomaniac. Karl mentioned in<br />

a previous subm<strong>is</strong>sion that many in th<strong>is</strong> class tend to regard Marx as a god. I<br />

agree, and believe that there are substantial reasons for th<strong>is</strong>. Also, in answer<br />

to Scotts question about if Marx had ever written anything in celebration <strong>of</strong><br />

the human spirit, (no, Panacea, I don’t think Das Kapital counts) he did. He<br />

celebrated h<strong>is</strong> own spirit and out <strong>of</strong> control lust for power as exemplified in<br />

the following passage <strong>of</strong> one <strong>of</strong> h<strong>is</strong> poems:<br />

Then I will wander godlike and victorious Through the ruins <strong>of</strong> the world<br />

And, giving my words an active force, I will feel equal to the creator.<br />

Pinky, I’m impressed! Please give a reference as to where the rest <strong>of</strong> us can find th<strong>is</strong><br />

gem. Hey, you don’t read much classsical style poetry, do you? Because th<strong>is</strong> sounds like<br />

a whole genre <strong>of</strong> Goethe’s writings - which carried over and through to Nietzsche (a very<br />

m<strong>is</strong>understood man). So what <strong>is</strong> your point? Goethe, though he wrote Prometheus, realized<br />

he wasn’t a god. Did Marx? Hardly. Do we think Marx <strong>is</strong> a god? Go study more abnormal<br />

psych, Pinky. The whole point in Marx<strong>is</strong>m <strong>is</strong> to critique - and I’ll side with you if you find<br />

someone who feels Marx <strong>is</strong> God, for he truly will be crazy.<br />

Incidently, Marx didn’t believe in God. He was an athiest.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 407<br />

Franz proclaimed in one <strong>of</strong> h<strong>is</strong> messages that “The revolution <strong>is</strong> coming”<br />

One scholar has counted over fourty anticipations <strong>of</strong> revolutions in the correspondence<br />

between Marx and Engels. Franz <strong>is</strong> eagerly anticipating the<br />

day when h<strong>is</strong> real dream can come to fruition; the momentous day that he<br />

can finally make Jon Huntsman cry.<br />

Boy, won’t th<strong>is</strong> be nice! He who has oppressed so many through h<strong>is</strong> money really should<br />

learn what it <strong>is</strong> like to be equal.<br />

Hey, Pinky, are you a chr<strong>is</strong>tian? Because scholars have documented at least 200 instinces<br />

in which ‘chr<strong>is</strong>tians’ have anticipated the second coming. Yet ‘He’ has yet to come. Get<br />

the point? Whether or not Chr<strong>is</strong>t comes has little to do with how many fanatics are drinking<br />

drugged kool-aid, nor does the coming <strong>of</strong> the revolution Franz awaits have much to do with<br />

whether or not some Marx<strong>is</strong>t fanatics are ditributing pamphlets. It will be a social movement,<br />

just as capital<strong>is</strong>m has been one.<br />

As much as people will try and tell you otherw<strong>is</strong>e, CHARACTER DOES<br />

COUNT! Beware the people who tell you that it doesn’t; they most likely<br />

have clandestine motivation.<br />

Hmm. I would flip that one around, pinky. Beware he who tells you CHARACTER<br />

counts so much (Kennedy, Reagan, and so on) - character has rarely fed starving masses. It<br />

usely ends up being the excuse for it.<br />

I did love the biographical information - I was really impressed, actually. Again, I’m<br />

interested in the reference for that poem.<br />

Panacea<br />

“...we’re in a government scheme designed to kill your dream...” Moz<br />

Next Message by Panacea <strong>is</strong> [423].<br />

[411] Kevin: Re: Marx <strong>is</strong> a nut-burger Pinky wrote in [399]:<br />

had Marx come up with the theory <strong>of</strong> relativity, I would in no way question<br />

it’s validity. The theory <strong>of</strong> relativity has nothing to do with human behavior.<br />

Social philosophy has everything to do with it. Either we accept that<br />

humans have major weaknesses, or we don’t. Commun<strong>is</strong>m demands that<br />

we don’t. If any leader posesses a quality that <strong>is</strong> not wholly pure, it will fail.<br />

My point <strong>is</strong>; if the man who wrote (with Engels, who <strong>is</strong> another story) the<br />

Commun<strong>is</strong>t Manifesto had such obvious moral frailty, how can we not see<br />

the blatant hipocracy and the obviousness that man cannot build the kind <strong>of</strong><br />

commun<strong>is</strong>t society Marx env<strong>is</strong>ioned?<br />

Marx <strong>is</strong> the best example <strong>of</strong> why Commun<strong>is</strong>m will fail. Men are, have<br />

always been, and will always be imperfect. My moral judgement <strong>of</strong> him <strong>is</strong><br />

limited to making the much-needed compar<strong>is</strong>on with h<strong>is</strong> philosophy.<br />

Perhaps you should first have a better understanding <strong>of</strong> what commun<strong>is</strong>m, or social<strong>is</strong>m<br />

for that matter <strong>is</strong>. You are completely <strong>of</strong>f-base. Have you ever read a social<strong>is</strong>t magazine?<br />

408 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Against the Current? Monthly Review? Ever read a social<strong>is</strong>t author? A social<strong>is</strong>t sociolog<strong>is</strong>t?<br />

Do you know that Karl Marx has been dead since March 14th 1883, and that he <strong>is</strong> not coming<br />

back to ra<strong>is</strong>e all commun<strong>is</strong>t martyrs from the dead while sitting at the right side <strong>of</strong> Jesus?<br />

You treat social<strong>is</strong>m as if it <strong>is</strong> a religion which relies on saviors, prayers, and moral perfection.<br />

You are absolutely clueless, I certainly hope you will take the time to read something<br />

before you open your mouth again with such blather. Maybe you could start by reading<br />

Mandel’s introduction to Capital, then perhaps reading some <strong>of</strong> thousands <strong>of</strong> other resources<br />

out there for you to learn from. Maybe Hans has some suggestions?<br />

Next Message by Kevin <strong>is</strong> [421].<br />

[413] KALISPEL: Marx <strong>is</strong> a nut-burger Pinky wrote in [399]<br />

had Marx come up with the theory <strong>of</strong> relativity, I would in no way question<br />

its validity. The theory <strong>of</strong> relativity has nothing to do with human behavior.<br />

Social philosophy has everything to do with it. Either we accept that<br />

humans have major weaknesses, or we don’t.<br />

Of course we accept that humans have weaknesses. The theory <strong>of</strong> relativity operates on<br />

scientific principles. Marx and Bhaskar are trying to develop these principles from a scientific<br />

point <strong>of</strong> view. <strong>What</strong> are the mechan<strong>is</strong>ms at work? Once we know these mechan<strong>is</strong>ms<br />

and can prove them it <strong>is</strong> no different than the theory <strong>of</strong> relativity. Th<strong>is</strong> hasn’t been done yet,<br />

<strong>of</strong> course, but we should study those who devoted their lives to th<strong>is</strong> and if we do not accept<br />

their philosphies then we should be able to prove them wrong.<br />

Commun<strong>is</strong>m demands that we don’t.<br />

Th<strong>is</strong> was a major flaw in commun<strong>is</strong>m. Who would d<strong>is</strong>agree with th<strong>is</strong>?<br />

If any leader posesses a quality that <strong>is</strong> not wholly pure, it will fail. My point<br />

<strong>is</strong>; if the man who wrote (with Engels, who <strong>is</strong> another story) the Commun<strong>is</strong>t<br />

Manifesto had such obvious moral frailty, how can we not see the blatant<br />

hipocracy and the obviousness that man cannot build the kind <strong>of</strong> commun<strong>is</strong>t<br />

society Marx env<strong>is</strong>ioned?<br />

Marx did not build the commun<strong>is</strong>t Soviet Union. Parts <strong>of</strong> h<strong>is</strong> theories were used and<br />

others left out. One <strong>of</strong> commun<strong>is</strong>ms main failings was because much <strong>of</strong> Marx’s theory was<br />

left out. Additionally, Marx did not attempt to write a utopia for mankind. H<strong>is</strong> main point<br />

was to point out the flaws in capital<strong>is</strong>m. How wanted to show that there must be a better way.<br />

The reason he didn’t write a utopia was because a utopia can always be refuted no matter<br />

what it <strong>is</strong>. How? You can just write a better one or punch holes in the ideology. Either way<br />

Marx knew th<strong>is</strong> would do him no good so he simply critiqued capital<strong>is</strong>m.<br />

You say a system will fail if leaders motives aren’t completely pure. Who has comletely<br />

pure motives? Not a single soul. Has the U.S. fallen because Clinton inhaled some marijuana?<br />

I’m willing to bet you think president Clinton <strong>is</strong> scum because you don’t like h<strong>is</strong><br />

personal moral choices.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 409<br />

Marx <strong>is</strong> the best example <strong>of</strong> why Commun<strong>is</strong>m will fail. Men are, have<br />

always been, and will always be imperfect. My moral judgement <strong>of</strong> him <strong>is</strong><br />

limited to making the much-needed compar<strong>is</strong>on with h<strong>is</strong> philosophy.<br />

Perhaps you should first have a better understanding <strong>of</strong> what commun<strong>is</strong>m,<br />

or social<strong>is</strong>m for that matter <strong>is</strong>. You are right on! Have you ever read a<br />

social<strong>is</strong>t magazine? Against the Current? Monthly Review? Ever read a<br />

social<strong>is</strong>t author? A social<strong>is</strong>t sociolog<strong>is</strong>t? Do you know that Karl Marx has<br />

been dead since March 14th 1883, and that he <strong>is</strong> not coming back to ra<strong>is</strong>e<br />

all commun<strong>is</strong>t martyrs from the dead while sitting at the right side <strong>of</strong> Jesus?<br />

I thought Jesus was and Marx were buddies.<br />

Yes, I have read social<strong>is</strong>t authors. Do you claim to know more than most about social<strong>is</strong>m?<br />

You seem to care a lot about personal knowledge. I’ll readily admit there are many who<br />

dwarf my social<strong>is</strong>t knowledge. If you know so much why don’t you explain to the class<br />

what a true system devoid <strong>of</strong> a failing Marx can provide. Then I will be happy to learn from<br />

you.<br />

You treat social<strong>is</strong>m as if it <strong>is</strong> a religion which relies on saviors, prayers,<br />

and moral perfection. You are absolutely clueless, I certainly hope you<br />

will take the time to read something before you open your mouth again<br />

with such blather. Maybe you could start by reading Mandel’s introduction<br />

to Capital, then perhaps reading some <strong>of</strong> thousands <strong>of</strong> other resources out<br />

there for you to learn from. Maybe Hans has some suggestions?<br />

Every society has a foundation with morals laid in it. For example, in most societies<br />

you cannot steal or murder. These morals have a place in protecting rights and producing<br />

happiness. True social<strong>is</strong>m does not ex<strong>is</strong>t at present. We need to d<strong>is</strong>cover how to use these<br />

and whatever other principles there are to create a better place to live. I totally d<strong>is</strong>agree that<br />

th<strong>is</strong> has anything to do with religion, saviors, prayers, or moral perfection. If someone was<br />

m<strong>is</strong>lead before, please know th<strong>is</strong> was not at all my point. My point was that we should judge<br />

theories based on content, predictability, and empirical evidence, not on personal morals <strong>of</strong><br />

the person who developed these theories.<br />

I have read the introduction to Capital very carefully, in fact. I would hope that with your<br />

knowledge a superior system might be developed.<br />

Are you saying that our leaders should all possess moral absolutes? Do you have a<br />

system <strong>of</strong> determining moral against non-moral people? How do we d<strong>is</strong>criminate rights<br />

and priviledges through a society based on morals? Do we simply withold leadership from<br />

non-moral people? In our society it’s done through laws and regulations and enforced by the<br />

police etc? Do you want to take these morals farther? Do you want a society run by religious<br />

leaders that go to church every week? <strong>What</strong>’s your conviction? <strong>What</strong> principles do you go<br />

by and how will you implement th<strong>is</strong>?<br />

Thank-you for your ideas Kevin.<br />

410 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

“some men here, they have a special interest, in you d<strong>is</strong>tress, And they’ll siphon all your<br />

dough! Why don’t you find out for yourself, then you’ll find president Clinton smoking in<br />

some grass against a pane <strong>of</strong> glass...”<br />

Next Message by KALISPEL <strong>is</strong> [510].<br />

[416] Franz: PINKY (from FRANZOLA) Pinky wrote in [373]:<br />

Franz <strong>is</strong>sued the challenge to find a hateful statement in capital. Th<strong>is</strong> may<br />

well be a fruitless effort since the evaluations will be subjective.<br />

please. . . be as subjective as you w<strong>is</strong>h. . . for example, in h<strong>is</strong> answer to a question, Jason<br />

provided a quote in which Marx stated that the Capital<strong>is</strong>t <strong>is</strong> a thief. Jason interpreted th<strong>is</strong><br />

as a moral (value) statement – like “Capital<strong>is</strong>t are low down dirty thieves.” Dr. E points out<br />

that Marx was using th<strong>is</strong> statement as a definition (positive) term – like “the expropriation<br />

<strong>of</strong> surplus value <strong>is</strong> theft.”<br />

the point <strong>of</strong> th<strong>is</strong> course = in depth critique <strong>of</strong> Capital. Perhaps you will decide to read<br />

the section <strong>of</strong> Capital to which Jason makes reference, interpret for yourself and be able to<br />

incorporate in one <strong>of</strong> your own answers later in the course. <strong>What</strong>ever your opinion, if you<br />

are able to back it up with sound reasoning etc. . . it can only help your grade.<br />

so challenge still stands. . . find statement from K.M. which exhibit some sort <strong>of</strong> normative<br />

(un-scientific) sentiment. . .<br />

K.M. <strong>is</strong> a scient<strong>is</strong>t “nut-burger”, not a judgemental “nut-burger.”<br />

First Message by Franz <strong>is</strong> [224].<br />

[418] Pinky: Marx <strong>is</strong> a nut-burger You have all focused so narrowly on what I said that<br />

you have completely m<strong>is</strong>sed my point. No, I do not expect or in any way want our leaders<br />

to be religious fanatics. I never expect to see our society form a religious or moral ideology<br />

that <strong>is</strong> agreeable to all.<br />

HELLO!, THAT IS MY POINT!<br />

Social<strong>is</strong>m, and later; Commun<strong>is</strong>m <strong>is</strong> based upon the assumption that we will be taken care<br />

<strong>of</strong> because our high-minded leaders will know what <strong>is</strong> best. Central planning would be a necessity.<br />

Marx and Engels failed to consider how the very apparatus <strong>of</strong> central planning would<br />

present an ever-present temptation to the holders <strong>of</strong> such power to trun the whole economy<br />

to their own purposes, even possibly military might; rather than serving the consumers.<br />

Whether they are down-right evil or just fruity based on our assesment does not matter.<br />

They have the power.<br />

I agree Thomas Jefferson, George Washington, and Bill Clinton (who, by the way, Panacea,<br />

I do think <strong>is</strong> a true scum-bag) all had/have moral flaws. The beauty <strong>of</strong> it <strong>is</strong>, we are not entirely<br />

beholden to them because <strong>of</strong> the constant threat <strong>of</strong> the great evil: competition. Competition<br />

<strong>is</strong> the very thing that protects us against evil doers and fruit cakes alike. Yes, if competition<br />

was allowed to dominate society’s actions free <strong>of</strong> laws and regulations, it would be a d<strong>is</strong>aster<br />

as well. But Commun<strong>is</strong>m holds no tolerance for competition. Many see it as a really neat<br />

and friendly thing. Real<strong>is</strong>ts will see it as a frightening threat on personal liberty.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 411<br />

Am I wrong? Does Marx not believe that central planning <strong>is</strong> the way to go? Do human<br />

beings not have to occupy the positions? Does Marx embrace the concept <strong>of</strong> competition,<br />

but I just somehow m<strong>is</strong>sed it?<br />

Please enlighten me, I seem to be clueless. Blather, blather, blather......<br />

Message [418] referenced by [421]. Next Message by Pinky <strong>is</strong> [419].<br />

[420] Pinky: Pinky’s Sources Just a note to those <strong>of</strong> you out there interested in my<br />

sources.<br />

The megalomaniactic poem came from: David McLellan, Karl Marx: H<strong>is</strong> Life and<br />

Thought, p.22<br />

The citation <strong>of</strong> the scholar that counted over 40 anticipations <strong>of</strong> revolutions came from:<br />

Robert Payne, Marx, p.338<br />

Another interesting source: Karl Marx and Friedrich Engels, selected Letters, edited by<br />

Fritz J. Raddatz (Little, Brown and Company, 1980)<br />

Next Message by Pinky <strong>is</strong> [430].<br />

[421] Kevin: Re: Marx <strong>is</strong> a nut-burger Pinky wrote in [418]:<br />

Social<strong>is</strong>m, and later; Commun<strong>is</strong>m <strong>is</strong> based upon the assumption that we<br />

will be taken care <strong>of</strong> because our high-minded leaders will know what <strong>is</strong><br />

best. Central planning would be a necessity. Marx and Engels failed to<br />

consider how the very apparatus <strong>of</strong> central planning would present an everpresent<br />

temptation to the holders <strong>of</strong> such power to trun the whole economy<br />

to their own purposes, even possibly military might; rather than serving the<br />

consumers.<br />

Th<strong>is</strong> <strong>is</strong> a terrible generalization about centralized planning and its possibilities and uses.<br />

Central planning was certainly what Marx and Engels believed in; but central does not have<br />

to necessarily imply command by one or a few. Actually its been argued that the technological<br />

means ex<strong>is</strong>t to very easil give everyone a voice in central planning. Read Alex<br />

Cockshott’s book which I recommended ages ago on th<strong>is</strong> l<strong>is</strong>t, its called “Towards a New<br />

Social<strong>is</strong>m” and <strong>is</strong> availible from the archives <strong>of</strong> papers at http://csf.colorado.edu/psn under<br />

a directory with Paul Cockshott’s name on it. It’s a very good book on central planning, and<br />

its m<strong>is</strong>conceptions.<br />

But to bring it back to Marx and Engels they believed in democratic planning, where the<br />

dictatorship <strong>of</strong> the proletariat meant control <strong>of</strong> the means <strong>of</strong> production by the working class.<br />

Certainly not by a small bureaucratic class that <strong>is</strong>sues orders to the proletariat.<br />

Your entire argument <strong>is</strong> put forward in ignorance <strong>of</strong> a century <strong>of</strong> social<strong>is</strong>t d<strong>is</strong>course,<br />

especially that which has taken place West <strong>of</strong> the Former Soviet Union.<br />

moral flaws. The beauty <strong>of</strong> it <strong>is</strong>, we are not entirely beholdent to them<br />

because <strong>of</strong> the constant threat <strong>of</strong> the great evil: COMPETITION. Competition<br />

<strong>is</strong> the very thing that protects us against evil doers and fruit cakes alike.<br />

Yes, if competition was allowed to dominate society’s actions free <strong>of</strong> laws<br />

and regulations, it would be a d<strong>is</strong>aster as well. But Commun<strong>is</strong>m holds no<br />

412 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

tolerance for competition. Many see it as a really neat and friendly thing.<br />

Real<strong>is</strong>ts will see it as a frightening threat on personal liberty.<br />

Such a horrible argument. There was certainly much corruption in the centrally planned<br />

countries, and there <strong>is</strong> certainly much corruption in capital<strong>is</strong>m. Note: you use Commun<strong>is</strong>m<br />

as if its some object that ex<strong>is</strong>ts “behind the backs <strong>of</strong> men” or springs out <strong>of</strong> nowhere commanding<br />

the world; th<strong>is</strong> has certainly nothing to do with Marx’s material<strong>is</strong>t position which<br />

sees h<strong>is</strong>tory as the work <strong>of</strong> men, and not as pure accident or natural law.<br />

As far as competition goes most social<strong>is</strong>ts would say you’re sentence <strong>is</strong> way to general.<br />

If you mean competition, which <strong>is</strong> won or lost by slashing jobs, wages, destroying environments,<br />

etc. they would say competition <strong>is</strong> a no-no. But if what you mean as competition <strong>is</strong><br />

choice between different products that are created by different worker controlled companies<br />

then social<strong>is</strong>ts would say choice <strong>is</strong> a good thing; assuming the general populous would like<br />

several different products to choose from, which <strong>is</strong> a very natural thing.<br />

Some, like myself, contend that competition <strong>is</strong> actually the best way to run a social<strong>is</strong>t<br />

economy if the contradictions which make competition so dangerous are eliminated. Th<strong>is</strong> <strong>is</strong><br />

certainly not social democracy as it involves expropriating capital<strong>is</strong>ts, running autonomous<br />

worker controled corporations, establ<strong>is</strong>hing full-employment, and instituting new means <strong>of</strong><br />

democracy both within the workplace, and outside <strong>of</strong> the workplace. Most would call th<strong>is</strong><br />

market social<strong>is</strong>m. It <strong>is</strong> to an extent market oriented, but that certainly does not mean that I<br />

am against planning. <strong>What</strong> I feel <strong>is</strong> problematic <strong>is</strong> an economy ran entirely on the bas<strong>is</strong> <strong>of</strong><br />

planning.<br />

Next Message by Kevin <strong>is</strong> [440].<br />

[423] Panacea: Re: Marx <strong>is</strong> a nut-burger Oh, Pinky. Sadly, th<strong>is</strong> entire subject <strong>is</strong> so<br />

convoluted. It appears to me that no one knows who <strong>is</strong> responding to who and who said<br />

what. KALISPEL quotes the wrong person in an answer, so does Pinky. Oh, well. The<br />

d<strong>is</strong>cussion was quite unnecessary anyhow if everyone threw <strong>of</strong>f their opinions and simply<br />

stuck to facts.<br />

Fact: Marx <strong>is</strong> not god, nor was he ever. Much like the respect which we give important<br />

and influential figures throughout h<strong>is</strong>tory, so some <strong>of</strong> us feel Marx deserves similar respect.<br />

If you feel any <strong>of</strong> us have deified him, Pinky, I’d sure like to know what colour the sky <strong>is</strong> in<br />

your world, cause it sure ain’t blue.<br />

Fact: The Soviet Union, Cuba, Eastern Europe, China, etc are and were NOT MARX-<br />

IST GOVERNMENTS. Sorry, Pinky. Every one <strong>of</strong> these regimes have embraced facets <strong>of</strong><br />

Marx<strong>is</strong>m and ignored others. Th<strong>is</strong> may not give you the warm fuzzzy you desire, Pinky, but<br />

you’d better accept it.<br />

Pinky writes:<br />

You have all focused so narrowly on what I said that you have completely<br />

m<strong>is</strong>sed my point. No, I do not expect or in any way want our leaders to<br />

be religious fanatics. I never expect to see our society form a religious or<br />

moral ideology that <strong>is</strong> agreeable to all.<br />

HELLO!, THAT IS MY POINT!


