> On Mon, Feb 23, 2009 at 11:40 AM, Doug Henwood <dhenwood at panix.com> wrote:
>
> >
> > On Feb 22, 2009, at 10:31 PM, Shane Mage wrote:
> >
> > But that's all in the non-productive sector, nop?
> >>
> >
> > I'm really not convinced that the productive/nonproductive distinction
> has
> > any more than a theological basis; selling goods is as important as
> making
> > them. But that aside, Wal-Mart transformed the productive sector - never
> has
> > a retailer intervened so extensively to change the practices of
> suppliers.
> > Competition for Wal-Mart shelf space drove manufacturers to extreme
> > cost-cutting, and WMT's logistical innovations forced suppliers to play
> > along.
> >
> > Also, by pushing down retail prices, WMT lowered the cost of reproduction
> > of the working class, making real wage cuts throughout the economy a lot
> > easier.
> >
> > Doug
> >
> > But, the Wal-Mart example is an example of the relative power of
> different
> sectors of capital - between retail sellers vs. consumer product
> industries... and, as such, not so much about un/productivity...
> I think I agree about the theological nature of the distinction, however,
> given the necessity each each sector to each other and relations at the
> foundation of the expanded reproduction of capital.
>
> Alan
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>
I think the basis of this distinction comes down to value theory. Is the price regulated by the amount of labour-input in the production sector or does it "free-float" in the consumption sector? I'm with Doug on this one, consumption is just as much a determinate as production. But one thing I have been thinking about since the crisis is whether back in Marx's/Ricardo's time prices WERE in fact set majorly by production costs while in our time they're set increasingly by guesswork and consumer sentiments. If this were the case and if most theories of political economy rely heavily on notions of clean information and equilibrium this could introduce serious distortions... Maybe...