By Maurice Dobb
This quantity collects released papers and essays from broadly scattered and inaccessible resources, a few of which seemed for the 1st time whilst this ebook was once initially released. within the first a part of the ebook the themes variety from the idea of wages and up to date tendencies in fiscal idea to economists’ feedback of capitalism and socialism, investment-policy in under-developed international locations, and monetary development below the Soviet 5 yr Plans. the second one half comprises papers on Lenin and Marx, a learn of the commercial rules of Bernard Shaw, and an essay on historic materialism.
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Extra info for On Economic Theory and Socialism: Collected Papers (Collected Works of Maurice Dobb, Volume 2)
But on closer scrutin)T the adequacy of this parallel between a labour market and a commodity market proves to be apparent rather than real. as given when the demand for labour is formulated may be affected by changes in wages: for instance, the state of technique and of industrial organisation. But this is not a fundanlental difficulty. There exists, however, a more fundamental reason for disputing the assumed independence of the supply and demand curves. In the case of a commodity market, as we have seen, this assumption is justified to the extent that the amount of income spent on the commodity and the amount of the agents of production used in producing it constitute only a small proportion of total income and of the total supply ofthese agents respectively.
Similarly in our case of labour an equilibrium cannot be postulated because labour is not one among many alternative objects ofsale and purchase,. but is the sole object of exchange in this particular sphere. But even though the classical conception of a determinate equilibrium of wctges may be dethroned, the corollary with regard to aggregate wageearnings still seems to continue in favour-a corollary now belonging to our second category of knowledge though not to our third and higher category.
3. What should be the number of plants in an industry? This will generally depend on the profit that each plant is making, as deEmed under I. e.. the ratio of profit to the value of the plant when valued at reconstruction-eost) being earned by a typical plant in an industry is greater than the accoWlting-price of capital, then presumably the number of plants will generally be increased, and vice versa. (But there may be exceptions to this rule where economies are to be gained from 1 The contradiction between this and Mr.