Tendency of the Rate of Profit to Fall
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Key Texts and Contributions to a Critical Theory of Society
1 Introduction: Key Texts and Contributions to a Critical Theory of Society Beverley Best, Werner Bonefeld and Chris O’Kane The designation of the Frankfurt School as a known by sympathisers as ‘Café Marx’. It ‘critical theory’ originated in the United was the first Marxist research institute States. It goes back to two articles, one writ- attached to a German University. ten by Max Horkheimer and the other by Since the 1950s, ‘Frankfurt School’ criti- Herbert Marcuse, that were both published in cal theory has become an established, inter- Zeitschrift für Sozialforschung (later Studies nationally recognised ‘brand name’ in the in Philosophy and Social Science) in 1937.1 social and human sciences, which derives The Zeitschrift, published from 1932 to from its institutional association in the 1920s 1941, was the publishing organ of the and again since 1951 with the Institute Institute for Social Research. It gave coher- for Social Research in Frankfurt, (West) ence to what in fact was an internally diverse Germany. From this institutional perspec- and often disagreeing group of heterodox tive, it is the association with the Institute Marxists that hailed from a wide disciplinary that provides the basis for what is considered spectrum, including social psychology critical theory and who is considered to be a (Fromm, Marcuse, Horkheimer), political critical theorist. This Handbook works with economy and state formation (Pollock and and against its branded identification, concre- Neumann), law and constitutional theory tising as well as refuting it. (Kirchheimer, Neumann), political science We retain the moniker ‘Frankfurt School’ (Gurland, Neumann), philosophy and sociol- in the title to distinguish the character of its ogy (Adorno, Horkheimer, Marcuse), culture critical theory from other seemingly non- (Löwenthal, Adorno), musicology (Adorno), traditional approaches to society, including aesthetics (Adorno, Löwenthal, Marcuse) the positivist traditions of Marxist thought, and social technology (Gurland, Marcuse). -
Use-Value, Exchange Value, and the Demise of Marx's Labor Theory of Value
USE-VALUE, EXCHANGE VALUE, AND THE DEMISE OF MARX'S LABOR THEORY OF VALUE BY STEVE KEEN I. INTRODUCTION Karl Marx was the greatest champion of the labor theory of value. The logical problems of this theory have, however, split scholars of Marx into two factions: those who regard it as an indivisible compo- nent of Marxism, and those who wish to continue the spirit of analysis begun by Marx without the labor theory of value. In the debate be- tween these two camps, the former has attempted to draw support from Marx's concepts of value, while the latter has ignored them, taking instead as their starting point the truism that production gener- ates a surplus. Nevertheless, a careful examination of the development of Marx's logic uncovers the profound irony that, after a chance re- reading of Hegel, Marx made a crucial advance which should have led him to replace the labor theory of value with the theory that commodi- ties in general are the source of surplus. Marx's value analysis is thus consistent, not with those who would defend the labor theory of value, but with those who would transcend it. Marx did not properly apply this analysis to non-labor inputs, while the cornerstone of Capital was his correct application of the same analysis to labor. This unjustified asymmetrical treatment of the labor and non-labor inputs to production is therefore the actual and unsound foundation of Marx's labor theory of value. Once that treatment has been corrected, the labor theory of value collapses. -
HES Book of Abstracts
45th Annual Meetings of the History of Economics Society Book of Abstracts Loyola University Chicago Chicago, Illinois June 14 - 17, 2018 1 Abstracts of Papers to be Presented at the 2018 History of Economics Society Annual Conference Loyola University Chicago, Chicago, Illinois June 14 - 17, 2018 TABLE OF CONTENTS Friday, June 15 FRI Plenary Session: Douglas Irwin, "The Rise and Fall of Import Substitution" .................. 3 FRI1A Session: “Smith and his Intellectual Milleu (IASS)” .............................................................. 3 FRI1B Session: “Remembering Craufurd Goodwin” .......................................................................... 5 FRI1C Session: “American Political Economy” ..................................................................................... 5 FRI1D Session: “Constitutional Economics” .......................................................................................... 7 FRI1E Session: “European Issues" ............................................................................................................. 9 FRI1F Session: “Biology” .............................................................................................................................11 FRI2A Session: “Smith and his Contemporary Issues (IASS)” ......................................................14 FRI2B Session: “Archival Round Table” ................................................................................................15 FRI2C Session: “French Economics in the Long 19th Century” ...................................................16 -