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 413<br />

Social<strong>is</strong>m, and later; Commun<strong>is</strong>m <strong>is</strong> based upon the assumption that we<br />

will be taken care <strong>of</strong> because our high-minded leaders will know what <strong>is</strong><br />

best. Central planning would be a necessity. Marx and Engels failed to<br />

consider how the very apparatus <strong>of</strong> central planning would present an everpresent<br />

temptation to the holders <strong>of</strong> such power to trun the whole economy<br />

to their own purposes, even possibly military might; rather than serving the<br />

consumers.<br />

Woah, Pinky. you make a whole lot <strong>of</strong> conclusions based on shaky if not untrue prem<strong>is</strong>es.<br />

<strong>Exam</strong>ine the U.S.’s “democracy” and examine the concept “commun<strong>is</strong>m”. It doesn’t take a<br />

real bright boy to figure out that commun<strong>is</strong>m IS democracy. So who <strong>is</strong> being taken care <strong>of</strong><br />

by high-minded leaders? LOOK AROUND! THAT <strong>is</strong> going on RIGHT HERE! In fact, all<br />

<strong>of</strong> your above statements have or have had to do with our present government.<br />

SSO WHAT IS YOUR POINT? You just described Commun<strong>is</strong>m as American style government.<br />

Now we are all lost as to what you mean.<br />

Whether they are down-right evil or just fruity based on our assesment does<br />

not matter. They have the power.<br />

And here you just described Newt Gingrich and Alan Greenspan, among others.<br />

The beauty <strong>of</strong> it <strong>is</strong>, we are not entirely beholdent to them because <strong>of</strong> the<br />

constant threat <strong>of</strong> the great evil: COMPETITION. Competition <strong>is</strong> the very<br />

thing that protects us against evil doers and fruit cakes alike. Yes, if competition<br />

was allowed to dominate society’s actions free <strong>of</strong> laws and regulations,<br />

it would be a d<strong>is</strong>aster as well. But Commun<strong>is</strong>m holds no tolerance<br />

for competition. Many see it as a really neat and friendly thing. Real<strong>is</strong>ts<br />

will see it as a frightening threat on personal liberty.<br />

Pinky, correct your own statement: You see it as frightening (perhaps because you don’t<br />

understand it? We fear what we don’t understand.) See, both social<strong>is</strong>m/commun<strong>is</strong>m have<br />

been described as “emancipatory economics” - a term hardly applicable to capital<strong>is</strong>m. It <strong>is</strong><br />

the realization that constant competition, although it may provide a better refrigerator, MAY<br />

NOT BE HELPFUL TO HUMANITY. (How much <strong>of</strong> your Hi-tech goodies would you give<br />

up in order that everyone in america had something to eat?) Pinky, many <strong>of</strong> us could care<br />

less for bigger better faster sleeker smarter etc. Many <strong>of</strong> us think that after 5000 years <strong>of</strong><br />

human progress, maybe we ought to focus more on making sure everyone has food, shelter,<br />

education. Pinky, some <strong>of</strong> us love HUMANS more than THINGS.<br />

Yeah yeah yeah, th<strong>is</strong> <strong>is</strong> all utopian bullshit, you’re thinking. <strong>What</strong>ever. The point here <strong>is</strong><br />

- YOU ARE MISSING THE POINT. He’s not god, but he had a damn good idea with alot<br />

more merit than the crap we have right now.<br />

Panacea<br />

follower <strong>of</strong> the Cult <strong>of</strong> Marx, Salt Lake City Coven.<br />

Next Message by Panacea <strong>is</strong> [435].<br />

[430] Pinky: Marx <strong>is</strong> a nut-burger Panacea writes:<br />

414 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

Fact: The Soviet Union, Cuba, Eastern Europe, China, etc are and were<br />

NOT MARXIST GOVERNMENTS. Sorry, Pinky. Every one <strong>of</strong> these regimes<br />

have embraced facets <strong>of</strong> Marx<strong>is</strong>m and ignored others. Th<strong>is</strong> may not give<br />

you the warm fuzzzy you desire, Pinky, but you’d better accept it.<br />

I will accept it as soon as you explain to me what a Marx<strong>is</strong>t government <strong>is</strong>. Marx<strong>is</strong>m <strong>is</strong><br />

supposed to be simply a critique <strong>of</strong> Capital<strong>is</strong>m, but there <strong>is</strong> obviously a societal intent behind<br />

it, because Marx<strong>is</strong>ts always know when a Social<strong>is</strong>t/Commun<strong>is</strong>t society <strong>is</strong> not Marx<strong>is</strong>t.<br />

Woah, Pinky. you make a whole lot <strong>of</strong> conclusions based on shaky if not<br />

untrue prem<strong>is</strong>es. <strong>Exam</strong>ine the U.S.’s “democracy” and examine the concept<br />

“commun<strong>is</strong>m”. It doesn’t take a real bright boy to figure out that commun<strong>is</strong>m<br />

IS democracy.<br />

I agree, anyone who would figure that Commun<strong>is</strong>m <strong>is</strong> democracy could not possibly be<br />

a bright boy. Fortunately, I am not only bright, but a girl as well. Consequently, I deem<br />

your assessment <strong>of</strong> Commun<strong>is</strong>m an enormous truckload <strong>of</strong> hooey. A democracy takes place<br />

when the majority makes the determinations as to how their society will interact. Last time I<br />

checked, Commun<strong>is</strong>m was not nearly a majority view in America. You will conclude, I am<br />

guessing, that th<strong>is</strong> <strong>is</strong> because American’s are either too greedy or too stupid.<br />

So who <strong>is</strong> being taken care <strong>of</strong> by high-minded eaders? LOOK AROUND!<br />

THAT <strong>is</strong> going on RIGHT HERE! In fact, all <strong>of</strong> your above statements have<br />

or have had to do with our present government.<br />

Yes, everyone knows that our present system takes many paternal<strong>is</strong>tic actions towards it’s<br />

citizens. Some <strong>of</strong> which I agree and some <strong>of</strong> which I do not. I do not see, however, how th<strong>is</strong><br />

means that the obvious conclusion to be made based on th<strong>is</strong> that we turn everything over to<br />

the government entirely.<br />

SSO WHAT IS YOUR POINT? You just described Commun<strong>is</strong>m as American<br />

style government. Now we are all lost as to what you mean.<br />

Correction: now WE are all confused as to what YOU mean.<br />

Pinky, correct your own statement: You see it as frightening (perhaps because<br />

you don’t understand it? We fear what we don’t understand.)<br />

You obviously do not understand me, but I will not be so patronizing as to psychologically<br />

evaluate you and conclude that you must then fear me. Thanks for pretending to care, all the<br />

same.<br />

See, both social<strong>is</strong>m/commun<strong>is</strong>m have been described as “emancipatory economics”<br />

- a term hardly applicable to capital<strong>is</strong>m.<br />

O.K., I know what, you can go and explain th<strong>is</strong> to all the people who are r<strong>is</strong>king their<br />

lives in makeshift boats in hopes <strong>of</strong> escaping their emancipation in Cuba to live in oppressive<br />

America. Note: you did not say that Marx<strong>is</strong>m was emancipatory; you said Social<strong>is</strong>m/Commun<strong>is</strong>m.<br />

That, as you know <strong>is</strong> what Cuba <strong>is</strong>.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 415<br />

It <strong>is</strong> the realization that constant competition, although it may provide a better<br />

refrigerator, MAY NOT BE HELPFUL TO HUMANITY. (How much<br />

<strong>of</strong> your Hi-tech goodies would you give up in order that everyone in america<br />

had something to eat?) Pinky, many <strong>of</strong> us could care less for bigger<br />

better faster sleeker smarter etc. Many <strong>of</strong> us think that after 5000 years <strong>of</strong><br />

human progress, maybe we ought to focus more on making sure everyone<br />

has food, shelter, education. Pinky, some <strong>of</strong> us love HUMANS more than<br />

THINGS.<br />

Again, another unfortunate evaluation <strong>of</strong> my psyche. Didn’t you say earlier that we<br />

should stick to the facts? Oh, well. Though I am sorry that it <strong>is</strong> necessary for my to do<br />

so in order to have a phil<strong>is</strong>ophical d<strong>is</strong>cussion, I will reveal to you my present relationship<br />

with humanity. For the duration <strong>of</strong> my adult life, I have given 10% <strong>of</strong> my income for charitable<br />

purposes. Th<strong>is</strong> expense <strong>is</strong> the greatest single expenditure in my entire budget. More<br />

than my rent, groceries, car payment etc. The novel part <strong>of</strong> the whole thing <strong>is</strong> th<strong>is</strong>: I do it<br />

voluntarily. I gain great pleasure in giving to causes that I feel will be beneficial to others.<br />

Being nice <strong>is</strong>n’t being nice if you are forced to be nice.<br />

Panacea<br />

follower <strong>of</strong> the Cult <strong>of</strong> Marx, Salt Lake City Coven.<br />

I think th<strong>is</strong> joke has about exhausted its humerous possibilities.<br />

Pinky<br />

Message [430] referenced by [459]. Next Message by Pinky <strong>is</strong> [459].<br />

[435] Panacea: Re: why society won’t embrace Marx Ramb<strong>is</strong> recently wrote:<br />

And while capital<strong>is</strong>m and democracy aren’t perfect, they may indeed fulfill<br />

the saying, “They’re crappy ways <strong>of</strong> doing things, but it <strong>is</strong> the best we have.”<br />

I’m sorry, Ramb<strong>is</strong>. Compare the dictionary meaning <strong>of</strong> ‘Democracy’ with what you know<br />

about Marx. Instead <strong>of</strong> our American ‘democratic’ republic, in which the poor have little<br />

or no rights, and the road to any significant public <strong>of</strong>fice requires millions, commun<strong>is</strong>m <strong>is</strong><br />

more ‘by the people for the people.’ A simple fact. Your arguments have little bas<strong>is</strong> in<br />

understanding the text or the topic - you sound like some sixth grader whose “daddy told me<br />

commun<strong>is</strong>m <strong>is</strong> bad.”<br />

Next Message by Panacea <strong>is</strong> [437].<br />

[437] Panacea: Re: Marx <strong>is</strong> a nut-burger Pinky - I am sorry I took you for a boy - my<br />

m<strong>is</strong>take. I am also sorry you further the stereotype <strong>of</strong> american political thought.<br />

I will accept it as soon as you explain to me what a Marx<strong>is</strong>t government<br />

<strong>is</strong>. Marx<strong>is</strong>m <strong>is</strong> supposed to be simply a critique <strong>of</strong> Capital<strong>is</strong>m, but there <strong>is</strong><br />

obviously a societal intent behind it, because Marx<strong>is</strong>ts always know when<br />

a Social<strong>is</strong>t/Commun<strong>is</strong>t society <strong>is</strong> not Marx<strong>is</strong>t.<br />

There <strong>is</strong> a reason, Pinky. Marx<strong>is</strong>ts put no faith in dictatorship <strong>of</strong> the few over the many.<br />

When Marx<strong>is</strong>ts see th<strong>is</strong> happen, they d<strong>is</strong>tance themselves from such a government. Marx<strong>is</strong>ts<br />

416 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

focus on the emancipation <strong>of</strong> mankind from economic chains - all <strong>of</strong> your subm<strong>is</strong>sions for<br />

‘Marx<strong>is</strong>t’ regimes hardly fit th<strong>is</strong>. And last - capital<strong>is</strong>m does not ex<strong>is</strong>t in a Marx<strong>is</strong>t government.<br />

There are plenty <strong>of</strong> source material for you to link the Soviets, for example, with<br />

capital<strong>is</strong>m. I believe it was 1922, although I may be wrong as to the date, that Lenin melded<br />

h<strong>is</strong> Bolsheviks with a market economy in the hopes to gain better control over h<strong>is</strong> country.<br />

See th<strong>is</strong>?<br />

I agree, anyone who would figure that Commun<strong>is</strong>m <strong>is</strong> democracy could not<br />

possibly be a bright boy. Consequently, I deem your assessment <strong>of</strong> Commun<strong>is</strong>m<br />

an enormous truckload <strong>of</strong> hooey. A democracy takes place when<br />

the majority makes the determinations as to how their society will interact.<br />

Last time I checked, Commun<strong>is</strong>m was not nearly a majority view in America.<br />

You will conclude, I am guessing, that th<strong>is</strong> <strong>is</strong> because American’s are<br />

either too greedy or too stupid.<br />

Sometimes you are down right funny to read, Pinky. Luckily, the validity <strong>of</strong> whether or<br />

not Commun<strong>is</strong>m <strong>is</strong> a democratic form <strong>of</strong> government <strong>is</strong> not based on America’s majority<br />

interest in it. That <strong>is</strong> pretty sad logic. Oh, and I’m sorry, America <strong>is</strong> hardly much <strong>of</strong> a<br />

democracy - when was the last time your vote mattered in a presidential election? Never. We<br />

have an electoral college, because people like Adams and Jefferson (“fathers <strong>of</strong> democracy”)<br />

felt the poor masses were too uneducated to make their own dec<strong>is</strong>ions.<br />

“Commun<strong>is</strong>m” <strong>is</strong> a democratic form - th<strong>is</strong> has nothing to do with whether or not America<br />

as a majority wants it, just like the majority opinion won’t make the sun turn green.<br />

Yes, everyone knows that our present system takes many paternal<strong>is</strong>tic actions<br />

towards it’s citizens. Some <strong>of</strong> which I agree and some <strong>of</strong> which I do<br />

not. I do not see, however, how th<strong>is</strong> means that the obvious conclusion to be<br />

made based on th<strong>is</strong> that we turn everything over to the government entirely.<br />

Another m<strong>is</strong>conception about commun<strong>is</strong>m. And I certainly made no statement <strong>of</strong> advocacy<br />

for th<strong>is</strong>.<br />

I wrote:<br />

SO WHAT IS YOUR POINT? You just described Commun<strong>is</strong>m as American<br />

style government. Now we are all lost as to what you mean.<br />

Pinky wrote:<br />

Correction: now WE are all confused as to what YOU mean.<br />

Well, maybe you’re right, I’m not perfect. Let me rephrase it: You described the ills <strong>of</strong><br />

commun<strong>is</strong>m in order to justify its supposed faults. In doing so, you inadvertently described<br />

the ills <strong>of</strong> our own government - revealing its faults - as well as d<strong>is</strong>playing a few major<br />

m<strong>is</strong>conceptions about commun<strong>is</strong>m. Go read, Pinky<br />

I wrote:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 417<br />

See, both social<strong>is</strong>m/commun<strong>is</strong>m have been described as “emancipatory economics”<br />

- a term hardly applicable to capital<strong>is</strong>m.<br />

Pinky answered:<br />

O.K., I know what, you can go and explain th<strong>is</strong> to all the people who are<br />

r<strong>is</strong>king their lives in makeshift boats in hopes <strong>of</strong> escaping their emancipation<br />

in Cuba to live in oppressive America. Note: you did not say that<br />

Marx<strong>is</strong>m was emancipatory; you said Social<strong>is</strong>m/Commun<strong>is</strong>m. That, as you<br />

know <strong>is</strong> what Cuba <strong>is</strong>.<br />

I’m sorry, Pinky - the human rights abuses, the dictatorship <strong>of</strong> Fidel, the very economics<br />

<strong>of</strong> their country all show otherw<strong>is</strong>e. And take a walk around the world - you’ll find that<br />

america really <strong>is</strong> oppressive - the reason it makes Amnesty international’s l<strong>is</strong>t <strong>of</strong> countries<br />

with Human Rights abuses EVERY YEAR.<br />

Though I am sorry that it <strong>is</strong> necessary for my to do so in order to have a<br />

phil<strong>is</strong>ophical d<strong>is</strong>cussion, I will reveal to you my present relationship with<br />

humanity. For the duration <strong>of</strong> my adult life, I have given 10% <strong>of</strong> my income<br />

for charitable purposes. Th<strong>is</strong> expense <strong>is</strong> the greatest single expenditure in<br />

my entire budget. More than my rent, groceries, car payment etc. The novel<br />

part <strong>of</strong> the whole thing <strong>is</strong> th<strong>is</strong>: I do it voluntarily. I gain great pleasure in<br />

giving to causes that I feel will be beneficial to others. Being nice <strong>is</strong>n’t<br />

being nice if you are forced to be nice.<br />

Pinky, few <strong>of</strong> us are interested in whether or not you have been paying your full tithe to<br />

the church <strong>of</strong> your choice. It <strong>is</strong> commendable, yet unimportant - as <strong>is</strong> your own evaluation<br />

<strong>of</strong> the human psyche. Being nice <strong>is</strong> nice - period. Now, you obviously have an opinion as to<br />

whether commun<strong>is</strong>ts give freely, and I respect that (though I d<strong>is</strong>agree).<br />

You are, I assume, LDS. Read much h<strong>is</strong>tory <strong>of</strong> the church? Brigham Young was a forerunner<br />

<strong>of</strong> commun<strong>is</strong>m, trying it for awhile right here in the valley. Evidently the Mormons<br />

weren’t ready for it - many were simply greedy. But Brigham declared that, although it<br />

failed at present, God will establ<strong>is</strong>h the UNITED ORDER or some such later at the second<br />

coming. So Mormons are very much like many chr<strong>is</strong>tian marx<strong>is</strong>ts - they focus on a type <strong>of</strong><br />

future revolution which will bring a divine form <strong>of</strong> Commun<strong>is</strong>m. I can deal with that.<br />

I mean no d<strong>is</strong>respect to your faith, it <strong>is</strong> commendable. But because your b<strong>is</strong>hop says<br />

(which they do) that “commun<strong>is</strong>m <strong>is</strong> <strong>of</strong> the devil”, tell him to open a book other than h<strong>is</strong><br />

priesthood manual. He <strong>is</strong> way <strong>of</strong>f on th<strong>is</strong> one.<br />

Message [437] referenced by [459]. Next Message by Panacea <strong>is</strong> [465].<br />

[440] Kevin: Marx, Social<strong>is</strong>m, and Comments [was: Marx <strong>is</strong> nut] Previously on th<strong>is</strong><br />

l<strong>is</strong>t there was a d<strong>is</strong>cussion on Marx and Social<strong>is</strong>m which has now degenerated into principly<br />

a name-calling contest. Let me <strong>of</strong>fer a few thoughts in question and answer format:<br />

Q: Marx<strong>is</strong>ts always complain that the countries we know as social<strong>is</strong>t, like Cuba, North<br />

Korea, or the Former Soviet Union are not social<strong>is</strong>t; but rather state capita<strong>is</strong>m, bureaucratic<br />

collectiv<strong>is</strong>t, or some other Marxese term. How <strong>is</strong> that conclusion arrived at?<br />

418 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

A: Marx<strong>is</strong>ts, or anyone trying to understand Marx, should analyze the contradictions<br />

within a society. Such as between a bureaucratic class, and the working class; or contradictions<br />

between middle management and the working class.<br />

Ex.<br />

Has a new bourgeo<strong>is</strong>ie developed within these societies?<br />

* To what extent are worker’s able to control the means <strong>of</strong> production?<br />

* Is surplus value extracted from the labor <strong>of</strong> the proletariat?<br />

* Is th<strong>is</strong> value extracted by their choice? Can they vote on how much to extract from their<br />

labor, or where to allocate it?<br />

* Is the working class unable to control the actions <strong>of</strong> the new bureaucratic class? Are<br />

career politicians commonplace in these societies, or <strong>is</strong> their mass-based democracy? Does<br />

th<strong>is</strong> new bureaucratic class resort to violence to control the desires <strong>of</strong> the proletariat? Or has<br />

the bureaucratic class establ<strong>is</strong>hed a ruling ideology in these countries to justify its rule?<br />

These are a few <strong>of</strong> the parralels Marx<strong>is</strong>ts draw to come up with theories <strong>of</strong> state capital<strong>is</strong>m,<br />

or bureaucratic collectiv<strong>is</strong>m, etc; when trying to evaluate the handful <strong>of</strong> countries in the<br />

world who still <strong>of</strong>ficially proclaim themselves as “worker’s states.”<br />

Notes:<br />

(bourgeo<strong>is</strong>ie = ruling class, capital<strong>is</strong>ts)<br />

Q: Were the Mormon priests commun<strong>is</strong>t? Was Robert Owen a commun<strong>is</strong>t?<br />

A: To evaluate the “utopian societies,” in Marx<strong>is</strong>t terminology, one needs to recall Marx’s<br />

theory <strong>of</strong> h<strong>is</strong>tory; in which the advancement <strong>of</strong> the means <strong>of</strong> production and the amount<br />

<strong>of</strong> goods it can produce leads towards new social orders. For Marx, social<strong>is</strong>m comes as<br />

the synthes<strong>is</strong> <strong>of</strong> the contradictions <strong>of</strong> capital<strong>is</strong>m doing battle; but only in those societies in<br />

which productivity <strong>is</strong> high enough to sustain a social<strong>is</strong>t society. Marx would never thought<br />

that social<strong>is</strong>m could emerge out <strong>of</strong> feudal<strong>is</strong>m or small-scale mercantile capital<strong>is</strong>m; because<br />

societies aggregate production was not high enough to meet the demands <strong>of</strong> all. Nor did<br />

Marx feel that its economically viable to start small communes in the country.<br />

If you want to read about commun<strong>is</strong>t priests perhaps you should pick up some information<br />

on liberation theology. Or read the book by Herbert Aptheker on dialogue between<br />

Chr<strong>is</strong>tians and Marx<strong>is</strong>ts; I forget the exact title, but you should be able to find it. Afterwards<br />

I can direct you to a few priests, online, who could d<strong>is</strong>cuss with you their Marxian justice<br />

theory, and how it relates with Chr<strong>is</strong>tianity.<br />

Q: When did Marx-Engels say a central plan would be necessary to organize a new form<br />

<strong>of</strong> society?<br />

A: Th<strong>is</strong> quote comes from Frederick Engels’s Principles <strong>of</strong> Commun<strong>is</strong>m from 1847:<br />

<strong>What</strong> will th<strong>is</strong> new social order [social<strong>is</strong>m] look like?<br />

