Socialdem. 21st Century

When Austrians (metaphorically) shoot themselves in the foot, the results are usually amusing.We are treated to just such a delightful spectacle here: Robert P. Murphy, “Mises and the Market,” Dailycaller.com, 26th August, 2015. http://dailycaller.com/2015/08/26/mises-and-the-market/ This is Robert Murphy’s defence of the Austrian business cycle theory (ABCT) as an explanation of recent global turmoil on stock markets and other economic problems.The astute reader will notice that in the...

This can be seen in an article Engels wrote in May 1895 for the Neue Zeit (Marx 1991: 1027, n.), which is available as the “Supplement and Addendum” to Volume 3 of Capital in Marx (1991: 1027–1047).Right at the beginning of this supplement, Engels notes that people such as Achille Loria had pointed to the devastating contradiction between volume 1 and volume 3 of Capital in the theory of value (Marx 1991: 1027–1028).Next, Engels mentions that Werner Sombart, in a review of Marx’s work...

Joan Robinson’s An Essay on Marxian Economics (1966) is her extended analysis and critique of Marxism, and this should be of great interest to Post Keynesians given Robinson’s role in developing Post Keynesian theory.Some quick points: (1) Although she finds some value in Marx, her condemnation of the labour theory of value is nevertheless fairly harsh: Robinson calls the labour theory of value a Marxist “incantation” and compares it to witchcraft (Robinson 1966: 22).(2) Robinson (1966: 10)...

In fact, it happens in two obscure footnotes in Chapters 5 and 8 in volume 1 of Capital.The first comes in a footnote at the end of Chapter 5 in which Marx discusses the nature of capital. I give the relevant part of the main text with the footnote below: “The conversion of money into capital has to be explained on the basis of the laws that regulate the exchange of commodities, in such a way that the starting point is the exchange of equivalents.1”[Footnote] (1) “From the foregoing...

There are two important passages here: “But, although the money that performs the functions of a measure of value is only ideal money, price depends entirely upon the actual substance that is money. The value, or in other words, the quantity of human labour contained in a ton of iron, is expressed in imagination by such a quantity of the money-commodity as contains the same amount of labour as the iron. According, therefore, as the measure of value is gold, silver, or copper, the value of...

The Austrian economist Eugen von Böhm-Bawerk’s critique of Marx can be found in his essay “Zum Abschluss des Marxschen Systems” (1896), which is available in an English translation as “Karl Marx and the Close of His System” in Böhm-Bawerk (1949: 3–120).Paul M. Sweezy summarises Böhm-Bawerk’s case against Marx: “After a brief introduction, he devotes two chapters to setting out Marx’s theories of value, surplus value, average rate of profit, and price of production—‘for the sake of...

Chapter 8 of volume 1 of Capital is called “Constant Capital and Variable Capital” (Marx 1990: 307), and it discusses non-labour factors (constant capital) and living labour (variable capital).Marx divides capital as factors of production into two categories: (1) constant capital, and(2) variable capital (Marx 1990: 317). Constant capital is the means of production used in the production process whose values are merely transferred to the output product (Marx 1990: 307; Harvey 2010: 128).How...

The English journalist Paul Mason speaks below on neoliberalism and his belief that capitalism has had its day. He is the author of the new book Postcapitalism: A Guide to Our Future (2015).[embedded content]Frankly, I think the debate is very confused and misses important points. Also, Mason’s book appears to base its analysis on the idea of the Kondratieff wave and Marxism (Chapter 3 of the book is even called “Was Marx Right?”). Unfortunately, I think these theories are nonsense.In my...

Chapter 7 of volume 1 of Capital is called “The Labour Process and the Valorization Process” (Marx 1990: 283), and it discusses the process of labour and surplus value.It is divided into two sections: (1) The Labour-Process or the Production of Use-Values.(2) The Production of Surplus-Value (also called “The Valorization Process” in Marx 1990: 293). A critical summary of these two sections follows.(1) The Labour-Process or the Production of Use-Values Capitalists buy labour-power from...

David Harvey is a Professor of Anthropology and Geography at the Graduate Center of the City University of New York.Class 4 of his video series on Reading Marx’s Capital, Volume 1 is below. This video deals with Chapters 4, 5 and 6 of volume 1 of Capital.[embedded content]My own critical analysis of these chapters in Capital is here: “Marx’s Capital, Volume 1, Chapter 4: A Critical Summary,” July 4, 2015.“Marx’s Capital, Volume 1, Chapter 5: A Critical Summary,” July 6, 2015.“Marx’s Capital,...