Capitalist profit calculation and inflation accounting

How are profits calculated under capitalism? This paper discusses the forms of profit calculation that have been put forward by the accounting profession to deal with the problem of inflation. In so doing it also raises the issue of the disjuncture between the calculation of profit made by the capitalist enterprise/ firm and that generally associated with Marx and subsequent Marxist writings. Finally, the paper addresses the wider issue opened up by the debate about ‘inflation accounting’; in particular the question of the legal constitution of corporate trading bodies and the control of the flow of investible money- capital within the economy.     

In search of reliable results: Socialist values and political trust in unified Germany – A comment on Campbell's analyses and conclusions

In a recently published article in this journal, Ross Campbell argues that adherence to socialist values establishes a hitherto neglected factor when it comes to the explanation of differences in East and West German citizens’ political trust. As the results of his study indicate, adherence to socialist values impacts negatively on citizens’ political trust, this effect is more pronounced and more stable over time for East German as compared to West German citizens and is sufficiently strong to eliminate aggregate‐level differences in political trust between East and West Germany. However, this research note suggests that Campbell's article contains several substantial inconsistencies and obscurities that question the reliability and validity of the empirical findings presented. It provides a re‐analysis of Campbell's main arguments and shows to what extent his initial conclusions can be upheld after the shortcomings have been remedied. The results of this re‐analysis suggest that socialist values indeed exhibit a negative impact on German citizens’ political trust, which is relatively stronger for East as compared to West German citizens. However, contrary to Campbell's initial results, the negative effect of socialist values on political trust is robust over time for both East and West German citizens. What is more, there is no empirical evidence confirming that differences in adherence to socialist values between East and West German citizens are sufficiently strong to account for aggregate‐level differences in political trust. In light of these findings, two of Campbell's three main conclusions are dubious and call for further examination.     

马克思对资本主义理性化的分析和批判

马克思作为影响后现代理论家对资本主义批判的无法绕过的重要人物,虽然他没有使用过“理性化”或“工具理性”等词语,但他的著作中也蕴涵着对资本主义理性化批判的丰富思想。本文拟从工具理性张扬及其导致的非理性后果,资本主义价值理性的发展和局限,理性化与对内奴役和对外侵略扩张在逻辑上的互补、一致,理性化导致非理性的根源及其解决等方面进行挖掘和梳理,从而与韦伯的理性化思想进行比较,以回应西方学者对马克思的批评．对当前的全球化形势有更清醒的理解。     

Socialism,associations and the market

Hayek's epistemic arguments against central planning and in defence of market economies have recently been redeployed by some market-socialists against more decentralized models of non-market socialism. This paper considers the cogency of these arguments through an examination of an unpublished exchange in the socialist calculation debates between Hayek and a proponent of non-market associational models of socialism, Otto Neurath. Contrary to the standard view of the debates, Neurath shared many of the assumptions of Hayek's epistemic arguments and similarly criticized technocratic models of planning. The paper outlines Neurath's defence of associational socialism from his early role in the Bavarian revolution through his engagement in the post-war housing movements in Vienna and the unity of science movement. While Neurath's response to Hayek is not entirely successful, his proposals for associational models of socialism point to problems not just in Hayek's criticisms of non-market socialism, but also those of more recent market-socialists.     

Schumpeter's economic theory and the dynamic accounting view of the firm: neglected pages from the Theory of Economic Development

Abstract

The first English translation of some of Schumpeter's (1926) pages of the Theory of Economic Development is presented. These neglected pages are remarkable because they significantly add to Schumpeter's masterpiece on a number of issues concerned with accounting, law and economics of the firm. They show that Schumpeter considered understanding the firm, together with innovation, as important scientific problems. Schumpeter doubts the explanatory value of proprietary entrepreneurship and provides an early justification of the dynamic entity view of business activity generated by the firm as a becoming concern. He discusses its implications for understanding issues of economic organization and corporate governance, and suggests some theoretical insights concerning business capital and money under conditions of real dynamics and complexity. The doors opened by Schumpeter indicate that money and accounting are fundamentally coupled as complementary institutions in framing and shaping the economic and monetary process of the firm as an enterprise entity.     

Value and Nature: Rethinking Capitalist Exploitation and Expansion

Value is central to the political economy of capitalism, but Marxian value theory has generally been abandoned when it comes to including nature in the analysis. An important exception is the recent work of Jason Moore, and in this paper an effort is made to fill several lacunae in Moore’s approach. I argue for a unified measure of labor-nature time and joint exploitation of surplus value, then explore the significance of that for capitalist growth via rising productivity and cheap inputs, as well as what these mean for geographic expansion in search of labor and resources. I finish on the classic note of the insatiable drive for capital accumulation and its implications for the fate of the earth.     

Mapping deliberation: calculation,articulation and intervention in the politics of organ transplantation

Abstract

This paper reflects on the aims and outcomes of an innovative methodology of participatory technology appraisal, called Deliberative Mapping, which seeks to contribute to theoretical debates and practical experimentation around what it might mean to bring the technosciences into democracy. Deliberative Mapping is a hybrid methodology, involving both calculative and deliberative processes, which seeks to map the entanglements of biotechnological imbroglios, and translate these connections into the contexts of decision-making. Through application to the case study of organ transplantation, these procedures of calculation and articulation are critically examined, exploring their aim to reduce asymmetries between scientific, political, economic and other framings of the issue and their operation in contexts already complexly structured through existing power relations, which indicate the challenge of co-fabricating these experimental forms of intervention into political facts.     

