von Neumann to Kantorovich

I will go into the simplifications/weaknesses of the von Neumann approach in this video where I will show how to use Kantorovich linear programming to handle these deficiencies

[@petrified_r]

I've said this before, but I'm here to say it again because I think it's a great topic. Could you make a reading list for the next generation of marxists?

[@lucaslopesf]

Please, continue this series of videos related to Linear Programming, especially on what to do when we only have an estimation of the matrix values. Thank you!

[@redoktopus3047]

this is one of your most useful videos. thank you for uploading.

[@ryandepp7640]

I would like a third part since Feldman’s model was constructed in the context of the conditions which prevailed in the Soviet Union in the 1930s (availability of all required inputs by the internal economy, hence negligible trade; and isolation from other countries, i.e., the capitalist West)

[@Ajente02]

The Feldman-Mahalanobis model is also a great technical solution to the criticisms made by Mao, and later on by Che Guevara, in the _"Reading Notes On The Soviet Manual of Political Economy"._ Great exposition as always, professor. I've read before some criticisms to the Feldman-Mahalanobis model, which include its disregard for: 1.- Constrains in natural resources and raw materials (it was thought for huge countries, like the USSR, China, or India, but it's not suitable for smaller developing economies that heavily depend of imports, like Cuba, or the DPRK); 2.- Limitations in foreign trade (of which, as I said before, small developing countries are heavily dependent, and which has been the main source of imperialist destabilization in historical projects of socialist transition in developing countries); 3.- Lack of initial capital for investment in the raise of production of new MoP (which could be solved through monetary emission -causing serious inflationary issues- or through foreign loans -assuming of course any international capital would be interested in investing in a socialist transitionary economy-); How could your proposed version of the model solve these issues?

[@idonnow2]

1.- This would not only be true for natural resource input but for waste output (CO2 emissions etc.), from what i understand, it does seem to be possible to integrate such constraints within the model, the issue would be more with regards to actually defining the constraints themselves (how much oil extraction or how much CO2 emissions etc). 2.- I think for this the export sector could be integrated within the model, with the exported commodities modeled as "inputs" (sale for the acquisition of foreign currency) for MoP "production" (purchase in international markets). Of course further complications such as the ups and downs of international market prices or trade disputes/restriccions/sanctions/wars cannot be accounted for within a model that assumes full control of the economy's resources 3.- Deeply related with the above, it's simply the case that industrialized imperialist nations have the greater bargaining power over developing countries and it is actively against their interests to allow them to industrialize (or at least at a rate greater than the imperialist powers). Therefore there's simply no way out of lack of initial capital without concessions to the powers that be, barring special circumstances of weakness. For istance The SU could avoid it since the bargaining power of capitalist powers was drastically reduced by the great depression, while China leveraged its massive population to essentially turn the post cold war neoliberal overconfidence in "the end of history" against the global capitalists deindustrializing the west for greater short term profits. Small developing countries can't reasonably follow such strategies. If a price must be paid (ultimately in labor time of course) to acquire the necessary initial capital, the inflationary strategy seems more sensible than foreign loans, as the former is essentially an indirect form of taxation through monetary policy, while latter comes with way too many strings attatched in interference with domestic policies plus the rent that is interest being forced upon the people along with the principal

[@crispnhollow7300]

For the sake of transparency and effective communication, I would replace the indirect taxing of inflationary policy with the direct taxation of income @@idonnow2.

[@TheTjopp]

Have you looked at Dave Zachariah and Loke Hagberg's Receding Horizon Planning? Might make good video material. Von Neumann input-output covers one year as you say, and also amounts to making the plan period and the plan horizon the same. In planning we want the plan period to be as short as possible and the plan horizon to be as long as possible. Hence RHP. With an eigenproduction boundary condition the plan horizon becomes infinite.

[@paulcockshott8733]

I have found that if one wants a sensible n year plan, and if the depreciation period is m years, you need to construct an n+m year plan, and then discard the last m years, otherwise the reproduction of means of production will be neglected towards the end of your n year plan

[@TheTjopp]

@@paulcockshott8733 "otherwise the reproduction of means of production will be neglected towards the end of your n year plan" this is why you need an eigenproduction constraint. The output of the last year could be constrained to be equal to the input of the same year, or greater than or equal which is a simpler problem. So long as depreciation is incorporated into the technical coefficients then it should work out. I might write something on this, with examples.

