Re: [Marxism] question: equation of accumulation models

["John A Imani" <johnaimani@xxxxxxxxxxxxx>]

Message: 2
> Date: Mon, 03 Mar 2008 14:03:40 -0500
> From: Louis Proyect <lnp3@xxxxxxxxx>
> Subject: Re: [Marxism] question: equation of accumulation models
> To: Activists and scholars in Marxist tradition
> <marxism@xxxxxxxxxxxxxxxxxxx>
> Message-ID: <47CC4B8C.1010209@xxxxxxxxx>
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> brendan cooney wrote:
>> It's the "C2+^C2=V1+^V2+So1" that I don't understand.  Why would the
>> demand for means of production in Department 2 be equal to the demand
>> for consumer goods in Department 1?  I can't figure out how he makes
>> this conclusion.  Any help would be greatly appreciated.  Thank you.

The long and exceedingly difficult and boring Chapter XX of Vol 2 on "Simple 
Reproduction"
details this.  By "Simple reproduction" is meant that all produced is 
consumed (i.e. no accumulation).

Essentially what you have are the two Departments:

    I -Production of the means of Production; and
   II -Production of the means of Consumption

Both of whose products consist of c + v + s which we will designate as

    Ic + Iv + Is: and,
   IIc + IIv +IIs

Now we can dispose of Ic because this is the part that merely replaces by 
Dept I the used up means of Dept I.  There is no interdepartmental exchange.
The same with IIv and IIs (representing respectively the means of 
subsistence of Department II's workers (IIv) and capitalists (IIs)).  Again, 
no interdepartmental exchange.)

This leaves Iv + Is (i.e the revenues accruing to Department I's workers 
(Iv) and capitalists (Is)) which for reproduction to be 'simple' (see above) 
must be equal.

If you go to the cited selection you will come across:  " The question that 
confronts us directly is this: How is the capital consumed in production 
replaced in value out of the annual product and how does the movement of 
this replacement intertwine with the consumption of the surplus-value by the 
capitalists and of the wages by the labourers?" 
http://marxists.org/archive/marx/works/1885-c2/ch20_01.htm



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