Marxism Unmasked from Delusion to Destruction.pdf 7471KB

There is no equivalence in exchange. On the contrary, it is differences
that bring about exchange. You cannot reduce the terms of exchange and
of trade to equivalence; you can only reduce them to differences in
evaluation. The buyer v-alues what he gets more highly than what he gives
away; the seller values what he gives less highh' than what he gets.
Therefore, the equivalence that ^^•c use m determmmg the unportance the
various capital goods have in our hvrs can onh* be expressed m terms of
prices. In calcubting m terms of prices \x>u can establish a $\-$tem of
prices, and determine whether or not a pnce has increased or decreased
that is, in terms of mone>'. Without a price $\"stem therr cannot be any
calculation. In the socialist system, which cannot ha\T a pnce system as
we have it in the market system, therr cannot be estabkshed calculation
and computation.
In the system of economic calcubtion. we ha\r the terms **capical** and
"income"—terms and notions that cannot be thought of outside this
system. "Capital" is the sum of the prices that can be obtained on the
market for a definite gi\rn suppK* of capital goods. The buunessnian
employs economic calculation in a vpecihc wa\'. he could not operate
without this sN-stem of economic calculation At the beginmng ol* his
enterprise he establishes a total value of all the capital goods at hn disposal
and calls it his "capital." or the "capital" of ht* firm or coqx>ration
Periodically, he compares the \-alue ot the pnces of all the capital ginvjx
available in the firm with the prices of these capital goods at the
beginning. If there is an iiu rrase he calls it "pa>lit "*
If there is a decrease.
he calls it "loss." No other s>-steni \%\>uld make it possible to esubltsh
whether what has been done has iiurrased the capital as-ailable. imprxnrd
it. or decreased it. From another point of \iew. the local surplus thai he calU
"pn>fit" can als*> be called "income." imofar as it nuko il piwuble foe the
owner—ci>rp*>ratK>n or individual—to comunte this aiiKHint without
reducing the anunint i>f capital jvaibble and without, therefore. Iising at
the expense ot the future Ihus the lomepts ot " capital" and "income
devcU>ped only within this sN-stem of ecoruHtuc cakulaCKNi.
It the total amount of "income" is consumed, then therr h no change
in the anunint i>t capital avaibble for the enterprise If a part is savrd.
I.e.. not consumed but reinsrsted— that is. if it it used to expand the
stock of capital gotnls \\x>rking in the enterprise—then we can say
additional capital has been accumubted. the enterprise has earned some
"income." If the ct>ntrar> is the case, if the amount consumed by the
owner exceeds the income, then s%t have capital consumpCMNi. or capittl
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