Turning to our illustration, the ten labourers will find employment with a capital which, like the utility, has remained the same, but economically has decreased to 900. This means that the rate of profits has increased from 500/1000 to 500/900, _i.e._ from 50 per cent. to about 55 per cent. As to the rate of surplus-value, since the entire value of the total capital is reduced, it must no longer be calculated, as before the technical improvement, as 500/500, nor as in the first stage we considered (in which the technical improvement had made a portion of the labour entirely superfluous) as 450/450, but as 500/450, _i.e._ it will no longer be 100 per cent., but will have risen to about 111 per cent. To this criticism of mine I have found no answer, either explicit or implicit, in Marx's work. Only in one passage, where he speaks of the counteracting causes, and in particular of surplus population (Chap, XIV., § iv.), he hints at the case where labour power may be re-employed with a minimum capital. It may be said that here Marx passed close to the difficulty, without striking upon it, _i.e._ without becoming aware of its importance. And, if he had struck on it, I doubt whether he would have overcome it and passed on; I think rather that his theory would have gone to pieces. I foresee that it may be said: you have assumed that, owing to the technical improvement, not only would a number of labourers remain unemployed, but also a fraction of the original total capital, _i.e._ of means of production and means of subsistence; and when the labourers are re-employed, it is true that during the new cycle of production, other fractions of unoccupied capital will not unite with the original fractions, but precisely for this reason the quantity of production which will result will be increased, and in the next cycle of production a still greater fraction of unoccupied capital will add itself, unless the ten labourers do not continue to be re-employed, in which case the un-occupied fraction will be smaller, but the increase will become constant. Now all these means of production and of sustenance will not be consumed (or will be partially consumed and partially saved), by the capitalist class, and hence there will be an increasing accumulation. The quantities of goods saved, owing to the impulsion of economic interest will not remain un-used in warehouses or strong boxes, but will be thrown on the market as capital seeking employment. This will increase the rate of wages, and hence will have a depressing effect on the rate of profits. Very good, but in such a case we are outside the Marxian law. The _factor_ here considered, is no longer technical improvement taken by itself, but _saving_, which may be, as stated, encouraged by technical progress, but cannot be _inferred_ from it. For it is true that, if we suppose the case of extravagant capitalists, saving, in spite of technical improvement will not take place.