(OPE-L) value theory and the macroeconomics of looting

[gerald_a_levy <gerald_a_levy@xxxxxxx>]

The looting of property in Iraq made me think about the

following question:

 

* What are the macroeconomic consequences of

   looting from a value-theoretic perspective?

 

Let's consider a couple of different scenarios:

 

I)  *The wealth which is looted was produced by wage-labor

under capitalist conditions and took the commodity-form and

represents value.*

 

a) If the commodities were owned by a capitalist prior to sale

(the sale that never happened) then the looting represents a

loss of surplus value (value which was never actualized in exchange)

and individual profit.   Under certain circumstances, this loss of

value by an individual capitalist will result in gains of value (a

redistribution of value) for other capitalists.  Is that the case

generally in this scenario or is there a net loss in value on the macro

level?  If working-class families are the beneficiaries of looting,

can the looting be thought of rather as a redistribution of value

after production and wage determination among social classes?

Rather than looting the finished product, it could be that means of

production are the loot.   How will that impact the rate of profit?

 

b)  If the value was owned by the state or some other public

institution (e.g. not-for-profit organizations), then the looting could

be thought of as representing a redistribution of value from the state

to whichever segments of  social classes which gain the loot.   As

before,  if working-class families (or peasants or members of the

'informal sector') are receiving the loot can't this be thought of as a

redistribution of value to segments of the working class (or peasantry

or informal sector)?   Or, if capitalists are looting state property and

then use that value to purchase means of means of production and

labour-power, couldn't the loot be used to underwrite the expanded

accumulation of capital? What would be the consequence here in terms

of the macro rate of profit?

 

II. *The wealth which is looted was produced under pre-capitalist

conditions of production and has exchange-value and use-value but

not value.*  In this category, one might place the looting of the

national museums in Iraq which largely contained "priceless" ancient

art, crafts and artifacts. 

 

In this case, products which never represented value will most

frequently, in due course, be sold on the market by the looters or

third parties representing the looters.  For the families selling the

loot this represents a redistribution of wealth from the state (or not-

for-profit institution) to themselves.  It creates the possibility for a

handful for significant class mobility (although the benefits will more

likely be gained by speculators and re-sellers than the looters

themselves).   So, wealth has been redistributed in this case,

but has value?   Is there any consequence in terms of the macro

rate of profit in the nation where the loot was taken from?  What

about the macro effect in the nation where the loot ends up? I

have no doubt that many of the national treasures stolen in

Iraq will end up being sold in auction houses and galleries in New

York, London, and Paris.  They will, no doubt, then be purchased

as luxury goods by wealthy families in those nations and elsewhere

or by state and not-for-profit museums.   Should this process be

conceptualized in terms of the primitive accumulation of capital?

What, if any, consequence can be anticipated for the nation that

is the recipient of the loot in terms of macroeconomic growth?

 

--------------------------------

One could claim that in either instance, the total wealth that the

loot represents would not have a significant effect in terms of

the accumulation of and distribution of wealth and capital, but

I am interested here in the underlying theoretical questions that

are raised by looting. 

 

Are the macroeconomic consequences of looting similar to the

consequences of peasant seizures of land and/or worker seizures

of factories? 

 

Do the oil fields in Iraq now represent 'loot' for (primarily) US-based

corporations?

 

Any thoughts?

 

In solidarity, Jerry