It true that in Marx's account constant capital does not produce value.   
But then neither does variable capital. Labour (in the sense of human   
productivity activity) produces value. Surely James can make a   
distinction between labour and wages. As he should also distinguish   
between labour as an activity and the people who preform that activity.  
  
To quote from Marx's initial static state model and draw dynamic   
conclusions is simply a mistake. Read past the undergraduate textbooks   
into volume two of Das Kapital.  
  
I am not really interested in your political preferences but rather   
your misrepresentation of what other economists have written.  
  
Rod Hay