,*APT] #d 
,VALUE & ,PRICE 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,9 ORD] TO /AY 9 BUS9ESS1 EV]Y CAPITALI/ 5TREPR5EUR MU/ /RIVE = 
! L>GE/ POSSIBLE AM\NT ( SURPLUS-LABOR2 = ONLY BY A*IEV+ ?IS 
MAXIMUM CAN HE MAXIMIZE ! PR(ITS HE CAN REALIZE ?R\< M>KET PRICES4 ,?IS 
PR(IT MAXIMUM IS ONLY P>TLY DET]M9$ BY HIS [N EX]TIONS 9 MA9TA9+ OR 
RAIS+ ! RATE ( EXPLOITATION2 IT IS CO-DET]M9$ BY SIMIL> 
EX]TIONS ON ! P>T ( ALL O!R CAPITALI/S4 ,TO 9CREASE ! PR(ITABILITY 
( ANY P>TICUL> CAPITAL1 ! PR(ITABILITY ( TOTAL SOCIAL CAPITAL 
MU/ BE 9 CREAS$1 = O!RWISE !RE W\LD BE NO WAY ( REALIZ+ ! 
9CREAS$ APPROPRIATION ( SURPLUS-LABOR AS PR(ITS 9 ! M>KET4 ,S9CE 
SURPLUS-LABOR 9 ! =M ( COMMODITIES FALLS \TSIDE ! CAPITAL-LABOR 
RELATION%IP1 IT MU/ BE EX*ANG$ BETWE5 CAPITALI/S !MSELVES 9 !IR 
EF=TS TO PRES]VE !IR CAPITAL BY AUGM5T+ IT4 

,! GR[? ( ANY P>TICUL> CAPITAL DEP5DS ON ! ACCUMULATION ( TOTAL 
SOCIAL CAPITAL4 ,?IS FACT SETS DEF9ITE LIMITS TO ! EXPANSION ( ALL SEP>ATE 
CAPITALS4 ,! [N] ( A GR[+ BUS9ESS BECOMES AW>E ( !SE LIMITS :]E 
DIM9I%+ RETURNS MAKE IT UNPR(ITABLE = HIM TO EXP& IT FUR!R4 ,H[EV]1 
CAPITAL1 LIKE LABOR-P[] 9 ! AB/RACT1 IS DIFF]5TIAT$ ONLY 
QUANTITATIVELY4 ,NO MATT] :AT ! TYPE ( PRODUCTION1 CAPITAL WILL BE EMPLOY$ 
:]EV] !RE IS A PROSPECT ( SUFFICI5T YIELDS4 ,IF ONE AV5UE ( EXPANSION 
CLOSES1 O!RS OP5+ UP WILL BE 9VAD$4 ,IT IS ! PR(ITABILITY PR9CIPLE 
:I* DI/RIBUTES 9VE/M5TS OV] ! DIFF]5T SPH]ES & BRAN*ES ( 
PRODUCTION1 ?US ALLOCAT+ SOCIAL LABOR 9 ACCORDANCE ) ! SURPLUS-VALUE 
REQUIREM5TS ( CAPITAL ACCUMULATION4 ,& IT IS ?IS COMPETITIVE FL[ ( 
CAPITAL :I* GIVES RISE TO A T5D5CY TO EQUALIZE RATES ( PR(IT ON 
CAPITAL4 

,AL?\< ! CAPITAL M>KET DOES NOT DIFF]5TIATE BETWE5 CAPITAL & LABOR 
9VE/M5TS1 ?IS DIVISION DOES AFFECT ! ECONOMY4 ,! PHYSICAL NATURE ( ! 
PRODUCTION PROCESS DEF9ES ! RELATION%IP BETWE5 LABOR & CAPITAL1 & ?US 
DET]M9ES ! PROPORTION ( 9VE/M5T FALL+ TO EA* FACTOR4 ,!RE IS A 
DIFF]5CE1 TO SPEAK 9 ,M>XIAN T]MS1 BETWE5 ! 0ORGANIC 
COMPOSITIONS0 ( DIFF]5T CAPITALS 9 DIFF]5T SPH]ES ( PRODUCTION4 
,SOME PRODUCTION PROCESSES REQUIRE GREAT 9VE/M5TS 9 MEANS ( PRODUCTION & 
RELATIVELY SMALL 9VE/M5TS 9 LABOR1 :ILE O!RS NE$ LESS CAPITAL 
9VE/M5TS & DEM& MORE LABOR4 ,! FIR/ RELATION%IP ,M>X CALL$ A 
0HI<0 & ! SECOND A 0L[0 ORGANIC COMPOSITION ( 
CAPITAL4 ,S9CE LABOR IS ! ONLY S\RCE ( SURPLUS-VALUE1 OR PR(ITS1 & 
PR(ITS >E MEASUR$ ON TOTAL 9VE/M5TS 7I4E4 MEANS ( PRODUCTION TOGE!R 
) LABOR-P[]71 IT %\LD FOLL[ FROM ! LABOR !ORY ( VALUE ?AT 
CAPITALS ( DIFF]5T ORGANIC COMPOSITIONS1 BUT ) EQUAL RATES ( 
SURPLUS-VALUE1 %\LD YIELD DIFF]5T RATES ( PR(IT4 ,9 REALITY1 !RE 
PREVAILS A T5D5CY T[>D !IR EQUALIZATION4 