Economics and Political Economy Volume 2 June 2015 Issue 2
Journal of Economics and Political Economy www.kspjournals.org Volume 2 June 2015 Issue 2 Marxist theory of Value and Profit, Financialization * and Crisis - By Simon Mohun at METU †1 By Bahar ARAZ Conference Notes recently attended a workshop presented by Prof Dr. Simon Mohun at Middle East Technical University between 28-30 April, 2015. The workshop was I jointly sponsored by the Department of Political Science and Public Administration and Turkish Social Science Association. Simon Mohun is Emeritus Professor at Queen Mary College, London and has made many important contributions to Marxist economics. His work is situated within the classical surplus-based tradition in economics that combined in the writings of Karl Marx. He basically aimed to try applying Marxist economic theory to the facts so that we could understand better the causes of capitalist crises. His lecture was structured as a series of three lectures and was entitled, “Marxist theory of Value and Profit, Financialization and Crisis”. In this regard, He gave a lecture both on the Marxist theory of value, price and profit and its applications to financialization and crisis. The first day, he focused on Value and Price and discussed Labour Theory of Value (LTV) in Adam Smith and David Ricordo and then explained Marx’s LTV which is source of value added of the total mass of commodities produced is the labour expended in producing them. At the end of the lecture he pointed out that “distinction between value and price is window through which to understand inner nature of capitalist economy” The second and third day of workshop, he drew upon origin of profit and historical conditions of emergence of labour power as commodity. -
Why Globalization Works Martin Wolf New Haven, Conn.: Yale University Press, 2004, 398 Pp
Why Globalization Works Martin Wolf New Haven, Conn.: Yale University Press, 2004, 398 pp. Martin Wolf, chief economics commentator at the Financial Times, is a brilliant journalist and an able economist. Why Globalization Works is an excellent example of the author’s capacity for examination and analy- sis. The book is based on a series of articles on globalization that origi- nally appeared in the FT, and on his Hayek Memorial Lecture to the Institute of Economic Affairs in London. Wolf presents a detailed reply to the main arguments proffered by the forces opposed to globalization, and demonstrates conclusively its advan- tages—historically, and both in theory and in practice—over all alterna- tive systems. He presents a splendid survey of the literature about this topic. He holds not only that globalization works, but also that it is needed if we are to aspire to extend prosperity and freedom to the whole planet. His presentation is sophisticated, complete, and comes out roundly in favor of globalization. It is the best analysis of the subject yet: a passionate voyage across one of the most vital aspects of cultural, social, political, and economic life at the start of the 21st century. Wolf is convinced that the market is undeniably the most powerful vehicle ever to exist for raising living standards. From this premise, he analyzes the debacle of the collectivist experiments of the 20th century— nationalism, communism, fascism—and their profound negative effect on the wealth and freedom of nations. In the same way, he testifies to the demise of light collectivism, which was based on the preachings of 379 CATO JOURNAL Keynes and was practiced in many states from the end of the Second World War until the crises of the mid-1970s. -
Expected Inflation and the Constant-Growth Valuation Model* by Michael Bradley, Duke University, and Gregg A
VOLUME 20 | NUMBER 2 | SPRING 2008 Journal of APPLIED CORPORATE FINANCE A MORGAN STANLEY PUBLICATION In This Issue: Valuation and Corporate Portfolio Management Corporate Portfolio Management Roundtable 8 Panelists: Robert Bruner, University of Virginia; Robert Pozen, Presented by Ernst & Young MFS Investment Management; Anne Madden, Honeywell International; Aileen Stockburger, Johnson & Johnson; Forbes Alexander, Jabil Circuit; Steve Munger and Don Chew, Morgan Stanley. Moderated by Jeff Greene, Ernst & Young Liquidity, the Value of the Firm, and Corporate Finance 32 Yakov Amihud, New York University, and Haim Mendelson, Stanford University Real Asset Valuation: A Back-to-Basics Approach 46 David Laughton, University of Alberta; Raul Guerrero, Asymmetric Strategy LLC; and Donald Lessard, MIT Sloan School of Management Expected Inflation and the Constant-Growth Valuation Model 66 Michael Bradley, Duke University, and Gregg Jarrell, University of Rochester Single vs. Multiple Discount Rates: How to Limit “Influence Costs” 79 John Martin, Baylor University, and Sheridan Titman, in the Capital Allocation Process University of Texas at Austin The Era of Cross-Border M&A: How Current Market Dynamics are 84 Marc Zenner, Matt Matthews, Jeff Marks, and Changing the M&A Landscape Nishant Mago, J.P. Morgan Chase & Co. Transfer Pricing for Corporate Treasury in the Multinational Enterprise 97 Stephen L. Curtis, Ernst & Young The Equity Market Risk Premium and Valuation of Overseas Investments 113 Luc Soenen,Universidad Catolica del Peru, and Robert Johnson, University of San Diego Stock Option Expensing: The Role of Corporate Governance 122 Sanjay Deshmukh, Keith M. Howe, and Carl Luft, DePaul University Real Options Valuation: A Case Study of an E-commerce Company 129 Rocío Sáenz-Diez, Universidad Pontificia Comillas de Madrid, Ricardo Gimeno, Banco de España, and Carlos de Abajo, Morgan Stanley Expected Inflation and the Constant-Growth Valuation Model* by Michael Bradley, Duke University, and Gregg A. -
