[Marxism] The Fall in Value of Labor-power as Exemplified in the Wall Street Journal Article: "California's Plans to Close Gap Become More Drastic"

["johnaimani" <johnaimani@xxxxxxxxxxxxx>]

The Fall in Value of Labor-power as Exemplified in the Wall Street Journal 
Article: "California's Plans to Close Gap Become More Drastic"

Marxist economics holds that the value of any commodity is determined by the 
total amount of labor (constant capital or 'dead' labor (in the forms of 
machines, materials, plant and ancillary items such as fuel, light, etc.); and, 
variable capital or 'living' labor-powers in the form of workers hired). It is 
no different for labor itself. The cost-of-production, on average, of a laborer 
is the value of that amount of (school, clothing, food, etc.) and (parenting 
(though for the most part this is unpaid labor)) necessary to bring before the 
altar of capitalism, the workplace, a fitting lamb (worker) to be offered up to 
(used up in the work-place while being paid a subsistence wage (just enough for 
the worker to bring up his replacement)) its god (money).


It seems, from the below article, as yet another of many points which could be 
made in this regard, that capitalism is lessened in its ability to re-produce 
fully that commodity which it cannot do without, labor. In this case, it is 
shortening the time of schooling of young workers-to-be in the public school 
sector. There are consequences to this. Among other things, with less training, 
we are able to add less value, so that commodities relative to wages become 
much dearer as the proportion between the amount of constant capital becomes 
greater relative to its variable capital (labor) complement. This decrease in 
productivity feeds back into the system as the decreased value of the wages, in 
consequence of adding less value, is unable to realize (through purchase) a 
portion of the total commodity values. Less is purchased and so less is able to 
be produced in the next turnover cycle. Machinations and gnashing of gears in 
the teetering financial system aside, this is the quandary facing capitalism 
now.


For more on this subject see "The Fall in the Value of Labor-power as a 
Contributor to the Tendency of the Rate of Profit to Decline" at 


www.marxmail.org/Imani.doc



Wall Street Journal 1/9/2009 P A2

http://online.wsj.com/article/SB123146370805366571.html

By STU WOO  SACRAMENTO, Calif. -- California's school year could be shortened 
by a week under increasingly Draconian proposals being considered by state 
lawmakers seeking to close a projected $42 billion budget shortfall by the 
middle of next year.

Gov. Arnold Schwarzenegger met with state legislative leaders Thursday to 
discuss how to close the gap before California runs out of cash in as little as 
a month. On Tuesday, he vetoed the latest proposal sent to him: an $18-billion 
package of cuts and taxes put forth by Democrats, who dominate the California 
legislature. Republicans in the Statehouse have clashed with the Democrats and 
the Republican governor on their insistence that the budget deficit be resolved 
without raising taxes. The governor favors raising some taxes but has disagreed 
with the Democrats on issues such as his insistence for deeper spending cuts.



Last week, Mr. Schwarzenegger suggested some controversial ways to cut state 
spending, which has run far ahead of revenues from personal-income taxes and 
other sources in one of the worst recessions to hit the Golden State in 
decades. They include shortening the school year by five days, furloughing 
state workers two days a month and temporarily increasing the sales tax.

California schools chief Jack O'Connell called the proposal "devastating," 
noting that California would have one of the shortest school years in the 
country. A spokesman for Mr. Schwarzenegger said "getting through this crisis 
requires very difficult decisions that the governor does not want to make, but 
he has the responsibility to lead us through this crisis."

The protracted budget crisis has already forced a state board last month to 
freeze loan financing for $3.8 billion in construction projects through June of 
this year. More far-reaching is the possibility that the state may issue IOUs 
instead of tax refunds starting next month.

Mr. Schwarzenegger first declared a fiscal emergency in November, but he vetoed 
the latest $18-billion package, calling it not enough. "In the end, we did not 
reach a deal because Democrats could not stand up to the special interests to 
make the long-term spending reductions and to create jobs and to stimulate the 
economy and to make state government more efficient," the governor said at a 
news conference Wednesday.

Senate leader Darrell Steinberg defended his Democratic colleagues. "Democrats 
worked around the clock in negotiating with the governor to get the best budget 
deal possible for Californians," he said Thursday through a spokeswoman. "We 
will continue to work in good faith with the governor on addressing this fiscal 
emergency."Write to 

Stu Woo at Stu.Woo@xxxxxxx
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