Friday, September 30, 2016

Beware the monstrous chimera masquerading as supply priced evaluations of factors of production..Class shares versus factor shares

What are production factors and how can they be commonly evaluated

Factors are real elements of real production systems
Big categories

Humans with skills and experience

Machines of certain types and functions


 fields  mines   Forests lakes streams rivers oceans And  land lots
Raw materials and natural products and powers
How to evaluate them ?

Existing  prices at market for their respective outputs
ever changing historically developing generated payments to factors
By mediating  organizers of production
Often called
lease rates
all of which may include arbitrage profits  wind fall profits innovation profits
....  pro tem  rents *

* ND
there are no pure rents
Because nothing over time has a fixed supply

Now we aggregate  by category
Then sum categories

There will be surpluses and deficits at the level of productive units

This residue should not be congealed into a factor
net revenue above factor payments
Come in stream
This stream can be projected and evaluated
But this is not the value of a real factor

It is not categorically like
the evaluation of a stream of  revenue attributed to a machine
Ie a sustainable lease rate
Or a assembly line worker

Now comes the human social division

Two big categories

Producer income  for the owners of human factors

And the income to owners of non human factors

This split is a class split

There is no technical determination of this split

It's a historical process

In a system of wage earning producers
Ie human factors paid by wage

The  split is a rate of surplus value

The revenues that  are surplus payments are not  factor payments

The sum of factor payments is not equal to aggregate social net revenue

This is more then a bit lacuna fied
But in short there is no productive factor called capital

There are capitalized factor payment streams
And that may get mixed with rent streams
In some monstrous hybrid
But strictly speaking lot payments  are surplus payments too

Not factor payments
Factor payments only cover the reproduction " costs "
Of the factor given that factors rate of consumption in use and over time