,LEAV+ ASIDE SU* CONSID]ATIONS AS V>Y+ RATES ( SURPLUS-VALUE 9 
DIFF]5T 5T]PRISES1 ORIG9ALLY DIV]SE RATES ( PR(IT PO9T TO ! V>IETY 
9 ORGANIC COMPOSITIONS ( V>I\S CAPITALS4 ,S9CE ! DIFF]5CES 9 ! 
ORGANIC COMPOSITION ( CAPITAL :I* 9DU/RIES POSSESS >E DET]M9$ BY !IR 
PRODUCTION PROCESS1 !Y CANNOT BE ELIM9AT$4 ,IT MAY BE POSSIBLE TO A DEGREE 
TO AV]AGE ! ORGANIC COMPOSITION ( CAPITAL )9 A P>TICUL> 9DU/RY2 BUT 
?IS CANNOT BE DONE BETWE5 TOTALLY DIFF]5T SPH]ES ( PRODUCTION4 ,?US ! 
AV]AG+ ( 9DIVIDUAL RATES ( PR(IT MU/ TAKE PLACE 9 CIRCULATION4 

,9 ORD] TO UND]/& ?IS ME*ANISM IT IS NECESS>Y TO CONSID] ! 
0SOCIAL0 *>ACT] ( CAPITALI/ PRODUCTION & ! DUAL NATURE ( 
! COMMODITY AS BO? A USE-VALUE & AN EX*ANGE-VALUE4 ,!RE EXI/S A REAL 
NE$ TO CO-ORD9ATE PRODUCTION 9 T]MS ( USE-VALUES4 ,9 CAPITALISM ! M>KET 
FULFILLS ?IS FUNCTION4 ,IT CAN ONLY EX*ANGE :AT HAS BE5 PRODUC$2 BUT :AT 
HAS BE5 PRODUC$ REFLECTS ! SOCIAL DEM& ( CAPITALISM AT ANY P>TICUL> 
/AGE ( ITS DEVELOPM5T4 0,SOCIAL DEM&0 AS REVEAL$ BY ! M>KET 
IS NOT ID5TICAL ) ACTUALLY EXI/+ SOCIAL NE$S BUT ONLY ) !SE NE$S 
)9 ! FRAME ( CAPITAL PRODUCTION4 ,/ILL1 ?IS CAPITALI/ICALLY-DET]M9$ 
SOCIAL DEM& EXPRESSES ITSELF AS A DEM& = USE-VALUES4 ,! RIS+ ORGANIC 
COMPOSITION ( CAPITAL 9 A P>TICUL> 9DU/RY IMPLIES AN 9CREAS+ DEM& 
= ITS COMMODITIES4 ,& IT IS ?IS SOCIAL DEM& = COMMODITIES PRODUC$ BY 
9DU/RIES ( A HI< ORGANIC COMPOSITION :I* ALL[S !M TO REALIZE PRICES 
?AT SECURE !IR PR(ITABILITY4 ,S9CE ! L[ ORGANIC COMPOSITION ( O!R 
9DU/RIES DOES NOT BY ITSELF L5D !IR COMMODITIES MORE SOCIAL USE-VALUE ?AN 
!Y ACTUALLY POSSESS1 !SE 9DU/RIES WILL NOT BE ABLE TO REALIZE A GREAT] 
PR(IT ?AN IS COMPATIBLE ) EXI/+ SOCIAL DEM& AS DET]M9$ BY ! 
ECONOMIC SY/EM AS A :OLE4 

,9 ! C\RSE ( CAPITAL ACCUMULATION ALMO/ ALL 9DU/RIES WILL 9CREASE 
!IR 9VE/M5T 9 CAPITAL AT A FA/] RATE ?AN !IR 9 VE/M5T 9 
LABOR-P[]4 ,CAPITALS ( PREVI\SLY L[ ORGANIC COMPOSITION MAY TURN 9TO 
CAPITALS ( HI< ORGANIC COMPOSITION & VICE V]SA4 ,BECAUSE ( ! 
SOCIAL 9T]DEP5D5CE ( ! CAPITALI/ MODE ( PRODUCTION ! GR[? & 
*ANGE ( ! TOTAL CAPITAL /RUCTURE WILL AFFECT ALL 9DIVIDUAL SPH]ES ( 
PRODUCTION & ! RELATIONS BETWE5 V>I\S 9DU/RIES4 ,A %IFT FROM LI<T TO 
HEAVY 9DU/RY1 = 9/ANCE1 WILL ALT] ! RELATIONS BETWE5 ! EXTRACT+ 
& ! M 9DU/RIES4 ,SO LONG AS ! PRODUCT ( ANY 9DU/RY IS NECESS>Y = 
! FUNCTION+ ( ! SY/EM AS A :OLE1 IT WILL BE ABLE TO COMM& PRICES 
?AT WILL MAKE ITS EXI/5CE & EXPANSION POSSIBLE4 

