Product Description
Understanding Capital is a brilliantly lucid introduction to Marxist economic theory. Duncan Foley builds an understanding of the theory systematically, from first principles through the definition of central concepts to the development of important applications. All of the topics in the three volumes of Capital are included, providing the reader with a complete view of Marxist economics.
Foley begins with a helpful discussion of philosophical problems readers often encounter in tackling Marx, including questions of epistemology, explanation, prediction, determinism, and dialectics. In an original extension of theory, he develops the often neglected concept of the circuit of capital to analyze Marx's theory of the reproduction of capital. He also takes up central problems in the capitalist economy: equalization of the rates of profit (the "transformation problem"); productive and unproductive labor and the division of surplus value; and the falling rate of profit. He concludes with a discussion of the theory of capitalist crisis and of the relation of Marx's critique of capitalism to his conception of socialism.
Through a careful treatment of the theory of money in relation to the labor theory of value, Foley clarifies the relation of prices to value and of Marx's categories of analysis to conventional business and national income accounts, enabling readers to use Marx's theory as a tool for the analysis of practical problems. The text is closely keyed throughout to the relevant chapters in Capital and includes suggestions for further reading on the topics discussed.
Average Customer Review:
17 of 17 people found the following review helpful:
Monetary expression of labor value, 2002-09-10
This book is an excellent introduction to Marx's economic theories (but not his political theories). It has three main merits: (i) it is written in an extremely clear and understandable manner, (ii) it compresses most of Marx's economic ideas into a short book, and (iii) it introduces the notion of the monetary expression of labour value, which is a key concept to understanding Marx's labor theory of value. The recent renaissance on labor value theories is partly due to the author's efforts. If you think that labor value theories are nonsense, then read this -- it may change your mind. Similarly, if you are convinced of the foundational importance of labor time in understanding captialist economies (as opposed to, say, marginal utility) then you may still learn something new.The mathematical content can be understood by anyone who can read an algebraic equation and follow some simple manipulations.
In sum, this is a book for those interested in Marx's economics, but may not want to wade through all three volumes of Capital.
16 of 26 people found the following review helpful:
interesting economics, but what's the greater relevance?, 2000-04-04
First off, this is not a book to read if you want to know how Marx critiques capatalism. Sure that's touched on a little, but most of the book is devoted to pure economics, without any talk at all about how the economics comment on the way society, and capatalist firms function. The book is locked into numbers, and I'm guessing that it was meant to be used in a college course as a supplement. He says that his math is on the level of intermediate economics, and he's probably right, but don't expect him to do any explanation, he just plows on through, leaving those who aren't so lucky as to have taken up to intermediate economics courses left in the dust. No empirical analysis whatsoever, except for a calculation of the social surplus and the labor value of money. If your an economist you'll have a ball.