The Survival of Capitalism: Reproduction of the Relations Of
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Marxist Economics: How Capitalism Works, and How It Doesn't
MARXIST ECONOMICS: HOW CAPITALISM WORKS, ANO HOW IT DOESN'T 49 Another reason, however, was that he wanted to show how the appear- ance of "equal exchange" of commodities in the market camouflaged ~ , inequality and exploitation. At its most superficial level, capitalism can ' V be described as a system in which production of commodities for the market becomes the dominant form. The problem for most economic analyses is that they don't get beyond th?s level. C~apter Four Commodities, Marx argued, have a dual character, having both "use value" and "exchange value." Like all products of human labor, they have Marxist Economics: use values, that is, they possess some useful quality for the individual or society in question. The commodity could be something that could be directly consumed, like food, or it could be a tool, like a spear or a ham How Capitalism Works, mer. A commodity must be useful to some potential buyer-it must have use value-or it cannot be sold. Yet it also has an exchange value, that is, and How It Doesn't it can exchange for other commodities in particular proportions. Com modities, however, are clearly not exchanged according to their degree of usefulness. On a scale of survival, food is more important than cars, but or most people, economics is a mystery better left unsolved. Econo that's not how their relative prices are set. Nor is weight a measure. I can't mists are viewed alternatively as geniuses or snake oil salesmen. exchange a pound of wheat for a pound of silver. -
1- TECHNOLOGY Q L M. Muniagurria Econ 464 Microeconomics Handout
M. Muniagurria Econ 464 Microeconomics Handout (Part 1) I. TECHNOLOGY : Production Function, Marginal Productivity of Inputs, Isoquants (1) Case of One Input: L (Labor): q = f (L) • Let q equal output so the production function relates L to q. (How much output can be produced with a given amount of labor?) • Marginal productivity of labor = MPL is defined as q = Slope of prod. Function L Small changes i.e. The change in output if we change the amount of labor used by a very small amount. • How to find total output (q) if we only have information about the MPL: “In general” q is equal to the area under the MPL curve when there is only one input. Examples: (a) Linear production functions. Possible forms: q = 10 L| MPL = 10 q = ½ L| MPL = ½ q = 4 L| MPL = 4 The production function q = 4L is graphed below. -1- Notice that if we only have diagram 2, we can calculate output for different amounts of labor as the area under MPL: If L = 2 | q = Area below MPL for L Less or equal to 2 = = in Diagram 2 8 Remark: In all the examples in (a) MPL is constant. (b) Production Functions With Decreasing MPL. Remark: Often this is thought as the case of one variable input (Labor = L) and a fixed factor (land or entrepreneurial ability) (2) Case of Two Variable Inputs: q = f (L, K) L (Labor), K (Capital) • Production function relates L & K to q (total output) • Isoquant: Combinations of L & K that can achieve the same q -2- • Marginal Productivities )q MPL ' Small changes )L K constant )q MPK ' Small changes )K L constant )K • MRTS = - Slope of Isoquant = Absolute value of Along Isoquant )L Examples (a) Linear (L & K are perfect substitutes) Possible forms: q = 10 L + 5 K Y MPL = 10 MPK = 5 q = L + K Y MPL = 1 MPK = 1 q = 2L + K Y MPL = 2 MPK = 1 • The production function q = 2 L + K is graphed below. -
Dangers of Deflation Douglas H
ERD POLICY BRIEF SERIES Economics and Research Department Number 12 Dangers of Deflation Douglas H. Brooks Pilipinas F. Quising Asian Development Bank http://www.adb.org Asian Development Bank P.O. Box 789 0980 Manila Philippines 2002 by Asian Development Bank December 2002 ISSN 1655-5260 The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. The ERD Policy Brief Series is based on papers or notes prepared by ADB staff and their resource persons. The series is designed to provide concise nontechnical accounts of policy issues of topical interest to ADB management, Board of Directors, and staff. Though prepared primarily for internal readership within the ADB, the series may be accessed by interested external readers. Feedback is welcome via e-mail ([email