Socialist Planning
Socialist Planning Socialist planning played an enormous role in the economic and political history of the twentieth century. Beginning in the USSR it spread round the world. It influenced economic institutions and economic policy in countries as varied as Bulgaria, USA, China, Japan, India, Poland and France. How did it work? What were its weaknesses and strengths? What is its legacy for the twenty-first century? Now in its third edition, this textbook is fully updated to cover the findings of the period since the collapse of the USSR. It provides an overview of socialist planning, explains the underlying theory and its limitations, looks at its implementation in various sectors of the economy, and places developments in their historical context. A new chap- ter analyses how planning worked in the defence–industry complex. This book is an ideal text for undergraduate and graduate students taking courses in comparative economic systems and twentieth-century economic history. michael ellman is Emeritus Professor in the Faculty of Economics and Business, University of Amsterdam, Netherlands. He is the author, co- author and editor of numerous books and articles on the Soviet and Russian economies, on transition economics, and on Soviet economic and political history. In 1998, he was awarded the Kondratieff prize for his ‘contributions to the development of the social sciences’. Downloaded from Cambridge Books Online by IP 128.122.253.212 on Sat Jan 10 18:08:28 GMT 2015. http://ebooks.cambridge.org/ebook.jsf?bid=CBO9781139871341 Cambridge Books Online © Cambridge University Press, 2015 Downloaded from Cambridge Books Online by IP 128.122.253.212 on Sat Jan 10 18:08:28 GMT 2015. -
Value Investing” Has Had a Rough Go of It in Recent Years
True Value “Value investing” has had a rough go of it in recent years. In this quarter’s commentary, we would like to share our thoughts about value investing and its future by answering a few questions: 1) What is “value investing”? 2) How has value performed? 3) When will it catch up? In the 1992 Berkshire Hathaway annual letter, Warren Buffett offers a characteristically concise explanation of investment, speculation, and value investing. The letter’s section on this topic is filled with so many terrific nuggets that we include it at the end of this commentary. Directly below are Warren’s most salient points related to value investing. • All investing is value investing. WB: “…we think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid?” • Price speculation is the opposite of value investing. WB: “Consciously paying more for a stock than its calculated value - in the hope that it can soon be sold for a still-higher price - should be labeled speculation (which is neither illegal, immoral nor - in our view - financially fattening).” • Value is defined as the net future cash flows produced by an asset. WB: “In The Theory of Investment Value, written over 50 years ago, John Burr Williams set forth the equation for value, which we condense here: The value of any stock, bond or business today is determined by the cash inflows and outflows - discounted at an appropriate interest rate - that can be expected to occur during the remaining life of the asset.” • The margin-of-safety principle – buying at a low price-to-value – defines the “Graham & Dodd” school of value investing. -
Modern Monetary Theory: a Marxist Critique
Class, Race and Corporate Power Volume 7 Issue 1 Article 1 2019 Modern Monetary Theory: A Marxist Critique Michael Roberts [email protected] Follow this and additional works at: https://digitalcommons.fiu.edu/classracecorporatepower Part of the Economics Commons Recommended Citation Roberts, Michael (2019) "Modern Monetary Theory: A Marxist Critique," Class, Race and Corporate Power: Vol. 7 : Iss. 1 , Article 1. DOI: 10.25148/CRCP.7.1.008316 Available at: https://digitalcommons.fiu.edu/classracecorporatepower/vol7/iss1/1 This work is brought to you for free and open access by the College of Arts, Sciences & Education at FIU Digital Commons. It has been accepted for inclusion in Class, Race and Corporate Power by an authorized administrator of FIU Digital Commons. For more information, please contact [email protected]. Modern Monetary Theory: A Marxist Critique Abstract Compiled from a series of blog posts which can be found at "The Next Recession." Modern monetary theory (MMT) has become flavor of the time among many leftist economic views in recent years. MMT has some traction in the left as it appears to offer theoretical support for policies of fiscal spending funded yb central bank money and running up budget deficits and public debt without earf of crises – and thus backing policies of government spending on infrastructure projects, job creation and industry in direct contrast to neoliberal mainstream policies of austerity and minimal government intervention. Here I will offer my view on the worth of MMT and its policy implications for the labor movement. First, I’ll try and give broad outline to bring out the similarities and difference with Marx’s monetary theory. -
