Capitalism; Imperialism; Saving and investment; Socialism
In contrast to the previous example, the capital of both departments is
here seen to have the same composition, i.e. constant and variable
capital are in a ratio of 5 to 1. This already presupposes a
considerable development of capitalist production, and accordingly of
social labour productivity--a considerable preliminary expansion of the
scale of production, and finally, a development of all the circumstances
which bring about a relatively redundant surplus population in the
working class. We are no longer introduced to enlarged reproduction, as
in the first example, at the stage of the original transition from
simple to enlarged reproduction--the only point of that is in any case
for the sake of abstract theory. This time, we are brought face to face
with the process of accumulation as it goes on at a definite and rather
advanced stage of development. It is perfectly legitimate to assume
these conditions, and they in no way distort the principles we must
employ in order to work out the individual loops of the reproductive
spiral. Here again Marx takes for a starting point the capitalisation of
half the surplus value in Department I.
'Now take it that the capitalist class of I consumes one-half of the
surplus-value, or 500, and accumulates the other half. In that case
(_1,000v + 500s_) I, or 1,500, must be converted into 1,500 II_c_. Since
II_c_ amounts to only 1,430, it is necessary to take 70 from the
surplus-value. Subtracting this sum from 285_s_ leaves 215 II_s_. Then
we have:
'I. _5,000c + 500s_ (to be capitalised) + 1,500(_v + s_) in the fund
set aside for consumption by capitalists and labourers.
'II. _1,430c + 70s_ (to be capitalised) + _285v + 215s_. As 70 II_s_ are
directly annexed by II_c_, a variable capital of 70 : 5, or 14, is
required to set this additional constant capital in motion. These 14
must come out of the 215_s_, so that only 201 remain, and we have:
'II _(1,430) + 70c + (285v + 14v) + 201s_.'[105]
After these preliminary arrangements, capitalisation can now proceed.
This is done as follows:
In Department I the 500_s_ which have been capitalised are divided into
five-sixths (417_c_) + one-sixth (83_v_). These 83_v_ withdraw a
corresponding amount from II_s_ which serves to buy units of constant
capital and thus accrues to II_c_. An increase of II_c_ by 83 involves
the necessity of an increase in II_v_ by 17 (one-fifth of 83). After the
completion of this turnover we therefore have:
I. _(5,000c + 417s) + (1,000v + 83s)v = 5,417c + 1,083v = 6,500_
II. _(1,500c + 83s) + (299v + 17s) = 1,538c + 316v = 1,899_
-----
Total: 8,399
The capital of Department I has grown from 6,000 to 6,500, i.e. by
one-twelfth; in Department II it has grown from 1,715 to 1,899, i.e. by
just over one-ninth.
At the end of the next year, the results of reproduction on this basis
are:
Public-domain text, read in full here on John Shaqi.
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