This article responds to a number of criticisms of the TSSI of Marx’s theory of value, which at the time was described by scholars as the Sequential Non-dualist approach to the theory of value. It responds in particular to Duncan Foley’s 1997 review of Freeman and Carchedi (eds) Marx and non-equilibrium Economics, and to comments from Fred Moseley in exchanges on the OPE-L discussion list.
It deals in particular with the issue of the revaluation of capital arising from price changes and inventory adjustment. It establishes that the equilibrium interpretation of Marx’s value theory leads to the creation of value out of nothing (that is, without labour) in circumstances where values are rising, for example, due to poor harvests, or as a direct or indirect result of shortages of raw inputs such as metals.
It was originally printed as part of the IWGVT record of the proceedings of its mini-conference at the Annual Conference of the Eastern Economic Association (EEA) 1997, Washington, April 1997.