[lbo-talk] technical conditions approach

tfast tfast at yorku.ca
Tue Dec 12 14:23:29 PST 2006


technical conditions approach

----- Original Message -----

From: Wojtek Sokolowski

To: lbo-talk at lbo-talk.org

Sent: Tuesday, December 12, 2006 4:15 PM

Subject: RE: [lbo-talk] technical conditions approach

I think that most today's prices, at least in the developed world, are driven by the rent component, not by the reproduction of labour power (i..e. the actual cost of production) component. That is to say, a garment that sells for say $50 at Macy's has about $2 reproduction of labor power component (i.e. actual production cost) and $48 in economic rent, i.e. charge for the Macy or other designer schmuck brand.

I believe that LOTV does not say much about that $48, which IMHO limits its usefulness in explaining how modern economy works.

Wojtek

Leather Shoes: Final Sales Price $70 US

Immediate Cost of production

Leather 4$

Energy 3$

Equipment 3$

Paid Labour 1$

Unpaid Labour 1$

Total cost 12$

Profit to factory owner 1$

Value added by labour 1$

Sale cost to intermediate seller 12$

Shipping cost from factory to US including warehousing and port handling costs 22$

Energy 6.00$

Equipment 6.00$

Paid labour 5.00$

Unpaid labour 5.00$

Total unit cost 34$

Profit to shipping company and port authority $5.00

Value added by Labour 5$

Transport to Main Warehouse 4$

Energy 1.50$

Equipment .50$

Paid Labour 1$

Unpaid labour 1$

Total Unit Cost 38$

Profit to Transport Company 1$

Value added by labour 1$

Central Warehousing 7$

Energy 1.50$

Equipment 1.50$

Paid Labour 2$

Unpaid labour 2$

Total unit cost 45$

Transport to Regional Warehouse 4$

Energy 1.50$

Equipment .50

Paid Labour 1$

Unpaid labour 1$

Total unit cost 49$

Regional Warehousing 7$

Energy 1.50$

Equipment 1.50$

Paid Labour 2$

Unpaid labour 2$

Total Unit Cost 56$

Transport to Store 4$

Energy 1.50$

Equipment .50

Paid Labour 1$

Unpaid labour 1$

Total unit cost 60$

Warehousing cost at store 7$

Energy 1.50$

Equipment 1.50$

Paid Labour 2$

Unpaid labour 2$

Total unit cost 67$

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