Above all, it will have to take the control <strong>of</strong> industry and <strong>of</strong> all branches <strong>of</strong><br />

production out <strong>of</strong> the hands <strong>of</strong> mutually competing individuals, and instead


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 419<br />

institute a system in which all these branches <strong>of</strong> production are operated<br />

by society as a whole – that <strong>is</strong>, for the common account, according to a<br />

common plan, and with the participation <strong>of</strong> all members <strong>of</strong> society.<br />

It will, in other words, abol<strong>is</strong>h competition and replace it with association.<br />

Note: Marx held the same view at the time <strong>of</strong> h<strong>is</strong> death. You may also want to read the rest<br />

<strong>of</strong> Principles <strong>of</strong> Commun<strong>is</strong>m found at http://www.marx<strong>is</strong>ts.org/archive/marx/works/1847/11/princom.htm<br />

for a good introduction into the basic generalities <strong>of</strong> M-E’s thought and political<br />

programme. I feel it makes a better non-technical introduction to M-E’s immature political<br />

theory than the Commun<strong>is</strong>t Manifesto. But also understand that Marx modified and<br />

changed some <strong>of</strong> the views he held in the Manifesto/Principles as he matured in h<strong>is</strong> study <strong>of</strong><br />

political economy; which culminated in Capital. But you can get the general idea from the<br />

documents, then debate the details.<br />

Next Message by Kevin <strong>is</strong> [466].<br />

[459] Pinky: Re: Marx <strong>is</strong> a nut-burger I wrote in [430]:<br />

I will accept it as soon as you explain to me what a Marx<strong>is</strong>t government<br />

<strong>is</strong>. Marx<strong>is</strong>m <strong>is</strong> supposed to be simply a critique <strong>of</strong> Capital<strong>is</strong>m, but there <strong>is</strong><br />

obviously a societal intent behind it, because Marx<strong>is</strong>ts always know when<br />

a Social<strong>is</strong>t/Commun<strong>is</strong>t society <strong>is</strong> not Marx<strong>is</strong>t.<br />

Panacea answered in [437]:<br />

There <strong>is</strong> a reason, Pinky. Marx<strong>is</strong>ts put no faith in dictatorship <strong>of</strong> the few<br />

over the many. When Marx<strong>is</strong>ts see th<strong>is</strong> happen, they d<strong>is</strong>tance themselves<br />

from such a government. Marx<strong>is</strong>ts focus on the emancipation <strong>of</strong> mankind<br />

from economic chains - all <strong>of</strong> your subm<strong>is</strong>sions for ‘Marx<strong>is</strong>t’ regimes hardly<br />

fit th<strong>is</strong>.<br />

Emancipation. That <strong>is</strong> the best you can do in your effort to define Marx<strong>is</strong>m? You don’t<br />

know how it will happen, but as soon as a society comes about that <strong>is</strong> without any problems<br />

and the sun shines every day, that will be the fulfillment <strong>of</strong> the Marx<strong>is</strong>t propecy.<br />

I wrote:<br />

I agree, anyone who would figure that Commun<strong>is</strong>m <strong>is</strong> democracy could not<br />

possibly be a bright boy. Consequently, I deem your assessment <strong>of</strong> Commun<strong>is</strong>m<br />

an enormous truckload <strong>of</strong> hooey. A democracy takes place when<br />

the majority makes the determinations as to how their society will interact.<br />

Last time I checked, Commun<strong>is</strong>m was not nearly a majority view in America.<br />

You will conclude, I am guessing, that th<strong>is</strong> <strong>is</strong> because American’s are<br />

either too greedy or too stupid.<br />

Panacea answered:<br />

“Commun<strong>is</strong>m” <strong>is</strong> a democratic form - th<strong>is</strong> has nothing to do with whether<br />

or not America as a majority wants it, just like the majority opinion won’t<br />

make the sun turn green.<br />

420 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

So you are saying that it <strong>is</strong> democratic to force a social system upon people who d<strong>is</strong>agree<br />

because you think that it <strong>is</strong> a democracy. Now <strong>is</strong>n’t forcing a system upon people, (as<br />

democratic as the system itself might be) by defenition, un-democratic if they do not want<br />

it?<br />

I wrote:<br />

Yes, everyone knows that our present system takes many paternal<strong>is</strong>tic actions<br />

towards it’s citizens. Some <strong>of</strong> which I agree and some <strong>of</strong> which I do<br />

not. I do not see, however, how th<strong>is</strong> means that the obvious conclusion to be<br />

made based on th<strong>is</strong> that we turn everything over to the government entirely.<br />

Panacea answered:<br />

Another m<strong>is</strong>conception about commun<strong>is</strong>m. And I certainly made no statement<br />

<strong>of</strong> advocacy for th<strong>is</strong>.<br />

Where was the m<strong>is</strong>conception? I know YOUR definition <strong>of</strong> the government will be “The<br />

people”. That does not change the fact that it <strong>is</strong>, indeed, the government<br />

Panacea wrote:<br />

See, both social<strong>is</strong>m/commun<strong>is</strong>m have been described as “emancipatory economics”<br />

- a term hardly applicable to capital<strong>is</strong>m.<br />

Pinky answered:<br />

O.K., I know what, you can go and explain th<strong>is</strong> to all the people who are<br />

r<strong>is</strong>king their lives in makeshift boats in hopes <strong>of</strong> escaping their emancipation<br />

in Cuba to live in oppressive America. Note: you did not say that<br />

Marx<strong>is</strong>m was emancipatory; you said Social<strong>is</strong>m/Commun<strong>is</strong>m. That, as you<br />

know <strong>is</strong> what Cuba <strong>is</strong>.<br />

Panacea answered:<br />

I’m sorry, Pinky - the human rights abuses, the dictatorship <strong>of</strong> Fidel, the<br />

very economics <strong>of</strong> their country all show otherw<strong>is</strong>e. And take a walk<br />

around the world - you’ll find that america really <strong>is</strong> oppressive - the reason<br />

it makes Amnesty international’s l<strong>is</strong>t <strong>of</strong> countries with Human Rights<br />

abuses EVERY YEAR.<br />

Color me stunned. I knew you were whacked out, but you are actually telling me that the<br />

Cubans don’t know how great they have it. Th<strong>is</strong> speaks for itself. I need not point out how<br />

removed from reality you would need to be to make such a statement. (but I like to do it)<br />

How completely sick <strong>of</strong> you to maintain that people are putting their lives at r<strong>is</strong>k because<br />

they are too stupid to know how happy they should be. If your response was based on not<br />

understanding that when I said the people were escaping their “emancipation” was sarcasm,<br />

my point still stands: How <strong>is</strong> it emancipatory?<br />

Panacea answered to my statement <strong>of</strong> giving 10% <strong>of</strong> my income freely:


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 421<br />

Pinky, few <strong>of</strong> us are interested in whether or not you have been paying your<br />

full tithe to the church <strong>of</strong> your choice. It <strong>is</strong> commendable, yet unimportant -<br />

as <strong>is</strong> your own evaluation <strong>of</strong> the human psyche. Being nice <strong>is</strong> nice - period.<br />

So, it <strong>is</strong> really nice that residents <strong>of</strong> the State Pr<strong>is</strong>on make us signs. It doesn’t matter why,<br />

because we like signs, they help us to know how to be courteous drivers. We like that, it <strong>is</strong><br />

nice. Forget the motivation, it <strong>is</strong> just nice. Nice, nice, nice.......<br />

Now, you obviously have an opinion as to whether commun<strong>is</strong>ts give freely,<br />

and I respect that (though I d<strong>is</strong>agree).<br />

You are, I assume, LDS. Read much h<strong>is</strong>tory <strong>of</strong> the church? Brigham Young<br />

was a forrunner <strong>of</strong> commun<strong>is</strong>m, trying it for awhile right here in the valley.<br />

Evidently the Mormons were’nt ready for it - many were simply greedy.<br />

But Brigham declared that, although it failed at present, God will establ<strong>is</strong>h<br />

the UNITED ORDER or some such later at the second coming. So Mormons<br />

are very much like many chr<strong>is</strong>tian marx<strong>is</strong>ts - they focus on a type <strong>of</strong><br />

future revolution which will bring a divine form <strong>of</strong> Commun<strong>is</strong>m. I can deal<br />

with that.<br />

Good, get back to me at the second coming. In the meantime, let’s try to ex<strong>is</strong>t in reality.<br />

I mean no d<strong>is</strong>respect to your faith, it <strong>is</strong> commendable. But because your<br />

b<strong>is</strong>hop says (which they do) that “commun<strong>is</strong>m <strong>is</strong> <strong>of</strong> the devil”, tell him to<br />

open a book other than h<strong>is</strong> priesthood manual. He <strong>is</strong> way <strong>of</strong>f on th<strong>is</strong> one.<br />

Panacea, your method <strong>of</strong> argumentation <strong>is</strong> truly pathetic. Let’s review:<br />

1. You attack my ability to give by stating that “Some <strong>of</strong> us care more for HUMANS than<br />

THINGS”.<br />

2. I unenthusiastically defend myself, letting you know that I care as well, as <strong>is</strong> exemplified<br />

by my money, saying I do not see how it <strong>is</strong> relevant.<br />

3. My answer proves to you that people don’t need you to force them to do “nice” things.<br />

4. Th<strong>is</strong> really messes you up, so you say it <strong>is</strong> “unimportant” (Again, despite the fact that<br />

you were the one that asked.)<br />

5. Then, another bright and shining contradiction: though the fact that I pay my thithes <strong>is</strong><br />

completely unimportant, you launch into a 3-paragraph attack on it.<br />

I hope you are not planning to go to law school.<br />

Anyway, I do not need to justify myself to you. I let you know that you were wrong: I<br />

do give freely <strong>of</strong> my earthly belongings. Church h<strong>is</strong>tory has nothing to do with anything in<br />

th<strong>is</strong> d<strong>is</strong>cussion. The point began and ended with my proving you wrong. If it helps, I was<br />

also named “volunteer <strong>of</strong> the year” <strong>of</strong> the boys and girls clubs <strong>of</strong> <strong>Utah</strong>. There – now are you<br />

going to try and question my service there because <strong>of</strong> the boys and girls club’s h<strong>is</strong>tory?<br />

Message [459] referenced by [465], [477], [484], [529], [534], and [536]. Next Message by Pinky <strong>is</strong> [479].<br />

422 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[465] Panacea: Marx <strong>is</strong> a nut-burger Pinky recently sent a rather humourous message<br />

[459], I hope most <strong>of</strong> you found it interesting, I know I did.<br />

Some <strong>of</strong> the most interesting parts were about how social<strong>is</strong>m/commun<strong>is</strong>m/marx<strong>is</strong>m/whatever<br />

she wants to call it <strong>is</strong> by necessity forced upon the masses. Another point I actually laughed<br />

at was her boasting about being volunteer <strong>of</strong> the year. Congratulations, Pinky - again, though,<br />

your personal virtue has little to do with the d<strong>is</strong>cussion. Or should we all just start citing<br />

credentials? Do you live in a vacuum called “ME”, Pinky?<br />

Where do you find it necessary to make such an illogical statement? Tell you what, I<br />

know you are fairly intelligent - I’ll just figure you find it hard to express what you mean.<br />

Happens to everyone, me too.:<br />

Color me stunned. I knew you were whacked out, but you are actually<br />

telling me that the Cuban’s don’t know how great they have it. Th<strong>is</strong> speaks<br />

for itself. I need not point out how removed from reality you would need<br />

to be to make such a statement. (but I like to do it) How completely sick<br />

<strong>of</strong> you to maintain that people are putting their lives at r<strong>is</strong>k because they<br />

are too stupid to know how happy they should be. If your response was<br />

based on not understanding that when I said the people were escaping their<br />

“emancipation” was sarcasm, my point still stands: How <strong>is</strong> it emancipatory?<br />

Pinky, I think Kevin was right when he said th<strong>is</strong> seems to have degenerated to name<br />

calling. I hope we can keep th<strong>is</strong> on an intellectual level.<br />

1) I don’t, nor have I ever supported Fidel’s regime. I don’t view them as anything more<br />

than an attempt at commun<strong>is</strong>m, having failed m<strong>is</strong>erably when internecine warfare began<br />

with Che Guevara’s murder. It <strong>is</strong> a dictatorship, and I am sad about the effects on their<br />

people. It <strong>is</strong> recognizable (and the opinion <strong>of</strong> many foriegn countries) that the blockade by<br />

our country has only made it worse<br />

2) Commun<strong>is</strong>m has not been named ‘emancipatory’ without reason. Now, I do not understand<br />

many <strong>of</strong> the ins and outs <strong>of</strong> Marx’s technical critique <strong>of</strong> capital<strong>is</strong>m - but I am well<br />

acquainted with the social commentary by later marx<strong>is</strong>ts. I thank Peace for having introduced<br />

me to Erich Fromm, <strong>of</strong> the Frankfurt School. H<strong>is</strong> writings express clearly the social<br />

ills that come with capital<strong>is</strong>m - one needs to recognize these before one can really understand<br />

the benefits to an alternative:<br />

In describing the period in h<strong>is</strong>tory prior to Capital<strong>is</strong>m, Fromm comments: “Most important<br />

<strong>of</strong> all was the principle that society and economy ex<strong>is</strong>t for man, and not man for them.<br />

No economic progress was supposed to be healthy if it hurt any group within society.” (Sane<br />

Society, p85) A few pages earlier Fromm gives a description <strong>of</strong> an unhealthy society - Now,<br />

Pinky, pay close attention to see how the description can be both applied to Cuba, Russia, etc<br />

AND the USA! : “An unhealthy society <strong>is</strong> one which creates mutual hostility, d<strong>is</strong>trust, which<br />

transforms man into an instrument <strong>of</strong> use and exploitation for others, which deprives him <strong>of</strong><br />

a sense <strong>of</strong> self, except inasmuch as he submits to others or becomes an automaton.”(p73)<br />

Harsh - for h<strong>is</strong> examples <strong>of</strong> how true th<strong>is</strong> <strong>is</strong> for America, read the book. In class and on


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 423<br />

the l<strong>is</strong>t people have mentioned before about how capital<strong>is</strong>m <strong>is</strong> ‘natural’, how Mankind <strong>is</strong><br />

simply self<strong>is</strong>h, th<strong>is</strong> way <strong>of</strong> life <strong>is</strong> natural for us. Fromm writes: “One, decidedly the most<br />

popular one today, wants to make us believe that contemporary Western society and more<br />

especially, the ‘American way <strong>of</strong> life’ corresponds to the deepest needs <strong>of</strong> human nature and<br />

that adjustment to th<strong>is</strong> way <strong>of</strong> life means mental health and maturity.” How wrong th<strong>is</strong> really<br />

<strong>is</strong>. “Self<strong>is</strong>hness” <strong>is</strong> one aspect <strong>of</strong> human nature - there are many others, such as compassion,<br />

equality, fairness, sharing, etc. These, according to fromm, are given lipservice. We would<br />

all agree that we find the self<strong>is</strong>h person annoying, d<strong>is</strong>tasteful, and would rather not have that<br />

attribute - yet out <strong>of</strong> the other side <strong>of</strong> our mouths we pra<strong>is</strong>e it as a virtue. Th<strong>is</strong> <strong>is</strong> a lie, th<strong>is</strong> <strong>is</strong><br />

not right - but it <strong>is</strong> one <strong>of</strong> the basic tents <strong>of</strong> capital<strong>is</strong>m.<br />

So, Marx explains the economic face <strong>of</strong> capital<strong>is</strong>m - Fromm attempts to describe the<br />

social character <strong>of</strong> it: “It needs men who cooperate smoothly in large groups; who want<br />

to consume more an more, whose tastes are standardized and can be easily influenced and<br />

anticipated. It needs men who feel free and independant, not subject to any authority, or<br />

principle, or conscience - yet willing to be commanded, to do what <strong>is</strong> expected, to fit into<br />

the social machine without friction.”(p110) Th<strong>is</strong> <strong>is</strong> a direct lead into the idea <strong>of</strong> alienation,<br />

and it’s prevelance in capital<strong>is</strong>tic society. We are so wrapped up in being individuals that<br />

we loose sight <strong>of</strong> others - and ultimitaly ourselves. No wonder that in primitive communal<br />

societies in the twentieth century little evidence <strong>of</strong> depression and mental illness has been<br />

found.<br />

I like Marx’s definition <strong>of</strong> alientation: it <strong>is</strong> a condition in which our “own act becomes to<br />

him an alien power, standing over and against him, instead <strong>of</strong> being ruled by him.” Fromm<br />

cites example after example <strong>of</strong> alienation with American culture, in many different aspects<br />

<strong>of</strong> our lives. He writes, for example,: “Originally, the idea <strong>of</strong> consuming more and better<br />

things was meant to give man a happier, more sat<strong>is</strong>fied life. Consumption was a means to an<br />

end, that <strong>of</strong> happiness. Now it has become an end in itself.”(p134) Very telling.<br />

The result <strong>of</strong> alienation <strong>is</strong> herd mentality, transformation <strong>of</strong> virtue into vice, vice into<br />

virtue. Acquiring has lost it’s original purpose - acquiring now IS the purpose. SO, back to<br />

the original question: why <strong>is</strong> commun<strong>is</strong>m/social<strong>is</strong>m - lets just call it C/S - called an emancipatory<br />

economic system? With the above bas<strong>is</strong> to work with, and keeping in mind that<br />

Cuba, Russia, Eastern Europe, etc were NOT represantative, but rather something closer to<br />

‘communal fasc<strong>is</strong>m’, to coin a phrase, Fromm writes: “The aim <strong>of</strong> the various forms <strong>of</strong><br />

social<strong>is</strong>m...was an industrial organization in which every working person would be an active,<br />

responsible participant, where work would be attractive and meaningful, where capital<br />

would not employ labour, but labour would employ capital.”(p284)<br />

In a C/S system, such emancipatory benefits include the recognition <strong>of</strong> humanity’s precedence<br />

over things. Access to means <strong>of</strong> production <strong>is</strong> a human right, as <strong>is</strong> food and shelter.<br />

Free education and compensation based upon capability. Recognition <strong>of</strong> ‘society’ as an entity,<br />

and the necessity to work together. These are just a few things noticeably absent from<br />

capital<strong>is</strong>m.<br />

Pinky, you mentioned your ‘giving’, <strong>of</strong> time and money. A large argument against C/SS<br />

<strong>is</strong> that the chance to give, to be charitable will be eliminated. I don’t understand why charity<br />

424 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

would not be a driving element in C/S - for a large part, charity <strong>is</strong> it’s bas<strong>is</strong>. Th<strong>is</strong> argument<br />

<strong>is</strong> <strong>of</strong>fensive on another scale - I hardly think much <strong>of</strong> continueing to allow millions<br />

throughout the world to starve and suffer from d<strong>is</strong>ease because people want to retain all <strong>of</strong><br />

the opportunities to be charitable. I want to give. I know you do.<br />

You mentioned getting back to you at the second coming in order to see if Chr<strong>is</strong>t <strong>is</strong> really<br />

a commun<strong>is</strong>t. I was hoping more for maybe a little intellectual debate as to whether or not<br />

that <strong>is</strong> what Mormons believe. Then you write:<br />

Panacea, your method <strong>of</strong> argumentation <strong>is</strong> truly pathetic. Let’s review:<br />

1. You attack my ability to give by stating that “Some <strong>of</strong> us care more for<br />

HUMANS than THINGS”.<br />

Th<strong>is</strong> pains me - I never accussed you <strong>of</strong> anything. I have only <strong>of</strong>fered congratulations.<br />

Please don’t paint me as some sort <strong>of</strong> ingrate. The point stands, however: in capital<strong>is</strong>m,<br />

efficiency <strong>is</strong> the prime mover, and th<strong>is</strong> <strong>is</strong> in opposition to enviromental safety or mental<br />

health. Ever heard <strong>of</strong> the Ford Pinto case? People actually died, just as the execs predicted.<br />

And when the law suits were over, Ford still had made a pr<strong>of</strong>it, as they had predicted. Did<br />

anyone go to jail? No, even though evidence showing that executives had knowingly allowed<br />

a defect in the design - which they KNEW (it’s in memos) would kill some people - remain<br />

in production. They hid behind the cloak <strong>of</strong> efficiency and utility, as corps do everyday.<br />

2. I unenthusiastically defend myself, letting you know that I care as well,<br />

as <strong>is</strong> exemplified by my money, saying I do not see how it <strong>is</strong> relevant.<br />

Again, if you give to your church, that’s great, I’m impressed. But the bearing on the<br />

question: whether or not Commun<strong>is</strong>m has a chance, or whether or not Capital<strong>is</strong>m <strong>is</strong> faulty<br />

and d<strong>is</strong>eased. <strong>What</strong> do you want from me, Pinky? Validation?<br />

3. My answer proves to you that people don’t need you to force them to do<br />

“nice” things.<br />

Ummm, Pinky - did I ever claim otherw<strong>is</strong>e? You must have been proving th<strong>is</strong> to yourself,<br />

yet another item having only an insignificant bearing on the question. I hope you hav’nt<br />

based your “winning” on th<strong>is</strong>.<br />

I believe the same - we should’nt have to force people to be nice. But should we let<br />

people remain on subs<strong>is</strong>tence wages, or starve or die from lack <strong>of</strong> medical attention in order<br />

that the rich have the opportunity to “be nice”? I think not.<br />

4. Th<strong>is</strong> really messes you up, so you say it <strong>is</strong> “unimportant” (Again, despite<br />

the fact that you were the one that asked.)<br />

5. Then, another bright and shining contradiction: though the fact that I pay<br />

my thithes <strong>is</strong> completely unimportant, you launch into a 3-paragraph attack<br />

on it.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 425<br />

Sure enough, you did base your argument on th<strong>is</strong>. Come on, Pinky... all right, all right -<br />

I’ll tell you what you evidently need to hear: You are a good person, doing a good job, being<br />

a full tithe payer. Good job!<br />

There - feel validated? Now, write something on the topic.<br />

Anyway, I do not need to justify myself to you. I let you know that you<br />

were wrong: I do give freely <strong>of</strong> my earthly belongings. Church h<strong>is</strong>tory has<br />

nothing to do with anything in th<strong>is</strong> d<strong>is</strong>cussion. The point began and ended<br />

with my proving you wrong. If it helps, I was also named “volunteer <strong>of</strong> the<br />

year” <strong>of</strong> the boys and girls clubs <strong>of</strong> <strong>Utah</strong>. There-now are you going to try<br />

and question my service there because <strong>of</strong> the boys and girls club’s h<strong>is</strong>tory?<br />

