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[P]hysical quantities ... suffice to determine the rate of profit (and the associated prices of production) […] [I]t follows that value magnitudes are, at best, redundant in the determination of the rate of profit (and prices of production). […] Marx’s value reasoning––hardly a peripheral aspect of his work––must therefore be abandoned, in the interest of developing a coherent materialist theory of capitalism.
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Ian Steedman (1977). Marx after Sraffa, London: New Left Books p. 202, p. 207.

 

Karl Marx

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Marx's third volume [of Capital] contradicts the first. The theory of the average rate of profit and of the prices of production cannot be reconciled with the theory of value. This is the impression which must, I believe, be received by every logical thinker.

 

Karl Marx

 

[M]odern capitalism has managed to avert, without changing its fundamental characteristics, practically all the consequences which Marx predicted would result from the basic contradiction between the forces and the relations of production. […] Marx predicted an increasing frequency and gravity of "realization" crises, a spectacular decline of the rate of profit, rising unemployment, Verelendung [impoverishment] of the working class, etc., culminating in an increasingly bitter class struggle that would eventually lead to the overthrow of the entire system by a proletarian revolution. These developments would demonstrate, according to Marx, that production for private gain is inherently contradictory rather than merely the cause of some, in principle resolvable, conflicts and problems. Now, none of these predictions (except perhaps a certain amount of economic concentration) has actually occurred […] there is no independent evidence, apart from Marx's word, to support the claim that capitalism remains contradiction ridden.

 

Karl Marx

 

We have defined the main task of economic analysis as the explanation of the magnitudes of economic quantities. The student will find also that the main part of this, as of most other works on the subject, is concerned with the theory of the determination of prices, wages, interest rates, incomes, and the like. He may well inquire, therefore, in the midst of so much mathematics, whether the first task of economics is not the investigation of wealth, or welfare. Some economists have endeavored to restrict the boundaries of the science to the investigation of those quantities which are numerically measurable. Well-being, under such a restriction, would not be part of economics at all.

 

Kenneth Boulding

 

"I can date my own personal 'revolution' rather exactly to May or June 1933. It was like this. It began … with Hayek. His "Prices and Production" is one of the influences that can be detected in The Theory of Wages; it could not have been otherwise, for 1931 was a Prices and Production year at the London School of Economics … I did not in fact find it all easy to fit in whith my own ideas. What started me off in 1933 was an earlier work of Hayek's, his paper on 'Intertemporal Equilibrium', an idea which I found easier to reduce to my preferred (Paretian or Wicksellian) pattern.

 

Friedrich Hayek

 

The main key to the economics of the postwar world is a simple truism — that the rate of accumulation is equal to the rate of production less the rate of consumption. This is the "Bathtub Theorem." Production may be likened to the flow of water from the faucet, consumption to the flow down the drain. The difference between these two flows is the rate at which the water in the bathtub - the total stockpile of all goods - is accumulating.
War drains the economic bathtub in a great waste of consumption. The first problem of reconstruction is to rebuild the stockpile. It can be rebuilt only by widening the gap between production and consumption, or, in the case of a single country, by importing more than is exported. It is difficult for a ravaged country to increase either its production or its net imports. Unless it can obtain outside help, therefore, it must suffer a drastic restriction of consumption. Frequently the only way consumption can be restricted is by inflation. Here, therefore, is the key to the most fundamental problems of reconstruction.

 

Kenneth Boulding