Re: Uncertainty and Liquidity Preference

[aldo balardini <balardini@xxxxxxxxx>]

> --- Paul Davidson <pdavidson@xxxxxxx> wrote:
> ,
> > if I have an
> > employment contract to teach courses at the
> > University and if I quit in the
> > middle of the term to take a better job elsewhere,
> > the University can sue
> > me -- but since slavery is illegal they can not
> > force me to fulfill my
> > contractual commitment to appear in front of
> > students and teach.  They can
> > only go to court and ask the court to enforce the
> > contract.
> >
> > If the court does, the court will enforce the
> > contract by requiring me to
> > pay MONEY (not labor time) to the university to
> > discharge my contractual
> > obligation ieven though I agreed to the contract n
> > terms of labor time.


I asked:
 So you are saying that in all job contracts money
 represents labor time
 but in all other types of contracts money represents
 something else???
 What could this something else be besides labor
 time??


> --- Paul Davidson <pdavidson@xxxxxxx> replied:
>NO!!! I am saying and have been saying that all >contractual
liabilitiesare
>legally dischargable by the payment of money. Or in >other words,
State
>enforcement of all contracts are in terms of money -- >even if you
>contractually agree to sell someone apples and you do >not deliver
whatyou
>said you would, all the buyer can do is sue you in >court and if
yourefuse
>to deliver apples, the court can merely force you o >pay the buyer the
>damages in terms of buying apples.


To what I have to conclude that Marx's critique of classical economics
(expressed below by Paul Mattick Jr.)remains valid 100 years later to
your version of Post-Keynesian economics:

"Why is labor-time dealt with in this system as value (i.e., by means
of price relations), rather than as labor time?  It was the economists'
failure to ask this question that led both to neglect of the forms of
value -for instance, to unsatisfactory theories of money- and to
misunderstanding of the nature of value-labor itself." (Paul Mattick
Jr., International Journal of Political Economy, Winter 1991-92)



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