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<div>For those OPE-L'ers who are wondering what Justin and I were
talking about....</div>
<div><br></div>
<div>To see how the technical conditions approach to the determination
of prices and profits seems to undermine the labor theory of value,
consider the following example in which it is shown that not unpaid
labor time but a surplus of use values determines what the profit rate
will be. The surplus of use values need not be caused by unpaid labor
time at all; it may just be a result of the technical conditions, the
knowledge embodied therein. </div>
<div><br></div>
<div><br></div>
<div><br></div>
<div><font face="Courier" size="+2" color="#000000">A model of total
automation; Spencer Pack gives a simple example.</font></div>
<div><font face="Courier" size="+2" color="#000000"><br>
<br>
<br>
28 56
0 0<br>
16 0
48 0<br>
12 0
0 8<br>
56 56
48 8<br>
<br>
<br>
What we have in the first column is inputs of computers (28,16,12,
56<br>
total) needed to make 56 computers, 48 units of gold, and 8 units
of<br>
wheat.<br>
<br>
That is, 28 computers => 56 computers<br>
16 computers =>
48 units of gold<br>
12 computers =>
8 units of wheat<br>
56 computers =>
56 computers, 48 units of gold, 8 units of wheat<br>
<br>
<br>
The economy is in simple reproduction because it produces only 56
new<br>
computers, and 56 computers are needed to produce computers, gold
and<br>
wheat at the same scale again.<br>
<br>
There is no direct labor in this economy; there is not even
indirect<br>
labor as computers, gold and wheat are themselves the products of<br>
commodities--the literal production of commodities by commodities.<br>
<br>
According to Pack this economy can be solved for relative prices
and<br>
a uniform profit and absolute prices as well if we assume by<br>
definition that the price of one unit of gold equals $1.<br>
<br>
(1 + r) (28pc) = 56 pc<br>
(1 + r) (16pc) = 48<br>
(1 + r) (12pc) = 8pw<br>
<br>
r is the profit rate while pc and pw are the unit prices of
computers<br>
and wheat.<br>
<br>
From the first equation we know the profit rate has to be 100%;
price<br>
of one computer is $1.50 and price of one unit of wheat is $4.50.<br>
<br>
So contrary to the LTV, there can be a positive rate of profit and<br>
relative prices in a totally automated economy.</font></div>
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