protected]). ERD POLICY BRIEF NO. 12 Dangers of Deflation Douglas H. Brooks and Pilipinas F. Quising December 2002 ecently, there has been growing concern about deflation in some Rcountries and the possibility of deflation at the global level. Aggregate demand, output, and employment could stagnate or decline, particularly where debt levels are already high. Standard economic policy stimuli could become less effective, while few policymakers have experience in preventing or halting deflation with alternative means. Causes and Consequences of Deflation Deflation refers to a fall in prices, leading to a negative change in the price index over a sustained period. The fall in prices can result from improvements in productivity, advances in technology, changes in the policy environment (e.g., deregulation), a drop in prices of major inputs (e.g., oil), excess capacity, or weak demand. -
Economics 352: Intermediate Microeconomics
EC 352: Intermediate Microeconomics, Lecture 7 Economics 352: Intermediate Microeconomics Notes and Sample Questions Chapter 7: Production Functions This chapter will introduce the idea of a production function. A production process uses inputs such as labor, energy, raw materials and capital to produce one (or more) outputs, which may be computer software, steel, massages or anything else that can be sold. A production function is a mathematical relationship between the quantities of inputs used and the maximum quantity of output that can be produced with those quantities of inputs. For example, if the inputs are labor and capital (l and k, respectively), the maximum quantity of output that may be produced is given by: q = f(k, l) Marginal physical product The marginal physical product of a production function is the increase in output resulting from a small increase in one of the inputs, holding other inputs constant. In terms of the math, this is the partial derivative of the production function with respect to that particular input. The marginal product of capital and the marginal product of labor are: ∂q MP = = f k ∂k k ∂q MP = = f l ∂l l The usual assumption is that marginal (physical) product of an input decreases as the quantity of that input increases. This characteristic is called diminishing marginal product. For example, given a certain amount of machinery in a factory, more and more labor may be added, but as more labor is added, at some point the marginal product of labor, or the extra output gained from adding one more worker, will begin to decline. -
Productivity and Costs by Industry: Manufacturing and Mining
For release 10:00 a.m. (ET) Thursday, April 29, 2021 USDL-21-0725 Technical information: (202) 691-5606 • [email protected] • www.bls.gov/lpc Media contact: (202) 691-5902 • [email protected] PRODUCTIVITY AND COSTS BY INDUSTRY MANUFACTURING AND MINING INDUSTRIES – 2020 Labor productivity rose in 41 of the 86 NAICS four-digit manufacturing industries in 2020, the U.S. Bureau of Labor Statistics reported today. The footwear industry had the largest productivity gain with an increase of 14.5 percent. (See chart 1.) Three out of the four industries in the mining sector posted productivity declines in 2020, with the greatest decline occurring in the metal ore mining industry with a decrease of 6.7 percent. Although more mining and manufacturing industries recorded productivity gains in 2020 than 2019, declines in both output and hours worked were widespread. Output fell in over 90 percent of detailed industries in 2020 and 87 percent had declines in hours worked. Seventy-two industries had declines in both output and hours worked in 2020. This was the greatest number of such industries since 2009. Within this set of industries, 35 had increasing labor productivity. Chart 1. Manufacturing and mining industries with the largest change in productivity, 2020 (NAICS 4-digit industries) Output Percent Change 15 Note: Bubble size represents industry employment. Value in the bubble Seafood product 10 indicates percent change in labor preparation and productivity. Sawmills and wood packaging preservation 10.7 5 Animal food Footwear 14.5 0 12.2 Computer and peripheral equipment -9.6 9.9 -5 Cut and sew apparel Communications equipment -9.5 12.7 Textile and fabric -10 10.4 finishing mills Turbine and power -11.0 -15 transmission equipment -10.1 -20 -9.9 Rubber products -14.7 -25 Office furniture and Motor vehicle parts fixtures -30 -30 -25 -20 -15 -10 -5 0 5 10 15 Hours Worked Percent Change Change in productivity is approximately equal to the change in output minus the change in hours worked. -
