[PEN-L:28260] Fw: Recession

["Karl" <dagda@xxxxxxxxxx>]

The economic recession that includes the falling stock market is proof of
the correctness of Marx's conception.

Socially necessary labour is the determinant. The socially necessary labour
which is embodied in the objects to be exchanged underlies all economic
phenomena. This fact manifests itself in the form of the market. Through the
form of the market what is and what is not socially necessary labour is
determined. This means that the determination as to what labour is socially
necessary is determined after and not before economic activity. It is this
little contradictory fact of capital that creates the conditions that make
crises possible. It is this fact that explains why a bull follows a bear on
the stock market. In the financial zoo a bull cannot exist without a bear.
The requirement that all labour be socially necessary is forcing changes in
economic activity which has led to the extinction of some businesses  while
others are forced to reduce their activities. It is this that is the basis
for the falling stock market. Clearly much of the labour expended has not
been socially necessary. In the high tech branch, as it is called, there has
clearly been much labour expended that has not, as it turned out, been
socially necessary. But this is not the fault of corporate leaders or due to
cooking books. This could only have been known post festum --after the deed
is done. Cooking the books was merely a feeble response to the existence of
excessive labour that was not socially necessary --a desperate the cover
this fact up. Because of this economic activity is forced to contract.

Under communism the allocation of labour is established in advance --the
planning principle. Under capital the planning principle cannot function as
a general regulator. The market is the form by which regulation is
established.


Karl Carlile
Communism Site:
http://homepage.eircom.net/~beprepared/