In recent years, the New Interpretation has emerged as a significant topic of discussion regardin... more In recent years, the New Interpretation has emerged as a significant topic of discussion regarding Marx’s theory. This approach, which offers a revised version of the labor theory of value, states that it is unnecessary to transform values into prices of production. Instead, it proposes a “single-system labor theory of value.” This reformulation has sparked considerable debate among scholars over the past few decades. Its core premise is that labor is the source of added value. In this framework, the monetary flows in exchanges correspond to the labor flows employed in production. The MELT (Monetary Expression of Labor Time) is the analytical tool that illustrates this relationship. Some critics argue that this concept of new labor value, which refers to the aggregate added value in production by labor, is an unverifiable “postulate.” Consequently, it is feasible to consider the theoretical structure of the New Interpretation as arbitrary. This investigation seeks to elucidate that conceptualizing the economic system as a circular process generating a surplus, coupled with the notion of value as the social cost of production, substantiates the principle of new value generated by labor. Moreover, through algebraic manipulation, Sraffa’s equations of prices demonstrate that the net product per unit of labor constitutes a non-arbitrary unit of measurement. When the net product per unit of labor is equal to unity, the value of the net product equals the aggregate labor, and a share of wages-profit rate frontier independent of prices is determined.
In this paper, we show that Sraffa’s prices are consistent with Marx’s analysis of the form of ci... more In this paper, we show that Sraffa’s prices are consistent with Marx’s analysis of the form of circulation of capital (Money–Commodities–Money) and his theory of the creation of new value by labour in the production process. On the contrary, according to many neo-Ricardian and Marxist scholars, Marx’s theory of value and Sraffa’s theory of prices are incompatible. In this framework, we develop our interpretation of Marx’s theory of new value based on the so-called ‘New Interpretation’ of Foley, Duménil, and Lipietz. Firstly, Marx analyses the division of aggregate social labour in producing various commodities. Living labour is the only factor that is not yet a value that enters the production process. Thus it creates new value. The value of money allows us to sum up the two factors that enter the production process, the means of production and the living labour. Secondly, focusing on surplus value, he analyses the class relationship between labourers and owners of the means of production in the capitalist society
Regarding Sraffa’s theory of prices, our intent is not to reconstruct a thorough interpretation of Sraffa’s theory. We aim instead to retrace the path that leads him to believe that the labour spent in revenue production is not an arbitrary but a natural measure unit of prices. This path starts from re-evaluating Marxian theory, based on what Sraffa calls his hypothesis about the composition of the revenue and aggregate means of production.
Finally, we develop Marx’s form of circulation of capital, including Sraffa’s prices.
In recent years, the New Interpretation has emerged as a significant topic of discussion regardin... more In recent years, the New Interpretation has emerged as a significant topic of discussion regarding Marx’s theory. This approach, which offers a revised version of the labor theory of value, states that it is unnecessary to transform values into prices of production. Instead, it proposes a “single-system labor theory of value.” This reformulation has sparked considerable debate among scholars over the past few decades. Its core premise is that labor is the source of added value. In this framework, the monetary flows in exchanges correspond to the labor flows employed in production. The MELT (Monetary Expression of Labor Time) is the analytical tool that illustrates this relationship. Some critics argue that this concept of new labor value, which refers to the aggregate added value in production by labor, is an unverifiable “postulate.” Consequently, it is feasible to consider the theoretical structure of the New Interpretation as arbitrary. This investigation seeks to elucidate that conceptualizing the economic system as a circular process generating a surplus, coupled with the notion of value as the social cost of production, substantiates the principle of new value generated by labor. Moreover, through algebraic manipulation, Sraffa’s equations of prices demonstrate that the net product per unit of labor constitutes a non-arbitrary unit of measurement. When the net product per unit of labor is equal to unity, the value of the net product equals the aggregate labor, and a share of wages-profit rate frontier independent of prices is determined.
In this paper, we show that Sraffa’s prices are consistent with Marx’s analysis of the form of ci... more In this paper, we show that Sraffa’s prices are consistent with Marx’s analysis of the form of circulation of capital (Money–Commodities–Money) and his theory of the creation of new value by labour in the production process. On the contrary, according to many neo-Ricardian and Marxist scholars, Marx’s theory of value and Sraffa’s theory of prices are incompatible. In this framework, we develop our interpretation of Marx’s theory of new value based on the so-called ‘New Interpretation’ of Foley, Duménil, and Lipietz. Firstly, Marx analyses the division of aggregate social labour in producing various commodities. Living labour is the only factor that is not yet a value that enters the production process. Thus it creates new value. The value of money allows us to sum up the two factors that enter the production process, the means of production and the living labour. Secondly, focusing on surplus value, he analyses the class relationship between labourers and owners of the means of production in the capitalist society
Regarding Sraffa’s theory of prices, our intent is not to reconstruct a thorough interpretation of Sraffa’s theory. We aim instead to retrace the path that leads him to believe that the labour spent in revenue production is not an arbitrary but a natural measure unit of prices. This path starts from re-evaluating Marxian theory, based on what Sraffa calls his hypothesis about the composition of the revenue and aggregate means of production.
Finally, we develop Marx’s form of circulation of capital, including Sraffa’s prices.
Uploads
Papers by Stefano Perri
Consequently, it is feasible to consider the theoretical structure of the New Interpretation as arbitrary. This investigation seeks to elucidate that conceptualizing the economic system as a circular process generating a surplus, coupled with the notion of value as the social cost of production, substantiates the principle of new value generated by labor. Moreover, through algebraic manipulation, Sraffa’s equations of prices demonstrate that the net product per unit of labor constitutes a non-arbitrary unit of measurement. When the net product per unit of labor is equal to unity, the value of the net product equals the aggregate labor, and a share of wages-profit rate frontier independent of prices is determined.
Regarding Sraffa’s theory of prices, our intent is not to reconstruct a thorough interpretation of Sraffa’s theory. We aim instead to retrace the path that leads him to believe that the labour spent in revenue production is not an arbitrary but a natural measure unit of prices. This path starts from re-evaluating Marxian theory, based on what Sraffa calls his hypothesis about the composition of the revenue and aggregate means of production.
Finally, we develop Marx’s form of circulation of capital, including Sraffa’s prices.
Consequently, it is feasible to consider the theoretical structure of the New Interpretation as arbitrary. This investigation seeks to elucidate that conceptualizing the economic system as a circular process generating a surplus, coupled with the notion of value as the social cost of production, substantiates the principle of new value generated by labor. Moreover, through algebraic manipulation, Sraffa’s equations of prices demonstrate that the net product per unit of labor constitutes a non-arbitrary unit of measurement. When the net product per unit of labor is equal to unity, the value of the net product equals the aggregate labor, and a share of wages-profit rate frontier independent of prices is determined.
Regarding Sraffa’s theory of prices, our intent is not to reconstruct a thorough interpretation of Sraffa’s theory. We aim instead to retrace the path that leads him to believe that the labour spent in revenue production is not an arbitrary but a natural measure unit of prices. This path starts from re-evaluating Marxian theory, based on what Sraffa calls his hypothesis about the composition of the revenue and aggregate means of production.
Finally, we develop Marx’s form of circulation of capital, including Sraffa’s prices.