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From: carnes@gargoyle.UChicago.UUCP (Richard Carnes)
Newsgroups: net.politics.theory
Subject: Re: What is "capitalism"?
Message-ID: <449@gargoyle.UChicago.UUCP>
Date: Sat, 4-May-85 18:36:21 EDT
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Posted: Sat May  4 18:36:21 1985
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From JoSH:
>> The thing to note is that if you 
>> iterate the production of capital, using each generation to help
>> create the next, the result is an *exponential* increase in wealth.
>> This is why capitalism (in my sense) is such hot stuff.

Yes; this is a central proposition of Marx's theory of history.
"Development of the productive forces of social labor is the
historical task and justification of capital.  This is the way it
unconsciously creates the requirements of a higher mode of
production." [*Capital* III]  When these requirements are attained
and socialism (in Marx's sense) becomes possible, capitalism loses
its rationale and becomes a barrier or fetter to further human
development.  Then capitalism is revealed as "merely a historical
necessity, a necessity for the development of productive power from a
definite historical starting-point or basis, but in no way an
*absolute* necessity of production," according to comrade Karl.
[*Grundrisse*]

From Jeff Myers:

>Many influential economists take the labor theory of value very
>seriously.

Yes, although I am quite skeptical of the LTV myself.  There is no
consensus at all among leftists on the LTV in its various forms.  An
important recent discussion of issues related to the LTV is Ian
Steedman's *Marx After Sraffa*.  In any case it is not necessary to
accept the LTV to accept and build on Marx's insights in other areas.
In particular the claim that capitalism is exploitative can be made
independently of the LTV.  

Richard Carnes