Two Paradigms: Exchange and Reproduction

Abstract

Since the time, some three centuries ago, when political economy began to take shape as a distinct intellectual endeavour, its practitioners have evolved two opposing theoretical approaches to the labour market. One, developed to a high degree of technical sophistication over the past hundred years by the neoclassical school, can conveniently be labelled the paradigm of exchange. The other, originating in the older classical and Marxist tradition, was long eclipsed by its rival, but underwent a certain rehabilitation following the publication of Sraffa’s seminal Production of Commodities by Means of Commodities (Sraffa, 1960). It remains, however, a minority school of thought, and, as I argue later, has never performed at its full potential. Perhaps this is because, as an embattled minority, its followers have felt impelled to accept the terms of debate proposed by their adversaries. I have chosen to call this second approach the paradigm of reproduction.