OPE-L message, Re: [OPE-L] Lange's vindication

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Dear Rakesh:

You wrote: Marx was ultimately not interested in everyday life […] One would think that this practical aspect of Marx's theory would have appealed to Lange in 1935. Apparently not.

A considerable part Marxist’s economic literature concerns the shape of Marxian economics to deal with every day life, in the sense of providing an economic calculation devise. Labour time accounting has been one of the most controversial issues within Marxism. Even though the Lange’s quotation could sound hostile to some Marxists ears, it could be a good reflection of the state of the art of Marxian calculation devises on 30s.

Fortunately Marxian can count with the theoretical improvements made from the 2th post-war by the soviet economists until now including Cockshott and Cottrell. Of course, Marxists like Raya Dunayevskaya opposed then to these improvements and maybe she would agree with you in the silliness of Lange´s quotation.

You wrote: Lange's comment is strangely removed from the not normal times in which he was then living.

I tried to make a case of the subjectivist roots of Lange’s position. I think Oskar Lange died being a Market Socialist, am I right? Could you post a quotation supporting the contrary position?

Some Austrian have stated that Lange renounce his marketed predilection in the end of his life, but I haven’t could find evidence yet. That’s something that interests me deeply.

You wrote: I don't see why we should cede superiority to Marshall.

I have not any predilection for Marshall. If Lange were alive we could ask him.

Kindly,

Alejandro Agafonow

----- Mensaje original ----
De: Rakesh Bhandari <bhandari@xxxxxxxxxxxx>
Para: OPE-L@xxxxxxxxxxxxxxxx
Enviado: sábado, 21 de abril, 2007 21:41:36
Asunto: Re: [OPE-L] Lange's vindication

for another purposes.
>
> Please, consider the following Lange’s quotation:
>
> Clearly the relative merits of Marxian economics and of modern “bourgeois”
> economic theory belong to different “ranges”. Marxian economics can work
> the economic evolution of capitalist society into a consistent theory from
> which its necessity is deduced, while “bourgeois” economists get no
> further than mere historical description. On the other hand, “bourgeois”
> economics is able to grasp the phenomena of the every-day life of a
> capitalist economy in a manner that is far superior to anything the
> Marxists can produce […] In people want to anticipate the development of
> Capitalism over a long period a knowledge of Marx is a much more effective
> starting point than a knowledge of Wieser, Boehm-Bawerk, Pareto or even
> Marshall (though the last-named is in this respect much superior). But
> Marxian economics would be a poor basis for running a central bank or
> anticipating the effects of a change in the rate of discount. (pp.
> 191-192) Oskar Lange, “Marxian Economics and Modern Economic
> Theory”, The Review of Economic Studies, Vol. 2, Nº 3, (Jun., 1935).

Alejandro,
This quote from Lange is silly. Marx was ultimately not interested in
everyday life but understanding the meanings of crises in everyday life.
In this regard, he had no advice for the running of a central bank, but
his theory does allow us to anticipate that (and understand why)
manipulations of the discount rate (or other central bank manipulations)
will likely be much more effective in dampening inflation than lifting an
economy out of Depression. Of course from Major Douglas to Ezra Pound
demaogues, paving the way for the Judeocide, found the root of (or route
to) all evils in restrictive credit. One would think that this practical
aspect of Marx's theory would have appealed to Lange in 1935. Apparently
not. I don't see why we should cede superiority to Marshall who wouldn't
have been able to make sense of the mountain of idle reserves that banks
were holding at that time. Indeed Lange's comment is strangely removed
from the not normal times in which he was then living.
Rakesh

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