Involuntary Unemployment Versus "Involuntary Employment" Yasuhiro Sakai 049 Modern Perspective
Articles Introduction I One day when I myself felt tired of writing some essays, I happened to find a rather old book in the corner of the bookcase of my study. The book, entitledKeynes' General Theory: Re- Involuntary ports of Three Decades, was published in 1964. Unemployment versus More than four decades have passed since then. “Involuntary As the saying goes, time and tide wait for no man! 1) Employment” In the light of the history of economic thought, back in the 1930s, John Maynard J.M. Keynes and Beyond Keynes (1936) wrote a monumental work of economics, entitled The General Theory of -Em ployment, Interest and Money. How and to what degree this book influenced the academic circle at the time of publication, by and large, Yasuhiro Sakai seemed to be dependent on the age of econo- Shiga University / Professor Emeritus mists. According to Samuelson (1946), contained in Lekachman (1964), there existed two dividing lines of ages; the age of thirty-five and the one of fifty: "The General Theory caught most economists under the age of thirty-five with the unex- pected virulence of a disease first attacking and decimating an isolated tribe of south sea islanders. Economists beyond fifty turned out to be quite immune to the ailment. With time, most economists in-between be- gan to run the fever, often without knowing or admitting their condition." (Samuelson, p. 315) In 1936, Keynes himself was 53 years old be- cause he was born in 1883. Remarkably, both Joseph Schumpeter and Yasuma Takata were born in the same year as Keynes. -
From Grossman Translations Template
go to editpoint editpoint go to editpoint editpoint Introduction to Henryk Grossman ‘The value-price transformation in Marx and the problem of crisis’ Rick Kuhn The transformation of values into prices of production, in volume 3 of Capital, was a vital step in Marx‘s exposure of the anatomy of capitalism and the laws of capital accumulation. In ‗The value- price transformation in Marx and the problem of crisis‘, Henryk Grossman dealt with the fundamental context and significance of the transformation and its implications for theories of economic crisis. While the issue at stake has been the coherence of Marx‘s entire analysis of capitalism, almost all of the controversy over the transformation has been preoccupied with the narrower questio of the theoretical adequacy of his mathematics. This was the case both before Grossman‘s essay, as he pointed out, and over the subsequent eighty years.1 The starting point in Grossman‘s discussion was the method that underpinned the structure of Capital and the procedure of successive approximation [Annäherungsverfahren]. After dealing with capitalism‘s most basic features at a very abstract level, achieved by means of a series of simplifying assumptions, Marx progressively lifted them to explain further aspects of concrete reality. Grossman had dealt with this procedure in a series of earlier works, paying particular attention to its implications for Marx‘s account of how crises, arising from the growing organic composition of capital were intrinsic to capitalism production, and the division of surplus value into its phenomenal forms.2 In this essay, he focussed on the place of the reproduction schemas in 1 Kliman 2007 provides a valuable account of the debate and a persuasive response to the ‗transformation problem‘. -
Values and Value Transfers: a Comment on Itoh
: VALUES AND VALUE TRANSFERS: A COMMENT ON ITOH Anwar Shaikh Itoh's essay provides a valuable retrospective on recent debates concerning the Marxian theory of value. He points out that the economic crisis enveloping both cap itaJist and socialist worlds from the 1970s onward challenged economists to rethink and refine their basic approaches. Among other things. this sparked a resurgence of interest in fundamental issues such as Ihe theory of value. Thus, what appears as an abstraCt discussion is actually rooted in historical events, with political and economic implications for the current period (above. 53-54), Itoh also emphasizes the importance of Sraffa's work in revitalizing the Marxist discussion ofva1ue theory. Sraffa's pathbreak.ing work provided a new platform for a critique of neoclassical economics, even as it "rchabilitatcd the objcctive theory of value" which is characteristic of me classical and Marxian traditions. But his narrow focus and elliptical style left open the question of the relation between his approach and that of more general economic framewocks. Not swprisingiy, many of his followers set out to incol']X)rate his unconventional approach into a more orthodox "neo-Ricardian" framework, in which the emphasis was on mathematical and functional analyses of CQuilibriwn prices. Inevitably, this gave rise to a divergence between nco-Ricardian and Marxian writers (54--60). Two issues are highlighted by Itoh: the problems which arise with Marx's procedure for linking labor value and money price magnitudes (the transfonnatiOil problem), problems which appear LO undermine the Marxian claim that value magnitudes arc the foundation of price magnitudes; and the claim that value categories are in any case redundant, since market prices actually gravitate around prices of production, not labor values (60).