,BECAUSE ALL CAPITALI/S TRY = ! HI<E/ PR(ITABILITY 9 A M>KET :]E 
DEM& IS PR$ET]M9$ BY ! PRODUCTION SY/EM AS A :OLE1 ! DI/RIBUTION 
( SURPLUS-VALUE IS A 0SOCIAL0 AFFAIR4 ,AS SU*1 IT EXCLUDES 
9DIVIDUAL CONSID]ATIONS SU* AS ! SPECIFIC ORGANIC COMPOSITIONS ( 
9DEP5D5T CAPITALS4 ,! TOTAL SOCIAL SURPLUS-VALUE COMPRISES A DEF9ITE 
QUANTITY ( SOCIAL LABOR 9CORPORAT$ 9 COMMODITIES4 ,NOT ONLY ! 
SURPLUS-LABOR BUT ! TOTAL SOCIAL PRODUCT1 OR ! GREAT BULK ( IT1 MU/ GO 
?R\< ! CIRCULATION PROCESS4 ,! IMPOSSIBILITY ( ISOLAT+ SURPLUS-VALUE 
FROM ITS COMMODITY EMBODIM5T & ! NE$ TO ?R[ ALMO/ ! :OLE ( SOCIAL 
PRODUCTION ON ! M>KET DIVORCES ! REALIZATION & ! DIVISION ( 
SURPLUS-VALUE FROM ITS PRODUCTION4 

,IF !RE W]E A VALUE-=-VALUE EX*ANGE1 5T]PRISES ) A HI< ORGANIC 
COMPOSITION ( CAPITAL C\LD NOT EXP& = LACK ( PR(ITABILITY1 :ILE ?OSE 
( A L[ ORGANIC COMPOSITION C\LD NOT EXP& = LACK ( ADDITIONAL M>KETS4 
,PRIVATE CAPITAL ACCUMULATION1 H[EV]1 IMPLIES COMPETITIVE M>KET RELATIONS 
:I* 0TRANS=M0 VALUES 9TO PRICES ( PRODUCTION4 ,( C\RSE1 ! 
0TRANS=MATION0 IS ONLY A WAY ( SAY+ ?AT AL?\< 
EV]Y?+ 9 ! EX*ANGE PROCESS OCCURS 9 T]MS ( PRICES1 ! LATT] >E 
NEV]!LESS DET]M9$ BY VALUE RELATIONS ( :I* ! PRODUC]S >E NOT 
AW>E4 ,?IS DET]M9ATION ( PRICE BY VALUE CANNOT BE E/ABLI%$ 
EMPIRICALLY2 IT CAN ONLY BE D$UC$ FROM ! FACT ?AT ALL COMMODITIES >E 
PRODUCTS ( LABOR1 ( DIFF]5T QUANTITIES ( LABOR1 & FROM ! NECESS>ILY 
PROPORTIONAL DI/RIBUTION ( ! :OLE ( SOCIAL LABOR4 ,!RE IS NO DIRECT WAY 
( DISCOV]+ A COMMODITY'S PRICE 9 ITS 0VALUE10 OR1 BY A 
REV]SE PROC$URE1 ( DISCOV]+ ITS 0VALUE0 9 ITS PRICE4 ,!RE 
IS NO OBS]VABLE 0TRANS=MATION0 ( VALUES 9TO PRICES2 & ! 
VALUE CONCEPT HAS MEAN+ ONLY ) REG>D TO TOTAL SOCIAL CAPITAL4 

,! 0TRANS=MATION0 IS BR\<T AB\T BY WAY ( COMPETITION1 BY 
! SE>* = PR(ITS & EXTRA-PR(ITS :I* CON/ITUTES ! CAPITALI/ 
CONTRIBUTION & REACTION TO ! 9CREAS+ PRODUCTIVITY ( LABOR4 ,AS PO9T$ 
\T ABOVE1 CAPITAL COMPETES = ! MORE PR(ITABLE L9ES ( BUS9ESS &1 
:]E POSSIBLE1 %IFTS FROM ONE TYPE ( ECONOMIC ACTIVITY TO ANO!R4 ,IT TRIES 
TO ESCAPE FROM SPH]ES ( L[ PR(ITABILITY & TO 5T] ?OSE ( HI< 
PR(ITABILITY4 ,UND] CONDITIONS ( COMPETITIVE M>KET+ & 9VE/M5T1 ANY 
P>TICUL> CAPITAL WILL REALIZE AN APPROXIMATELY AV]AGE RATE ( PR(IT4 
,ACTUALLY1 ( C\RSE1 0! RATES ( PR(IT DIFF] FROM BUS9ESS TO 
BUS9ESS & FROM YE> TO YE> ACCORD+ TO ! DIFF]5T CIRCUM/ANCES1 & 
! G5]AL RATE EXI/S ONLY AS AN AV]AGE ( MANY BUS9ESSES & A NUMB] ( 
YE>S444 .<,IT IS.> ! NATURE ( ! RATE ( PR(IT & ( ECONOMIC LAWS 9 
G5]AL1 .<?AT.> NONE ( !M HAS ANY REALITY EXCEPT AS APPROXIMATION1 T5D5CY1 
AV]AGE1 & NOT AS IMM$IATE REALITY40 .<#a.> 

,SUBJECT$ TO ! 0EQUALIZATION0 ( PR(IT RATES 9 ?IS S5SE1 
AN 5T]PRISE'S %>E ( ! TOTAL SOCIAL PR(IT WILL DEP5D ON ! SIZE 
( ITS CAPITAL4 ,?IS IS A FUR!R 9DUCEM5T = A RAPID CAPITAL ACCUMULATION4 
,! 9T]DEP5D5CE ( CAPITALI/ PRODUCTION1 ?AT IS1 ! DEP5D5CE ( EA* 
PRODUC] ON ! EXI/5CE ( ALL O!R PRODUC]S1 AS WELL AS !IR COMMON NE$ 
TO GO ?R\< ! M>KET 9 ORD] TO TURN SURPLUS-LABOR 9TO PR(ITS1 PRODUCES 
A K9D ( 0CAPITALI/IC COMMUNISM40.<#b.> 

