Capitalism; Imperialism; Saving and investment; Socialism
It remains to test whether it is also valid for a capitalist economy.
Here we must ask first of all: what is the starting point of
accumulation? That is the approach on which we have to investigate the
mutual dependence of the accumulative process in the two departments of
production. There can be no doubt that under capitalist conditions
Department II is dependent upon Department I in so far as its
accumulation is determined by the additional means of production
available. Conversely, the accumulation in Department I depends upon a
corresponding quantity of additional consumer goods being available for
its additional labour power. It does not follow, however, that so long
as both these conditions are observed, accumulation in both departments
is bound, as Marx's diagram makes it appear, to go on automatically year
after year. The conditions of accumulation we have enumerated are no
more than those without which there can be no accumulation. There may
even be a desire to accumulate in both departments, yet the desire to
accumulate plus the technical prerequisites of accumulation is not
enough in a capitalist economy of commodity production. A further
condition is required to ensure that accumulation can in fact proceed
and production expand: the effective demand for commodities must also
increase. Where is this continually increasing demand to come from,
which in Marx's diagram forms the basis of reproduction on an ever
rising scale?
It cannot possibly come from the capitalists of Departments I and II
themselves--so much is certain right away--it cannot arise out of their
personal consumption. On the contrary, it is the very essence of
accumulation that the capitalists refrain from consuming a part of their
surplus value which must be ever increasing--at least as far as absolute
figures are concerned--that they use it instead to make goods for the
use of other people. It is true that with accumulation the personal
consumption of the capitalist class will grow and that there may even be
an increase in the total value consumed; nevertheless it will still be
no more than a part of the surplus value that is used for the
capitalists' consumption. That indeed is the foundation of accumulation:
the capitalists' abstention from consuming the whole of their surplus
value. But what of the remaining surplus value, the part that is
accumulated? For whom can it be destined? According to Marx's diagram,
Department I has the initiative: the process starts with the production
of producer goods. And who requires these additional means of
production? The diagram answers that Department II needs them in order
to produce means of consumption in increased quantities. Well then, who
requires these additional consumer goods? Department I, of
course--replies the diagram--because it now employs a greater number of
workers. We are plainly running in circles. From the capitalist point of
view it is absurd to produce more consumer goods merely in order to
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