Damn, Pinky, if that don’t beat all. Still need validation...<br />

“Th<strong>is</strong> craving for acceptance <strong>is</strong> indeed a very character<strong>is</strong>tic feeling in the alienated person.<br />

Why should anyone be so grateful for acceptance unless [she] doubts that [she] <strong>is</strong><br />

acceptable...?” Fromm, p155<br />

Message [465] referenced by [477] and [484]. Next Message by Panacea <strong>is</strong> [491].<br />

[466] Kevin: Q and A with a Commie [was: Marx <strong>is</strong> a nut: Part Deux] Pinky <strong>is</strong><br />

once again firing away the assumptions, and blathering about commun<strong>is</strong>ts, and democracy;<br />

while Panacea <strong>is</strong> running with some sort <strong>of</strong> morality argument, or at least leaving 90% <strong>of</strong><br />

the participants in th<strong>is</strong> l<strong>is</strong>t confused about what th<strong>is</strong> bicker <strong>is</strong> about.<br />

So, back to the topic. I once again want to direct a d<strong>is</strong>cussion. I l<strong>is</strong>ted several interesting<br />

questions earlier regarding important <strong>is</strong>sues to d<strong>is</strong>cuss on the importance <strong>of</strong> Marx, and the<br />

future <strong>of</strong> social<strong>is</strong>m. These were obviously ignored by the peanut gallery, and equally ignored<br />

by the ring-leader, and h<strong>is</strong> nemes<strong>is</strong>.<br />

As they have been ignored let me inquire again, does anyone want to learn what goes<br />

on amongst Marx<strong>is</strong>ts today? How do they think? <strong>What</strong> <strong>is</strong> social<strong>is</strong>m? Etc. Or should we<br />

keep up with the ad hominad trench warfare. I’m gladly donating my time for questions,<br />

or comments; please feel free to make a long l<strong>is</strong>t, but I hope to address some good ones,<br />

which could help advance a thread that will help us all to learn something new; instead <strong>of</strong><br />

perpetuating th<strong>is</strong> trench war which <strong>is</strong> leading nowhere.<br />

Kevin An Outside Observer<br />

Next Message by Kevin <strong>is</strong> [483].<br />

[477] Lamma: Re: Marx <strong>is</strong> a nut-burger I have to agree with Panacea [465] on Pinky’s<br />

comments in [459]. I am forced to think that if we all looked to ourselves every time we<br />

need an answer to something that <strong>is</strong> difficult, the world would get pretty small very fast.<br />

Might I suggest that when looking for answers to Marx or any other deep subject, it helps to<br />

look around at thing happening outside your norm.<br />

Message [477] referenced by [484]. Next Message by Lamma <strong>is</strong> [478].<br />

[480] Pinky: Pinky waves a white flag Alright. Enough already. I do not need validation.<br />

I will not l<strong>is</strong>t my other very redeeming qualities. I made the huge m<strong>is</strong>take <strong>of</strong> thinking<br />

that Panacea truly believed that all capital<strong>is</strong>t’s “forgot.. about crack babies...”, that in the<br />

statement “Some <strong>of</strong> us care more for HUMANS” she was implying that the rest <strong>of</strong> us didn’t.<br />

426 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I thought I could do the service <strong>of</strong> informing those with that dreadful m<strong>is</strong>conception otherw<strong>is</strong>e.<br />

Panacea was obviously not in the market to be informed otherw<strong>is</strong>e. These statements<br />

were made only to paint an ugly face upon those who d<strong>is</strong>agree, and I apologize for not<br />

understanding the intent.<br />

Peaceful Pinky<br />

Next Message by Pinky <strong>is</strong> [484].<br />

[484] Pinky: Lamma-bo-bamma Lamma wrote in [477]:<br />

I have to agree with Panacea [465] on Pinky’s comments in [459]. I am<br />

forced to think that if we all looked to ourselves every time we need an<br />

answer to something that <strong>is</strong> difficult, the world would get pretty small very<br />

fast. Might I suggest that when looking for answers to Marx or any other<br />

deep subject, it helps to look around at things happening outside your norm.<br />

I see your point and agree with most <strong>of</strong> it. I would just like to insert that it would be<br />

even worse if we did not look at ourselves when posed with difficult questions. It <strong>is</strong> very<br />

easy to critic<strong>is</strong>e everyone “out there”, but if we do that while failing to take a hard look at<br />

ourselves, we are making a big m<strong>is</strong>take. Though many <strong>of</strong> you d<strong>is</strong>agree, I think th<strong>is</strong> <strong>is</strong> exactly<br />

what Marx did. He was wonderful at looking at everyone else, but when it came down to<br />

it, I doubt that he had the ability to live up to the standards he was advocating to be set for<br />

everyone else.<br />

Next Message by Pinky <strong>is</strong> [513].<br />

[523] KALISPEL: Re: Marx <strong>is</strong> a nut-burger I would like to point out some m<strong>is</strong>conceptions<br />

in th<strong>is</strong> line <strong>of</strong> argumentation against cuba. Cuba was criticized heavily by the U.S. for<br />

being to strict because it didn’t allow for the citizens to leave the country. Th<strong>is</strong> was considered<br />

unfair. In response, Cuba made it so anyone that wanted to could leave both legally and<br />

illegally. Either way it was not enforced. Now Cuba <strong>is</strong> criticized for dumping their people<br />

on the rest <strong>of</strong> the world.<br />

It <strong>is</strong> true I would rather live in the U.S. than Cuba because <strong>of</strong> the higher standard <strong>of</strong> living<br />

and I think there a lot <strong>of</strong> people feel the same way. But, th<strong>is</strong> <strong>is</strong> comparing apples to oranges.<br />

Cuba has h<strong>is</strong>torically been a small third world country. It has limited resources. When Cuba<br />

turned to social<strong>is</strong>m to help out the country it was put on embargo by the U.S. and since<br />

then has got a lot <strong>of</strong> bad press. Capital<strong>is</strong>ts do not want the American people to think that<br />

Cuba has a system worth looking at. If you compare Cuba with many <strong>of</strong> the other latin<br />

american nations you will find out that as Cuba switched over to Social<strong>is</strong>m that the masses<br />

were much better <strong>of</strong>f. Iliteracy and starvation were virtually abol<strong>is</strong>hed as well as health care<br />

for everyone. Th<strong>is</strong> shows that a poor third world can better meet subs<strong>is</strong>tence level needs <strong>of</strong><br />

the people with social<strong>is</strong>m than capital<strong>is</strong>m. Cuba <strong>is</strong> actually a good example <strong>of</strong> social<strong>is</strong>m and<br />

much has been learned by what the Cubans have done. Another example <strong>of</strong> th<strong>is</strong> <strong>is</strong> the India<br />

vs. China debate. China was social<strong>is</strong>tic while India was capital<strong>is</strong>tic and China showed to<br />

much more be able to meet the needs <strong>of</strong> the people, food, clothing, shelter than India.<br />

It makes good sense. If a small amount <strong>of</strong> people have most <strong>of</strong> the <strong>wealth</strong> than how can<br />

th<strong>is</strong> be good for the masses. To a poor country elimination <strong>of</strong> th<strong>is</strong> type <strong>of</strong> thing goes a long<br />

way to making people better <strong>of</strong>f.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 427<br />

Just because something the U.S. <strong>is</strong> powerful and has a high standard <strong>of</strong> living does not<br />

mean it has a good system; just because it <strong>is</strong> doesn’t mean it ought.<br />

Next Message by KALISPEL <strong>is</strong> [573].<br />

<strong>Question</strong> 671 Thread 671<br />

[425] Chocolate: Re: EXPLOITATION IN THE WORKFORCE! Unless you are<br />

the owner (capatil<strong>is</strong>t) <strong>of</strong> a certain company and/or have your own business, where all <strong>of</strong> the<br />

business dec<strong>is</strong>ions must go through with your approval, where you can change or add-on to<br />

those dec<strong>is</strong>ions then you are being exploited as a worker.<br />

Recieving an “X” amount in wages and benefits doesn’t add up to the effort an individual<br />

has put forth to produce (or help produce) a certain commodity. In my opinion, no matter<br />

how much an individual recieves in wages and benefits, he/she <strong>is</strong> still being exploited<br />

because;<br />

1. the product he/she <strong>is</strong> producing (or help produce) <strong>is</strong> owned by another individual who<br />

can sell it for a lot more than the price he/she <strong>is</strong> paying other’s to produce.<br />

2. the worker’s who are paid to produce a commodity for someone else will never feel<br />

the same sat<strong>is</strong>faction about their work that a painter might have. Where as the painter will<br />

feel joy and happiness at the materpiece he/she has just created. The worker will simply feel<br />

relieved that another day <strong>of</strong> work <strong>is</strong> over. The painter can enjoy h<strong>is</strong> work <strong>of</strong> art by d<strong>is</strong>playing<br />

it or sell it for a reasonable price and still enjoy the pr<strong>of</strong>its from h<strong>is</strong> work. But the worker<br />

can never enjoy the prduct that he/she has created (or help create) because it doesn’t belong<br />

to him/her. So when the product <strong>is</strong> finally produced the individual’s who own it will feel<br />

happy and joyous not the individual’s who actually produced it.<br />

Th<strong>is</strong> <strong>is</strong> a part <strong>of</strong> life that money cannot buy, even if a worker were being paid fifty-dollars<br />

an hour, he/she <strong>is</strong> still being exploited by the individual’s (capatil<strong>is</strong>t) who own the fin<strong>is</strong>hed<br />

good.<br />

Message [425] referenced by [575]. Next Message by Chocolate <strong>is</strong> [530].<br />

[448] Gilligan: exploitation <strong>of</strong> workers I completely agree with fact that a person really<br />

doesn’t feel a true sense <strong>of</strong> sat<strong>is</strong>faction when he or she <strong>is</strong> working for someone else. As<br />

far as the painter goes I feel it’s a bad compar<strong>is</strong>on in that a painter <strong>is</strong>n’t subject to someone<br />

telling them what to do and they are able to create a piece <strong>of</strong> work and feel the rewards for<br />

doing so. But if thayt painter had someone telling them what to paint and was working for a<br />

painting firm then h<strong>is</strong> whole attitude would change for the worse. It’s funny because where<br />

I work I feel the way you said, I really don’t get any sat<strong>is</strong>faction out <strong>of</strong> producing the goods<br />

there, but I know I have to in order to receive a paycheck every other week. I can careless<br />

about the quality <strong>of</strong> the machine we’re building or if it looks nice, as long as it works then<br />

I’m happy and package it for shipping. As the prices <strong>of</strong> the machines have r<strong>is</strong>en since i’ve<br />

been working there I have yet to receive a pay ra<strong>is</strong>e, so all the pr<strong>of</strong>its <strong>of</strong> increased production<br />

and increased pr<strong>of</strong>its are going directly into the pockets <strong>of</strong> the owners. thanks guys I don’t<br />

feel like a slave or anything!! The capital<strong>is</strong>t system <strong>is</strong> very exploitative and it will continue<br />

to be like that until we all wake up and recogn<strong>is</strong>e it.<br />

Next Message by Gilligan <strong>is</strong> [547].<br />

428 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[453] Lamma: exploitation <strong>of</strong> the worker In response to gilligans comments on th<strong>is</strong><br />

matter, I would like to say that the problem at hand <strong>is</strong> the furthur exploitation <strong>of</strong> the worker<br />

when new machinery <strong>is</strong> introduced. We must first look at when exploitation occurs. If you<br />

are working for me and I am making a pr<strong>of</strong>it <strong>of</strong>f your labors and not paying you what your<br />

productivity <strong>is</strong> worth then you are exploited. Now apply th<strong>is</strong> to your situation and see how<br />

th<strong>is</strong> fits into your own situation. I think that we may have lost track <strong>of</strong> what the original<br />

question <strong>is</strong> asking.<br />

Next Message by Lamma <strong>is</strong> [454].<br />

[495] Brumbys: d<strong>is</strong>cussion on exploitation We all know that, according to Marx, the<br />

worker <strong>is</strong> eploited by the capital<strong>is</strong>t who sucks surplus labor (or surplus value) <strong>of</strong>f <strong>of</strong> the<br />

worker. Most people assume that in order to correct th<strong>is</strong> injustice Marx advocates that each<br />

worker receives the full value <strong>of</strong> h<strong>is</strong> or her Labor not just their labor power. Marx argues<br />

that some surplus value would have to be withheld from the workers in order to provide for<br />

future investment and savings. According to th<strong>is</strong> reasoning, if surplus value <strong>is</strong> taken from<br />

workers against their will by the government, it’s not exploitation. However, when the evil<br />

the capitl<strong>is</strong>t steals surplus labor surreptitiously, it <strong>is</strong> exploitation.<br />

Next Message by Brumbys <strong>is</strong> [522].<br />

<strong>Question</strong> 672 Thread 672<br />

[427] Ramb<strong>is</strong>: why society won’t embrace marx (fwd) The following are a few random<br />

thoughts that I have had about why I think society at large doesn’t accept Marx<strong>is</strong>m as the<br />

model <strong>of</strong> social ex<strong>is</strong>tence. Through the medium <strong>of</strong> h<strong>is</strong> research and philosophizing about<br />

the nature <strong>of</strong> our social ecosystem, Marx does make many interesting points concerning the<br />

value <strong>of</strong> what he calls “abstract labor” and the proper motivations behind being a contributing<br />

member <strong>of</strong> society, but as has been debated in class and on the internet subm<strong>is</strong>sions, most <strong>of</strong><br />

the concepts that he tries to advance are steeped in personal philosophy and are so abstract<br />

as to lose touch with the everyday experience and interaction that people know as their<br />

ex<strong>is</strong>tence. Th<strong>is</strong> led to the comment that “Well, obviously the masses aren’t able to grasp<br />

the concepts <strong>of</strong> the nature <strong>of</strong> the beast, and therefore that has to be left up to the high-level<br />

intellectuals to determine and explain.” Pardon me, but doesn’t th<strong>is</strong> lead to the same kind <strong>of</strong><br />

elit<strong>is</strong>m and exclusion <strong>of</strong> the masses from controlling their own destiny when the dec<strong>is</strong>ions<br />

<strong>of</strong> society are left in the hands <strong>of</strong> a very few who act with no accountability? Th<strong>is</strong>, to me, <strong>is</strong><br />

the great contradiction <strong>of</strong> Marx<strong>is</strong>m and <strong>is</strong> the very reason that society wouldn’t embrace th<strong>is</strong><br />

form <strong>of</strong> social living. And while capital<strong>is</strong>m and democracy aren’t perfect, they may indeed<br />

fulfill the saying, “They’re crappy ways <strong>of</strong> doing things, but it <strong>is</strong> the best we have.”<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [457.4].<br />

<strong>Question</strong> 676 Thread 676<br />

[456] Caren: How did capital<strong>is</strong>m originate, and where <strong>is</strong> it leading? (from Marx’s<br />

view).<br />

Marx focused on the contradictions that arose through the growth <strong>of</strong> towns, population,<br />

technology, and trade, which at a certain point burst asunder the feudal social and political<br />

forms in which production had been organized. Relations <strong>of</strong> lord to serf based on feudal


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 429<br />

rights and obligations had become a hindrance to the further development <strong>of</strong> these productive<br />

forces; they were replaced by the contractual relations <strong>of</strong> capital<strong>is</strong>ts to wokers. With<br />

capital<strong>is</strong>ts free to pursue pr<strong>of</strong>its wherever they might take them and workers equally “free”<br />

to sell their labor power to capital<strong>is</strong>ts however they might use it, the productive potential<br />

inherent in the new forces <strong>of</strong> production, especially technology and science, was freed. If<br />

pr<strong>of</strong>it maximization leads to rapid growth when rapid growth maximizes pr<strong>of</strong>its, however,<br />

pr<strong>of</strong>it maximization restricts growth when growth proves unpr<strong>of</strong>itable. According to Marx,<br />

the periodic and worsening cr<strong>is</strong>es <strong>of</strong> overproduction that began about 1830 attest to capital<strong>is</strong>m’s<br />

growing inability to take full advantage <strong>of</strong> the potential for producing <strong>wealth</strong> that has<br />

grown up with it.<br />

Within th<strong>is</strong> framework the actual course <strong>of</strong> h<strong>is</strong>tory <strong>is</strong> determined by class struggle. According<br />

to Marx, each class <strong>is</strong> defined chiefly by its relation to the productive process and<br />

has objective interests rooted in that relation. The capital<strong>is</strong>ts’ interests lie in securing their<br />

power and expanding pr<strong>of</strong>its. Workers, on the other hand, have interests in higher wages,<br />

safer working conditions, shorter hours, job security, and–because it <strong>is</strong> required to realize<br />

other interests–a new d<strong>is</strong>tribution <strong>of</strong> power. The class struggle involves everything that these<br />

two major classes do to promote their incompatible interests at each other’s expense. In th<strong>is</strong><br />

battle, which rages throughout society, the capital<strong>is</strong>ts are aided by their <strong>wealth</strong>, their control<br />

<strong>of</strong> state, and their domination over other institutions–school, media, churches– that guide<br />

and d<strong>is</strong>tort people’s thinking. On the workers’ side are their sheer numbers, their experience<br />

<strong>of</strong> cooperation–however alienated–while at work, trade unions, working-class political parties(where<br />

they ex<strong>is</strong>t), and the growing contradictions within capital<strong>is</strong>m that make present<br />

conditions increasingly irrational.<br />

Marx believed that once most workers recognized their interests and became “class conscious”,<br />

the overthrow <strong>of</strong> capital<strong>is</strong>m would proceed as quickly and democratically as the<br />

nature <strong>of</strong> capital<strong>is</strong>t opposition allowed. The social<strong>is</strong>t society that would emerge out <strong>of</strong> the<br />

revolution would develop the full productive potential inherited from capital<strong>is</strong>m through<br />

democratic planning on behalf <strong>of</strong> social needs. The final goal, toward which social<strong>is</strong>t society<br />

would constantly build, <strong>is</strong> the human one abol<strong>is</strong>hing alienation. Marx called the attainment<br />

<strong>of</strong> th<strong>is</strong> goal “commun<strong>is</strong>m.”<br />

Next Message by Caren <strong>is</strong> [481].<br />

<strong>Question</strong> 677 Thread 677<br />

[473] VanHalen: I was talking to a guy in our class last week and he was telling me about<br />

how Marx and some <strong>of</strong> h<strong>is</strong> cronies used to write to each other. He said they wouldn’t write<br />

for understanding but almost the opposite they would almost write to see how academic or<br />

soph<strong>is</strong>ticated they could write. During the course <strong>of</strong> their writings they would mock other<br />

thinkers <strong>of</strong> the day or people that they didn’t get along with.<br />

I think it <strong>is</strong> a shame that the mountain bike wasn’t invented back in their time because<br />

I think it would have greatly impacted their thinking. It would have given them time to<br />

see that there are other great things to do with your time than to postulate theories that not<br />

many people will understand. It would have given them time to think to themselves,“hey<br />

my theory <strong>is</strong> pretty good, I’ll try and make it more understandable so that people can put it<br />

430 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

into practice.” Since they didn’t have Mountain Bikes, it seems to me like they never said<br />

th<strong>is</strong> to themselves and hence no one has ever practiced true Marx<strong>is</strong>m. I like some <strong>of</strong> the<br />

things Marx has to say, I think they would really help out society if we could live like that. I<br />

probably would like more <strong>of</strong> the things Marx says but since Marx didn’t have the benefit <strong>of</strong><br />

a mountain bike he never came to the realization that to be put into practice it would have to<br />

be understandable to more than a few people.<br />

Th<strong>is</strong> brings me to a question; who was Marx’s audience? if it was to only h<strong>is</strong> academic<br />

cronies then what did he hope to accompl<strong>is</strong>h by all <strong>of</strong> h<strong>is</strong> writings. If h<strong>is</strong> audience was<br />

the workers that were being exploited why did he write h<strong>is</strong> theory geared to helping them<br />

understand??<br />

Next Message by VanHalen <strong>is</strong> [474].<br />

[540] Positive: Comment to thread 677 I believe Karl Marx had very many people on<br />

h<strong>is</strong> side regarding the thoughts <strong>of</strong> capital<strong>is</strong>m. It <strong>is</strong> important to understand after reading “the<br />

capital”, that h<strong>is</strong> consepts are true to a certain extend, and that h<strong>is</strong> thoughts are extremely<br />

deep. People wrote differently one hundred year ago. They wrote as they thought, which<br />

brings us (people today) to a different mode <strong>of</strong> thinking. Th<strong>is</strong>, because we are not used to<br />

it. I think more people in today’s society should learn more about Marx to get a broader<br />

knowledge about how the society actually CAN work.<br />

Next Message by Positive <strong>is</strong> [542].<br />

<strong>Question</strong> 678 Thread 678<br />

[476] Emma: New thread. Given the high level <strong>of</strong> frustration that I have seen among<br />

fellow students caused by the difficulty in understanding Marx’s writings, it may be useful<br />

to try and figure out why he’s so hard to decipher.<br />

The easy and also wrong answer <strong>is</strong> that the subject matter <strong>is</strong> intrinsically difficult and not<br />

easily understood. There are too many examples <strong>of</strong> writings that are far easier to understand<br />

with comparably difficult subject matter.<br />

I can think <strong>of</strong> at least two good answers. The first <strong>is</strong> that Marx uses words in unique<br />

ways. He has h<strong>is</strong> own definitions and style that a reader must understand on Marx’s terms. It<br />

takes a great deal <strong>of</strong> time and study to be able to thrive in Marx’s world <strong>of</strong> words and ideas.<br />

Time that most students don’t have. Still, the exerc<strong>is</strong>e <strong>is</strong> worthwhile if only as an exerc<strong>is</strong>e in<br />

d<strong>is</strong>secting complex writing. We should understand that Marx’s audience was very narrow.<br />

It cons<strong>is</strong>ted <strong>of</strong> academics and intellectuals, not a bunch <strong>of</strong> undergraduates in <strong>Utah</strong>. Which<br />

brings me to my next reason. I’m aware that there <strong>is</strong> a strong if puzzling tradition among<br />

intellectuals (especially European) to purposely obscure their writings. Many <strong>of</strong> them don’t<br />

want to be easily understood. It’s almost a game to them to see who among their colleagues<br />

won’t “get it.” I know th<strong>is</strong> was the case with other intellectuals in Germany around the time<br />

