Re: Self-interest

[ecwfm@xxxxxxxxxxxxxxxxxxx (bill mitchell)]

Herb
> said that the phenomena economists investigate (the
>firm, markets, exchange, state intervention, etc.) do not need more
>than reciprocal altruism (in the form of repeated game interactions. I
>am not arguing that humans don't have higher moral senses--only that
>we can understand economic activity without invoking such higher moral
>senses. Or else I would like to see a counterexample of where they are
>necessary.
>
AND

>for the theory of the firm, markets, contracts, etc., we don't really
>need these 'higher' motivations, as far as I can see. And it's
>misleading to say that we do if the simpler explanations work, since
>we may be tempted to make false generalizations.
>
Well, it depends on the standard of explanation one is content with.
Comprehension of exchange, for example, can be at different levels. let me
say full comprehension to superficial comprehension. N/c economics bases its
analysis of the labor-capital exchange on the assumption on principles not
contrary to those of reciprocal altruism. and IMO they only ever achieve a
superficial decriptive understanding of the wage form and K-L exchange. Herb
himself wrote an eloquent article on this in the 1970s. i still like it
although i suspect that Herb now thinks it a bit passe. There is no
reciprocity in the capitalist use of the use-value of labour power. this is
the vertical component of the K-L exchange. the Kist enjoys the use-value of
the exchange "inside" the deal, while the worker has to wait until day end
to enjoy the use-value - the wage.

you cannot IMO understand the labour market process (both the exchange and
the use-value consumption) unless you invoke systemic dynamics far deeper
than reciprocity and for that matter explicit self-interest. That is why n/c
thinking is severely limited in this domain. just to call it a market is a
misnomer.

so i reject your notion Herb that economic activities are in some way
narrower concerns than wider human activities within a capitalist system.

kind regards
bill
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