Re: [OPE-L] book review of Kliman's book

[Paul Cockshott <wpc@xxxxxxxxxxxxx>]

 Philip

However, the writer gives no indication that he understands the TSSI or
SSSI or Marx even.

p.10
"The illogicality of his argument becomes apparent when we look at his
MELT from the other side. Let us assume with Kliman that $1 = 1/3 hours
of labor. Then it must imply that 1 hour of labor = $3. Let us call it
labor equivalent of money (LEM). If we apply our LEM to Klimanâs example
of the two sectors above, the $ price of commodity 1 must be
$200 + (8x3) = $224 and the $ price of commodity 2 must be
$40 + (16x3) = $88. But his output prices are different. Therefore, MELT
is an irrational measure of conversion from labor to $ or $ to labor."

The confusion between price and value! Neither TSSI nor SSSI nor Marx
calculates *prices* as the constant capital transferred in dollars plus
labour converted to dollars. What is calculated here is the *value* of
output expressed in dollars.

(I take that the writer is assuming a constant MELT/LEM here.)
--------------------------------------
If there are only two sectors then the total value of output expressed
In dollars will be the same as the total price, so Ajit's assumption
Seems sound

Cheers








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