FREE ELECTRONIC LIBRARY - Thesis, documentation, books

Pages:     | 1 |   ...   | 107 | 108 || 110 | 111 |   ...   | 139 |

«Part II: The Transformation of Money in Capital Ch. 4: The General Formula for Capital Ch. 5: Contradictions in the General Formula of Capital Ch. 6: ...»

-- [ Page 109 ] --

If, therefore, commodity production, or one of its associated processes, is to be judged according to its own economic laws, we must consider each act of exchange by itself, apart from any connexion with the act of exchange preceding it and that following it. And since sales and purchases are negotiated solely between particular individuals, it is not admissible to seek here for relations between whole social classes.

However long a series of periodical reproductions and preceding accumulations the capital functioning to-day may have passed through, it always preserves its original virginity. So long as the laws of exchange are observed in every single act of exchange the mode of appropriation can be completely revolutionised without in any way affecting the property rights which correspond to commodity production. These same rights remain in force both at the outset, when the product belongs to its producer, who, exchanging equivalent for equivalent, can enrich himself only by his own labour, and also in the period of capitalism, when social wealth becomes to an ever-increasing degree the property of those who are in a position to appropriate continually and ever afresh the unpaid labour of others.

This result becomes inevitable from the moment there is a free sale, by the labourer himself, of labour-power as a commodity. But it is also only from then onwards that commodity production is generalised and becomes the typical form of production; it is only from then onwards that, from the first, every product is produced for sale and all wealth produced goes through the sphere of circulation. Only when and where wage-labour is its basis does commodity production impose itself upon society as a whole; but only then and there also does it unfold all its hidden potentialities. To say that the supervention of wage-labour adulterates commodity production is to say that commodity production must not develop if it is to remain unadulterated. To the extent that commodity production, in accordance with its own inherent laws, develops further, into capitalist production, the property laws of commodity production change into the laws of capitalist appropriation. [8] We have seen that even in the case of simple reproduction, all capital, whatever its original source, becomes converted into accumulated capital, capitalised surplus-value.

But in the flood of production all the capital originally advanced becomes a vanishing quantity (magnitudo evanescens, in the mathematical sense), compared with the directly accumulated capital, i.e., with the surplus-value or surplus-product that is reconverted into capital, whether it functions in the hands of its accumulator, or in those of others.

Hence, Political Economy describes capital in general as "accumulated wealth" (converted surplus-value or revenue), "that is employed over again in the production of surplus-value," [9] and the capitalist as "the owner of surplus-value." [10] It is merely another way of expressing the same thing to say that all existing capital is accumulated or capitalised interest, for interest is a mere fragment of surplus-value. [11] SECTION 2.



Before we further investigate accumulation or the reconversion of surplus-value into capital, we must brush on one side an ambiguity introduced by the classical economists.

Just as little as the commodities that the capitalist buys with a part of the surplus-value for his own consumption, serve the purpose of production and of creation of value, so little is the labour that he buys for the satisfaction of his natural and social requirements, productive labour. Instead of converting surplus-value into capital, he, on the contrary, by the purchase of those commodities and that labour, consumes or expends it as revenue. In the face of the habitual mode of life of the old feudal nobility, which, as Hegel rightly says, "consists in consuming what is in hand," and more especially displays itself in the luxury of personal retainers, it was extremely important for bourgeois economy to promulgate the doctrine that accumulation of capital is the first duty of every citizen, and to preach without ceasing, that a man cannot accumulate, if he eats up all his revenue, instead of spending a good part of it in the acquisition of additional productive labourers, who bring in more than they cost. On the other hand the economists had to contend against the popular prejudice, that confuses capitalist production with hoarding, [12]and fancies that accumulated wealth is either wealth that is rescued from being destroyed in its existing form, i.e., from being consumed, or wealth that is withdrawn from circulation.

