This post is an attempt to work through some linear algebra that some have used to understand
Karl Marx’s Capital. I have recently explained how, in a
simple model, prices of production are equal to labor values if the organic composition of capital does not
vary among industries. That special case is the setting of volume 1.
In capitalism, workers rent themselves out to their employers. They work longer, under the dominion of capital,
than needed to produce the commodities which they purchase with their wages. Marx explains the returns
to ownership (profits, interest, rent, etc.) by the distinction between the use value and the exchange value
of labor power.
This post removes the special case assumption. It considers certain relationships between the system of laborRead More »