The Critique of Real Abstraction: from the Critical Theory of Society to the Critique of Political Economy and Back Again
The Critique of Real Abstraction: from the Critical Theory of Society to the Critique of Political Economy and Back Again Chris O’Kane John Jay, CUNY [email protected] There has been a renewed engagement with the idea of real abstraction in recent years. Scholars associated with the New Reading of Marx, such as Moishe Postone, Chris Arthur, Michael Heinrich, Patrick Murray, Riccardo Bellofiore and others,1 have employed the idea in their important reconstructions of Marx’s critique of political economy. Alberto Toscano, Endnotes, Jason W. Moore and others have utilized and extended these theorizations to concieve of race, gender, and nature as real abstractions. Both the New Reading and these new theories of real abstraction have provided invaluable work; the former in systematizing Marx’s inconsistent and unfinished theory of value as a theory of the abstract social domination of capital accumulation and reproduction; the latter in supplementing such a theory. Yet their exclusive focus on real abstraction in relation to the critique of political economy means that the critical marxian theories of real abstraction -- developed by Alfred Sohn- Rethel, Theodor W. Adorno and Henri Lefebvre -- have been mostly bypassed by the latter and have largely served as the object of trenchant criticism for their insufficient grasp of Marx’s theory of value by the former. Consequently these new readings and new theories of real abstraction elide important aspects of Sohn-Rethel, Adorno and Lefebvre’s critiques of real abstraction; which sought to develop Marx’s critique of political economy into objective-subjective critical theories of the reproduction of capitalist society.2 However, two recent works by 1 Moishe Postone’s interpretation of real abstraction will be discussed below. -
Intermediate Microeconomics
Intermediate Microeconomics PRODUCTION BEN VAN KAMMEN, PHD PURDUE UNIVERSITY Definitions Production: turning inputs into outputs. Production Function: A mathematical function that relates inputs to outputs. ◦ e.g., = ( , ), is a production function that maps the quantities of inputs capital (K) and labor (L) to a unique quantity of output. Firm: An entity that transforms inputs into outputs, i.e., engages in production. Marginal Product: The additional output that can be produced by adding one more unit of a particular input while holding all other inputs constant. ◦ e.g., , is the marginal product of capital. Two input production Graphing a function of more than 2 variables is impossible on a 2-dimensional surface. ◦ Even graphing a function of 2 variables presents challenges—which led us to hold one variable constant. In reality we expect the firm’s production function to have many inputs (arguments). Recall, if you have ever done so, doing inventory at the place you work: lots of things to count. ◦ Accounting for all of this complexity in an Economic model would be impossible and impossible to make sense of. So the inputs are grouped into two categories: human (labor) and non-human (capital). This enables us to use the Cartesian plane to graph production functions. Graphing a 2 input production function There are two ways of graphing a production function of two inputs. 1.Holding one input fixed and putting quantity on the vertical axis. E.g., = ( , ). 2.Allowing both inputs to vary and showing quantity as a level set. ◦This is analogous to an indifference curve from utility theory. -
On the Reproduction of Capitalism