,ACCORD+ TO ,M>X1 ORIG9ALLY DIFF]5T RATES ( PR(IT >E EQUALIZ$ BY 
MEANS ( COMPETITION 9TO A G5]AL RATE ( PR(IT1 :I* IS ! AV]AGE ( ! 
SPECIAL RATES ( PR(IT4 ,! EQUALIZATION ( PR(ITS 0TRANS=MS0 
VALUES 9TO PRICES ( PRODUCTION & DIVIDES SOCIAL SURPLUS-VALUE EQUALLY AMONG 
! 9DIVIDUAL CAPITALS 9 PRO PORTION TO !IR SIZES4 ,?IS WORLD ( PRICES IS 
! ONLY WORLD = ! CAPITALI/S4 ,= !M1 ?AT P>T ( ! VALUE ( ! 
COMMODITY :I* !Y HAVE TO PAY = CON/ITUTES ITS CO/-PRICE1 :I* EXCLUDES 
UNPAID LABOR4 ,PR(ITS APPE> TO !M AS ! EXCESS ( ! SELL+-PRICE OV] 
! CO/-PRICE4 ,COMMODITIES CAN ?US BE SOLD BEL[ !IR VALUE SO LONG AS !Y 
>E SOLD ABOVE !IR CO/-PRICE4 ,IT IS >\ND ! CO/-PRICE1 OR PRICE ( 
PRODUCTION1 ?AT M>KET PRICES OSCILLATE4 

,CO/-PRICES >E SPECIFIC BUT ! PR(IT ADD$ TO !M IS NOT4 ,ACCORD+ TO 
,M>X1 :ILE 0ONE COMMODITY RECEIVES TOO LITTLE ( ! SURPLUS-VALUE 
ANO!R RECEIVES TOO MU*1 SO ?AT ! DEVIATIONS FROM VALUE %[N BY ! 
PRICES ( PRODUCTION MUTUALLY COMP5SATE ONE ANO!R4 ,9 %ORT1 UND] 
CAPITALI/ PRODUCTION1 ! G5]AL LAW ( VALUE 5=CES ITSELF M]ELY AS ! 
PREVAIL+ T5D5CY1 9 A V]Y COMPLICAT$ & APPROXIMATE MANN]1 AS A NEV] 
ASC]TA9ABLE AV]AGE ( CEASELESS FLUCTUATIONS40.<#c.> ,M>X ?\<T ?AT COMMODITIES W\LD 
EX*ANGE ON ! BASIS ( LABOR-TIME VALUES ONLY BY ACCID5T4 ,?AT LABOR TIME 
DET]M9ES ! PRODUCTION PROCESS ( COMMODITIES IS OBVI\S4 ,BUT ?IS CANNOT 
F9D CONSID]ATION 9 ! EX*ANGE PROCESS4 ,ALREADY 9 ! FIR/ VOLUME ( 
,CAPITAL1 ,M>X1 /ILL RE/RICT$ TO VALUE ANALYSIS1 PO9T$ \T 
?AT A 0QUANTITATIVE 9CONGRUITY BETWE5 PRICE & MAGNITUDE ( VALUE1 OR 
! DEVIATION ( ! =M] FROM ! LATT]1 IS 9H]5T 9 ! PRICE-=M 
ITSELF4 ,?IS IS NO DEFECT1 BUT1 ON ! CONTR>Y1 ADMIRABLY ADOPTS ! 
PRICE-=M TO A MODE ( PRODUCTION :OSE 9H]5T LAWS IMPOSE !MSELVES ONLY 
AS ! MEAN ( APP>5TLY LAWLESS IRREGUL>ITIES ?AT COMP5SATE ONE 
ANO!R40 ,MOREOV]1 0! PRICE-=M IS NOT ONLY COMPATIBLE ) ! 
POSSIBILITY ( A QUANTITATIVE 9CONGRUITY BETWE5 MAGNITUDE ( VALUE & PRICE1 
444 BUT IT MAY ALSO CONCEAL A QUALITATIVE 9CONSI/5CY1 SO MU* SO1 ?AT 
AL?\< MONEY IS NO?+ BUT ! VALUE =M ( COMMODITIES1 PRICES CEASE 
ALTOGE!R TO EXPRESS VALUES4 ,OBJECTS ?AT 9 !MSELVES >E NOT COMMODITIES1 
SU* AS CONSCI5CE1 HONOR1 ETC41 >E CAPABLE ( BE+ (F]$ = SALE BY !IR 
HOLD]S1 & ?US ACQUIR+1 ?R\< !IR PRICES1 ! =M ( COMMODITIES4 
,H5CE AN OBJECT MAY HAVE A PRICE )\T HAV+ A VALUE40.<#d.> 

