Moseley’s macro-monetary Marx – a review and partial critique

FMoseley Money and TotalityMarxist Professor Fred Moseley’s recent work Money and Totality was 20 years in the making. A couple of weeks ago, in the midst of reading it, I remarked on this blog that it was thoroughly engaging, at least for those interested in Marxist economic theory and its application to the analysis of capitalism. I also promised further comment, once I had finished it, so here goes.

Moseley’s interpretation of Marx’s theory is ‘macro’ ie macroeconomic, in that it begins logically with the operation of the economy as a whole, and then proceeds to the ‘micro’ or the operation of the individual parts of the economy in question.

The interpretation is ‘monetary’ in that it argues that Marx’s theory uses values or prices quantified in terms of money. Capitalism is a money-using system, and in fact Marx defines capital itself as money which is used to make more money, or ‘self-expanding value’.

The title of the book is thus explained: ‘money and totality’, the latter as describing the importance of the macroeconomic system as a whole. Continue reading

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Robert Anton Wilson on the source of wealth

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Robert Anton Wilson

A quote from a book which is, for once, not about economics. The book that is, not the quote! Prometheus Rising is an eclectic look at how the human mind works and is both entertaining and enlightening.

“Where does this wealth come from? According to orthodox economics it comes from land, labor and capital. According to Marxists, it comes from land and labor alone, and the capitalist is a thief who has inserted an artificial book-keeping system into the process. Both are wrong. Land and labor alone, and land, labor and capital together, can’t produce new wealth if they are all organised by a fallacious idea, such as searching for oil where oil is not. The real source of wealth is correct ideas: workable ideas: that is, negative entropy – Information.

The origin of these coherent (workable) ideas is the human nervous system. All wealth is created by human beings using their neurons intelligently.

Robert Anton Wilson (1983), Prometheus Rising

I have plenty of time for Marxist thought, not so much for socialism. But the labour theory of value (LTV) is, for me, perhaps not as scientific as Marx and many Marxists make out. The above quote sums it up nicely, suggesting that the LTV is misleading or at best incomplete, and designed to make social injustice and exploitation into something scientific.

If one wishes to fight injustice, including exploitation, that is all to the good. However I am not convinced that surplus value, a key concept in classical political economy and Marx, necessarily originates solely in the efforts of the workers. Management by the capitalists or their representatives is probably necessary for a productive and profitable workplace and can take many forms, coercive or otherwise.

To draw once more on the quote above: in the right political, social and economic environment, capitalists and workers, sometimes in conflict, sometimes cooperating, can be collectively productive if they work (and use their neurons) intelligently.

Marx without the socialism?

What does Karl Marx offer economics without the baggage of revolutionary socialism? The post-Keynesian economist Steve Keen, in several papers, particularly here and here, and in a chapter in his excellent book Debunking Economics, attempts to bring about the demise of Marx’s Labour Theory of Value (LTV). The latter posits that labour is the only source of value production under capitalism. Continue reading

Marx’s labour theory of value and exploitation under capitalism

The Cambridge economist Joan Robinson famously said that “the only thing worse than being exploited under capitalism is not being exploited under capitalism.” By this she meant that exploitation was something to be deplored, but that it made possible the material advance of humanity that has taken place under the capitalist system. Continue reading