Historical materialism and the economics of Karl MarxCroce, Benedetto
Philosophy
Historical materialism and the economics of Karl Marx
Croce, Benedetto
Historical materialism; Marxian economics
This simplest case does not then give us Marx's law, but this other
law; 'Technical improvement, supposing all the other conditions remain
unchanged, causes a decrease in the _amount_ (not the _rate_) of
surplus-value and of profits.' This law assumes that the 1/10 of the
labourers left unemployed become entirely superfluous. These ten
labourers are henceforth to be a dead weight supported by the charity
of others, or to die of starvation, or to emigrate--to a new world.
Let them be left to their fate. Social production will remain at its
former level, thanks to the technical improvement, but accomplished
without their help. This is the hypothesis; but given this hypothesis,
of what importance is the law? To see this clearly it will suffice to
push the hypothesis yet further, as we are entitled to do, and suppose
that the technical improvements continuing, the employment gradually
becomes superfluous, not only of 1/10, but of 1/4, 1/3, 1/2 of the
labourers, _i.e._ that the employment of labourers tends to become =
0. In this case capitalist society as such would come entirely to an
end, since the utility of labour, on which it is based, would come to
an end. Where there is nothing the King loses his rights; and where
labour has no utility the capitalist loses his. The ex-capitalists
would have no more workmen to impoverish, but would be changed into
the owners of automatic fountains of wealth; like those fortunate
mortals in the fable enriched by charmed knives, by wonderful lamps,
by gardens producing with instantaneous and spontaneous energy all
God's gifts. In other words the law here resolves itself into a
_truism_.
But Marx did not think of this _truism_. He wished to determine
exactly the organic law of the variations in the rate of profits. In
fact--as is seen in the illustration given--he does not at all suppose
that the energy of labour may become superfluous; but rather that the
labourers will find fresh employment with an increase in the original
fixed capital. Given technical improvement and production also will be
increased; this is the second stage which he considers. The 100
labourers are still all working, the fixed capital with which they
work must be increased from 500 to 700, and the total has hence become
1200. The law which he deduces, of the fall in the rate of profits
(in the illustration, from 50 per cent. to 41 per cent.) is not a
_truism_; on the contrary it presents itself with all the importance
and originality of a scientific discovery. All den ends on seeing
whether in the scientific discovery we have indeed--the truth.
The crux of Marx's proof lies in the statement; that the labourers who
would have had to remain unemployed, find on the contrary employment,
but with a capital _increased by so much_ (= 200) over the original.
Is this statement correct? On what does Marx base it?
Public-domain text, read in full here on John Shaqi.
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