<strong>of</strong> Marx, including Hegel and Nietzsche. The evidence <strong>is</strong> in their letters to other colleagues<br />

and friends. I don’t know specifically whether Marx participated in th<strong>is</strong> academic game, but<br />

I suspect he did. Perhaps someone else knows for sure. One problem with th<strong>is</strong> approach<br />

<strong>is</strong> that in order for the writer to keep h<strong>is</strong> audience the pay<strong>of</strong>f at the end, once the writing<br />

<strong>is</strong> finally understood as well as can be, should be worth the effort. Otherw<strong>is</strong>e no one will


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 431<br />

continue to put out the effort. Perhaps a new thread should be started titled, “Is Marx Worth<br />

The Effort.” I’ve got mixed feelings on that.<br />

Message [476] referenced by [483]. Next Message by Emma <strong>is</strong> [526].<br />

[483] Kevin: Re: New thread. Emma wrote in [476]<br />

Given the high level <strong>of</strong> frustration that I have seen among fellow students<br />

caused by the difficulty in understanding Marx’s writings, it may be useful<br />

to try and figure out why he’s so hard to decipher.<br />

I can think <strong>of</strong> at least two good answers. The first <strong>is</strong> that Marx uses words<br />

in unique ways. He has h<strong>is</strong> own definitions and style that a reader must understand<br />

on Marx’s terms. It takes a great deal <strong>of</strong> time and study to be able<br />

to thrive in Marx’s world <strong>of</strong> words and ideas. Time that most students don’t<br />

have. Still, the exerc<strong>is</strong>e <strong>is</strong> worthwhile if only as an exerc<strong>is</strong>e in d<strong>is</strong>secting<br />

complex writing. We should understand that Marx’s audience was<br />

I agree with th<strong>is</strong> definition. Keep in mind the categories which Marx worked with; they<br />

were the <strong>of</strong>ten contradictory and abstract categories and terminology <strong>of</strong> classical economics.<br />

In order to revolutionize economics Marx had to signifigantly alter its modus operandi.<br />

undergraduates in <strong>Utah</strong>. Which brings me to my next reason. I’m aware<br />

that there <strong>is</strong> a strong if puzzling tradition among intellectuals (especially<br />

European) to purposely obscure their writings. Many <strong>of</strong> them don’t want<br />

to be easily understood. It’s almost a game to them to see who among their<br />

colleagues won’t “get it.” I know th<strong>is</strong> was the case with other friends. I<br />

don’t know specifically whether Marx participated in th<strong>is</strong> academic game,<br />

but I suspect he did. Perhaps someone else knows for sure.<br />

I agree with your categorization <strong>of</strong> many intellectuals who have become caught up in a<br />

culture <strong>of</strong> pure jive. There have actually been articles in the mainstream press (The New<br />

York Times) th<strong>is</strong> week talking about an incident where a physics teacher submitted a bunch<br />

<strong>of</strong> jibber<strong>is</strong>h, for parody, to a respected pomo (post-modern<strong>is</strong>t) journal; and had it publ<strong>is</strong>hed.<br />

But Marx never really got caught up in proving h<strong>is</strong> dialectic material<strong>is</strong>m correct, or any<br />

other philosophical <strong>is</strong>sues he brought up; th<strong>is</strong> was left to many others. And Marx, believe<br />

it or not, actually hoped that Capital would become popular amongst the working classes<br />

<strong>of</strong> Europe (read h<strong>is</strong> prefaces to each edition). Marx also kept a close connection with the<br />

working class movements <strong>of</strong> h<strong>is</strong> time, and while he recognized that h<strong>is</strong> rare genius gave him<br />

the “duty” to elaborate on h<strong>is</strong> political economy; he also was involved for more than half h<strong>is</strong><br />

life with various political parties <strong>of</strong> the time. So he was certainly not a hermit, and did have<br />

much real-world contact with human beings; and he also did write reports, and texts (ex. for<br />

the New York Tribune) that were very understandable. So labeling Marx an “ivory tower<br />

commun<strong>is</strong>t” or a “hermit intellectual” <strong>is</strong> certainly not correct.<br />

Next Message by Kevin <strong>is</strong> [485].<br />

[520] Kalle: Why Marx <strong>is</strong> hard to understand I agree with all <strong>of</strong> you who think it <strong>is</strong><br />

hard to understand Marx and h<strong>is</strong> wrinting. He uses difficult words and ueses them in unusual<br />

and unfamiliar relations. However, I do not think he deliberately want to give the reader a<br />

432 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

hard time. I believe he had to write in h<strong>is</strong> special style in order to really investigate and<br />

explain the <strong>is</strong>sues he dealt with. First time I read a paragraph I am usually very confused<br />

about what he want to say. To understand it I am forced to go back and read it over <strong>of</strong>ten<br />

several times. As I it read for the second or third time, I really starts to understand what<br />

he means. My point <strong>is</strong> that I do not think Marx could have got h<strong>is</strong> message across without<br />

using h<strong>is</strong> typical style, including unique words and phl<strong>is</strong>ophical approach to various <strong>is</strong>sues.<br />

As I have read more and more in Capital I get the point faster and faster, and it <strong>is</strong> very clear<br />

that you need pract<strong>is</strong>e to become a good interpreter <strong>of</strong> Marx.<br />

Next Message by Kalle <strong>is</strong> [577].<br />

[522] Brumbys: d<strong>is</strong>cussion on Understanding Marx I agree that marx<strong>is</strong>m <strong>is</strong> very confusing.<br />

IF my understanding <strong>of</strong> the Marxian philosophy <strong>of</strong> economics <strong>is</strong> correct, I understand<br />

the reason for the government taking surplus value from the worker <strong>is</strong> so that it can be d<strong>is</strong>tributed<br />

equally to society in the utopian commun<strong>is</strong>t regime. Under the capital<strong>is</strong>t system,<br />

the owner <strong>of</strong> production (the capital<strong>is</strong>t), receives a surplus value by exploiting the labor <strong>of</strong><br />

the worker and then placing much <strong>of</strong> the money into h<strong>is</strong> own pocket. If Marx’s “utopian”<br />

system was guilty <strong>of</strong> anything it was h<strong>is</strong> overestimation <strong>of</strong> human nature. He believed that<br />

people would place the interest <strong>of</strong> others above their own and we both know th<strong>is</strong> <strong>is</strong> not he<br />

case.<br />

Message [522] referenced by [525]. Next Message by Brumbys <strong>is</strong> [578].<br />

[525] Kevin: Re: d<strong>is</strong>cussion on Understanding Marx Brumbys, your understanding in<br />

[522] <strong>is</strong> not correct. I posted a quotation from Engel’s (Marx’s good friend, and collaborator)<br />

on plans, democracy, and the like. Maybe you should have read it.<br />

But for Marx commun<strong>is</strong>m <strong>is</strong> NOT a huge welfare state with everyone being employed<br />

by the government, and without their consent having surplus value extracted from them;<br />

and then re-invested by the government in various activities that were never ratified by the<br />

worker who produced the value in the first place. That was the primary economic reason<br />

that the Soviet Union was NOT social<strong>is</strong>t. Rather social<strong>is</strong>m puts workers in control <strong>of</strong> their<br />

firms, factories, and small businesses; without having surplus value extracted from them.<br />

Rather the working class should be entitled to the value they produce, and be able to allocate<br />

it wherever they desire; without having either a capital<strong>is</strong>t, or a bureaucrat to extract it from<br />

them.<br />

Next Message by Kevin <strong>is</strong> [536].<br />

[542] Positive: Comment to thread 678. Your question was: Why <strong>is</strong> Marx so hard to<br />

understand ? My respond to th<strong>is</strong> <strong>is</strong> the following: Marx lived over hundred years ago. People<br />

were people at th<strong>is</strong> point in time as well, but their behaviors conserning writing and thinking<br />

in general was just very different. Why ?, because people lived in the good-old-times. Even<br />

the schools and industries were totally different. When it came to writing, authors wrote<br />

along as their thoughts went through their minds. There <strong>is</strong> a reason why “Das Capital”<br />

has the thickness it has. Th<strong>is</strong> book can be cut to a third <strong>of</strong> the size in today’s more consice<br />

writing. With the shorter and more concrete sentences. I believe, that if we in today’s schools<br />

WERE to take more philosophical courses we will gain a better understanding <strong>of</strong> books like<br />

“The Capital”.<br />

Are we too laid back today just because many people have a hard time analysing th<strong>is</strong><br />

enormous piece <strong>of</strong> work.


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 433<br />

Next Message by Positive <strong>is</strong> [577].<br />

[547] Gilligan: marx <strong>is</strong> hard to understand (fwd) I completey agree with the most<br />

<strong>of</strong> you when you say that marx <strong>is</strong> difficult to understand. When I read a section in the<br />

book I <strong>of</strong>ten have to reread what I have read in order to capture the meaning <strong>of</strong> what he <strong>is</strong><br />

stating. I also think the way he describes and explains things makes it hard to grasp because<br />

h<strong>is</strong> thought and theory are foreign to most, that meaning we haven’t heard <strong>of</strong> these things<br />

described in such a manner before. He does have h<strong>is</strong> good points though and some <strong>of</strong> h<strong>is</strong><br />

thoughts are interesting. He <strong>is</strong> definitely a deep thinker and had alot <strong>of</strong> time on h<strong>is</strong> hands to<br />

sit and worry or wonder about such things. I know at times I feel like I don;t have enough<br />

time to get everything done but he obviously had alot due to h<strong>is</strong> volumes upon volumes <strong>of</strong><br />

book work. Sometimes people are just completely smarter than the rest and are very talented<br />

like Marx, and if he tried to explain all <strong>of</strong> it another way it would probably sound and read<br />

very complex.<br />

Next Message by Gilligan <strong>is</strong> [547.1].<br />

<strong>Question</strong> 679 Thread 679<br />

[419] Pinky: Someone wake me up It seems to me as though the excuse as to why<br />

Commun<strong>is</strong>t societies have failed around the world <strong>is</strong> always:<br />

THATS BECAUSE IT WASN’T TRUE MARXISM<br />

However, when one tries to criticize the philosophies that seem to be put forth by Marx,<br />

the response <strong>is</strong> always:<br />

MARX JUST CRITICIZED CAPITALISM, HE HAD NO VISION OF WHAT COM-<br />

MUNISM WOULD/SHOULD BE.<br />

If Marx was just some sort <strong>of</strong> glorified political Roger Ebert, then why do h<strong>is</strong> beliefs spurn<br />

the coming <strong>of</strong> a great revolution?–That, again, never comes, because it <strong>is</strong> always inevitably<br />

NOT MARXISM, because it inevitably fails. Someone wake me up when a sucessful society<br />

comes about that we can commit the deified name <strong>of</strong> Marx to.<br />

Next Message by Pinky <strong>is</strong> [420].<br />

[479] Pinky: Attn: Kevin and Franz I appreciate Kevin and Franz’s willingness to<br />

respond to questions. Perhaps th<strong>is</strong> has already been answered; but I do not understand the<br />

seeming contradiction I am getting when I see the two following defenses <strong>of</strong> Marx take<br />

place: Marx did not have a plan for social<strong>is</strong>m/Commun<strong>is</strong>m and That was not true Marx<strong>is</strong>m.<br />

He must have stated a theory somewhere for people to be able to say that Marx<strong>is</strong>m was not<br />

correctly implemented. The closest definition <strong>of</strong> h<strong>is</strong> theory that I have heard <strong>is</strong> a bunch <strong>of</strong><br />

l<strong>of</strong>ty one-word explanations like: Emancipation, freedom, democracy. Above that, I have no<br />

clue (aside from what my obvious suspicions are) as to what, in a concrete form Marx<strong>is</strong>ts are<br />

after. I don’t know how you can implement a society where you just critic<strong>is</strong>e Capital<strong>is</strong>m, so<br />

that can’t be it, but no one can seem to come to a difinative conclusion. Perhaps I am asking<br />

more than <strong>is</strong> possible in an E-mail subm<strong>is</strong>sion, but I would appreciate a good attempt. Did<br />

he ever make clear statements about what he wanted, or <strong>is</strong> it just implied in h<strong>is</strong> critic<strong>is</strong>ms?<br />

Do Marx<strong>is</strong>ts agree on what the intent <strong>is</strong>? <strong>What</strong> (besides emancipation) was really m<strong>is</strong>sing<br />

in previous Commun<strong>is</strong>t governments that Marx would have wanted implemented? Despite<br />

434 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

my obvious aversion to the whole idea, I have no aversion to trying to understand. Just<br />

please skip the moral accusations. Such accusations are what give birth to the unneccesary<br />

tangents.<br />

Message [479] referenced by [485]. Next Message by Pinky <strong>is</strong> [480].<br />

[485] Kevin: Marx Q and A I [was: Attn: Kevin and Franz] Pinky wrote in [479]<br />

Perhaps th<strong>is</strong> has already been answered; but I do not understand the seeming<br />

contradiction I am getting when I see the two following defenses <strong>of</strong><br />

Marx take place: Marx did not have a plan for social<strong>is</strong>m/Commun<strong>is</strong>m and<br />

That was not true Marx<strong>is</strong>m. He must have stated a theory somewhere for<br />

people to be able to say that Marx<strong>is</strong>m was not correctly implemented. The<br />

closest definition <strong>of</strong> h<strong>is</strong> theory that I have heard <strong>is</strong> a bunch <strong>of</strong> l<strong>of</strong>ty oneword<br />

explanations like: Emancipation, freedom, democracy. Above that, I<br />

have no clue (aside from what my obvious suspicions are) as to what, in a<br />

concrete form Marx<strong>is</strong>ts are after.<br />

I posted th<strong>is</strong> quote earlier, it’s from Fred Engel’s Principles <strong>of</strong> Commun<strong>is</strong>m; Marx held<br />

the same opinions:<br />

<strong>What</strong> will th<strong>is</strong> new social order have to be like?<br />

Above all, it will have to take the control <strong>of</strong> industry and <strong>of</strong> all branches <strong>of</strong><br />

production out <strong>of</strong> the hands <strong>of</strong> mutually competing individuals, and instead<br />

institute a system in which all these branches <strong>of</strong> production are operated<br />

by society as a whole – that <strong>is</strong>, for the common account, according to a<br />

common plan, and with the participation <strong>of</strong> all members <strong>of</strong> society.<br />

It will, in other words, abol<strong>is</strong>h competition and replace it with association.<br />

<strong>What</strong> Fred <strong>is</strong> basically saying here <strong>is</strong>:<br />

* expropriate the means <strong>of</strong> production from the capital<strong>is</strong>ts<br />

* gather together the working class<br />

* make a plan and run society for yourselves, without having your surplus value extracted<br />

and being alienated by a capital<strong>is</strong>t<br />

But along with that Marx and Engels valued the participation <strong>of</strong> all in society. If you read<br />

their texts on the French Revolution, the or the Par<strong>is</strong> Commune you can see their general<br />

d<strong>is</strong>tain for all classes <strong>of</strong> le<strong>is</strong>ure (bourgeo<strong>is</strong>ie) and their pra<strong>is</strong>e for the radical democracy<br />

which would form the iron foundations <strong>of</strong> social<strong>is</strong>m.<br />

That <strong>is</strong> a very general idea <strong>of</strong> what Marx and Engels wanted. They establ<strong>is</strong>hed a general<br />

ideal, and a method to criticize class society; but certainly never made detailed models.<br />

As far as what Marx<strong>is</strong>ts want, if you’re interested in models I already have recommended<br />

two books three times to th<strong>is</strong> l<strong>is</strong>t. They are:<br />

“Against Capital<strong>is</strong>m” by David Scheikerwart (sp?)<br />

“Towards a New Social<strong>is</strong>m” by Paul Cockshott


The Cockshott book <strong>is</strong> available online from:<br />

U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 435<br />

ftp://csf.colorado.edu (find the authors directory, then look under h<strong>is</strong> name)<br />

I myself am a market social<strong>is</strong>t. I already defined abstractly what they means. It involves:<br />

* expropriating capital<strong>is</strong>ts (by the worker’s choice <strong>of</strong> course)<br />

* allowing workers to form worker-owned companies (much like, though much easier,<br />

than they would unionize).<br />

* allowing for competition between these enterpr<strong>is</strong>es<br />

* worker-owner companies then form the bas<strong>is</strong> for the elimination <strong>of</strong> alienation; and lead<br />

towards full-employment, more le<strong>is</strong>ure time, an end to the contradiction between labor and<br />

capital; etc.<br />

* some services will still be provided by the government, and many development projects<br />

will still be planned; but autonomous worker-owned corporations will form the foundation<br />

<strong>of</strong> a new radical democracy.<br />

There are certainly many more <strong>is</strong>sues involved in d<strong>is</strong>cussing an economic system, but that<br />

<strong>is</strong> a quick description. If you wanted to learn more you should read “Against Capital<strong>is</strong>m.”<br />

a good attempt. Did he ever make clear statements about what he wanted, or<br />

<strong>is</strong> it just implied in h<strong>is</strong> critic<strong>is</strong>ms? Do Marx<strong>is</strong>ts agree on what the intent <strong>is</strong>?<br />

<strong>What</strong> (besides emancipation) was really m<strong>is</strong>sing in previous Commun<strong>is</strong>t<br />

governments that Marx would have wanted implemented?<br />

I already analyzed th<strong>is</strong> question. Maybe you m<strong>is</strong>sed it? Basically analyzing the governments<br />

which formally called themselves commun<strong>is</strong>ts involved simply asking the question:<br />

* does the working class control the means <strong>of</strong> production.<br />

I analyzed th<strong>is</strong> question much farther in a previous post. Please consult the archives, as I<br />

don’t care to answer any more questions that I’ve already answered in previous posts.<br />

Next Message by Kevin <strong>is</strong> [525].<br />

<strong>Question</strong> 682 Thread 682<br />

[486] Caren: Last thread As we all now study chapter 19, I would like to d<strong>is</strong>cuss more<br />

about the value <strong>of</strong> labor power and wages.<br />

As a basic theory <strong>of</strong> the process <strong>of</strong> capital<strong>is</strong>t production, wages as the form <strong>of</strong> value<br />

<strong>of</strong> labor-power are to be conceived at a level which enables the equal exchange <strong>of</strong> laborsubstance<br />

with the necessary means <strong>of</strong> subs<strong>is</strong>tence. The socially standard wages must theoretically<br />

be defined as the form <strong>of</strong> substantial value <strong>of</strong> labor-power, or the price-form <strong>of</strong><br />

value for the labor-time necessary to reproduce the commodity labor-power by consuming<br />

the necessary means <strong>of</strong> subs<strong>is</strong>tence purchased in a market. According to Marx, he said that<br />

“However, on the surface <strong>of</strong> bourgeo<strong>is</strong> society the worker’s wage appears as the price <strong>of</strong><br />

labor, as a certain quantity <strong>of</strong> money that <strong>is</strong> paid for a certain quantity <strong>of</strong> labor,”. He attempts<br />

to show the transformation <strong>of</strong> the value <strong>of</strong> labor-power into wages in th<strong>is</strong> sense, and<br />

436 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

says that the ordinary expression like value <strong>of</strong> labor ar<strong>is</strong>e from the relations <strong>of</strong> production<br />

themselves. Through he clarifies how these common-sense notions like the value <strong>of</strong> labor<br />

or wages conceal the real social substance <strong>of</strong> exploitation, he does not seem successful in<br />

presenting a logic for why these notions ar<strong>is</strong>e from the nature <strong>of</strong> the capital<strong>is</strong>t relations <strong>of</strong><br />

production. In retrospect the notion <strong>of</strong> wages a remuneration for the whole work <strong>of</strong> labor<br />

performed was not really establ<strong>is</strong>hed from the transformation from the value <strong>of</strong> labor-power.<br />

Already in precapital<strong>is</strong>t societies, various art<strong>is</strong>ans or craftsmen like gardeners or barbers<br />

having their own tools used to be paid remuneration for all their work in the form <strong>of</strong> wages.<br />

Therefore, the wage-form itself <strong>is</strong> part <strong>of</strong> the forms <strong>of</strong> a commodity economy in general, and<br />

<strong>is</strong> not specific to capital<strong>is</strong>m. Capital<strong>is</strong>m took over such a wage-form for the wage-worker<br />

in completely differing social conditions. Although the propertyless wage-workers, unlike<br />

the independent craftsmen, actually have to sell their commodity labor-power for the daily<br />

means <strong>of</strong> subs<strong>is</strong>tence which embody just the necessary labor-time in a working day to sustain<br />

their labor-power, wages with the notion <strong>of</strong> the value <strong>of</strong> labor <strong>is</strong> conceived as the full<br />

remuneration for the whole laboring day. As Marx points out, the wage-form in th<strong>is</strong> sense<br />

conceals the source <strong>of</strong> surplus-value on the surface <strong>of</strong> bourgeo<strong>is</strong> society.<br />

Next Message by Caren <strong>is</strong> [584].<br />

<strong>Question</strong> 684 German H<strong>is</strong>tory<br />

[526] Emma: <strong>What</strong> revolution? Given recent h<strong>is</strong>tory, <strong>is</strong> Marx worth studying as something<br />

more than an h<strong>is</strong>torical curiosity? Well, yes. But with the benefit <strong>of</strong> some hindsight,<br />

it seems clear Marx was a pr<strong>is</strong>oner <strong>of</strong> h<strong>is</strong> own rigid thinking and didn’t allow enough for<br />

deviation in h<strong>is</strong> model. A critic<strong>is</strong>m that very <strong>of</strong>ten fits even first-rate systematic thinkers,<br />

like Marx. Generally, American society today d<strong>is</strong>m<strong>is</strong>ses Marx completely. Too bad. We<br />

do so at our own expense since many <strong>of</strong> h<strong>is</strong> critic<strong>is</strong>ms <strong>of</strong> capital<strong>is</strong>m still apply. That others<br />

<strong>of</strong> h<strong>is</strong> theories have been shown to be inaccurate, even wildly so, should not dimin<strong>is</strong>h the<br />

fact that on a lot <strong>of</strong> matters he was not only accurate but prescient. <strong>What</strong> follows are some<br />

thoughts on German h<strong>is</strong>tory and some advice for Marx and Marx<strong>is</strong>ts.<br />

Instead <strong>of</strong> predicting a cataclysmic end to capital<strong>is</strong>m in favor <strong>of</strong> an equally definite beginning<br />

