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<DIV>Rakesh,</DIV>
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<DIV><FONT face=Arial size=2>You really need to start reading engineers not
economists to evaluate the labour component in the capital goods producing
industries if you want to evaluate the LTOV. Moreover, have you looked at
the margins in the competitive side of the high tech-world? Not very
high despite their capital intensiveness. Something a Marxist would
have no problem getting their head around. Yet a counter intuitive result
if your initial premise is that capital adds value. </FONT></DIV>
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<DIV><FONT face=Times color=#000000 size=1>Hi Travis,</FONT></DIV>
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<DIV><FONT face=Times color=#000000 size=1>I'm not sure whether the high tech
industries or what James Galbraith calls the knowledge intensive capital goods
industries are the good intuitive examples to show how the labor theory of
value explains the magnitude of value added! In the Value Controversy book
Steedman points to micro-electronics to suggest how antiquated the labor
theory of value has become. </FONT></DIV>
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