Marx’s Abstract Theory of Value and Money in Volume 1 of Capital

Yale University
16 Dec 2020103:42
EducationalLearning
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TLDRIn this scholarly discussion, Fred Moseley and Michael Heinrich delve into the intricacies of Marx's 'Capital', focusing on the determination of value in a capitalist economy. Moseley argues that value is determined solely by production, while Heinrich contends it also involves exchange and market demand. The debate touches on the implications for understanding exploitation, surplus value, and the role of money, offering valuable insights into Marxian economic theory.

Takeaways
  • πŸ“š The Franke lectures, hosted by Paul North at the Whitney Humanities Center, focus on important topics in the humanities, aiming to present them to a wide audience.
  • πŸ‘‹ Paul Reitter from Ohio State is acknowledged for his work on a new English translation of Marx's 'Capital', Volume I, and his contribution to the series.
  • πŸ‘¨β€πŸ« Fred Moseley, an emeritus professor of economics, is introduced as a speaker who has extensively published on Marxian theory, particularly on the analysis of the US economy.
  • πŸ“– Moseley's latest book 'Money and Totality' offers a macromonetary interpretation of Marx's logic, addressing the transformation problem which was concluded in 2016.
  • πŸ” The lecture delves into the intricacies of interpreting Marx's 'Capital', with a focus on Chapter One, which is considered difficult and controversial due to its complexity.
  • πŸ€” Moseley discusses the logical structure of Chapter One, emphasizing the substance, magnitude, and form of appearance of value, and the causal relations between them.
  • 🧐 Key controversial issues are highlighted, such as the derivation of abstract labor, the property of the magnitude of value, and the determination of value in production versus circulation.
  • πŸ“ˆ Moseley argues that the magnitude of value, defined as socially necessary labor time, is determined entirely in production and is not influenced by market demand or supply.
  • 🀝 Despite disagreements on certain aspects of Marx's theory, Moseley appreciates Michael Heinrich's contributions to Marxian scholarship and the importance of the MEGA project.
  • πŸ€– The discussion hints at the broader implications of the interpretation of Marx's theory for understanding surplus value, exploitation, and the inner laws of capitalism.
  • πŸ’‘ The debate between Moseley and Heinrich underscores the importance of accurate interpretation of Marx's work for both theoretical understanding and practical application in economics and politics.
Q & A
  • What is the main theme of the Franke lectures in the Humanities?

    -The main theme of the Franke lectures is to present important topics in the humanities to a wide and general audience, with a specific focus on the series called 'the value of Marx's capital'.

  • Who are the key conveners of the series on Marx's Capital?

    -The series is convened by Paul North and Paul Reitter from Ohio State University, with Paul Reitter being the translator of a new English translation of Volume I.

  • What is the significance of Fred Moseley's work in the context of this seminar?

    -Fred Moseley is an emeritus professor of economics who has published extensively on Marxian theory, particularly on the Marxian analysis of the US economy and the macromonetary interpretation of Marx's logic in 'Capital'.

  • What is the focus of the undergraduate seminar accompanying the Franke lectures?

    -The undergraduate seminar focuses on a detailed study of Volume I of Marx's 'Capital', with students examining the text with a 'microscope' to understand and critique its concepts.

  • What is the structure of the event as described by Paul North?

    -The event begins with a presentation from the speaker, followed by a short response from another scholar, Michael Heinrich, who will discuss with Fred Moseley. The event then opens to questions from the audience.

  • What is the main topic of Fred Moseley's presentation?

    -Fred Moseley's presentation focuses on Chapter One of Marx's 'Capital', discussing the interpretation of value and the controversy surrounding the determination of the magnitude of value.

  • What are the three main aspects of Marx's concept of value that Fred Moseley discusses?

    -The three main aspects are the substance of value, the magnitude of value, and the form of appearance of value, with a focus on how these aspects are interrelated and derived within Marx's work.

