Economics Dictionary of ArgumentsHome
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| Saving: In economics, saving is defined as the portion of disposable income that is not consumed._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Karl Marx on Saving - Dictionary of Arguments
Kurz I 169 Saving/Adam Smith/MarxVsSmith/Kurz: (…) [there is] an erroneous proposition of Adam Smith, which was also adopted by Ricardo, and which was first noticed (and explicated at length in chapters 19 and 20 in volume 2 of Capital)(1) by Marx. As is well known, Smith (I1776] 1976, II.iii.18)(2) had contended that what is annually saved is as regularly consumed as what is annually spent, and nearly at the same time too; but it is consumed by a different Kurz I 170 set of people. The consumption is the same, but the consumers are different. As Marx had pointed out, this proposition is false, because a part of what is annually saved and invested must always consist of means of production which have previously been produced. Smith's error is Closely related to his false Claim that the portion of the annual gross produce which is devoted to the replacement of the materials used up in the production of the goods which are annually consumed "withdraws no portion of the annual produce from the neat revenue of the society" (II.ii.9)((2). Marx had traced this inconsistency in Smith's treatment of (circulating) capital back to his view that the price of every commodity resolves itself entirely, "that is, without leaving any commodity residue, into wage, profit, and rent - a claim which necessarily presupposed the existence of 'ultimate' commodities produced by pure labour without means of production except land" (Sraffa 1960, 94)(3). 1. K. Marx. 1867. The Capital.The Process of Production of Capital. https://www.marxists.org/archive/marx/works/1867-c1/ (21.11.2024) 2. Smith, A. [1776] 1976. An Inquiry into the Nature and Causes of the Wealth of Nations Vol. 2 of The Glasgow Edition of the Works and Correspondence of Adam Smith, edited by R. H. Campbell, A. S. Skinner, and W. B. Todd. Oxford: Oxford University Press. 3. P. Sraffa. 1960. Production of Commodities by Means of Commodities. Cambridge: Cambridge University Press. Kurz, Heinz; Salvadori, Neri 2015. Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). London, UK: Routledge._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Marx I Karl Marx Das Kapital, Kritik der politische Ökonomie Berlin 1957 Kurz I Heinz D. Kurz Neri Salvadori Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). Routledge. London 2015 |
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