[@TankieVN]

Hello professor Cockshott ! I'm a young Vietnamese radical leftist who is spending summer reading 20 pages of a book per day, just finished your book "Towards a new socialism" today (unfortunately there are some parts where I don't fully understand your points because English isn't my first language even though in my class I'm top 5th at English). I have some questions though. What do you think about collective farms in former socialist countries and what models would you propose to solve the deficiencies of collective farms (sorry if you did propose them but I forgot). How would you transfer a society that is socially conservative and generally is against radical change unless there is a catastrophe like Vietnam to the socialism you and the other author proposed ? And would you change it gradually or very quickly ? How would the Vietnamese socialist state cope with international isolation and sanctions imposed by the Western world ? This is very important because most Vietnamese people don't have negative feelings against the Western ruling class or even think about them and modern Vietnam has huge economic ties with the Western world (along with China as well).

[@TankieVN]

Oh and by the way, is 20 pages per day too little ? Should I push it up to 40 pages a day ?

[@peterthefourth4]

Don’t stress about the number of pages. Focus on trying to understand what you’re reading. Taking the time to read 5 pages with a difficult idea and understanding it is better than 40 pages read quickly and not fully understanding it. There have been times where I have read the same page twice just to make sure I fully understand it.

[@TankieVN]

⁠@@peterthefourth4Thanks ! But it always feels frustrated to see that I didn't read that many books even though I always promise myself to read a list of books such as "The Communist Manifesto", "State and Revolution" (I read half of it already but then stopped to revise for the Grade 10 Entrance Exam), "Capital" and many many more. While yes I do understand that we must understand what we are reading, sometimes because of the language barrier I don't really understand things even if I look up on online English dictionaries and google translate for words. Also since I turn on music to make reading more comfortable, I'm wondering is it a good or bad thing now. And after reading I only remember vaguely some of the points or principles made or proposed which made me wondering should I make a document to write down the ideas and concepts of each chapter.

[@peterthefourth4]

@@TankieVN English is my first language and there are times when reading capital that I don’t understand what is being said the first time around or I have to look up definitions to words, but it takes time and patience. Finding time to read is always hard. Life keeps me busy but I always try to fit in some time to read. Some years I read lot, some years I read very little. On those years I don’t read much I try to watch KZbin videos to help explains ideas (like this one which brings us here). Also it’s up to you if you want to make notes about what you’ve read. If it helps then great but if not then it only slows up the reading process. The main point is don’t give up. Be patient and try to keep reading whenever you have some free time.

[@peterthefourth4]

@@TankieVN also when I was younger I did listen to music while reading but in the past few years I’ve stop. I found it easier to focus with silence which is strange because when I was younger the music helped me focus. You’re the only one who can say if it helps or not.

[@cyberpunkalphamale]

Thank you very much for sharing

[@ashutoshsingh3204]

And what about after that? What strategy for economic growth should be used according to you after full employment has been reached?

[@paulcockshott8733]

From then on the key is raising labour productivity. For that it is important to move to labour time calculation as any other basis over estimates the cost of means of production and underestimates the true social cost of labour.

[@redoktopus3047]

is genlp a library in a high level language or a language itself? i'm unable to find information on it--i think there are a few things with that name

[@paulcockshott8733]

It is a programme I wrote specifically to generate the lp solve code. If people want I can include it as a long comment

[@redoktopus3047]

​@@paulcockshott8733 i would appreciate it. if it's not too much trouble, could you do a github gist or a pastbin of it instead?

[@redoktopus3047]

@@paulcockshott8733 i would very much appreciate it! if it's not too much trouble, a github gist or pastebin might be better. thanks again for the videos.

[@NathanWHill]

Hate to be a pedant but it is Quesnay [kɛnɛ], no -s-.

[@emrebennett2857]

First! Ps. Vote greens everyone in UK!

[@railander]

Green parties? LOL