{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","id":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","uuid":"4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title":"Zombie Capitalism Global Crisis and the Relevance of Marx","normalized_title":"zombiecapitalismglobalcrisisandtherelevanceofmarx","author":null,"edition":null,"publisher":null,"year":null,"isbn":"9781608461042","isbns":["9781608461042"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":426,"navigation_url":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","title_url":"https://workshop.closeclaw.top/ai/title/Zombie%20Capitalism%20Global%20Crisis%20and%20the%20Relevance%20of%20Marx","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe","page_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/page","search_url":"https://workshop.closeclaw.top/api/ai/books/4a3d22bd-c5b9-47a4-a022-bd35d44d9bfe/search"},"page":{"printed_page":47,"pdf_page":47,"physical_index":47,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"16ce886e793711ee1ab2c1c00a9cb7b7850e43eef6c1401e41fcd927745b2887"},"chapter":"Zombie Capitalism Global Crisis and the Relevance of Marx","content":"This is what led Adam Smith to dilute his labour theory of value with another, contradictory approach. The sale of goods produces a payment that is divided up into different \"revenues\"-wages for the workers, profit for the industrialist, interest for the banker who lent the industrialist money, and rent for the landlord. Smith contradicts his own initial labour-based theory of value by arguing that each of these revenues adds to value. David Ricardo was more consistent than Smith and tried to stick to the pure labour theory. But this left a gap in his theory that economists who came after him could not solve-one which eventually opened the way to the neoclassical abandonment of the labour theory of value.\n\nMarx could, however, deal with the problem-usually called the \"transformation problem\"-precisely because his model is a dynamic one that operates through time. His solution depends on looking at how firms will react to the emergence of different profit rates. Those with lower profit rates will begin to move their capital elsewhere. This will cause a potential shortage in what they have been producing, leading to a rise in prices above their value in labour terms. Other firms who use those products as inputs to their own production (either directly or through paying their workers to buy them to replenish their labour power)16 are forced to pay the higher prices, in the process effectively handing over some of the surplus value in their own hands. The equalisation of the rate of profit takes place through the redistribution of surplus value within the capitalist class.\n\nThis does not in any degree alter the fact that the surplus value came from the exploitation of workers in the first place, and that every change in the socially necessary labour time needed to produce a commodity has an effect on its price. It is the flow of already produced surplus value from one capitalist to another through time that equalises the rate of profit17-which is also why there can be big differences between the rates of profit in different parts of the system when there are impediments to the flow of value through the system (for instance, when firms have very large amounts of investment tied down immovably in certain sorts of fixed capital or when states prevent investment moving out of what they see as priority industries).\n\nMarx's solution to the problem posed in Smith and Ricardo was attacked within two years of it appearing in Volume Three of\n\nMarx and His Critics\n\n47","previous_page":46,"next_page":48}