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.Supply anddemand are neither more nor less relations of a given production than are individualexchanges.What, then, does all M.Proudhon's dialectic consist in? In the substitition for use valueand exchange value, for supply and demand, of abstract and contradictory notions likescarcity and abundance, utility and estimation, one producer and one consumer, both ofthem knights of free will.And what was he aiming at?At arranging for himself a means of introducing later on one of the elements he had setaside, the cost of production, as the synthesis of use value and exchange value.And it isthus that in his eyes the cost of production constitutes synthetic value or constitutedvalue.Next: Constituted Value or Synthetic ValueThe Poverty of PhilosophyKarl MarxThe Poverty of PhilosophyChapter One: A Scientific Discovery2.Constituted Value or Synthetic ValueValue (marketable value) is the corner-stone of the economic structure."Constituted"value is the corner-stone of the system of economic contradictions.What then is this "constituted value" which is all M.Proudhon has discovered in politicaleconomy?Once utility is admitted, labor is the source of all value.The measure of labor is time.Therelative value of products is determined by the labor time required for their production.Price is the monetary expression of the relative value of a product.Finally, the theconstituted value of a product is purely and simply the value which is constituted by thelabor time incorporated in it.Just as Adam Smith discovered the division of labor, so he, M.Proudhon, claims to havediscovered "constituted value".This is not exactly "something unheard of", but then itmust be admitted that there is nothing unheard of in any discovery of economic science.M.Proudhon, who fully appreciates the importance of his own invention, seeksnevertheless to tone down the merit therefore "in order to reassure the reader to as hisclaims to originality, and to win over minds whose timidity renders them little favorableto new ideas".But in apportioning the contribution made by each of his predecessors tothe understanding of value, he is forced to confess openly that the largest portion, thelion's share, of the merit falls to himself."The synthetic idea of value had been vaguely perceived by Adam Smith.But withAdam Smith the idea of value was entirely intuitive.Now, society does not change itshabits merely on the strength of intuitions: its decisions are made only on the authority offacts.The antinomy had to be stated more palpably and more clearly: J.B.Say was itschief interpreter."[I 66]Here, in a nutshell, is the history of the discovery of synthetic value: Adam Smith vague intuition; J.B.Say antinomy; M.Proudhon constituting and "constituted"truth.And let there be no mistake about it: all the other economists, from Say toProudhon, have merely been trudging along in the rut of antimony."It is incredible that for the last 40 years so many men of sense should have fumed andfretted at such a simple idea.But no, values are compared without there being any pointof comparison between them and with no unit of measurements; this, rather than embracethe revolutionary theory of equality, is what the economists of the 19th century areresolved to uphold against all comers.What will posterity say about it?"(Vol.I, p.68)Posterity, so abruptly invoked, will begin by getting muddled over the chronology.It isbound to ask itself: are not Ricardo and his school economists of the 19th century?Ricardo's system, putting as a principle that "the relative value of commoditiescorresponds exclusively to their production", dates from 1817.Ricardo is the head of awhole school dominant in England since the Restoration.[The Restoration began afterthe termination of the Napoleonic wars and the restoration of the Bourbon dynasty inFrance in 1815.] The Ricardian doctrine summarizes severely, remorselessly, the wholeof the English bourgeoisie."What will posterity say about it?" It will not say that M.Proudhon did not know Ricardo, for he talks about him, he talks at length about him, hekeeps coming back to him, and concludes by calling his system "trash".If ever posteritydoes interfere, it will say perhaps that M.Proudhon, afraid of offending his readers'Anglophobia, preferred to make himself the responsible editor of Ricardo's ideas.In anycase, it will think it very naive that M
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