<strong>of</strong> commun<strong>is</strong>m, Marx should have given capital<strong>is</strong>m more credit in its abilityto adapt<br />

and modify itself in the face <strong>of</strong> change. The “evil” capital<strong>is</strong>m <strong>of</strong> mid-19th century Europe<br />

that marx criticized in Kapital deserved critic<strong>is</strong>m. but it began to significantly modify itself<br />

at almost the same time. By the end <strong>of</strong> the century when Marx’s workers should have been<br />

storming the capital<strong>is</strong>ts’ walls, they were instead cutting deals, unionizing, forcing shorter<br />

work days, getting their kids out <strong>of</strong> the mines and factories for at least part <strong>of</strong> the day, and<br />

restricting child labor altogether, though the process was painfully (and deadly) slow. Germany<br />

was also at th<strong>is</strong> time in the midst <strong>of</strong> the greatest relative growth period in industrial<br />

production the world has ever seen. Was it perfect progress? Of course not. Was it getting<br />

better? Absolutely. And when German hard-liners were complaining that their comrades<br />

were selling out, what was the response? “You’re right, we are. But, you know, things<br />

used to be and could still be a lot worse.” And given that WWI was about to break out, the<br />

Social Democrats decided they were Germans first and Commies second, or third.... They<br />

also agreed to put the revolution on hold, indefinitely as it turned out. (And don’t tell me<br />

that the upheaval after the War was commun<strong>is</strong>t inspired. As I understand it the commun<strong>is</strong>ts


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 437<br />

were being recalled, permanently! Let’s see, there were Liebknecht and Luxemburg, etc.<br />

and then they weren’t there anymore!) Where Marx’s revolution did occur, sort <strong>of</strong>, was in<br />

Russia. Marx was at a loss to explain why there since Russia had essentially no proletariat.<br />

Oh well.<br />

Does all th<strong>is</strong> point to Marx as irrelevant for today. To some extent, yes. But, Marx <strong>is</strong><br />

still the best source on a number <strong>of</strong> <strong>is</strong>sues including, in my opinion, the dynamics <strong>of</strong> class<br />

struggle. And Marx <strong>is</strong> right on concerning worker alienation, at least as the simiple level at<br />

which I understand it, as workers removed from the products <strong>of</strong> their labor and the negative<br />

social effects caused by that. <strong>What</strong> Marx didn’t plug into h<strong>is</strong> model <strong>is</strong> the extent to which<br />

people refuse to be defined by their work in a modern industrial society and how quick they<br />

are to find other outlets from which to draw their meaning. (How would you quantify that?<br />

Thank goodness for ceter<strong>is</strong> paribus.) I would go on, but these d<strong>is</strong>cussion subm<strong>is</strong>sions aren’t<br />

being graded. Thankfully. Any responses out there? <strong>What</strong> else <strong>is</strong> Marx good for?<br />

Message [526] referenced by [532]. Next Message by Emma <strong>is</strong> [594].<br />

[532] Panacea: Re: <strong>What</strong> revolution? Emma [526] wrote a great piece on the German<br />

h<strong>is</strong>tory intertwined with early Commun<strong>is</strong>m. I found it intriguing, but have just a slight<br />

problem with her examination <strong>of</strong> the period directly after WW1. She wrote:<br />

And when German hard-liners were complaining that their comrades were<br />

selling out, what was the response? “You’re right, we are. But, you know,<br />

things used to be and could still be a lot worse.” And given that WWI was<br />

about to break out, the Social Democrats decided they were Germans first<br />

and Commies second, or third.... They also agreed to put the revolution<br />

on hold, indefinitely as it turned out. (And don’t tell me that the upheaval<br />

after the War was commun<strong>is</strong>t inspired. As I understand it the commun<strong>is</strong>ts<br />

were being recalled, permanently! Let’s see, there were Liebknecht and<br />

Luxemburg, etc. and then they weren’t there anymore!)<br />

Th<strong>is</strong>, I feel, <strong>is</strong> a gross oversimplification <strong>of</strong> the role commun<strong>is</strong>m played throughout Germany<br />

after the war. Remember the Freikorps, Emma - the ultra right-wing mercenaries who<br />

moved throughout the company fighting a running struggle against the commun<strong>is</strong>ts, as the<br />

Weimar government allowed them to systematically exterminate commun<strong>is</strong>ts. If the commun<strong>is</strong>ts<br />

lifted a hand, the Government troops would react, killing and making arrests. If the<br />

Freikorps killed or molested a commun<strong>is</strong>t, the government would not lift a finger. The commun<strong>is</strong>ts<br />

had a strong hope for social change, but they could hardly hold meetings without<br />

some sort <strong>of</strong> harassment.<br />

Certainly, prominant commun<strong>is</strong>t thinkers made their exit (under duress), but commun<strong>is</strong>m<br />

has been a movement <strong>of</strong> the underclass - and they suffered greatly in the period directly after<br />

the war. Finally, they began to fight back, and periods such as the Kapp Putsch in Berlin,<br />

and other Putschs were the result. Remember, the specter <strong>of</strong> “international commun<strong>is</strong>m”<br />

was such a nightmare that the democratic government in Weimar, under Streseman, <strong>of</strong>ten<br />

cut deals with the right<strong>is</strong>ts in order to fight their “common enemy”, the commun<strong>is</strong>ts.<br />

And who did Onkel Adolf blame the Reichstagsbrand on? The commun<strong>is</strong>ts - thus securing<br />

h<strong>is</strong> political position, and justifying h<strong>is</strong> order for marshall law. Thousands <strong>of</strong> commun<strong>is</strong>ts<br />

438 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

were then systematically hunted down and destroyed by firing squad or concentration camp.<br />

One camp with a terrifying story lies just north <strong>of</strong> Dresden, a middle ages robber baron’s castle<br />

on a peak with sheer cliffs on three sides, the fourth heavily guarded. Today it <strong>is</strong> a youth<br />

hostel. On the eastern cliff face, some fifteen feet down the side there <strong>is</strong> a tiny ledge. SOme<br />

time in 1940, three <strong>of</strong> the pr<strong>is</strong>oners with the red triangle escaped to th<strong>is</strong> ledge, having hoped<br />

to find a path down the cliff - there was none. Each carved h<strong>is</strong> name and a “Totenkopf”, a<br />

skull, into the cliff wall - and then leapt the 600 feet or so to their deaths rather than return<br />

to certain torture. Th<strong>is</strong> <strong>is</strong> just one small story, to be read in camp records available at the<br />

hostel.<br />

The fate <strong>of</strong> commun<strong>is</strong>ts, from the twenties through to the NS regime under Hitler, <strong>is</strong> <strong>of</strong>ten<br />

ignored. Thousands <strong>of</strong> them died even before the Reichstagsbrand, and thousands died<br />

in camps. Certainly, there were many many more jews who suffered, as well as gays and<br />

gypsies and so forth - but we can’t ignore those who wore the red triangle on their camp<br />

uniforms. Emma, your statement seems to gloss over these facts. Hitler’s Mein Kampf <strong>is</strong><br />

as equally venemous towards commun<strong>is</strong>ts, and prom<strong>is</strong>es them the same fate as the jews. I<br />

adv<strong>is</strong>e anyone interested to read Hitlers work, and look for the sections he writes on commun<strong>is</strong>ts.<br />

Panacea<br />

“Du luegst, wenn du uns allen den Untergang propheze<strong>is</strong>t. Aus unserm Untergang holst<br />

du dir, indem du ihn verkuendest, deine Dauer...” Kassandra from Chr<strong>is</strong>ta Wolf<br />

Next Message by Panacea <strong>is</strong> [534].<br />

[597] Emma: Reply to Panacea Panacea criticizes my “<strong>What</strong> Revolution?” subm<strong>is</strong>sion<br />

to the d<strong>is</strong>cussion l<strong>is</strong>t as an oversimplification. He’s right, to some extent. It was simply stated<br />

and I did get a bit flippant referring to the German commun<strong>is</strong>ts as comrades who had sold<br />

out. But Panacea’s critic<strong>is</strong>m <strong>of</strong> my subm<strong>is</strong>sion really m<strong>is</strong>ses the mark. I said that the German<br />

commun<strong>is</strong>ts sold out prior to WWI. By sold out I mean the real majority <strong>of</strong> the commun<strong>is</strong>ts<br />

were literally bought <strong>of</strong>f by the Ka<strong>is</strong>er through reforms and pressure to be and act German<br />

first. I think that <strong>is</strong> correct. The only time German commun<strong>is</strong>ts ever had a chance to effect<br />

the political and social landscape was then. And they did force some needed changes in<br />

the labor market. But by the time WWI was over so were the commun<strong>is</strong>ts, effectively. They<br />

never again enjoyed any real political power. That <strong>is</strong> not to say that there weren’t courageous<br />

commun<strong>is</strong>ts who made the ultimate sacrifice after WWI. There were and I mentioned a<br />

couple <strong>of</strong> the leaders. But by then the commun<strong>is</strong>ts were too few and without any real popular<br />

support. The Kapp Putsch you mention was squashed literally before it began and its leaders<br />

captured and hung while and before the putsch played out. The national<strong>is</strong>ts, including the<br />

NAZIS, were just too strong and commun<strong>is</strong>m had become synonomous with Russia, which<br />

was its ultimate death knell. Later, Hitler used the commun<strong>is</strong>ts as a foil and blamed a lot<br />

<strong>of</strong> things on them that they were not responsible for. But that doesn’t mean the commun<strong>is</strong>ts<br />

had any power, which <strong>is</strong> what I maintained in my piece. It just means they were a convenient<br />

group to blame and one that would resonate with other Germans.<br />

First Message by Emma <strong>is</strong> [61].


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 439<br />

[609] Panacea: Re: Emma’s comments I agree for the most part with Emma’s clarifications<br />

on Commun<strong>is</strong>m in Germany between WWI and 2, and thank her for her extra<br />

comments and critic<strong>is</strong>ms.<br />

Next Message by Panacea <strong>is</strong> [613].<br />

<strong>Question</strong> 685 Thread 685<br />

[529] Karl: Birds <strong>of</strong> a feather-dl I am refuting a very absurd idea, and that <strong>is</strong> Marxian<br />

theory had nothing to do with commun<strong>is</strong>m, and social<strong>is</strong>m. In particular to Panacea’s remark,<br />

“Marx had nothing to do with commun<strong>is</strong>m or social<strong>is</strong>m!” Panacea[459] thread. How far<br />

from the mark can you go. That <strong>is</strong> like saying Luther had nothing to do with Protestant<strong>is</strong>m,<br />

or more like the Pope <strong>is</strong>n’t Catholic. Good effort, but look into it some time before you<br />

get into blasting your mouth <strong>of</strong>f like a parrot, only mimicking someone else. I think kevin<br />

will back th<strong>is</strong> by h<strong>is</strong> quote, “Marx actually was quite concerned with social<strong>is</strong>m.” Notice<br />

Marx’s choice <strong>of</strong> titles, the commun<strong>is</strong>t Manifesto, yes I’ve read it several times. Why would<br />

future eastern block leaders, choose the name. Why were some obsessed with Marx, if you<br />

really look behind the facade <strong>of</strong> pat answers given by some, you may be supr<strong>is</strong>ed how much<br />

influence h<strong>is</strong> theories have had on the world.<br />

Panacea, do me a favor, go to the Marriott library to the section on Social<strong>is</strong>m, and Commun<strong>is</strong>m<br />

(4th floor, I go there frequently). Intermingled you will find numerous volumes on<br />

Marx. Did someone put them there by accident?<br />

Message [529] referenced by [534] and [536]. Next Message by Karl <strong>is</strong> [600].<br />

[534] Panacea: Re: Birds <strong>of</strong> a feather-dl Karl wrote in [529]<br />

I am refuting a very absurd idea, and that <strong>is</strong> Marxian theory had nothing<br />

to do with commun<strong>is</strong>m, and social<strong>is</strong>m. In particular to Panacea’s remark,<br />

“Marx had nothing to do with commun<strong>is</strong>m or social<strong>is</strong>m!”Panacea[459]<br />

thread. How far from the mark can you go. That <strong>is</strong> like saying Luther<br />

had nothing to do with Protestant<strong>is</strong>m, or more like the Pope <strong>is</strong>n’t Catholic.<br />

Good effort, but look into it some time before you get into blasting your<br />

mouth <strong>of</strong>f like a parrot, only mimicking someone else. I think kevin will<br />

back th<strong>is</strong> by h<strong>is</strong> quote, “Marx actually was quite concerned with social<strong>is</strong>m.”<br />

Notice Marx’s choice <strong>of</strong> titles, the commun<strong>is</strong>t Manifesto, yes I’ve<br />

read it several times.<br />

Good, Karl you’ve read it. I admit, my statement was a bit <strong>of</strong> an oversimplification. I do<br />

w<strong>is</strong>h, however, that you had gone to hear Fredric Jam<strong>is</strong>on speak recently over in LNCO -<br />

he <strong>is</strong> Duke’s resident marx<strong>is</strong>t, and had many a good thing to say (Kevin - I wonder if you<br />

were there...). H<strong>is</strong> point, which I have already stated, was that capital<strong>is</strong>m’s mere ex<strong>is</strong>tence<br />

<strong>is</strong> the reason “Marx<strong>is</strong>m” cannot die - for “Marx<strong>is</strong>m” <strong>is</strong> the study and critique <strong>of</strong> capital<strong>is</strong>m<br />

as formulated and furthured by Marx.<br />

Now - you realize when the Manifesto was written? 1848. Was there a commun<strong>is</strong>t party<br />

in 1848? No. No, No, No. See, Karl, don’t just read the text, read the secondary literature<br />

- Marx saw th<strong>is</strong> as an inflammatory experiment, one <strong>of</strong> h<strong>is</strong> attempts at ‘prophecy’ <strong>of</strong> sorts.<br />

Was Marx ever a Party member? No did marx start a party? No.<br />

440 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I admit that my statement needs furthur explanation - Marx was what was then called a<br />

social<strong>is</strong>t... But Marx <strong>is</strong> not as significant for h<strong>is</strong> effect on communsim or social<strong>is</strong>m - h<strong>is</strong> role<br />

has more importantly revolved around understanding capital<strong>is</strong>m. He has written little on any<br />

type <strong>of</strong> optional economy, for th<strong>is</strong> wasn’t h<strong>is</strong> focus. H<strong>is</strong> few attempts aren’t actually that<br />

good, either.<br />

It <strong>is</strong> in th<strong>is</strong> context that I made the statement - and because <strong>of</strong> it’s ambiguity, I frankly<br />

w<strong>is</strong>h I had rephrased it. Sorry if I sound like a parrot - you sound much like a myna bird,<br />

however - it would be real easy for me as well to simply mimic what others have told me<br />

about commun<strong>is</strong>m to be truth, or to take a book’s title at face value as you do. Read for<br />

comprehension, Karl. It <strong>is</strong> difficult to reach your conclusions if you can realize that in 1848<br />

there was no “commun<strong>is</strong>m” for there to be a manifesto for, nor were there for a few years<br />

to come. In 1848 there was an important civil war in Marx’s Germany - but these were<br />

social<strong>is</strong>ts - and far from commun<strong>is</strong>ts. Good luck<br />

Panacea<br />

“not all conservatives are idiots - but all idiots are conservatives.”<br />

Next Message by Panacea <strong>is</strong> [562].<br />

[536] Kevin: Re: Birds <strong>of</strong> a feather-dl Karl wrote in [529]<br />

I am refuting a very absurd idea, and that <strong>is</strong> Marxian theory had nothing<br />

to do with commun<strong>is</strong>m, and social<strong>is</strong>m. In particular to Panacea’s remark,<br />

“Marx had nothing to do with commun<strong>is</strong>m or social<strong>is</strong>m!”Panacea[459]<br />

thread. How far from the mark can you go. That <strong>is</strong> like saying Luther<br />

had nothing to do with Protestant<strong>is</strong>m, or more like the Pope <strong>is</strong>n’t Catholic.<br />

Good effort, but look into it some time before you get into blasting your<br />

mouth <strong>of</strong>f like a parrot, only mimicking someone else.<br />

Your analys<strong>is</strong> <strong>is</strong> flawed because Marx was long dead before the r<strong>is</strong>e <strong>of</strong> the many movements<br />

across the globe which took h<strong>is</strong> name. Nor did Marx have any personal involvement<br />

in the laying out <strong>of</strong> the model <strong>of</strong> social<strong>is</strong>m that h<strong>is</strong> worshipers would design. Yes, Marx<br />

was a social<strong>is</strong>t. But <strong>of</strong> course <strong>is</strong> Bill Clinton a liberal or Pat Buchanan a republican, in the<br />

classical definition <strong>of</strong> the terms? Its better to look at what someone thinks and does, rather<br />

than what they call themselves.<br />

I think kevin will back th<strong>is</strong> by h<strong>is</strong> quote, “Marx actually was quite concerned<br />

with social<strong>is</strong>m.” Notice Marx’s choice <strong>of</strong> titles, the commun<strong>is</strong>t Manifesto,<br />

yes I’ve read it several times. Why would future eastern block leaders,<br />

choose the name. Why were some obsessed with Marx, if you really<br />

look behind the facade <strong>of</strong> pat answers given by some, you may be supr<strong>is</strong>ed<br />

how much influence h<strong>is</strong> theories have had on the world.<br />

Marx’s theory had plenty <strong>of</strong> influence in the “formerly-social<strong>is</strong>t countries.” But it was<br />

used primarily as a canon for worship. Soviet Marx<strong>is</strong>m after the great Stalin<strong>is</strong>t purges became<br />

a canon, fitted to the party line. Look at Zyuganov now in Russia; I would question<br />

whether the guy has read more than a few pages <strong>of</strong> Marx or Lenin in h<strong>is</strong> life, yet he plays<br />

the Lenin card every other day; when he’s not busy talking to bankers and businessmen to


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 441<br />

reassure them that they will retain all <strong>of</strong> their private property (ex. capital<strong>is</strong>m will stay). Its<br />

pure politics; one day Zyuganov calls Lenin the greatest man ever, the next day he’s talking<br />

about Jesus, and the next he <strong>is</strong> reassuring bankers that h<strong>is</strong> main influence <strong>is</strong> John Maynard<br />

Keynes. Yet, when the time comes, he’ll certainly make plenty <strong>of</strong> references to “the founding<br />

fathers,” no matter how schooled he <strong>is</strong> in their thought.<br />

Maybe the Marriott Library has a copy <strong>of</strong> Pravda, or Kommun<strong>is</strong>t for you to read (both<br />

Soviet party papers, and supposedly the leading “Marx<strong>is</strong>t voice” in the SU). It’s very interesting<br />

to see the way they play Marx and Lenin on various occasions, Stalin was an absolute<br />

master at th<strong>is</strong>; if you read Stalin’s manuscripts h<strong>is</strong> ability to get Lenin (by then deceased) to<br />

back him up on every point <strong>is</strong> <strong>of</strong> pr<strong>of</strong>essional quality. So I say, “yes Marx was very much<br />

concerned with social<strong>is</strong>m,” but he was long since dead when the Russian Revolution took<br />

place, and I have already d<strong>is</strong>cussed how to use Marx’s concepts <strong>of</strong> social<strong>is</strong>m, and critic<strong>is</strong>m<br />

<strong>of</strong> capital<strong>is</strong>m to analyse the “formerly-social<strong>is</strong>t countries.”<br />

Next Message by Kevin <strong>is</strong> [604].<br />

<strong>Question</strong> 686 Thread 686<br />

[530] Chocolate: Re: Are pro-athletes over paid!!!!!! Kia brought up the topic <strong>of</strong><br />

pr<strong>of</strong>essional athletes and the wages they recieve earlier and asked the question “Are proathletes<br />

over being over paid.” First <strong>of</strong> all, I would have to say that pro-athletes can be<br />

viewed as individuals who own a commodity (their talent) that <strong>is</strong> very rare and hard to<br />

obtain. It <strong>is</strong> <strong>of</strong>ten said that exactly less than one-percent <strong>of</strong> college athletes will make it to<br />

the pr<strong>of</strong>essional level. Which inturn says that the talent and skill needed to make it to the<br />

pr<strong>of</strong>essional level <strong>is</strong> very high.<br />

Pr<strong>of</strong>essor Hunt once said that “an individaul will have a better chance to make it and<br />

succeed in the business world than as a pr<strong>of</strong>essional athlete.” But, succeeding in the business<br />

world <strong>is</strong> not an easy task to accompl<strong>is</strong>h either.<br />

I would have to say that pro-athletes are only over-paid when their skills and talent have<br />

dimin<strong>is</strong>hed below a given level where he/she can no longer generate an equall amount <strong>of</strong><br />

utility in return.<br />

Next Message by Chocolate <strong>is</strong> [531].<br />

[533] Punani: Re: Are pro-athletes over paid!!!!!! I would have to d<strong>is</strong>agree with<br />

chocolate’s statement that pro-athletes are not over-paid. I can understand that their skill<br />

and talent are rare and hard to obtain, i can also understand that only a few will ever make<br />

it as a pr<strong>of</strong>essional athlete. But, recieving a multi-million dollar contract to play in a sport<br />

<strong>is</strong> very ridiculous. I can understand recieving somewhere in the neighborhood <strong>of</strong> one to two<br />

million dollars a year but ten to twenty million <strong>is</strong> way out <strong>of</strong> hand. Bill Gates <strong>is</strong> a billionaire,<br />

but their <strong>is</strong> only one <strong>of</strong> him. Even though “less than one-percent <strong>of</strong> college athletes will<br />

become pr<strong>of</strong>essionals” their are still hundreds <strong>of</strong> pro-athletes.<br />

I can understand a doctor being <strong>of</strong>fered a multi-million dollar contract, because he/she <strong>is</strong><br />

doing a service that <strong>is</strong> highly needed. An individual cannot compare the value and services<br />

<strong>of</strong> a doctor to that <strong>of</strong> a pr<strong>of</strong>essional athlete.<br />

Next Message by Punani <strong>is</strong> [573].<br />

442 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[535] Skippy: Re: Are pro-athletes over paid!!!!!! Pro athletes pay are determined on<br />

several different things. Most <strong>of</strong> which none <strong>of</strong> us have a clue about because we are not<br />

pro-athletes.<br />

There are a few players that are in the extremes. <strong>What</strong> about the majority <strong>of</strong> the players<br />

that are paid the minimum. These players are not making millions as proposed. They are<br />

surviving not to mention on who knows how long their athletic carreers will last. The amount<br />

