1. DJ, 2004 The Political Economy of Marx Labour Theory of Value and Power

2. DJ, 2004 Introduction z Marx built on the existing CPE labour theory of value z Marx saw LToV as exclusive to capitalism z He saw value as more than just an economic measure; for him it expressed a social relationship z He added the idea of surplus value

3. DJ, 2004 The Theory zThe value of a commodity is determined by the socially necessary labour time expended in its production y Value thus expresses relations between producers: ‘commodity fetishism’ zCapitalism => generalised commodity production yLabour power becomes a commodity zCapitalists own all the means of production y Labour has no choice but to sell its labour power (‘alienation’)

4. DJ, 2004 Surplus Value 1 z Circulation: y IC - M - C (simple commodity exchange) y IIM - C - M(capitalist exchange?) y IIIM - C - M’ (capitalist exchange!) y where M’ > M, M’ – M = surplus value

5. DJ, 2004 Surplus Value 2 z Surplus value is realised in circulation z Surplus value is created in production y The only commodity that can contribute more than its own value to the value of a commodity is labour power: y M - C … P … C’ - M’

6. DJ, 2004 Tendencies in Capitalism z Tendency for the rate of profit to fall y Increasing ‘organic composition of capital’ y Decline in contribution of labour power y Labour power is the only commodity that adds to the value… y Therefore…

7. DJ, 2004 Implications z ‘Capitals’ will get bigger and bigger z ‘Forces of production’ and ‘social relations of production’ will become incompatible z Transformation in the ‘mode of production’ is inevitable

8. DJ, 2004 Critique z LToV is a subjective philosophy; it does not describe the way the economy actually operates z The predictions have not been realised z ‘Communism’ has failed