LOUIS AL THUSSER was born in Algeria in 1918 and died in France in 1990. He taught philosophy for many years at the Ecole N ormale Superieure in Paris and was a leading intellectual in the French Communist Party. His books include For Marx; Reading Capital (with Etienne Balibar); On Ideolo,u; Politics and History: ,\1ontcsquieu, Rousseau, A1arx; 1\1acl1iavelli and Us; and The Specture efHegel. On the Reproduction of Capitalislll Ideology and Ideological State Apparatuses LOUIS ALTHUSSER PREFACE BY ETIENNE BALIBAR INTRODUCTION BY JACQUES BIDET TRANSLATED BY G. M. GOSHGARIAN VERSO London • New York This Engfoh-lJ11gu.1ge edition published by Verso 21114 TL1nsLition £: G. M. Goshgarian 2()14 First published as Sur la reprod1w1011 ,:G:. Presses Universitaires de France 1995 Preface£: Etienne l:lalibar 21114 Introduction£: Jacques Bidet 21114 'Ideology and Ideological State Apparatuses' first appeared in Louis Althusser. Lc11i11 <111d P!tilosoplt)' a11d Otltcr Essays. tram. Ben Brewster. London. New Lett Books. 1971. The translation has been modified. 'Ideology and Ideological State Apparatuses,' translation 1;; Ben Brewster 1971. 1994, 2U14 All rights reserved The moral rights of the authors have been asserted 135791118642 Verso UK: 6 Meard Street, London W1 F OEG US: 211Jay Street, Suite 111111, Brooklyn, NY 112111 W\V\V. versobooks.con1 Verso is the imprint of New Left Books ISBN-13: 978-1-78168-164-11 (PBK) ISl:lN-13: 978-1-78168-165-7 (HBK) e!SBN-13: 978-1-78168-215-9 (US) eISBN-13: 978-1-78168-524-2 (UK) British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library. -
The Historical Role of the Production Function in Economics and Business
American Journal of Business Education – April 2011 Volume 4, Number 4 The Historical Role Of The Production Function In Economics And Business David Gordon, University of Saint Francis, USA Richard Vaughan. University of Saint Francis, USA ABSTRACT The production function explains a basic technological relationship between scarce resources, or inputs, and output. This paper offers a brief overview of the historical significance and operational role of the production function in business and economics. The origin and development of this function over time is initially explored. Several various production functions that have played an important historical role in economics are explained. These consist of some well known functions, such as the Cobb-Douglas, Constant Elasticity of Substitution (CES), and Generalized and Leontief production functions. This paper also covers some relatively newer production functions, such as the Arrow, Chenery, Minhas, and Solow (ACMS) functions, the transcendental logarithmic (translog), and other flexible forms of the production function. Several important characteristics of the production function are also explained in this paper. These would include, but are not limited to, items such as the returns to scale of the function, the separability of the function, the homogeneity of the function, the homotheticity of the function, the output elasticity of factors (inputs), and the degree of input substitutability that each function exhibits. Also explored are some of the duality issues that potentially exist between certain production and cost functions. The information contained in this paper could act as a pedagogical aide in any microeconomics-based course or in a production management class. It could also play a role in certain marketing courses, especially at the graduate level. -
The Dangerous Class: the Concept of the Lumpenproletariat
Review The dangerous class: The concept of the lumpenproletariat Clyde W. Barrow, University of Michigan Press, Ann Arbor, 2020, xii+196pp., ISBN: 978-0472132249 Contemporary Political Theory (2021). https://doi.org/10.1057/s41296-021-00487-9 An oft-cited description of the lumpenproletariat comes from Marx’s The Eighteenth Brumaire of Louis Bonaparte. The Parisian lumpenproletariat that Louis Bonaparte recruited during the French class struggles of 1848–1851 in order to defeat the proletariat and ultimately to seize state power consisted of the following: Alongside decayed roue´s with dubious means of subsistence and of dubious origin, alongside ruined and adventurous offshoots of the bourgeoisie, were vagabonds, discharged soldiers, discharged jailbirds, escaped galley slaves, swindlers, mountebanks, lazzaroni, pickpockets, tricksters, gamblers, ma- quereaus, brothel keepers, porters, literati, organ grinders, ragpickers, knife grinders, tinkers, beggars – in short, the whole indefinite, disintegrated mass, thrown hither and thither, which the French call la bohe`me (1963: 75). As self-interested hustlers whose services are for sale to the highest bidder, the lumpenproletariat – a term Marx and Engels created – is typically co-opted, as Bonaparte demonstrates, by reactionary movements. However, Marx’s taxonomy indicates the difficulty of locating a synthesized and explanatory definition for a term presented here as an ‘indefinite’ alterity with no clear framework of composition. The term has seemed, to some commentators, incoherent or reflective of scorn toward the disreputable or poor (Bussard, 1987; Draper, 1972; Hardt and Negri, 2004). Others – typically literary and cultural critics (Stallybrass, 1990; Mills, 2017) – have approached it as the discursive trace of a complex social scene that escapes full schematization by class relations. -