  • What is the 'value form interpretation' mentioned by Michael Heinrich?

    -The 'value form interpretation' is a reading of Marx's theory that suggests socially necessary labor time is not solely determined by average labor time in production but also depends on social demand on the market.

  • What is the significance of the discussion on the magnitude of value in Marxian economics?

    -The discussion on the magnitude of value is significant because it impacts the understanding of how value is created and realized in a capitalist economy, with implications for theories of surplus value and exploitation.

  • How does Fred Moseley interpret the determination of socially necessary labor time in Marx's 'Capital'?

    -Fred Moseley interprets socially necessary labor time as being determined solely by the average labor time in production, arguing that Marx's theory of value is about equilibrium prices and the long-run average around which market prices fluctuate.

  • What is the role of the Union for Radical Political Economics (URPE) in the context of this seminar?

    -The URPE is a membership organization that Fred Moseley is a part of, and he served as the program director for URPE sessions at the annual convention of the American Economic Association, indicating a commitment to radical political economic perspectives.

Outlines
00:00
πŸ“š Introduction to the Franke Lectures and Acknowledgements

Paul North opens the Franke lectures in Humanities, acknowledging the series on Marx's Capital and introducing co-organizer Paul Reitter. He highlights the undergraduate seminar's in-depth study of Volume I and the support from Richard and Barbara Franke. North also thanks the Whitney Humanities Center's director, Alice Kaplan, and the organizing team, and introduces the format of the lecture series, including Q&A with the audience.

05:00
πŸ‘‹ Welcoming Fred Moseley and His Contributions to Marxian Economics

Paul North introduces Fred Moseley, an emeritus economics professor at Mount Holyoke College, who has extensively published on Marxian theory. Moseley's work includes 'Money and Totality' and his involvement with the translation of Marx's 1864-65 economic manuscripts. North outlines the lecture's structure: a presentation by Moseley, a response by Michael Heinrich, and a Q&A session.

10:00
πŸ” Deep Dive into Marx's Capital: Focus on Chapter One

Fred Moseley discusses his paper's shift from an overview of Volume I to a focus on Chapter One, influenced by Michael Heinrich's seminar presentation. Moseley appreciates Heinrich's contributions to Marxian scholarship, particularly regarding the MEGA (Marx-Engels-Gesamtausgabe) project. The chapter's complexity and controversy are highlighted, with Moseley noting Marx's own acknowledgment of the difficulty in understanding the chapter.

15:04
πŸ€” The Logical Structure of Chapter One and Key Aspects of Value

Moseley outlines the logical structure of Chapter One, emphasizing the three main aspects of Marx's concept of value: substance, magnitude, and form of appearance. He explains that the substance of value is determined by abstract labor, the magnitude by the quantity of socially necessary labor time, and the form of appearance as money and prices. Moseley also previews four controversial issues within the chapter.

20:06
πŸš€ The Derivation of Abstract Labor and the Magnitude of Value

Fred Moseley delves into the derivation of abstract labor as the substance of value, discussing the common property of commodities that determines their exchange values. He addresses the magnitude of value, defined as the quantity of abstract labor or socially necessary labor time. Moseley also raises the question of whether the magnitude of value is a property of individual commodities or multiple commodities together.

25:09
πŸ“‰ The Determination of Value: Production vs. Exchange

Moseley discusses the controversy over whether the magnitude of value is determined solely in the production process or if it also depends on circulation and market demand. He presents his view that the magnitude of value is determined by production, referencing Marx's writings on the subject and the implications for understanding surplus value and exploitation within capitalism.

30:10
🀝 Agreements and Disagreements on the Interpretation of Marx's Theory

Fred Moseley and Michael Heinrich engage in a discussion about the interpretation of Marx's theory, particularly regarding the determination of value. While acknowledging areas of disagreement, they also explore the possibility of mutual compatibility in their views, especially concerning the role of supply and demand in the determination of socially necessary labor time.

