New York University
November 26, 2012
Platypus Review 56
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..Loren Goldner | David Harvey
Andrew Kliman | Paul Mattick

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Last au­tumn, chapters of the Platy­pus Af­fil­i­ated So­ci­ety in New York, Lon­don, and Chica­go hos­ted sim­il­ar events on the theme of “Rad­ic­al In­ter­pret­a­tions of the Present Crisis.” The speak­ers par­ti­cip­at­ing in New York in­cluded Loren Gold­ner, Dav­id Har­vey, An­drew Kli­man, and Paul Mat­tick. The tran­script of the event in Lon­don ap­peared in Platy­pus Re­view 55 (April 2013). What fol­lows is an ed­ited tran­script of the con­ver­sa­tion that PAS-NYC hos­ted on Novem­ber 14, 2012 at the New School.

Pre­lim­in­ary re­marks

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Loren Gold­ner: The title of my talk to­night is “Fic­ti­tious Cap­it­al and Con­trac­ted So­cial Re­pro­duc­tion.” It is im­port­ant to note that as we con­vene to­night, there are gen­er­al strikes across the south­ern flank of Europe, the miners’ strikes in South Africa, and at least 50 strikes a day in China. While we con­vene to talk about the crisis, there are people in mo­tion try­ing to do something about it.

Marx writes in his Grundrisse, “Cap­it­al it­self is the mov­ing con­tra­dic­tion, [in] that it presses to re­duce labor time to a min­im­um, while it pos­its labor time, on the oth­er side, as sole meas­ure and source of wealth.”[1] Un­pack­ing that one sen­tence can get us very far in un­der­stand­ing the crisis and the his­tory of at least the last hun­dred years.

Cap­it­al can be broken down in­to Marx’s cat­egor­ies: sur­plus value (s), vari­able cap­it­al (v), and con­stant cap­it­al (c). With­in con­stant cap­it­al there is a break­down in­to (i) fixed cap­it­al, which refers gen­er­ally to ma­chinery and tools, and (ii) cir­cu­lat­ing cap­it­al, which refers to things such as raw ma­ter­i­als.

With these cat­egor­ies I would like to ad­dress the ques­tion of fic­ti­tious cap­it­al, which I define as claims on the so­cial wealth and so­cial sur­plus that cor­res­pond to no ex­ist­ing so­cial sur­plus. The ori­gins of fic­ti­tious cap­it­al are the ad­van­cing pro­ductiv­ity of labor in cap­it­al­ism, which is an an­arch­ic sys­tem, one that is con­stantly de­valu­ing the con­stant cap­it­al in­ves­ted by the cap­it­al­ist class. Cap­it­al volumes 1 and 2 de­scribe a pure cap­it­al­ist sys­tem, in which there are only two so­cial classes: the wage-labor pro­let­ari­at and the cap­it­al­ist class or the bour­geois­ie. Oth­er classes enter the pic­ture, for in­stance peas­ants, in the long his­tor­ic­al chapter on ac­cu­mu­la­tion. But Marx is try­ing to set up a pure mod­el and then move on to the more every­day ap­pear­ances of the sys­tem. Continue reading →