,ACCORD+ TO ,M>X1 !N1 COMMODITIES >E NOT & CANNOT BE EX*ANG$ 9 
ACCORDANCE ) ! SOCIALLY-NECESS>Y LABOR TIME 9CORPORAT$ 9 !M4 ,YET 
,M>X 9SI/S ?AT 0NO MATT] :AT MAY BE ! WAY 9 :I* PRICES >E 
REGULAT$ 444 ! LAW ( VALUE DOM9ATES ! MOVEM5TS ( PRICES1 S9CE A 
R$UCTION OR 9CREASE ( ! LABOR-TIME REQUIR$ = PRODUCTION CAUSES PRICES 
( PRODUCTION TO FALL OR TO RISE40.<#e.> ,& S9CE 0! TOTAL VALUE ( ! COMMODITIES 
REGULATES ! TOTAL SURPLUS-VALUE1 & ?IS ! LEVEL ( ! AV]AGE RATE ( 
PR(IT 444 IT FOLL[S ?AT ! LAW ( VALUE REGULATES ! PRICES ( 
PRODUCTION10.<#f.> 
EV5 ?\< 9DIVIDUAL COMMODITY PRICES DO NOT CORRESPOND TO LABOR-TIME VALUES4 
,ACTUALLY1 ( C\RSE1 PRICES EXI/ ONLY 9DIVIDUALLY1 & !IR 
0REGULATION0 BY ! LAW ( VALUE CAN ONLY BE D$UC$ FROM ! FACT 
?AT1 AL?\< !RE IS NO WAY ( DEAL+ ) TOTAL SOCIAL PRODUCTION 9 
CAPITALISM1 IT IS NONE!LESS A REALITY :I* OV]RIDES ALL 9DIVIDUAL EX*ANGE 
RELATIONS4 

,M>X'S ADH]5CE TO ! LABOR !ORY ( VALUE1 C\PL$ ) HIS 
DEMON/RATION ?AT COMMODITIES CANNOT BE EX*ANG$ 9 ACCORDANCE PI? !IR 
VALUE1 CAUS$ BO? FRI5DS & FOES TO ACCUSE HIM ( SELF-CONTRADICTION4 ,TO 
QUOTE ONE ( ! LATT]1 ,BOHMM-,BAW]K WROTE ?AT 0EI!R PRODUCTS DO 
ACTUALLY EX*ANGE 9 ! LONG RUN 9 PROPORTION TO ! LABOR ATTA*+ TO !M 
- 9 :I* CASE AN EQUALIZATION ( ! GA9S ( CAPITAL IS IMPOSSIBLE2 OR 
!RE IS AN EQUALIZATION ( ! GA9S ( CAPITAL - 9 :I* CASE IT IS 
IMPOSSIBLE ?AT PRODUCTS %\LD CONT9UE 0TO EX*ANGE 9 PROPORTION TO 
! LABOR ATTA*+ TO !M 444 ,! !ORY ( ! AV]AGE RATE ( PR(IT & ( 
! PRICES ( PRODUCTION CANNOT BE RECONCIL$ ) ! !ORY ( 
VALUE40.<#g.> 

,M>X NEV] CLAIM$1 H[EV]1 ?AT 09 ! LONG RUN0 PRODUCTS 
EX*ANGE 9 ACCORDANCE ) !IR LABOR-TIME4 ,HE HELD ?AT ! LAW ( VALUE 
0REGULATES0 ! PRICES ( PRODUCTION & ! AV]AGE RATE ( PR(IT 
BY DET]M9+ :E!R !IR LEVELS >E HI< OR L[ ) RESPECT TO 
TOTAL VALUE & SURPLUS-VALUE4 ,! LAW ( VALUE DOM9ATES ! 
MOVEM5TS ( PRICES BY VIRTUE ( ! V>Y+ PRODUCTIVITY ( LABOR4 
,!RE IS NO NE$ = A 0RECONCILIATION0 ( ! LAW ( VALUE ) 
! PRICES ( PRODUCTION & ! AV]AGE RATE ( PR(IT4 ,VALUE DOES NOT 
DOM9ATE ! ACTUAL QUANTITATIVE EX*ANGE RATIOS ( ! COMMODITY M>KET4 ,BUT 
! OV]ALL FALL OR RISE ( ! PRICES ( PRODUCTION & ! AV]AGE 
RATE ( PR(IT IS CAUS$ BY ! *ANG+ VALUE RELATIONS & ! *ANG+ VALUE 
CONT5T ( COMMODITIES 9 ! C\RSE ( ! *ANG+ PRODUCTIVITY ( LABOR & 
! /RUCTURAL *ANGES 9 ! ORGANIC COMPOSITION ( TOTAL CAPITAL4 

,BECAUSE 0! RATIONAL & NATURALLY NECESS>Y ASS]TS ITSELF ONLY AS A 
BL9DLY WORK+ AV]AGE10 ,M>X WROTE TO ,KUGELMANN1 0! VULG> 
ECONOMI/ ?9KS HE HAS MADE A GREAT DISCOV]Y :51 AS AGA9/ ! REVELATION 
( ! 9N] 9T]CONNECTION1 HE PR\DLY CLAIMS ?AT 9 APPE>ANCE ?+S LOOK 
DIFF]5T4 ,9 FACT1 HE IS BOA/+ ?AT HE HOLDS FA/ TO APPE>ANCE & TAKES 
IT = ! LA/ WORD4 ,:Y1 !N1 HAVE ANY SCI5CE AT ALL80.<#h.> ,= ,M>X1 ! VALUE 
CONCEPT WAS ! 0SCI5CE10 OR TOOL1 ) :I* HE C\LD P5ETRATE 
& UND]/& ! NATURE & HI/ORY ( CAPITALISM4 ,BUT ?\< A 
0CONCEPT HAS ! ESS5TIAL NATURE ( ?AT CONCEPT & CANNOT PRIMA 
FACIE CO9CIDE ) REALITY1 FROM :I* IT MU/ FIR/ BE 
AB/RACT$10.<#i.> 
,M>X'S 0AB/RACTIONS ONLY REFLECT1 9 ! =M ( ?\<T1 ! 
CONT5T ALREADY REPOS+ 9 ! RELATION40.<#a.> ,EV5 IF !RE W]E NO *APT] ON VALUE 
9 ,CAPITAL1 ,M>X WROTE1 0! ANALYSIS ( ! REAL 
RELATION%IPS :I* ,I GAVE W\LD CONTA9 ! PRO( & DEMON/RATION ( ! 
REAL VALUE RELATIONS4 ,ALL ?AT PALAV] AB\T ! NECESSITY ( PROV+ ! 
CONCEPT ( VALUE COMES FROM COMPLETE IGNORANCE BO? ( ! SUBJECT DEALT ) 
& ( SCI5TIFIC ME?OD40.<#a#a.> 