35:11
πŸ’‘ The Importance of Exchange in the Constitution of Socially Necessary Labor Time

Michael Heinrich argues that the magnitude of value is not solely determined by production but also involves exchange and social demand. He criticizes the Soviet Union's planned economy for assuming value could be known prior to exchange and warns against repeating such mistakes in theories of a socialist system.

40:15
πŸ“ Hermeneutic Debates on Marx's Analysis of Commodity Exchange

Heinrich emphasizes the need to distinguish between interpreting Marx's texts and analyzing the reality of commodity production and exchange. He discusses the social processes involved in determining the magnitude of value, including the reduction of complex labor to simple labor and the role of social evaluation in this process.

45:19
πŸ€” The Sequence of Explanation vs. Sequence of Existence in Marx's Theory

Heinrich addresses the mistake of conflating Marx's sequence of explanation with a sequence of existence or causality over time. He argues that value and value form can only exist simultaneously within the exchange relation, and that commodities only have magnitudes of value within this relational context.

50:27
πŸ’Ό The Implications of Interpreting 'Common' in Marx's Theory of Value

Heinrich discusses the different interpretations of 'common' in the context of labor being the common social substance of value. He suggests that Marx's change in wording between editions of 'Capital' indicates a view of value substance as something that exists within the exchange relation, not independently.

55:28
πŸ€“ The Debate on Value Formation and the Role of Exchange

Fred Moseley refutes the idea that value is known in production, emphasizing instead that value is produced and then expressed through exchange, specifically in the form of money. He argues against the USSR's application of Marx's theory and insists on the temporal sequence of production preceding sale in the circuit of capital.

00:31
πŸ’Ό Exchange, Competition, and the Appropriation of Surplus Value

The speakers address a question about market price oscillations and how they relate to the competition among capitalists to appropriate surplus value. Moseley explains that the total surplus value produced by workers is later divided among capitalists, with market power affecting the distribution but not the total production of surplus value.

05:31
πŸ’΅ Inflation and the Role of Non-Commodity Money in Marxian Theory

Moseley discusses the need to update Marx's theory to account for the modern financial system where money is no longer a commodity like gold. He suggests that an oversupply of fiat money can lead to inflation, which is a starting point for understanding the role of money in contemporary capitalism.

10:34
πŸ€– The Role of Cognitive Labor in the Formation of Value

The conversation turns to the role of cognitive labor in the production of value, with Moseley acknowledging the challenge this presents for Marxian theory. He suggests that cognitive labor, as a form of skilled labor, produces more value per hour but does not fundamentally alter the theory of surplus value.

15:35
πŸ›οΈ Monopoly Capital and Its Impact on Surplus Value Distribution

Moseley addresses the question of monopoly capital, arguing that while it affects the distribution of surplus value, it does not impact the total production of surplus value unless it influences wages. He disagrees with Baran and Sweezy's view that monopoly capital increases surplus value, maintaining that it merely allows monopolies to claim a larger share.

