Sunday, November 23, 2014

Marx's Reply: Alabama!

Or, "40-Hour Week (for a Livin')"

Commenting on Mark Thoma's latest, Branko Milanovic writes that he didn't like Thoma's treatment of Marx and promptly corrects him, based on the authority of Joan Robinson (the well-known "doyenne of English Marxists"):
"Thus, in Marx we have two steps: (a) labor theory of value, and (b) value of labor power which together show (Marx was very proud of this) that exploitation is not mere stealing but takes place on the back of the action of the law of value. Capitalism allows everything to be bought and sold according to its value, including labor. Surplus value and exploitation are thus 'imbedded' in the 'value-driven' or 'value-based' nature of the capitalist process. They are not a robbery; they are just an intrinsic feature of the system.
Joan Robinson thought that Marx’s distinction between value  of labor and value of labor power was just 'metaphysics.' It is quite likely so. But nevertheless, it was an important methodological innovation which distinguishes Marx from Smith and Ricardo."

It's appropriate, then, that Marx himself, directly from Highgate Cemetery, should reply:
"That the method employed in 'Das Kapital' has been little understood, is shown by the various conceptions, contradictory one to another, that have been formed of it.
"Thus the Paris Revue Positiviste reproaches me in that, on the one hand, I treat economics metaphysically, and on the other hand — imagine! — confine myself to the mere critical analysis of actual facts, instead of writing receipts (Comtist ones?) for the cook-shops of the future."

But, there must be something incredibly convoluted in that, no? What, exactly, is involved in the labour power vs labour thing?

"This is the 'jingle' in a television beer commercial in which sweaty workers are shown enjoying a drink or two after their daily efforts. The advertiser's aim is to present ordinary citizens contributing to the advancement of the nation over and above what they are rewarded in wages (and, hopefully, spending some of those wages on the advertiser's 'liquid gold' as well). Ironically, and no doubt unintentionally, the jingle also summarises the Marxist theory of surplus value-that workers produce over and above what is returned to them as wages." (F. Stilwell [*])
Frank Stilwell (professor emeritus, Department of Political Economy, University of Sydney) is referring to the 1985 song "40-Hour Week (For a Livin')" (lyrics, Wikipedia entry), by American country, southern rock and bluegrass band Alabama. In Australia that song was used in a TV ad by a local beer manufacturer.

The idea seems clear to me; so clear in fact that a Joe Blow like yours truly can understand it: surplus value is what workers produce "over and above what is returned to them as wages" and which always ends up in their employers' pockets: the employer pays the exact labour power expended (the wages), all right; but whatever the worker's labour produces goes to his employer. When the output exceeds the input, there is a surplus value: expressed in money, a profit.

Being that so clear, it's astonishing that learned, middle-class, liberal, sophisticated, worldly, hard-working, economics professors appear to have difficulty understanding surplus value and Marxism.

Left in my confusion, I cannot but remember Upton Sinclair:
"It is difficult to get a man to understand something, when his salary depends upon his not understanding it."

[*] 2002. Political Economy, the Contest of Economic Ideas. Oxford University Press. Page 114.

Thursday, November 20, 2014

Abbott's Bullshit.

The truth about the Australian fake democracy in one headline and two interviews.

This is the current headline (November 20th, ABC Online):

"Mr Turnbull said the ABC would receive $5.2 billion in funding over that time - a cut of 4.6 per cent.
"He said SBS's operating budget would be reduced by $25.2 million or 1.7 per cent over the same period." (see here)

This was Tony Abbott's promise (September 6th, 2013, SBS):


But, let's face it, this was no surprise. Every single Australian citizen or resident knew Australian politicians in general, and this mob very especially, could not be trusted with the truth.

This was Tony Abbott (7:30 Report, May 18th, 2010):

Yet, against all logic, you voted for them. Indeed, you still want to believe capitalism can be fixed: it's just a matter of putting the "right people" in charge. When the last government fails, you turn to the other party, hoping it will be better or at least less bad.

Now, my fellow countrymen, you earned every little bit of the shit befalling upon you; upon all of us, in fact: unfortunately, we'll all have to pay for your decision.

However, I remain optimistic. This may still prove to be a salutary lesson: you'll eventually learn the truth about capitalist democracy and their politicians, as people like me already learned.

You'll just have to sink deeper in shit. Fear not, these politicians will oblige, be sure of that.

Enjoy the lesson.