<strong>of</strong> money made in their short time in the spot light might have to last them the rest <strong>of</strong> their<br />

lives.<br />

Players like M.J. contribute so much to the league. When he came back into the league,<br />

cities that haven’t seen a sold out crowd in years could not find a seat when he came into<br />

town.<br />

Dion went to Dallas withe the help <strong>of</strong> a few million. Th<strong>is</strong> mar <strong>is</strong>n’t called “Prime-Time”<br />

for nothing. All <strong>of</strong> America knows <strong>of</strong> him. Wheather they love or hate him <strong>is</strong> irrelevant. All<br />

sports fans have read an article about him, looked at h<strong>is</strong> line <strong>of</strong> “Nike” tenn<strong>is</strong> shoes.<br />

The “Dream Team”, the US olympic basket ball team, provides an entire country with<br />

thrills, and pride.<br />

Sports are such a major part <strong>of</strong> the US society. The players are heros to everyone. Everyone<br />

needs someone positive to look up to. These guys are better than bad guys.<br />

Most <strong>of</strong> the more popular athletes can’t have a private life. News reporters, photographers,<br />

and fans mall these people at all times. <strong>What</strong> price do you put on that.<br />

Money paid to these elite people <strong>is</strong> earned. They overpaid ones we should be consentrating<br />

on are the politicians.<br />

Next Message by Skippy <strong>is</strong> [537].<br />

[548] Femme: Are Proathletes overpaid? On one hand you can say that pro-athletes are<br />

over paid, or are they?<br />

The top paid athletes in pr<strong>of</strong>essional sports are the elite, they are the best <strong>of</strong> the best<br />

within the time frame that they are being paid large amounts <strong>of</strong> money. One must remember<br />

that most <strong>of</strong> their days are filled with the particular sport that they are playing. You have<br />

to ask are they exploiting the individuals who are paying them, or are they being exploited?<br />

One must ask how do you put a dollar amount on certain things, like freedom. Freedom<br />

to do what one likes according to their desires. I’m not an expert on the personal life <strong>of</strong> a<br />

pr<strong>of</strong>essional top paid athlete, but I would assume that he has a fairly stringent schedule <strong>of</strong><br />

workouts, practice, nutritional schedule, etc. For all we know their sex life <strong>is</strong> being affected<br />

due to their “schedule”, they may not even have one due to physiological strains and stress<br />

with in their body. How does one put a dollar figure on that? If one can, than I think one can<br />

answer the question whether or not Proathletes are being paid to much.<br />

Next Message by Femme <strong>is</strong> [549].<br />

[550] Wolf: Wages <strong>of</strong> pro-athletes I agreement with the last thread concerning th<strong>is</strong> topic<br />

I would like to make a few more points. I happen to be friends with a number <strong>of</strong> pr<strong>of</strong>essional<br />

athletes and dozens more that have tried to do so. Those who have arrived so to speak (made<br />

it to the N.F.L.) are in fairly good standing financially for the short run that <strong>is</strong> if their agent


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 443<br />

didn’t rip them <strong>of</strong>f in the first place and if they don’t get cut before or during next season.<br />

One experience <strong>of</strong> my friend was that he was kept on as part <strong>of</strong> the team until the last possible<br />

day (a few games into the preseason) in which he was used as nothing more than a human<br />

punching bag for those on the other side <strong>of</strong> the line <strong>of</strong> scrimmage (that were competing for a<br />

starting position) could go against and litteraly cave h<strong>is</strong> head in. Needless to say that <strong>is</strong> NOT<br />

FUN there <strong>is</strong> alot <strong>of</strong> phy<strong>is</strong>ical and yes emmotional pain for a person in that situation. Just<br />

because you are big it doesn’t mean that you are immune to pain. Th<strong>is</strong> friend was cut after<br />

sacrificing h<strong>is</strong> body and then the management had the nerve to ask him back some weeks<br />

later after the starter in h<strong>is</strong> position was hurt. I would like you to also keep in mind that he<br />

was going through these camps and all th<strong>is</strong> pain during the last quarter <strong>of</strong> h<strong>is</strong> senior year,<br />

inableing him to fin<strong>is</strong>h h<strong>is</strong> degree with the rest <strong>of</strong> h<strong>is</strong> peers and m<strong>is</strong>sing out on a time <strong>of</strong> life<br />

when he should be rejoicing with h<strong>is</strong> friends and trying to figure out what to do next. Th<strong>is</strong><br />

<strong>is</strong> EXPLIOTATION not to just a few <strong>is</strong>olated cases, not even to just a few hundred, but to<br />

THOUSANDS <strong>of</strong> athletes each year.<br />

THE WOLF<br />

Next Message by Wolf <strong>is</strong> [591].<br />

[559] Peaches: Comment to “are pro-athletes overpaid” thread First <strong>of</strong> all, Skippy,<br />

ALL pro-athletes AREN’T role models. Would you say Denn<strong>is</strong> Rodman <strong>is</strong> your role model?<br />

Say, son I’d like you to be like Denn<strong>is</strong> Rodman. <strong>What</strong> a joke! More like the m<strong>is</strong>take you<br />

never want to commit! Secondly, fame <strong>is</strong> a part <strong>of</strong> being famous. If you can’t handle it, do<br />

something else. There are ways <strong>of</strong> keeping yourself out <strong>of</strong> the limelight. Isn’t that why they<br />

get paid what they do.<br />

In response to Chocolate’s regarding the <strong>University</strong> student getting a free, paid education<br />

and receiving nothing in return <strong>is</strong> somewhat m<strong>is</strong>sing the point. If the athlete got a scholarship<br />

to the U mainly because he had an excellent skill in football, and he doesn’t really have the<br />

brains to cut it, then he deserves nothing in the end if takes advantage <strong>of</strong> h<strong>is</strong> coach when he<br />

tells him he’ll make it to the Pro’s. <strong>What</strong> person in h<strong>is</strong> “right” mind would go to school for<br />

fours years for free, “cheat” h<strong>is</strong> way through class, and expect that h<strong>is</strong> talents can support<br />

him through the rest <strong>of</strong> h<strong>is</strong> life?! <strong>What</strong> does he suspect will happen to him if he should be<br />

in an accident? Sure h<strong>is</strong> “hard-earned” “pro” money might make him last a year, but what<br />

<strong>of</strong> that two years from now? Look at Michael Jordan’s comeback. Do you know the “real”<br />

reason why he came back to the pro’s? Talk about role models, Steve Young WAS smart<br />

enough to know that h<strong>is</strong> first priority during h<strong>is</strong> college years was to fin<strong>is</strong>h law school. If an<br />

athlete got a scholarship and used h<strong>is</strong> brains, then in the end he would still have h<strong>is</strong> degree.<br />

Sure he might get exploited through h<strong>is</strong> talents, but doesn’t everyone at some point in their<br />

life. Are you immune from being exploited? If you are, I’m sure everyone in class would<br />

love to know how.<br />

As for Punani’s response regarding the compar<strong>is</strong>on <strong>of</strong> the doctor to the athlete...I can’t<br />

see how you can compare such traits. I guess it depends on how you see the picture, your<br />

perception <strong>of</strong> “things.” Did you know that some doctors in th<strong>is</strong> country are being paid such<br />

prices for their services? As for comparing values...value <strong>is</strong> a personal judgment. It depends<br />

where you sit how well you view the picture...meaning that Marx would say that value <strong>is</strong>n’t<br />

444 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

based on what kind <strong>of</strong> job you do but how much time and effort you put into it that counts<br />

in the end.<br />

In my opinion, people are paid for whatever the capital<strong>is</strong>t feels they are worth. You<br />

may not agree with that, but your opinion doesn’t count because you have sold your labour<br />

power to someone in exchange for something in return. If you do the labour, then you are<br />

in some type <strong>of</strong> agreement with that price. If you don’t like what you’re doing, then you go<br />

somewhere else and sell your labour, perhaps for a higher price. That’s capital<strong>is</strong>m for you...<br />

Next Message by Peaches <strong>is</strong> [603].<br />

[588] Pinky: Wages <strong>of</strong> pro-athletes Wolf made the following observation:<br />

I agreement with the last thread concerning th<strong>is</strong> topic I would like to make<br />

a few more points. I happen to be friends with a number <strong>of</strong> pr<strong>of</strong>essional<br />

athletes and dozens more that have tried to do so. Those who have arrived<br />

so to speak (made it to the N.F.L.) are in fairly good standing financially for<br />

the short run that <strong>is</strong> if their agent didn’t rip them <strong>of</strong>f in the first place and<br />

if they don’t get cut before or during next season. One experience <strong>of</strong> my<br />

friend was that he was kept on as part <strong>of</strong> the team until the last possible day<br />

(a few games into the preseason) in which he was used as nothing more than<br />

a human punching bag for those on the other side <strong>of</strong> the line <strong>of</strong> scrimmage<br />

(that were competing for a starting position) could go against and litteraly<br />

cave h<strong>is</strong> head in. Needless to say that <strong>is</strong> NOT FUN there <strong>is</strong> alot <strong>of</strong> phy<strong>is</strong>ical<br />

and yes emmotional pain for a person in that situation. Just because you<br />

are big it doesn’t mean that you are immune to pain. Th<strong>is</strong> friend was cut<br />

after sacrificing h<strong>is</strong> body and then the management had the nerve to ask him<br />

back some weeks later after the starter in h<strong>is</strong> position was hurt. I would like<br />

you to also keep in mind that he was going through these camps and all th<strong>is</strong><br />

pain during the last quarter <strong>of</strong> h<strong>is</strong> senior year, inableing him to fin<strong>is</strong>h h<strong>is</strong><br />

degree with the rest <strong>of</strong> h<strong>is</strong> peers and m<strong>is</strong>sing out on a time <strong>of</strong> life when he<br />

should be rejoicing with h<strong>is</strong> friends and trying to figure out what to do next.<br />

Th<strong>is</strong> <strong>is</strong> EXPLIOTATION not to just a few <strong>is</strong>olated cases, not even to just a<br />

few hundred, but to THOUSANDS <strong>of</strong> athletes each year.<br />

I agree, th<strong>is</strong> situation <strong>is</strong> really tough. I would like to first speak to some <strong>of</strong> the meaning for<br />

exploitation, then follow with a question. Exploitation means that the capital<strong>is</strong>t; or in th<strong>is</strong><br />

case; coach, management, and agents take advantage <strong>of</strong> the surplus-labor that the worker<br />

(player) puts into the commodity he sells (the game). Th<strong>is</strong> in mind, the question to me <strong>is</strong><br />

where <strong>is</strong> the real power? Did your friends have no other job prospects?, or did the extremely<br />

rich prospect play some kind <strong>of</strong> a role in their dec<strong>is</strong>ions? I believe that yes, there are a lot<br />

<strong>of</strong> unpleasant, and even abusive practices that are utilized in the athletic industry. Certainly,<br />

anything such as forcing an injured player to take exessive doses <strong>of</strong> drugs to help them to<br />

play despite their injury <strong>is</strong> just plain wrong. However, the possibilities <strong>of</strong> problems could<br />

not have completely escaped their minds. The nature <strong>of</strong> athletics <strong>is</strong> such that it <strong>is</strong> based on<br />

competition; to find the best <strong>of</strong> the best and d<strong>is</strong>pose <strong>of</strong> them when they are no longer able to<br />

maintain a high performance level. Otherw<strong>is</strong>e, the bas<strong>is</strong> <strong>of</strong> a good game (good competition)<br />

would be lost and no-one would pay attention to a senior-citizens play<strong>of</strong>f. Th<strong>is</strong> <strong>is</strong> not a stable


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 445<br />

pr<strong>of</strong>ession, it does not even pretend to be. I don’t imagine that any pro-athlete imagines that<br />

they will be there forever. The motivation <strong>is</strong> that they would like to try for a piece <strong>of</strong> it,<br />

to enjoy it while they can. If your friends have let their social lives fall because <strong>of</strong> the<br />

commitment that their chosen path requires, it <strong>is</strong> because they chose to do it. If the prospects<br />

didn’t include possible fame and fortune, few would probably take the r<strong>is</strong>ks. The fact <strong>is</strong>,<br />

that for many, the prospects are too attractive to ignore, and they must as well recognize that<br />

with the possibility <strong>of</strong> outrageous success, they r<strong>is</strong>k their health, and could after all, not even<br />

make it to the top. The real power <strong>is</strong> in THEIR hands. It <strong>is</strong> a value-judgement not based on<br />

what the capital<strong>is</strong>t group makes him do, but what HE deems <strong>is</strong> a reasonable r<strong>is</strong>k to take for<br />

the possibility <strong>of</strong> the benefits. NO ONE, but himself has the power to require him to take<br />

r<strong>is</strong>ks that he does not feel are worth the benefits. After the fact, he may realize that the whole<br />

thing sucked, and blame it on everyone else, but I think that a transferrance <strong>of</strong> h<strong>is</strong> frustration<br />

in himself on to others so that he can feel like he had no choice. He did.<br />

Next Message by Pinky <strong>is</strong> [617].<br />

<strong>Question</strong> 687 Thread 687<br />

[531] Chocolate: Re: Worth their effort. “Should college athletes be paid for their services?”<br />

<strong>is</strong> a topic that has brought up a lot <strong>of</strong> controversies throughout all the universities<br />

and colleges in America. Some say that college athlestes are being exploited by coaches,<br />

admin<strong>is</strong>trators and society. For example, football coaches at major universities recieve a<br />

yearly income <strong>of</strong> anywhere from seventy-five thousand to a million dollars (depending on<br />

past experience, win-loss percentage, reputation etc.) Aside from the yearly income they<br />

recieve, they also get bonuses for X-amount <strong>of</strong> victories and bowl games they go to, telev<strong>is</strong>ion<br />

revenues (all major universities have a talk show for their coaches) and sometimes<br />

commercials.<br />

All <strong>of</strong> th<strong>is</strong> add up to very comfortable living for the coaches. But what about the football<br />

players (college athletes) who work long hard hours everyday for these coaches, what do<br />

they get in return? In one word NOTHING. A scholarship can only take an athlete so far!<br />

<strong>What</strong> if he/she doesn’t make it to the pr<strong>of</strong>essional level? That means he/she will have to go<br />

out in the real world and find a job right! But, for four-years a group <strong>of</strong> coaches have used<br />

th<strong>is</strong> individual’s talent (labor) to their make a living and in return these athletes are given a<br />

free education without ever recieving a single cent from their labor.<br />

Next Message by Chocolate <strong>is</strong> [573].<br />

<strong>Question</strong> 737 Thread 737<br />

[537] Skippy: Money makes the world go around. <strong>What</strong> <strong>is</strong> it about money that it<br />

alone causes so many problems. Those who have it want more as well as those who don’t.<br />

Countries are killing over it. We are wiping out species <strong>of</strong> animals to obtain it. The rain<br />

forests are being destroyed for it.<br />

People forgot that the purpose <strong>of</strong> money <strong>is</strong> just a means <strong>of</strong> a simpler exchange system.<br />

<strong>What</strong> would the rich people look like if the concept <strong>of</strong> money wasn’t created. How many<br />

cows would the have in their front yards. Maybe th<strong>is</strong> <strong>is</strong> what the barter system provided<br />

446 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

for us. A different way <strong>of</strong> thinking was brought into th<strong>is</strong> planet when the barter system was<br />

abol<strong>is</strong>hed.<br />

Maybe money <strong>is</strong>, as it <strong>is</strong> said, “the root <strong>of</strong> all evils.” Money changes people into things<br />

that we had never seen before. Greed <strong>is</strong> a major problem. Is greed a learned or inhert<br />

mentality? It <strong>is</strong> hard to say, but if you take a look at little children, they always take things<br />

and say mine. They see something they want and take it, sometimes it <strong>is</strong> something they<br />

don’t really want. They just don’t want someone else to have it. Th<strong>is</strong> also applies to some<br />

adults.<br />

Maybe we should start to look at what money really <strong>is</strong> before we try to control it in any<br />

way.<br />

Next Message by Skippy <strong>is</strong> [538].<br />

[539] Super: Is money evil? Skippy brought up some interesting points about money<br />

being the root <strong>of</strong> all evil in “Money makes the world go round.” Is money really the evil<br />

one? No, people make money for what <strong>is</strong>. Our perceptions <strong>of</strong> material things are rooted<br />

with greed for those things. Money <strong>is</strong> not evil, it supplies us with a means <strong>of</strong> exchange<br />

instead <strong>of</strong> bartering with objects. Money allows us to make purchases without the hassle<br />

<strong>of</strong> trade where transporting objects for exchange <strong>of</strong> other goods would become extremely<br />

burdensome.<br />

In our capital<strong>is</strong>t society it <strong>is</strong> true that the needs or wants <strong>of</strong> the individual come before the<br />

needs <strong>of</strong> the many. But I know there are many people that have more money than others who<br />

help the less fortunate with their surplus cash through charities and other donations. Money<br />

can be used for the good in society, not always for individual gains or evil intentions.<br />

Next Message by Super <strong>is</strong> [585].<br />

[549] Femme: I Money Evil? NO! Super and Skippy brought up some points about<br />

money, <strong>is</strong> it evil or <strong>is</strong> it not?<br />

Money <strong>is</strong> not evil, it <strong>is</strong> a simple object used for means <strong>of</strong> exchange. Greed <strong>is</strong> a behavior<br />

that <strong>is</strong> learned, it <strong>is</strong> not inherent. <strong>What</strong> one person defines as greed another defines as<br />

surviving or maintaining a lifestyle. I believe that money brings freedom and opportunity.<br />

The more money one has, the more freedom and opportunity he/she has and h<strong>is</strong>/her family<br />

and children have. Some people’s focus <strong>is</strong> strictly monetary, how they can make money, how<br />

much, how efficiently they can make money with in a particular time-frame. Maybe people<br />

are that way because they feel that the market that they are working in <strong>is</strong> volatile; it’s feast<br />

or famine. So they work and earn money and more money for the fear that one day they may<br />

not be able to make a living and they don’t want to be a burden on anyone, or society; it’s<br />

their way <strong>of</strong> being self sufficient. It’s their way <strong>of</strong> providing for themself, their families and<br />

loved one’s. Is that wrong and evil? Is that greed? Does it matter?<br />

Message [549] referenced by [563]. Next Message by Femme <strong>is</strong> [574].<br />

[552] Angela: Money in the society When I read the essays <strong>of</strong> Skippy and Super, they<br />

reminded me to start thinking about money. I do’nt think money <strong>is</strong> the root <strong>of</strong> all evils!! I<br />

think we just can say that when we create the monetary system in the socity because we want<br />

instead <strong>of</strong> the barter system!! And monetary system seems very important in the capital<strong>is</strong>m<br />

because everyone wants and needs the money. And from the capital<strong>is</strong>t’s view, they want to<br />

make lots <strong>of</strong> money or earn lots <strong>of</strong> money as possible as they can. And individual in the


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 447<br />

capital<strong>is</strong>m society, it seems that everyone just wants to earn the money by any way which<br />

<strong>is</strong> right or wrong way. I think it <strong>is</strong> nothing wrong for the money, it <strong>is</strong> because <strong>of</strong> human’s<br />

greed. Human’s greed lets the money looks like evil. Money <strong>is</strong> just a tool in our economy.<br />

We create it just because we need it to let our trades work.<br />

Otherw<strong>is</strong>e, if we still are in the barter system, when we need something, at the fr<strong>is</strong>t,<br />

we have to find someone who wants to be traded and at the same time, he or she wants to<br />

get our stuffs. It might be taken lots <strong>of</strong> time to do so and it might be complicated in the<br />

whole economy. And I also think that the barter system <strong>is</strong> not good for the development <strong>of</strong><br />

economy, especially for the international trade. So I think the monetary system <strong>is</strong> better in<br />

the society and it <strong>is</strong> more simple and convenient for us. And do not forget that the money <strong>is</strong><br />

a medium. We can’t eat or wear with money to survive!! We have to use it to exchage what<br />

we need. So if we say that money <strong>is</strong> the root <strong>of</strong> all evils, then I think we might say the the<br />

material <strong>is</strong> the root <strong>of</strong> all evils.<br />

Next Message by Angela <strong>is</strong> [599].<br />

[555] Chacci: Re: Is money evil? I don’t believe that money nor matieral <strong>is</strong> the root <strong>of</strong><br />

all evil.. I think it <strong>is</strong> the vehicle by which people can become evil. Most people work there<br />

jobs to make money to sustain a certain modest lifestyle. The thing that makes money the<br />

vehicle <strong>of</strong> evil <strong>is</strong> when the lifestyle becomes too flamboyant or wastefull. When the money<br />

that they are wasting could be used in better ways. The richest 1% are becoming richer, and<br />

the bottom 33% are growing poorer. The pursuit <strong>of</strong> money <strong>is</strong> causing enviromental d<strong>is</strong>asters<br />

daily. Its causing the explotation <strong>of</strong> the worker. Are these things evil? I would think so. And<br />

what <strong>is</strong> the common object, the pursuit <strong>of</strong> money and the accumulation <strong>of</strong> capital.<br />

Next Message by Chacci <strong>is</strong> [557].<br />

[558] Peaches: Comment to “<strong>is</strong> money evil” thread I don’t think that money <strong>is</strong> evil. I<br />

think that the people who own money are the people who influence what money <strong>is</strong>. I think<br />

that Marx would not think <strong>of</strong> money as evil, but as a means <strong>of</strong> exchange. Marx would say that<br />

money, or capital <strong>is</strong> the building block in which a capital<strong>is</strong>t becomes a capital<strong>is</strong>t...making<br />

the most <strong>of</strong> what he’s got, anyhow and anyway. I don’t think that Marx would argue that<br />

money <strong>is</strong> evil but that it <strong>is</strong> what a person does with money that makes it what it <strong>is</strong>. I think<br />

that Marx would argue that money or capital <strong>is</strong> a part <strong>of</strong> the means which brings about an<br />

end...whatever that may be.<br />

Marx would be more concerned about how money serves the capital<strong>is</strong>t rather than how<br />

money influences a person and their perception <strong>of</strong> money. Am I far <strong>of</strong>f?<br />

Next Message by Peaches <strong>is</strong> [559].<br />

[562] Panacea: Re: I Money Evil? NO! Femme recently wrote:<br />

So they work and earn money and more money for the fear that one day<br />

they may not be able to make a living and they don’t want to be a burden<br />

on anyone, or society; it’s their way <strong>of</strong> being self sufficient. It’s their way<br />

<strong>of</strong> providing for themself, their families and loved one’s. Is that wrong and<br />

evil? Is that greed? Does it matter?<br />

My question <strong>is</strong> “<strong>What</strong> if the money they earn <strong>is</strong> exploited from others in capital<strong>is</strong>tic<br />

relations - <strong>is</strong> it now wrong, if the money <strong>is</strong> ‘earned’ at the expense <strong>of</strong> others?”<br />