Mindmap
Keywords
πŸ’‘Marx's Capital
Marx's 'Capital' refers to the foundational economic critique by Karl Marx, which discusses the nature of capitalism and the labor theory of value. In the video, the Franke lectures focus on the value of Marx's 'Capital', indicating the ongoing significance and interpretation of Marx's work in understanding economic systems and critiquing capitalism.
πŸ’‘Marxian Economic Theory
Marxian economic theory is derived from the works of Karl Marx and focuses on the role of labor in the production of value and the inherent contradictions within capitalism. In the script, Fred Moseley, an emeritus professor, is noted for teaching and publishing extensively on this theory, emphasizing its relevance in analyzing the US economy and beyond.
πŸ’‘Socially Necessary Labor Time
Socially necessary labor time is a concept from Marxian economics that refers to the average amount of labor time required to produce a specific good or service under normal conditions of production, with the average degree of skill and intensity prevalent in society. In the video, this concept is central to the discussion on the determination of a commodity's value.
πŸ’‘Abstract Labor
Abstract labor is a term used by Marx to describe the labor that is stripped of its specific, concrete forms and considered in terms of its general, undifferentiated human labor power. It is the substance of value in Marx's theory. The script discusses the derivation of abstract labor as the substance of value, which is a key point in understanding Marx's labor theory of value.
πŸ’‘Value Form
The value form is the way in which the value of a commodity is expressed in exchange with other commodities. It is a crucial aspect of Marx's critique of political economy. The script delves into the interpretation of the value form, particularly how it is derived from the substance and magnitude of value, and its significance in the exchange process.
πŸ’‘Surplus Value
Surplus value in Marxian theory is the value that is over and above the labor time socially necessary to produce the goods that the workers themselves require to be paid. It is the source of profit for capitalists. The script touches on the concept, highlighting its importance in understanding exploitation and the inner workings of capitalism.
πŸ’‘Equilibrium Prices
Equilibrium prices refer to the prices at which the quantity of goods supplied equals the quantity demanded, resulting in a market equilibrium. In the script, there is a debate on whether Marx's theory of value is concerned with equilibrium prices or the daily fluctuations of market prices, indicating a deeper discussion on the applicability of Marx's theory in different economic contexts.
πŸ’‘Commodity
A commodity in economics is an interchangeable cargo of goods or services produced to satisfy human wants or needs. In the script, commodities are the central objects of analysis, with their value and exchange being fundamental to understanding capitalism and the labor theory of value.
πŸ’‘Money and Totality
'Money and Totality' is the title of Fred Moseley's latest book mentioned in the script, which offers a macromonetary interpretation of Marx's logic in 'Capital'. The book likely discusses the role of money in the overall economy, which is a critical aspect of Marxian economic theory.
πŸ’‘Hermeneutic Questions
Hermeneutic questions relate to the theory and methodology of interpretation, especially of texts. In the script, these questions arise in the context of the debate on the correct interpretation of Marx's writings and the implications of different readings for understanding economic phenomena.
πŸ’‘Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the script, a question about inflation is raised, prompting a discussion on how Marxian theory might explain this phenomenon as an 'inner law' of capitalism.
Highlights

Introduction of the Franke lectures in the Humanities and acknowledgment of contributors.

Paul North and Paul Reitter's collaboration on the translation of Marx's 'Capital' Volume I into English.

The Franke lectures' aim to present important topics in the humanities to a general audience, funded by Richard and Barbara Franke.

Introduction of Fred Moseley, an emeritus professor of economics, and his extensive work on Marxian theory.

Moseley's latest book 'Money and Totality' and its focus on a macromonetary interpretation of Marx's logic.

Discussion on the importance of the MEGA (Marx-Engels Gesamtausgabe) project in advancing Marxian scholarship.

Marx's statement on the difficulty of understanding the first chapter of 'Capital' and its significance in all sciences.

Explanation of the logical structure of chapter one of 'Capital', focusing on the substance, magnitude, and form of value.

Marx's derivation of abstract labor as the substance of value and its role in determining exchange values.

The concept of socially necessary labor time and its inverse relationship with labor productivity.

Moseley's emphasis on the importance of section three in chapter one, which discusses the form of appearance of value and money prices.

Different interpretations of Marx's theory of value, particularly the debate on whether value is determined solely by production or also by exchange and demand.

Moseley's argument that socially necessary labor time is determined by production, supporting his point with textual evidence from Marx.

Heinrich's counterargument suggesting that socially necessary labor time is also influenced by social demand and market conditions.

The implications of different interpretations of Marx's theory for understanding surplus value and exploitation within capitalism.

The potential compatibility of equilibrium and disequilibrium concepts of socially necessary labor time under different supply and demand scenarios.

The importance of distinguishing between the hermeneutical level of interpreting Marx's texts and the analysis of the reality of commodity production and exchange.

Transcripts
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