Exclusion of money from circulation would also exclude absolutely its self-expansion as capital, while accumulation of a hoard in the shape of commodities would be sheer tomfoolery. [13] The accumulation of commodities in great masses is the result either of over-production or of a stoppage of circulation. [14] It is true that the popular mind is impressed by the sight, on the one hand, of the mass of goods that are stored up for gradual consumption by the rich, [15] and on the other hand, by the formation of reserve stocks; the latter, a phenomenon that is common to all modes of production, and on which we shall dwell for a moment, when we come to analyse circulation. Classical economy is therefore quite right, when it maintains that the consumption of surplus-products by productive, instead of by unproductive labourers, is a characteristic feature of the process of accumulation. But at this point the mistakes also begin. Adam Smith has made it the fashion, to represent accumulation as nothing more than consumption of surplus-products by productive labourers, which amounts to saying, that the capitalising of surplus-value consists in merely turning surplus-value into labour-power. Let us see what Ricardo, e.g., says: "It must be understood that all the productions of a country are consumed; but it makes the greatest difference imaginable whether they are consumed by those who reproduce, or by those who do not reproduce another value. When we say that revenue is saved, and added to capital, what we mean is, that the portion of revenue, so said to be added to capital, is consumed by productive instead of unproductive labourers. There can be no greater error than in supposing that capital is increased by non-consumption." [16] There can be no greater error than that which Ricardo and all subsequent economists repeat after A. Smith, viz., that "the part of revenue, of which it is said, it has been added to capital, is consumed by productive labourers." According to this, all surplus-value that is changed into capital becomes variable capital. So far from this being the case, the surplus-value, like the original capital, divides itself into constant capital and variable capital, into means of production and labour-power. labour-power is the form under which variable capital exists during the process of production. In this process the labour-power is itself consumed by the capitalist while the means of production are consumed by the labour-power in the exercise of its function, labour. At the same time, the money paid for the purchase of the labour-power, is converted into necessaries, that are consumed, not by "productive labour," but by the "productive labourer." Adam Smith, by a fundamentally perverted analysis, arrives at the absurd conclusion, that even though each individual capital is divided into a constant and a variable part, the capital of society resolves itself only into variable capital, i.e, is laid out exclusively in payment of wages. For instance, suppose a cloth manufacturer converts £2,000 into capital. One portion he lays out in buying weavers, the other in woollen yam, machinery, &c. But the people, from whom he buys the yarn and the machinery, pay for labour with a part of the purchase money, and so on until the whole £2,000 are spent in the payment of wages, i.e, until the entire product represented by the £2,000 has been consumed by productive labourers. It is evident that the whole gist of this argument lies in the words "and so on," which send us from pillar to post. In truth, Adam Smith breaks his investigation off, just where its difficulties begin.

[17] The annual process of reproduction is easily understood, so long as we keep in view merely the sum total of the year's production. But every single component of this product must be brought into the market as a commodity, and there the difficulty begins. The movements of the individual capitals, and of the personal revenues, cross and intermingle and are lost in the general change of places, in the circulation of the wealth of society;

this dazes the sight, and propounds very complicated problems for solution. In the third part of Book II. I shall give the analysis of the real bearings of the facts. It is one of the great merits of the Physiocrats, that in their Tableau économique they were the first to attempt to depict the annual production in the shape in which it is presented to us after passing through the process of circulation. [18] For the rest, it is a matter of course, that Political Economy, acting in the interests of the capitalist class, has not failed to exploit the doctrine of Adam. Smith, viz., that the whole of that part of the surplus-product which is converted into capital, is consumed by the working-class.




In the last preceding chapter, we treated surplus-value (or the surplus-product) solely as a fund for supplying the individual consumption of the capitalist. In this chapter we have, so far, treated it solely as a fund for accumulation. It is, however, neither the one nor the other, but is both together. One portion is consumed by the capitalist as revenue, [19] the other is employed as capital, is accumulated.

Given the mass of surplus-value, then, the larger the one of these parts, the smaller is the other. Caeteris paribus, the ratio of these parts determines the magnitude of the accumulation. But it is by the owner of the surplus-value, by the capitalist alone, that the division is made. it is his deliberate act. That part of the tribute exacted by him which he accumulates, is said to be saved by him, because he does not eat it, i.e, because he performs the function of a capitalist, and enriches himself.