,9 ORD] TO UND]/& ! CAPITALI/ SY/EM & ITS DYNAMIC IT WAS 
NECESS>Y TO LAY B>E ITS REAL SOCIAL PRODUCTION RELATIONS & TO ANALYZE ITS 
DEVELOPM5T 9 ITS FETI%I/IC DET]M9ATION1 I4E4 AS A 
VALUE-EXPANSION PROCESS4 ,?IS ANALYSIS DOES NOT REQUIRE PRO( ?AT ! 
ACTUALLY-GIV5 PRICE RELATIONS BETWE5 SPECIFIC COMMODITIES >E TRACEABLE TO 
LABOR-TIME4 ,IT M]ELY REQUIRES RECOGNITION ( ! OBVI\S FACT ?AT1 JU/ AS 9 
ANY O!R ECONOMIC SY/EM1 SO ALSO 9 CAPITALISM1 SOCIAL EXI/5CE & 
DEVELOPM5T >E UNALT]ABLY B\ND UP ) LABOR-TIME RELATIONS 9 ! 
PRODUCTION PROCESS4 ,NO MATT] H[ PRICES MAY DEVIATE FROM VALUES1 !Y MU/ 
F9D !IR EXPLANATION AS WELL AS !IR B\ND>IES 9 LABOR-TIME RELATIONS & 
?US1 9 CAPITALI/IC T]MS1 9 ! LAW ( VALUE4 

,M>X TOOK PA9S TO DEMON/RATE ! VALIDITY ( ! LAW ( VALUE = A SY/EM 
:I* PRECLUDES A VALUE EX*ANGE4 ,!SE EF=TS DO NOT BETRAY ANY DESIRE ON HIS 
P>T TO MAKE ! LAW ( VALUE 0OP]ATIONAL03 HE DID NOT EXPECT ! 
LAW TO V]IFY ACTUAL EX*ANGE RELATIONS 9 T]MS ( PRICES4 ,RA!R1 HIS EF=TS 
RELATE TO ! !ORETICAL NE$ TO TE/ ! VALIDITY ( ! LAW 9 CONFRONTATION 
) A REALITY :I* SEEM$ TO CONTRADICT IT4 ,F9D+ \T :E!R OR NOT VALUE 
RELATIONS DO1 9 FACT1 UND]LAY M>KET & PRICE RELATIONS REQUIR$ A !ORY ( 
PRICES CONSI/5T ) ! !ORY ( VALUE4 ,! 0TRANS=MATION0 ( 
VALUES 9TO PRICES ( PRODUCTION SATISFIES ?IS !ORETICAL NE$4 ,! PROBLEM 
( 9DIVIDUAL PRICE DET]M9ATION WAS ( NO REAL 9T]E/ TO ,M>X2 ONLY VALUE 
RELATIONS MATT]$1 PLUS ! ASSURANCE ?AT ! DIFF]5CE BETWE5 VALUE & 
PRICE AS 5C\NT]$ 9 REALITY W\LD NEI!R LOGICALLY1 NOR ACTUALLY1 
9VALIDATE ! VALUE CONCEPT AS ! KEY TO ! 0ESS5TIAL 
FUNDAM5TAL LAWS0 ( CAPITAL PRODUCTION4 

,CONV9C$ ?AT ! DEVIATION ( PRICE FROM VALUE DOES NOT ELIM9ATE ! 
D]IVATION ( PRICE FROM VALUE1 EV5 ?\< ?IS D]IVATION CAN ONLY BE 
E/ABLI%$ D$UCTIVELY1 ,M>X WAS NOT SURPRIS$ ?AT ! E/ABLI%$ 
B\RGEOISIE %\LD F9D ! VALUE !ORY IRRELEVANT TO !IR [N PRACTICAL 
PROBLEMS4 ,:]EAS ! V]Y EXI/5CE ( AN AV]AGE RATE ( PR(IT1 AS BR\<T 
AB\T BY WAY ( COMPETITION1 TURN$ ! QUE/ION ( ITS =MATION & ITS 
QUANTITATIVE *ANGES 9TO A PROBLEM TRANSC5D+ ! M>KET REALITY & ?US 
! HORIZON ( B\RGEOIS ECONOMIC 9T]E/1 IT S]V$ ,M>X AS A V]IFICATION ( 
! LABOR !ORY ( VALUE4 ,HE SAW V]Y WELL1 ( C\RSE1 ?AT 0BY ! 
TRANS=MATION ( VALUE 9TO PRICES ( PRODUCTION1 ! BASIS ( ! 
DET]M9ATION ( VALUE IS ITSELF REMOV$ FROM DIRECT OBS]VATION10 & HE 
F\ND IT ONLY 0NATURAL ?AT ! CAPITALI/ %\LD LOSE ! MEAN+ ( ! 
T]M ( VALUE AT ?IS JUNCTURE40.<#a#b.> ,=1 ) REG>D TO ! AV]AGE RATE ( PR(IT1 
0! 9DIVIDUAL CAPITALI/S 444 JU/LY BELIEVE ?AT !IR PR(ITS >E NOT 
D]IV$ SOLELY FROM ! LABOR EMPLOY$ 9 !IR 9DIVIDUAL SPH]ES02 & 
S9CE !Y SAW FUR!R 0?AT A R$UCTION 9 ! QUANTITY ( LABOR 
REQUIR$ = PRODUCTION 444 EX]TS NO 9JURI\S 9FLU5CE ON PR(ITS1 444 H[1 
!N1 C\LD LIV+ LABOR BE ! EXCLUSIVE S\RCE ( PR(IT40.<#a#c.> 

