Dear Paulo Fidalgo
Let me introduce some questions and comments about the theme you have proposed to Alan Freeman.
It presents some very interesting points: "autonomy"; "public institutions could become more competitive"; "auto-organizations"; "regulating rule"; "government that buys health care at its value [sic!]"; "the discussion leads to the idea that more then better wages is to get rid of the wage system pf paying labor"; etc.
I have been thinking about these points and I may be mistaken but the only way to buy things at their values (market-value) implies, for example, the construction of a "regulatory agency" (RA) [agência reguladora] that makes the "inner connection" / "necessary connection" Marx talks about at vol. III, chapter X of the Capital. This RA must be built based on a Linear Programming problem. In order to include capitals into the Linear Programming problem as restrictions (Cci+Vci+Ppi £ bi), where Pp=Presumed profit (let us suppose it being 10% of Cc or investment of capital; this way there is no transference / absorption of wealth) and b should be the invoicing corresponding to the sum of all three variables. The objective function must be the sum of each variable (Cc1+Cc2+.=CcTotal; ZMax=CcTotal+VcTotal+PpTotal). The solution of this problem makes primal (production maximization) equal the dual (cost minimization). Conventional economic theorists would call it "Pareto's optimum" and/or "fixed-point"; we just call it "value". Dividing this "production-value" by the quantity of product we find the its market-value.
Of course this agency need not any bureaucracy because the appraisal or valuation of all data feeding the software must be made by all enterprisers integrating the agency. By the other side government and society may observe what is decided there by the internet and utmost throughout prices, which are now attached to the value, paid by the clients. This price (attached to value) generates "value index" and precise "Gross Setorial Product" (GSP - part of Gross National Product, GNP; on line, on real time).
In resume, this agency turns constant the social cost and presumes the profit to make flexible the price which now must oscillate attached to value (social cost). This way we can affirm that prices will oscillate strictly attached to demand, if the latter increases, prices decrease.
Here in Brazil, some cities (Palmas/TO) have introduced the "pré-pago água" (I don't remember how the English speaking people call it). Anyway, it works by an "eletronic manager" ("gerenciador eletrônico") that cuts off the water offering if the consumer has not bought the card (R$ 5,00) which allows the consumption of , let us say, 1000 liters of water for each R$ 1,00.
It is important to observe that RA already exist, all we must do is to turn constant the presumed profit and to "liberate" the price (and expose it into the Internet) - as demand increases, price must oscillate down to attach its value, market-value.
In Portuguese we have to words to signify the verb to be, in English. The value you talked about ("government that buys health care at its value") is there (está lá), but it is not value (não é o valor). In another words, "o valor está lá, mas não é só valor, pois o preço acoberta alguma transferência/absorção de riqueza".
I think your proposal is interesting.
Have nice day.
Vladimir D. Micheletti
Departamento de Economia
Universidade Federal de Alagoas
Northeast of Brazil
[log in to unmask]
