Brand-Added Value

James Heartfield Jim at heartfield.demon.co.uk
Sun Dec 31 14:02:59 PST 2000


In message <3A4F7873.589C5896 at igc.org>, Roger Odisio <rodisio at igc.org> writes
>
>You've got the ratio reversed. Using these numbers, the rate of
>exploitation (s/v) would be 1.60. Unfortunately, assuming total value
>(output) of 1.279 trillion, the figure for surplus includes the
>replacement cost of fixed capital (see below), so, in that sense it
>overstates s/v (by excluding c, what Marx called circulating constant
>capital).

Either I misunderstand you, or we are reading Marx's categories differently: The rate of surplus value does indeed exclude c (s/v). The rate of profit includes c (s/c+v). C makes no contribution to new value. Insofar as the UK statistics can be read through the prism of Marx's categories, then the added value (being equivalent to new value created on top of capital advanced) is all surplus value. The question of what the capitalists spend it on, whether luxuries or additional capital outlay is secondary to its character as surplus value.


> The fact that part
>of value (output) goes to replace the fixed capital owned by capitalists
>is not grounds for including it in surplus value.

But the UK statistics do not measure output, but value added. That is the difference between the costs of production (bourgeois category) and the value of the output. So the replacement of used up C is already accounted for. Investing surplus value in additional means of production is the process of accumulation.

As Marx says in Capital I, Chapter XXIV: ' The conversion of Surplus Value into Capital'


> Simply put, total
>value = c+v+s.

Which would be relevant if the figure we were using was gross output, but its not, its value added, ie s, after c + v have been paid.

fraternally -- James Heartfield



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