Social security and intergenerational redistribution: A generational accounting perspective

This paper is concerned with the analysis of intergenerational redistribution in a pay-as-you-go financed social security scheme. Instead of annual fiscal indicators, we apply generational accounts to calculate the intertemporal effects arising from a projected aging process. As a case study, the institutional settings and the parameterization of our model refer to the conditions found in Germany in 1989. Additionally, the intergenerational impacts of the German 1992 Pension Reform Act are taken into account. Our findings suggest that the major reform measures affect the distribution of the demographic burden between future and presently living generations. However, the burden is shifted in favor of the generations currently alive, thereby contradicting the explicit political intentions and aggravating the situation for future generations.     

From gold to futurity: a semiotic overview on trust,legal tender and fiat money

ABSTRACT

In the first part of the paper, I am summarizing the most relevant findings of the semiotic study of the money sign. It starts with a tripartition of the major types, namely commodity money, representative money, and fiat money. I then use this approach in order to position the most important contributions of other authors from semiotics and surrounding disciplines. In the second part, I develop a semiotic reading of the notion of legal tender where the latter is seen as a semiotic mechanism that provides particular conditions for the formation of the value of money. I combine a historical review with stress on important theoretic reflections during the development and implementation of pure legal tender money. The last part is dedicated to a proposal for a semiotic model of the fiat money sign. The model is developed and implemented as a reflection on some critical readings of the world financial crisis from 2008 to 2009, where the “semiotization of money” was used for explication. My model is based on one of the most insightful definitions of money, which sees them as “trust inscribed”.     

Rethinking calculation: the popularization of financial trading outside the global centres of finance

Abstract

The paper looks at the popularization of financial trading in Israel. It presents a qualitative analysis of the calculative models and techniques that are promoted by financial trading schools, service firms and books. Broadly, the popularization of trading in this field involves a focus on ‘technical analysis’ (TA) and relies upon a socio-psychological reading of financial charts. Incorporating explicitly non-economic ideas into traders’ calculative logic – including an emic notion of ‘performativity’ – popular TA constitutes an attempt to ‘reverse’ the making of markets: to calculatively trace price formations back to the minds, hearts and arrangement from which they had allegedly sprung as a means of foreseeing their future shape before it fully materializes. Tying the psyche and the market in a calculative loop, popular TA transcends existing social theories of financial calculation. The paper discusses this challenge and its implications for our understanding of the expansion of finance.     

The social relations of money as universal equivalent: a response to Ingham

In a recent debate in Economy and Society, Ingham criticized Marxist theory of money on the grounds that it relates money to commodities through the labour theory of value, while ignoring credit money. Ingham suggested instead that money is constituted by social relations characteristic of credit, namely relations of ‘promise to pay’. Drawing on Marx, this article shows that, pace Ingham, it is necessary theoretically to relate money to commodities. Money is indeed constituted by social relations, but these are commercial relations among ‘foreign’ commodity owners, not credit relations. The social relations of money are successfully captured by Marx's concept of the universal equivalent, when that is interpreted as monopoly over the ability to buy. In this light, both commodity and credit money are forms of the universal equivalent, but qualitatively different from each other.     

A local money to stabilize capitalism: the underestimated case of the WIR

As a result of the current financial crisis, economists have paid increased attention to local monies designed in an effort to create a new kind of economy, as well as new ways to develop social links. This paper seeks to shed light on the WIR money, a local money that has been in existence in Switzerland since the 1930s. We argue that it provides a shield against crises for two significant and connected reasons. First, from a ‘horizontal’ perspective, the WIR is a coherent economic, as well as social, project that relies on the ‘melting money’ principle. Second, from a ‘vertical’ perspective, it is based on a banking model that is anchored to a specific ‘attitude’ designed to manage the monetary common good. The mix between these ‘horizontal’ and ‘vertical’ perspectives is likely to be insightful for other projects like the WIR.     

Economic performance and U.S. Senate elections: A comment

This paper investigates the issue of economic performance and U.S. Senate elections analyzed by Bennett and Wiseman (1991) in a work published in this journal. Our study analyzes the electoral margins and election outcomes of U.S. Senate elections using state-level data involving only incumbents up for reelection in the 1976–1990 period (212 elections). The ordinary least squares and logit estimation results suggest that the effects of economic performance variables on incumbent senatorial elections are in general overshadowed by other factors known to be important in determining electoral margins and outcomes. In addition, the empirical results of the entire model are in general consistent with prior findings noted in the public choice and political science literature concerning the analysis of U.S. Senate elections. Therefore, we suggest that the findings raised in our study provide enough theoretical and empirical evidence to raise sufficient doubt regarding the robustness of the results suggested by Bennett and Wiseman (1991), and thus call upon other researchers to study further the relationship between economic performance and voting behavior in U.S. Senate elections.