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‘Unproductive’ Labor and Marxist Resistance to MMT — Peter Cooper

Summary:
Rather than engage in histrionics over what is obviously a supply-side or cost-push (rather than demand-side or demand-pull) inflationary period, I have been pondering Marxist resistance to MMT. When viewed from the standpoint of Marx’s theory of value, the resistance makes little sense, since there is nothing in MMT necessarily incompatible with a conception of value based in labor time. When viewed from the standpoint of politics, it also makes little sense, because there is nothing in MMT necessarily incompatible with the Marxist view that capitalism is irredeemable and a transition to socialism/communism the only worthwhile alternative. MMT in itself does not rule out that possibility; it is simply agnostic on the matter. Upon reflection, the sticking point may be Marx’s retention

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Rather than engage in histrionics over what is obviously a supply-side or cost-push (rather than demand-side or demand-pull) inflationary period, I have been pondering Marxist resistance to MMT. When viewed from the standpoint of Marx’s theory of value, the resistance makes little sense, since there is nothing in MMT necessarily incompatible with a conception of value based in labor time. When viewed from the standpoint of politics, it also makes little sense, because there is nothing in MMT necessarily incompatible with the Marxist view that capitalism is irredeemable and a transition to socialism/communism the only worthwhile alternative. MMT in itself does not rule out that possibility; it is simply agnostic on the matter. Upon reflection, the sticking point may be Marx’s retention (with modification) of the classical distinction between ‘productive’ and ‘unproductive’ labor. Marx’s criteria for distinguishing productive from unproductive activity is not obviously applicable in a state money system....
heteconomist
‘Unproductive’ Labor and Marxist Resistance to MMT
Peter Cooper
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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