Mark Thoma recently relayed a request for comments by Michael Perelman, on a Perelman paper that trumpets the superior capital theory in Marx versus economic orthodoxy. At my blog I pick apart some of the more ridiculous claims. To whet your appetite, here is Perelman’s opening:
Introduction I want to talk about two capitals â€‘â€‘ capital as it appears in economic theory and Das Kapital of Karl Marx. A careful consideration of these two capitals serves as a warning of what might be in store for any country that allows itself to follow the logic of markets.
Each of these two capitals presents a different sort of difficulty. Economics, the basic theory of capitalism, paradoxically never bothered to develop a serious theory of capital. In contrast, Marx’s idea of capital as a social relation is so rich that it defies being compressed into a simple theory.