Monday, March 2, 2015

Capitalism, Causality, Value

As Kant shows, the inadequacy of Hume's Atomistic Empiricist concept of Causality is that its central component, Conjunction, lacks the ordinality that distinguishes Cause from Effect, i. e. 'A and B are conjoined' is his analysis of both 'A causes B' and 'B causes A'. Now, Labor is a special case of Causality, i. e. in which some material is transformed from one condition to another. Thus, Hume's system is inadequate to the concept of Labor. But, Smith's Capitalism is essentially such Atomistic Empiricism. Hence, the Exchange Theory of Value, which is based on no more than circumstantial association, is compatible with his premises, whereas the Labor Theory of Value is not. Thus, his advocacy of the former, to the disadvantage of the latter, reflects more his methodological commitments than some insight into specifically Economic relations.

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