Message [562] referenced by [563]. Next Message by Panacea <strong>is</strong> [609].<br />

448 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

[563] Ramb<strong>is</strong>: Re: Is Money Evil? NO! In response to Femme’s [549] and Panacea’s<br />

response [562]: I think they both ra<strong>is</strong>e interesting points about the moral worth or morality <strong>of</strong><br />

economic systems. Each makes a moral appeal concerning the moral worth or worthlessness<br />

<strong>of</strong> the system which seem very valid. Th<strong>is</strong> has stimulated my thinking in the following ways.<br />

First, I think it’s important we realize that in dealing with different economic philosophies<br />

there <strong>is</strong> a lot <strong>of</strong> just that – philosophy. Economics <strong>is</strong>n’t a hard science (nor am I sure that<br />

there even ex<strong>is</strong>ts a hard science when we take into account how frequently our understandings<br />

change and what <strong>is</strong> true 100% one day <strong>is</strong> completely refuted the next) and each model<br />

assumes a large number <strong>of</strong> factors as accepted and given when making determinant judgments.<br />

Therefore, what constitutes moral worth depends entirely on the philosophy upon<br />

which it <strong>is</strong> based. For the capital<strong>is</strong>t, it <strong>is</strong> highly moral that a family can get ahead or get its<br />

piece <strong>of</strong> the pie by working hard and facing the challenges <strong>of</strong> the marketplace and that the<br />

system rewards them for th<strong>is</strong> action. For the marx<strong>is</strong>t, it <strong>is</strong> also highly moral that workers<br />

aren’t exploited and that each worker <strong>is</strong> valued equally by the economic system. Which <strong>of</strong><br />

the two arguments has more moral worth, and who <strong>is</strong> it that determines which has more<br />

moral worth? It depends entirely on the philosophy behind the actions.<br />

Second, when making dec<strong>is</strong>ions on how to allocate limited resources, what constitutes<br />

“fairness” and what constitutes moral worth, the end result <strong>is</strong> that those making the dec<strong>is</strong>ions<br />

(whether consciously or unconsciously) base their dec<strong>is</strong>ions on value judgments. Value<br />

judgments are intrinsically dependent on the base philosophy for their definition.<br />

It seems to me that it <strong>is</strong> also very difficult to make judgments on the worth <strong>of</strong> economic<br />

systems empirically as well, because many times stat<strong>is</strong>tics can be manipulated to favor any<br />

position. Therefore, (if morality <strong>is</strong> human derived) when deciding which economic system<br />

<strong>is</strong> most valuable or more morally steeped in intrinsic value, it all comes down to value<br />

judgments based on the initial philosophy. The accepted philosophy <strong>is</strong> determined by what<br />

<strong>is</strong> important to the individual, and the determination as to which philosophy <strong>is</strong> better or more<br />

important or <strong>of</strong> more worth <strong>is</strong> largely personal. As to which <strong>is</strong> more moral, that depends<br />

entirely on what the source <strong>of</strong> determining morality <strong>is</strong>.<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [564].<br />

[586] Pinky: Is Money Evil? NO! Femme wrote recently:<br />

Super and Skippy brought up some points about money, <strong>is</strong> it evil or <strong>is</strong> it<br />

not? Money <strong>is</strong> not evil, it <strong>is</strong> a simple object used for means <strong>of</strong> exchange.<br />

Greed <strong>is</strong> a behavior that <strong>is</strong> learned, it <strong>is</strong> not inherent.<br />

Just a quick observation and point. I am glad that you happen to be among the blessed<br />

minority <strong>of</strong> the human population that was able to share all <strong>of</strong> your toys, old or new, to<br />

anyone who desired to use them. I am ashamed to say however, that I am not in a class<br />

equal to your’s. Rather the opposite took place in my own life. As a child, I was very<br />

insecure about letting another kid take a toy <strong>of</strong> mine and use it incorrectly, destructively, or<br />

inconveniently based upon my feelings at the time. Th<strong>is</strong> occurance seemed to be a recurring<br />

one, and very frustrating when I was told that I “needed” to share. <strong>What</strong>??? Th<strong>is</strong> <strong>is</strong> MY toy<br />

and I am playing with it. Besides, the kid who wants it bugs me. I had to be corrected time<br />

and time again to become accepting <strong>of</strong> the sharing philosophy espoused by my mother upon


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 449<br />

every trip to the playgound or occasion a friend came to v<strong>is</strong>it. Perhaps I shoud be ashamed<br />

<strong>of</strong> my son, who <strong>is</strong> experiencing the same dilemma. The person that my mother taught me to<br />

be today <strong>is</strong> the person I am trying to teach my son to be as he grows and learns. Th<strong>is</strong> did not<br />

come easy to me, nor <strong>is</strong> it to my son. Maybe it’s just a genetic fluke.<br />

Next Message by Pinky <strong>is</strong> [587].<br />

<strong>Question</strong> 738 Thread 738<br />

[538] Skippy: <strong>What</strong> do we do now? We all now that th<strong>is</strong> country <strong>is</strong> in trouble. <strong>What</strong> can<br />

we do about it. The government controlls everything and most <strong>of</strong> the people that we need to<br />

talk to.<br />

Politicians talk alot, but what do they really do to benefit anyone besides themselves. I<br />

would like to know the last political <strong>of</strong>ficial did something with out reguard for what will<br />

happen to their job. They should follow what they know <strong>is</strong> right instead <strong>of</strong> what will protect<br />

them.<br />

They are relying on us to just give them money. When <strong>is</strong> the last time that we actually<br />

had any control over what they did with it. The national bugget was a great example. When<br />

did I deside to give Bob Dole over 100 million dollars to try to win a presidency. Why didn’t<br />

they give it to education where it <strong>is</strong> needed instead <strong>of</strong> in the fire.<br />

Where does it end?<br />

Next Message by Skippy <strong>is</strong> [545].<br />

<strong>Question</strong> 741 Thread 741<br />

[554] TOAD: Incentive A question that I have about the whole Marx thing <strong>is</strong>, If you can’t<br />

get ahead and become rich what incentive do people have to work.<br />

Next Message by TOAD <strong>is</strong> [556].<br />

<strong>Question</strong> 742 Thread 742<br />

[556] TOAD: Days labor I have a question about chapter 6. pg276 paragraph 2 when<br />

Marx talks about the days labor being 6hrs and receiving 3 shilling for that days labor and<br />

then saying that a days labor <strong>is</strong> only 3hrs, I got lost. So I was wondering if someone would<br />

explain that to me in layman terms so that I may understand. Thanks.<br />

Message [556] referenced by [571]. Next Message by TOAD <strong>is</strong> [581].<br />

[571] Hans: Why did nobody answer TOAD’s question? TOAD, in [556], asked the<br />

l<strong>is</strong>t:<br />

I have a question about chapter 6. pg276 paragraph 2 when Marx talks<br />

about the days labor being 6hrs and receiving 3 shilling for that days labor<br />

and then saying that a days labor <strong>is</strong> only 3hrs, I got lost. So I was wondering<br />

if someone would explain that to me in layman terms so that I may<br />

understand. Thanks.<br />

450 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

I w<strong>is</strong>h someone on the l<strong>is</strong>t who understood what was going on had taken the trouble to<br />

answer th<strong>is</strong>. In the calculation TOAD refers to, Marx assumes (without saying it explicitly)<br />

that a normal working day <strong>is</strong> 12 hours long. Then he assumes that 6 hours <strong>of</strong> social labor are<br />

objectified in the means <strong>of</strong> consumption necessary to maintain labor power for one day, and<br />

these 6 hours are represented by 3 shillings. In th<strong>is</strong> case, a wage <strong>of</strong> 3 shillings represents<br />

only half a day’s labor, and although the worker must work a full day to get th<strong>is</strong> wage, he <strong>is</strong><br />

selling h<strong>is</strong> labor power at its value and not below its value. Marx never says a days labor <strong>is</strong><br />

only 3 hours; he does say that half a day <strong>of</strong> labor <strong>is</strong> required to produce labor power for one<br />

day. But half a day <strong>of</strong> labor <strong>is</strong> 6 hours and not 3 hours.<br />

Next Message by Hans <strong>is</strong> [572].<br />

<strong>Question</strong> 743 Thread 743<br />

[557] Chacci: No Poor = No Rich One thing that I like about Marx <strong>is</strong> how he states that<br />

without the laborer there would be no rich. Th<strong>is</strong> comes from h<strong>is</strong> analys<strong>is</strong> <strong>of</strong> un-paid labor.<br />

I guess I like the idea that if it wasn’t for the poor laborer there would be no way that the<br />

majority <strong>of</strong> rich people could have become rich. Is th<strong>is</strong> the reason that society keeps “down”<br />

certain people? So that society can have a uneducated reserve army <strong>of</strong> labor? Th<strong>is</strong> would<br />

definitly keep down labor prices. And give a steady supply <strong>of</strong> surplus labor to the capital<strong>is</strong>t.<br />

Next Message by Chacci <strong>is</strong> [589].<br />

[564] Ramb<strong>is</strong>: No rich = no poor Chacci, I think you ra<strong>is</strong>e an interesting question<br />

when you ask if society intentionally keeps people or classes <strong>of</strong> people down in an effort to<br />

maintain an uneducated labor force that can be exploited to serve the capital<strong>is</strong>t’s purposes. I<br />

don’t know if society intentionally keeps people down, but it certainly doesn’t intentionally<br />

lift them up many times. It’s not that leg<strong>is</strong>lation <strong>is</strong> crafted to suppress people (most <strong>of</strong> the<br />

time), but more <strong>of</strong>ten the case <strong>is</strong> that nothing <strong>is</strong> done to lift people up or to liberate and<br />

empower them. Just a thought!<br />

Next Message by Ramb<strong>is</strong> <strong>is</strong> [565].<br />

[587] Pinky: No rich = no poor Ramb<strong>is</strong> wrote recently:<br />

Chacci, I think you ra<strong>is</strong>e an interesting question when you ask if society<br />

intentionally keeps people or classes <strong>of</strong> people down in an effort to maintain<br />

an uneducated labor force that can be exploited to serve the capital<strong>is</strong>t’s<br />

purposes. I don’t know if society intentionally keeps people down, but it<br />

certainly doesn’t intentionally lift them up many times. It’s not that leg<strong>is</strong>lation<br />

<strong>is</strong> crafted to suppress people (most <strong>of</strong> the time), but more <strong>of</strong>ten the case<br />

<strong>is</strong> that nothing <strong>is</strong> done to lift people up or to liberate and empower them.<br />

Just a thought!<br />

I understand that many in th<strong>is</strong> class are terrified <strong>of</strong> capital<strong>is</strong>m because <strong>of</strong> the greedy, awful<br />

mask that many have placed upon it.<br />

I believe that many welfare programs do indeed act to supress people by supplying the<br />

false notion within its recipients that they are not capable <strong>of</strong> success, thank heavens the good<br />

ol’ government <strong>is</strong> there to pay those bills! The drive for success <strong>is</strong> diluted within the false<br />

and d<strong>is</strong>torted feel <strong>of</strong> security than some derive from the knowledge that the government will<br />

back them up if they can’t, or don’t want to work at the available jobs. Th<strong>is</strong>, as I think <strong>is</strong>


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 451<br />

evidenced by the progression (or in many ways, regression) <strong>of</strong> our society has become an<br />

entreaty to be thankful for just above subs<strong>is</strong>tence handouts from a really forward thinking<br />

government that (in th<strong>is</strong> case) does little to encourge people to aspire to greater success in<br />

their lives.<br />

On the other hand, there are programs provided by the government that I feel have been<br />

made available in the interest <strong>of</strong> providing opportunity to those who are willing to work for<br />

it. I am a recipient <strong>of</strong> federal pell grants that enable me to reach for a life above my present<br />

one, if I can take it seriously and earn a decent G.P.A. Th<strong>is</strong> “Teaching a man to f<strong>is</strong>h for<br />

himself rather than handing him a f<strong>is</strong>h” will prove to be a much more valuable tool to myself<br />

and society as a whole. Th<strong>is</strong> program, contrasting to the welfare program tells me that I<br />

can make it on my own when provided with tools <strong>of</strong> encouragement and success, not that I<br />

need someone else to sustain my life. The effect <strong>of</strong> th<strong>is</strong> <strong>is</strong> that I do feel very liberated and<br />

empowered. The message behind the “good intents” <strong>is</strong> what matters in the long-run.<br />

Next Message by Pinky <strong>is</strong> [588].<br />

[589] Chacci: Re: No rich = no poor I think that I did not get my point across. My<br />

point was that without a poor labor class there would be no way that anyone could become<br />

rich (or recive Pell Grants). In a society such as ours it would be incredibly naive to think<br />

that the government doesn’t keep certain people down. We can look at h<strong>is</strong>tory and see<br />

that th<strong>is</strong> <strong>is</strong> the case. A few examples, segregation during the sixties, lower pay for women<br />

and minorities, strikes being “broken” by shear brutal and violent force. If people believe<br />

that there <strong>is</strong> equality, I would invite them to v<strong>is</strong>it Midvale Elementary, were there <strong>is</strong> large<br />

population <strong>of</strong> poor students. Then I would invite them to v<strong>is</strong>it Albion Elementary. Then<br />

come tell me about equality! Society would like us to think like PINKY, with h<strong>is</strong> comments<br />

like “I believe that many welfare programs do indeed act to suppress people by supplying<br />

the false notion within its recipients that they are not capable <strong>of</strong> success, thank heavens the<br />

good ol’ government <strong>is</strong> there to pay those bills!” Is th<strong>is</strong> the cause or the effect <strong>of</strong> inequality?<br />

Next Message by Chacci <strong>is</strong> [600].<br />

[617] Pinky: Chacci Chacci wrote:<br />

I think that I did not get my point across. My point was that without a poor<br />

labor class there would be no way that anyone could become rich (or recive<br />

Pell Grants).<br />

My first question <strong>is</strong>, how does becoming rich correlate with receiving Pell Grants? Maybe<br />

you thought they are given to the <strong>wealth</strong>y? I’m not sure what you meant, but the pairing<br />

<strong>of</strong> these two as relating <strong>is</strong>sues confused me. If that was the notion, that <strong>is</strong> not a correct<br />

defenition <strong>of</strong> the requirements for receiving Pell Grants; rather, the opposite <strong>is</strong> true. A<br />

student must be living in virtual poverty status (as defined by the Gov.’t), and must usually<br />

have at least one child. It <strong>is</strong> actually quite hard for a person to be poor enough to qualify for<br />

the Grant.<br />

Chacci continues:<br />

In a society such as ours it would be incredibly naive to think that the government<br />

doesnAEt keep certain people down. We can look at h<strong>is</strong>tory and<br />

see that th<strong>is</strong> <strong>is</strong> the case. A few examples, segregation during the sixties,<br />

452 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

lower pay for women and minorities, strikes being “broken” by shear brutal<br />

and violent force.<br />

As I noted with my welfare idea, I agree. I also see what you are saying. While the<br />

government usually turned their heads to such d<strong>is</strong>picable acts, it even enforced via military<br />

power such beliefs. Though the government has tried to establ<strong>is</strong>h laws and such that are<br />

meant to avoid such activity, they cannot outlaw ignorance. Today, I think the majority <strong>of</strong><br />

d<strong>is</strong>crimination <strong>is</strong> an act <strong>of</strong> individuals, who are <strong>of</strong>ten in violation <strong>of</strong> the laws themselves.<br />

In many ways, the remedies that were put in place to solve such problems have gone<br />

too far (in my own opinion). The government has participated and supported many beliefs<br />

that serve to penalize people unfairly. My feeling <strong>is</strong>, that most <strong>of</strong> the modern day penalties<br />

ex<strong>is</strong>t within the systems put into place that were meant to “help people.” So, I don’t d<strong>is</strong>agree<br />

with your assessment <strong>of</strong> h<strong>is</strong>tory, I was simply giving my input as to the current detremental<br />

effects <strong>of</strong> government. You may not agree, but please don’t infer that I must then be blind to<br />

h<strong>is</strong>torical m<strong>is</strong>takes <strong>of</strong> the American government.<br />

Chacci concludes:<br />

If people believe that there <strong>is</strong> equality, I would invite them to v<strong>is</strong>it Midvale<br />

Elementary, were there <strong>is</strong> large population <strong>of</strong> poor students. Then I would<br />

invite them to v<strong>is</strong>it Albion Elementary. Then come tell me about equality!<br />

Society would like us to think like PINKY, with h<strong>is</strong> comments like “I<br />

believe that many welfare programs do indeed act to suppress people by<br />

supplying the false notion within its recipients that they are not capable <strong>of</strong><br />

success, thank heavens the good ol’ government <strong>is</strong> there to pay those bills!”<br />

Is th<strong>is</strong> the cause or the effect <strong>of</strong> inequality?<br />

Umm, here <strong>is</strong> where I get especially confused. You seem to be saying that these these<br />

illusions were espoused by me. I have read my subm<strong>is</strong>sion over and over and, over again,<br />

and I can not find any statement that I thought could be interpreted to mean that I believed<br />

that there was equality. I know that there <strong>is</strong> not equality, and to be painfully frank, I feel it <strong>is</strong><br />

neccesary that we do not try to act as if it <strong>is</strong> or should be. (sorry!, I realize that I see things<br />

in a much more “blunt” manner than many <strong>of</strong> you.) People are not equal. People grow and<br />

learn and explore. They do it at their own pace, difined <strong>of</strong>ten by their own feelings. Th<strong>is</strong><br />

may mean that they are outrageously succesful or badly <strong>of</strong>f. Poor people are good just as<br />

<strong>wealth</strong>y people are. Good and bad can easily be found in both pots. The poor have just been<br />

subjected to different circumstances and may have made dec<strong>is</strong>ions that did not serve them<br />

well. I know plenty <strong>of</strong> loosers that were children <strong>of</strong> the <strong>wealth</strong>y. I also know plenty <strong>of</strong> people<br />

who have emerged from poverty to find success. Remember that one guy, Abe Lincoln? I am<br />

afraid that treating people as though they are supposed to be equal <strong>is</strong> doing a great d<strong>is</strong>service<br />

to the entire population. The big guy can lose h<strong>is</strong> shirt the same day the little guy achieves<br />

success. People, situations, needs, desires, etc., vary from person to person–ALWAYS!<br />

In summary, to answer your last question, I think it (welfare) <strong>is</strong> BOTH the cause and effect<br />

<strong>of</strong> inequality. It <strong>is</strong> the cause because it breeds a sense <strong>of</strong> dependancy on the government, and<br />

not yourself. I believe that such a response <strong>is</strong> greatly detremental. It <strong>is</strong> the effect because the<br />

government wants to replace your family, friends and community, to validate their “angelic”


U <strong>of</strong> <strong>Utah</strong> Econ 5080 1996sp 453<br />

jobs. Th<strong>is</strong> feeling sinks in and fosters a sense <strong>of</strong> not having to help your family, friends, and<br />

neighbors. I think you could go so far as to say, it <strong>is</strong> “Alienating” people from those around<br />

them. Th<strong>is</strong> can also lead to behavior that exemplifies a serious absence <strong>of</strong> symathy, respect,<br />

or love for others. When people do not help and depend on one another, these feelings can<br />

be much harder to attain.<br />

Practical Pinky<br />

First Message by Pinky <strong>is</strong> [31].<br />

<strong>Question</strong> 744 Thread 744<br />

[580] Kia: D<strong>is</strong>crimination To have effective economic structure, there are number <strong>of</strong><br />

things that must work together. Most important being human labour, without human power<br />

there can never be any economic structure. However, today in our society d<strong>is</strong>crimination<br />

against females, elderly, young, and race has been biggest problem. Especially against different<br />

race. <strong>What</strong> many business leaders don’t realize <strong>is</strong> that in next generation, most <strong>of</strong><br />

workers will cons<strong>is</strong>t from immigarants and 2nd generation wokers from other country. Even<br />

with many government programs <strong>of</strong>ten, with buracratics, it has not fully solved such problems.<br />

<strong>What</strong> would Marx say, I believe that he would be against such d<strong>is</strong>crimination, and<br />

stating that it <strong>is</strong> greatest advantage for us with effective workers.<br />

Next Message by Kia <strong>is</strong> [590].<br />

<strong>Question</strong> 745 Thread 745<br />

[593] Homer: subs<strong>is</strong>tence wages When <strong>is</strong>sue that workers receive wages that only allow<br />

them to reproduce their labor-power i.e. subs<strong>is</strong>tence wages, was d<strong>is</strong>cussed, it seemed that<br />

many people did not buy th<strong>is</strong>. If people can physically survive on $12 a day by living in a<br />

cardboard box and eating out <strong>of</strong> garbage cans, how <strong>is</strong> it that a worker getting paid $12 an hour<br />

<strong>is</strong> receiving subs<strong>is</strong>tence wages? In th<strong>is</strong> case subs<strong>is</strong>tence does not mean merely physiological<br />

survival. How many workers own anything more than some consumer goods? The point <strong>is</strong><br />

that while a worker may be able to afford a tv and a popcorn popper, she will not be paid<br />

enough to acquire her own means <strong>of</strong> production. She will always have to continue selling<br />

her labor-power.<br />

First Message by Homer <strong>is</strong> [56].<br />

<strong>Question</strong> 747 New Thread: High price <strong>of</strong> education.<br />

[614] Kia: As college students you will all know about the costs <strong>of</strong> going to school.<br />

Currently there <strong>is</strong> more than half <strong>of</strong> the students work while supporting themselves to fin<strong>is</strong>h<br />

school. Some are married and have a kid, others have trouble coming up with tuition and<br />

expenses. In order to receive education aid, your family must make certain amount <strong>of</strong> money<br />

or no money at all. For those that are considered as middle income family the cost <strong>of</strong> sending<br />

kids to college <strong>is</strong> terrible burden, while the economic shape <strong>is</strong> not so bright for them. With<br />

double mortgages, and loans they are at sacrafice to send their kids to college. Also, for<br />

those who pay out <strong>of</strong> state fees are in worst shape. To me, even those that are from out <strong>of</strong><br />

state should not paying double. Because, we all pay taxes and so are our parents and family.<br />

Then, why should out <strong>of</strong> state students be different from in state students.<br />

454 1996sp Econ 5080 U <strong>of</strong> <strong>Utah</strong><br />

First Message by Kia <strong>is</strong> [197.3].<br />

Compiled by Hans G. Ehrbar 2013-07-07 04:20:41.

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