Race, Rights and Reterritorialization
RACE, RIGHTS AND RETERRITORIALIZATION Gil Gott * Critical race and neo-Marxist perspectives treat rights or “rights discourse” with a somewhat similar and complex ambivalence, but with distinctly different weightings and emphases in how they theorize rights functioning within systems of liberal democracy and racialized capitalism. On the one hand, both approaches identify a subject formation function1 of liberal rights discourse that may be informed by dominant ideology— racialized in the case of critical race theory (CRT) and disciplinary or abstract universalist2 in the case of neo-Marxism. On the other hand, this scholarship acknowledges a politically progressive or liberatory subject-formation and equalizing/ redistributive function by which rights discourse may potentially * Associate Professor of International Studies, DePaul University. I would like to thank Anthony Paul Farley for his encouragement in this project. My interest in Marxist legal theory was refreshed after reading Anthony’s inspiring article: Anthony P. Farley, Accumulation, 11 MICH J. RACE & L. 51 (2005). For my family, Sumi, Maia and Quin. 1 The notion of “subject formation” suggests the importance of power and social processes, including law, in effecting human subjects and subjectivity. See, e.g., ALAN HUNT AND GARY WICKHAM, FOUCAULT AND LAW: TOWARDS A SOCIOLOGY OF LAW AS GOVERNANCE 28-29 (1994) (explaining the claim that social processes “give rise to subjectivity,” which results from a combination of individual agency and “outside” power). 2 Abstract universalist conceptions of rights may be thought of as those that propound an imaginary equality under law as a universal condition of citizenship in liberal democratic states. Critics view such conceptions as abstracting from the material inequality and exclusions of civil society. -
6 Marx's Grundrisse and the Ecological Contradictions of Capitalism
6 Marx’s Grundrisse and the ecological contradictions of capitalism John Bellamy Foster Introduction In The Eighteenth Brumaire of Louis Bonaparte Marx famously wrote: ‘Men make their own history, but they do not make it just as they please; they do not make it under circumstances chosen by themselves, but under circum- stances directly encountered, given and transmitted from the past’ (Marx 1979: 103). The material circumstances or conditions that he was referring to here were the product of both natural and social history. For Marx production was a realm of expanding needs and powers. But it was subject at all times to material limits imposed by nature. It was the tragedy of capital that its narrow logic propelled it in an unrelenting assault on both these natural limits and the new social needs that it brought into being. By constantly revolutionizing production capital transformed society, but only by continually alienating natural necessity (conditions of sustainability and reproduction) and human needs. Recent research has revealed that an ecological–materialist critique was embedded in all of Marx’s work from The Economic and Philosophical Manu- scripts of 1844 to his Ethnological Notebooks of the late 1870s to early 1880s (see Burkett 1999; Foster 2000; Dickens 2004). This can be seen in his material- ist conception of nature and history, his theory of alienation (which encom- passed the alienation of nature), his understanding of the labour and production process as the metabolic relation between humanity and nature, and his co- evolutionary approach to society–nature relations. Nevertheless, because Marx’s overall critique of political economy remained unfinished, these and other aspects of his larger materialist conception of nature and history were incompletely developed – even in those works, such as Capital, volume 1, published in his lifetime.