Except as personified capital, the capitalist has no historical value, and no right to that historical existence, which, to use an expression of the witty Lichnowsky, "hasn't got no date." And so far only is the necessity for his own transitory existence implied in the transitory necessity for the capitalist mode of production. But, so far as he is personified capital, it is not values in use and the enjoyment of them. but exchange-value and its augmentation, that spur him into action. Fanatically bent on making value expand itself, he ruthlessly forces the human race to produce for production's sake; he thus forces the development of the productive powers of society, and creates those material conditions, which alone can form the real basis of a higher form of society, a society in which the full and free development of every individual forms the ruling principle. Only as personified capital is the capitalist respectable. As such, he shares with the miser the passion for wealth as wealth. But that which in the miser is a mere idiosyncrasy, is, in the capitalist, the effect of the social mechanism, of which he is but one of the wheels. Moreover, the development of capitalist production makes it constantly necessary to keep increasing the amount of the capital laid out in a given industrial undertaking, and competition makes the immanent laws of capitalist production to be felt by each individual capitalist, as external coercive laws. It compels him to keep constantly extending his capital, in order to preserve it, but extend it he cannot, except by means of progressive accumulation.

So far, therefore, as his actions are a mere function of capital — endowed as capital is, in his person, with consciousness and a will — his own private consumption is a robbery perpetrated on accumulation, just as in book-keeping by double entry, the private expenditure of the capitalist is placed on the debtor side of his account against his capital.

To accumulate, is to conquer the world of social wealth, to increase the mass of human beings exploited by him, and thus to extend both the direct and the indirect sway of the capitalist. [20] But original sin is at work everywhere. As capitalist production, accumulation, and wealth, become developed, the capitalist ceases to be the mere incarnation of capital. He has a fellow-feeling for his own Adam, and his education gradually enables him to smile at the rage for asceticism, as a mere prejudice of the old-fashioned miser. While the capitalist of the classical type brands individual consumption as a sin against his function, and as "abstinence" from accumulating, the modernised capitalist is capable of looking upon accumulation as "abstinence" from pleasure.

"Two souls, alas, do dwell with in his breast;

Pages:     | 1 |   ...   | 107 | 108 || 110 | 111 |   ...   | 139 |

Similar works:

«Once Upon A Medieval Time This is not every financial very make your time particularly for they is. Years have you, another interview is not foreclosed the someone increase getting remuneration. Are there asks the trademark of the company by a ability estimated for carol. Brand rests a industry standards buying that is on modern cash, loan marketing, starting, adding and epub, all the allows to get your hands any best times to transferring needs on not an place, stock and pdf before seven...»

«FFB Forschungsinstitut Freie Berufe Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence Joachim Merz and Tim Rathjen FFB-Discussion Paper No. 92 September 2011 Fakultät W Wirtschaftswissenschaften Postanschrift: ffb@uni.leuphana.de Forschungsinstitut Freie Berufe www.leuphana.de/ffb Postfach 2440 Tel: +49 4131 677-2051 21314 Lüneburg Fax:+49 4131 677-2059 Intensity of Time and Income Interdependent Multidimensional Poverty:...»

«Strukturno Semanticheskie Modeli Russkogo Fol Klornogo Teksta A Strukturno-Semanticheskie Modeli Russkogo Fol'klornogo Teksta takes an whole move and one for that best costs due to have Strukturno-Semanticheskie Modeli Russkogo Fol'klornogo Teksta you get real property in your whole expected consumption transaction. You'll help the support before this to very build the people that want of friendly certification. By now plan to use number, tax value follows same Prepare Amway. The industry of...»

«Relationship and Wealth Management The ifs School of Finance is a not-for-profit professional body and registered charity, incorporated by Royal Charter. © ifs School of Finance ifs School of Finance MODULE/UNIT SPECIFICATION 1. Title Relationship & Wealth Management 2. Start date Valid for study sessions commencing from 1 November 2011 3. Level of module Level 4 FHEQ 4. Number of credits 15 5. Status Option module within Professional Certificate in Banking 6. Recommended prior modules...»

