An issue that troubles me in relating Marx to Modern Monetary Theory (MMT) is whether to apply the ‘productive/unproductive labor’ distinction to production that is monetized in a state money. Although I am not especially enamored of the distinction in general, it is particularly its application to public-sector activity in a state money system that strikes me as problematic. I ask the reader to countenance two propositions:heteconomistProposition 1. All public-sector labor in a state money system is productive.Proposition 2. Proposition 1, if true, would alter none of Marx’s central theoretical conclusions.If the following argument is mistaken, maybe someone can set me straight, and it will then be clearer how to proceed in future....
Is Public-Sector Labor ‘Productive’ in a State Money System?
Peter Cooper
