History and criticism of the labor theory of value in English political economyWhitaker, Albert C. (Albert Conser)
History
History and criticism of the labor theory of value in English political economy
Whitaker, Albert C. (Albert Conser)
Economics -- Great Britain -- History; Labor theory of value -- Great Britain -- History
We are now face to face with the great difficulty. If surplus-value
is the sole source of the profit fund, the profit funds of different
business units ought to be in proportion to the surplus labor time
immediately exploited in them. Since the surplus labor time in each day
of labor depends on the general rate of wages, there is a general rate
of surplus labor time per labor day—_e. g._, four hours in ten—and the
profit fund of every business would be directly in proportion to the
number of laborers it employed. This is absolutely not the case in fact.
“It appears, therefore,” says Marx, “that here the theory of value is
irreconcilable with the actual movement of things.”[88]
For technical reasons, the proportions in which the entrepreneur’s
outlays are invested in labor on the one hand, and other production-goods
on the other hand, are different in different lines of business. The
make-up of the entrepreneur’s outlay with respect to these proportions
Marx calls the “organic composition” of his capital.[89] The facts of
life are that equal capitals, in the sense of equal outlays, in different
employments tend to produce equal “profit funds,” regardless of their
organic composition. Now what the profit fund actually turns out to
be, depends on the selling price or value of the product. If we take
a capital spent _in large proportion_ for labor, the large amount of
surplus labor time exploited ought to give the product a value very much
in excess of the outlay, and afford a large profit fund. If we take a
precisely equal capital, spent in very small proportion for labor, and
almost entirely for machinery, _etc._, the relatively small amount of
surplus labor time exploited ought to make the value of the product not
nearly so great as that of the first capital.
Since Marx frankly admits that in fact competition makes _the value
of these products equal instead of unequal_, how does he “solve the
contradiction” and redeem his theory? The actual “profit” (as defined
here temporarily) afforded by the selling-value of the products is,
throughout society, on the average, say 20 per cent. of that value. Where
the “organic composition of capital” in a particular industry happens
to be such that the profit which ought to be produced according to
the theory is also the actual profit, here the _value_ of the product
required by the theory will be the same as the actual value. But in some
industries where the proportion of labor purchased in the total outlay
is low, the actual value will be above the theoretical value, whereas
in other industries, under reverse conditions, the actual value will
be below the theoretical value. Now, concludes Marx, _the variations
of actual values_ (called by Marx simply “prices”) _above and below
the theoretical or labor values_ (called by Marx simply “values”)
_counterbalance or cancel one another, and the total actual values of all
commodities collectively remain equal to their total labor values_.[90]
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account