,:ILE COMPETITION AV]AGES ! V>I\S RATES ( PR(IT1 IT DOES NOT 
DET]M9E ! MAGNITUDE ( ! AV]AGE RATE ( PR(IT AT ANY GIV5 TIME1 NOR 
DOES IT CAUSE ! *ANGES :I* OCCUR 9 ?IS RATE4 ,COMPETITION1 ACCORD+ TO 
,M>X1 0CAN 9FLU5CE ! RATE ( PR(IT ONLY TO ! EXT5T ?AT IT 
AFFECTS ! PRICES ( COMMODITIES4 ,IT CAN M]ELY MAKE ! PRODUC]S )9 ! 
SAME SPH]E ( PRODUCTION SELL !IR COMMODITIES AT ! SAME PRICE1 & MAKE 
!M SELL !IR COMMODITIES 9 DIFF]5T SPH]ES ( PRODUCTION AT PRICES :I* 
WILL GIVE !M ! SAME PR(IT4 ,9 ORD] TO BALANCE UNEQUAL RATES ( PR(IT1 
! PR(IT AS AN ELEM5T 9 ! PRICE ( COMMODITIES MU/ ALREADY EXI/1 & 
COMPETITION DOES NOT CREATE IT40.<#a#d.> ,RA!R1 COMPETITION IS ITSELF CONDITION$ UPON ! 
EXI/5CE ( PR(IT1 & ! EXPLANATION ( ! AV]AGE RATE ( PR(IT 
PRESUPPOSES ! RECOGNITION ( ITS S\RCE1 :I* !N LEADS BACK TO VALUE & 
SURPLUS-VALUE4 ,! AV]AGE RATE ( PR(IT 9DICATES ?AT PRICES >E DET]M9$ 
BY ! SY/EM AS A :OLE4 ,! SY/EM AS A :OLE IS SUSCEPTIBLE TO VALUE 
ANALYSIS4 

,COMPETITION LEADS TO ! DIVISION & ACCUMULATIVE APPLICATION ( 
SURPLUS-VALUE4 ,& ?IS COMPETITION IMPLIES A DEVIATION ( PRICES FROM VALUES 
JU/ BECAUSE IT TAKES PLACE 9 A VALUE & SURPLUS-VALUE PRODUC+ SOCIETY 
:]E9 0! DI/RIBUTION ( SOCIAL LABOR & ! MUTUAL SUPPLEM5T+ 
& CIRCULATION ( MATT] 9 ! PRODUCTS1 ! SUBORD9ATION UND] ! SOCIAL 
ACTIVITY & ! 5TRANCE 9TO IT1 >E LEFT TO ! ACCID5TAL & MUTUALLY 
NULLIFY+ 9ITIATIVE ( ! 9DIVIDUAL CAPITALI/S40.<#a#e.> ,)9 ! M>KET 
ME*ANISM1 ! ACTUAL DIVISION ( ! PRODUCTS :I* COMPRISE ! AGGREGATE 
VALUE ( ! NECESS>Y LABOR TIME1 AS WELL AS ! ACTUAL DIVISION ( 
SURPLUS-VALUE AMONG ! CAPITALI/S & NONPRODUCTIVE LAY]S ( SOCIETY1 IS 
DET]M9$ BY ! REAL ACTIVITIES ( M5 9 ! COMPETITIVE PURSUIT ( !IR 
9T]E/S )9 ! FRAME ( !IR SOCIALLY-DET]M9$1 BUT *ANG+ 
POSSIBILITIES4 ,& H]E !RE IS NO?+ BUT ! /RUGGLE ( ALL AGA9/ ALL1 
SELF-9T]E/ AGA9/ SELF-9T]E/1 A G5]AL & IMP5ETRABLE SCRAMBLE = 
! AMASS+ ( WEAL?1 OR = M]E EXI/5CE4 ,M>KET & EXTRA-M>KET 
ACTIVITIES 9T]TW9E & !RE IS NO ROOM = ! CLE>-CUT EX*ANGE RELATIONS 
( EI!R VALUE ON PRICE !ORY4 ,BUT EV5 FROM A PURELY ECONOMIC PO9T ( VIEW1 
! V>IETY ( DEGREES ( EXPLOITATION1 DIFF]5CES 9 ! TURN-OV] ( V>I\S 
CAPITALS1 DIFF]5CES BETWE5 ! SPH]ES ( PRODUCTION1 ! EXI/5CE ( 
MONOPOLIES1 ! EFFECTS ( R5T & 9T]E/ UPON ! RATE ( PR(IT1 & SO 
=?1 EXCLUDE ! POSSIBILITY ( RECOGNIZ+ ! VALUE BASE ( ! COMMODITY 
PRICE4 ,?IS BASE 0REMA9S VISIBLE ONLY 9 ! 9FLU5CE ( ! 
FLUCTUAT+ PRODUCTIVITY ( LABOR UPON ! RISE & FALL ( ! PRICES ( 
PRODUCTION40.<#a#f.> 