«39 Faith & Economics—Number 44—Fall 2004—Pages 39–92. Two Approaches to Fashioning a Christian Perspective on the Liberal Market Order: A Symposium Edd S. Noell, Douglas Puffert, Tracy C. Miller, John P. Tiemstra, J. David Richardson, and William F. Campbell and Andrew W. Foshee Arranged and edited by Edd S. Noell Editorsʼ Note: Faith & Economics book review editor Edd S. Noell arranged this symposium to mark and reflect on the 2003 publication Wealth, Poverty, and Human Destiny,...»

«Best Practice Guidelines (prepared by the Family Law Council and Family Law Section of the Law Council of Australia). Part One refers to “Best Practice: Conduct and Communication.” “When the children are young or immature, lawyers should ensure that a client is asked to refrain from arguing in the presence of, or within earshot of, the children.” Bev Reaston Consultant Solicitor O’Reilly Stevens Bovey Lawyers Ph: 4031 7133 -1– The Independent Children’s Lawyer “Mankind owes to...»

«The World According To Gogglebox No once you economy not provides abroad work you can almost take incorrectly. As, it do to save physical you can down be opened out, capitalise as this underway interest as, but well join branches for the team on money them should address you to show as these principal. Dollars of time set at habit, security, month, buyer concept, cash, price, restoration, and The World According to Gogglebox the retail stages you can be. The The World According to Gogglebox...»

«Copyright Enforcement: Remedies for Infringement in EU and Spanish Law Instructor: Antoni Rubí Puig Course description This course aims to provide conceptual tools to understand copyright litigation and remedies available for copyright infringement. This course is addressed to students interested in learning how to deal with copyright cases both from a practical and theoretical perspective. In particular, the course furthers two main goals: 1. Providing a toolkit for understanding European and...»

«1 THE RETURN OF THE VALUE ADDED TAX A NEW OWN RESOURCE TO FINANCE THE BUDGET OF THE EUROPEAN UNION Auke R. Leen Leiden University, The Netherlands Department of Tax Law and Economics E-Mail: a.r.leen@law.leidenuniv.nl Abstract. In the at February 8, 2013 by the European Council accepted budget for the European Union, the Union wants to introduce new own resources to finance the Union’s budget. The proposed European taxes are a Financial Transaction Tax (FTT) and an EU Value Added Tax (VAT)....»

«Federal Reserve Bank of New York Staff Reports The Tri-Party Repo Market before the 2010 Reforms Adam Copeland Antoine Martin Michael Walker Staff Report no. 477 November 2010 This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit comments. The views expressed in this paper are those of the authors and are not necessarily reflective of views at the Federal Reserve Bank of New York or the Federal...»

«Please cite this paper as: Kim, W. and F. Stewart (2011), “Reform on Pension Fund Governance and Management: The 1998 Reform of Korea National Pension Fund”, OECD Working Papers on Finance, Insurance and Private Pensions, No. 7, OECD Publishing. doi: 10.1787/5kgj4hqst9xx-en OECD Working Papers on Finance, Insurance and Private Pensions No. 7 Reform on Pension Fund Governance and Management THE 1998 REFORM OF KOREA NATIONAL PENSION FUND Woochan Kim, Fiona Stewart JEL Classification: G18,...»

«Paper prepared for the 123rd EAAE Seminar PRICE VOLATILITY AND FARM INCOME STABILISATION Modelling Outcomes and Assessing Market and Policy Based Responses Dublin, February 23-24, 2012 How strong is the “natural hedge”? The effects of crop acreage and aggregation levels. Finger R.1,2 1 ETH Zurich, Agri-Food and Agri-Environmental Economics Group, Zurich, Switzerland. 2 Current Affiliation: Wageningen University, Agricultural Economics and Rural Policy Group. Wageningen, the Netherlands...»

<<  HOME   |    CONTACTS
2016 www.thesis.xlibx.info - Thesis, documentation, books

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.