,M>X NEV] 9T5D$ 0TO DESC5D FROM ! G5]AL IDEA ( VALUE 444 BY 
MEANS ( EV] CLOS] DET]M9ANTS TO A DIRECT DET]M9ATION4 ! PRICES ( 
COMMODITIES40.<#a#g.> ,:AT HE TRI$ TO %[ ) RESPECT TO ! 
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SURPLUS-LABOR1 VALUE & SURPLUS-VALUE4 ,! VALUE-PRICE TRANS=MATION DOES NOT 
/& 9 OPPOSITION TO ! AB/RACT VALUE S*EME2 IT M]ELY PO9TS TO ITS 
LIMITATIONS4 ,M>X SAW NO O!R WAY - & NO O!R WAY HAS YET BE5 F\ND 
- TO P5ETRATE ! BEWILD]+ CAPITALI/ REALITY & ! CEASELESS FLUX 
( ITS DEVELOPM5T EXCEPT ) ! VALUE CONCEPT4 

,! CONTROV]SY >\ND ! VALUE-PRICE TRANS=MATION PROBLEM HAS MEAN:ILE 
ABAT$4 ,IT IS NO LONG] D\BT$ ?AT IT IS 0POSSIBLE TO CON/RUCT AN 
ECONOMIC MODEL 9 :I* ! LABOR !ORY ( VALUE IS SET =? AS A SY/EM ( 
DI/RIBUTION BUT 9 :I* COMMODITIES DO NOT EX*ANGE 9 PROPORTION TO ! 
AM\NT ( LABOR US$ 9 !IR RESPECTIVE PRODUCTION40.<#a#h.> ,H[EV]1 B\RGEOIS 
ECONOMY IS NOT 9T]E/$ 9 ! ORIG9 BUT ONLY 9 ! MAK+ ( PR(IT4 ,IT IS 
9T]E/$ 9 ! M>KET1 NOT 9 :AT SU/A9S & DET]M9ES ITS ME*ANISM & 
*ANG+ /RUCTURE4 ,! DEVIATION ( PRICE FROM VALUE C\LD NOT DO AWAY ) 
! D]IVATION ( PRICE FROM VALUE SIMPLY BECAUSE SOCIAL PRODUCTION IS TIME 
SP5T 9 ! LABOR+ PROCESS1 & ! QUANTITY ( PRODUCTS IT COMPRISES CAN 
NEV] EXCE$ ?AT NUMB] :I* AN EQUIVAL5T QUANTITY ( LABOR TIME CAN 
PRODUCE4 ,H[EV]1 ! DEVIATION ( PRICE FROM VALUE1 DUE TO ! M>KET 
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CAPITAL PRODUCTION1 IS NOT SU* ?AT VALUE IS DISC]NIBLE 9 PRICE4 

,ASIDE FROM BE+ A PRACTICAL IMPOSSIBILITY1 IT W\LD BE A SUP]FLU\S 
UND]TAK+1 = ONLY 9 ITS PRICE =M1 NOT 9 ITS VALUE =M1 DOES ! 
EVALUATION ( COMMODITIES 9 ! EX*ANGE PROCESS REFLECT ! 
CAPITALI/ICALLY-MODIFI$ SOCIAL NE$S :I* DET]M9E ! CAPITALI/ 
PRODUCTION & EXPANSION PROCESS4 ,! DISREG>D ( ! HIDD5 VALUE CONT5T ( 
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0SOCIALIZATION0 POSSIBLE )9 ! O!RWISE ASOCIAL CAPITALI/ 
SOCIETY4 ,SO LONG AS ! DEVIATION ( PRICE FROM VALUE SECURES1 9 ONE FA%ION 
OR ANO!R1 ! NECESS>Y & CAPITALI/ICALLY-DET]M9$ PROPORTION+ ( 
SOCIAL LABOR VIA ! COMPETITIVE M>KET RELATIONS1 PRICE & M>KET RELATIONS 
>E ! SOLE CONC]N ( B\RGEOIS !ORY & PRACTICE4 ,)\T EI!R 
IDEOLOGICAL OR PRACTICAL APPLICABILITY 9 CAPITALI/ SOCIETY1 ! LABOR !ORY 
( VALUE C\LD SURVIVE ONLY 9 ! ,M>XI/ CRITIQUE ( B\RGEOIS ECONOMY4 

#a4 ,5GELS TO ,C4 ,S*MIDT1 ,M>X-,5GELS1 ,SELECT$ ,CORRESPOND5CE1 P4 #e#f#c4 

#b4 ,M>X TO ,5GELS1 ,SELECT$ ,CORRESPOND5CE1 P4 #b#d#h4 

#c4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #a#i4 

#d4 ,CAPITAL1 ,VOL4 ,I1 P4 #a#a#e4 

#e4 ,CAPITAL1 ,VOL4 ,I,I,I1 P4 #b#a#a4 

#f4 IBID41 P4 #b#a#b4 

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#a#a4 ,M>X-,5GELS1 ,SELECT$ ,WORKS1 ,VOL4 ,I,I1 P4 #d#f#a4 

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#a#c4 ,IBID41 P4 #b#a4 

#a#d4 ,IBID41 P4 #a#g4 

#a#e4 ,IBID41 P4 #a#b4 

#a#f4 IBID41 P4 #i#f#e4 

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