Capitalism; Imperialism; Saving and investment; Socialism
That is harking back to simple reproduction all over again. It is quite
true, of course, that the capitalists A and the capitalists B are
constantly accumulating a hoard of money bit by bit so as to be able to
renew their constant (fixed) capital from time to time, and in this way
they really are assisting one another in realising their products. Yet
this accumulating hoard does not drop from the clouds--it is simply a
natural precipitation of the fixed capital that is (in terms of value)
continually being transferred in instalments to the products which are
then one by one realised in the process of sale. Owing to its very
nature, the accumulated hoard can only cover the renewal of the old
capital; there cannot possibly be enough to serve further for purchasing
additional constant capital. That means that we are still within the
limits of simple reproduction. Perhaps, though, that part of the medium
of circulation which hitherto served the capitalists for their personal
consumption, and is now to be capitalised, becomes a new source of
additional money? For that to be true, however, we should have to be
back at the unique and fleeting moment that has no more than theoretical
existence--the period of transition from simple to enlarged
reproduction. Beyond this gap accumulation cannot proceed--we are in
truth going round in circles.
So the capitalist hoarding will not do as a way out of our difficulties.
This conclusion should not come as a surprise, since the very exposition
of the difficulty was misleading. It is not the source of money that
constitutes the problem of accumulation, but the source of the demand
for the additional goods produced by the capitalised surplus value; not
a technical hitch in the circulation of money but an economic problem
pertaining to the reproduction of the total social capital. Quite apart
from the question which had claimed Marx's entire attention so far,
namely where B, B´, etc., (I), get the money to buy additional means of
production from A, A´, etc., (I), successful accumulation will
inevitably have to face a far more serious problem: to whom can B, B´,
etc., now sell their increased surplus-product? Marx finally makes them
sell their products to one another:
'It may be that the different B, B´, B´´, etc., (I), whose virtual new
capital enters upon its active function, are compelled to buy from one
another their product (portions of their surplus-product) or to sell it
to one another. In that case, the money advanced by them for the
circulation of their surplus-product flows back under normal conditions
to the different B's in the same proportion in which they advanced it
for the circulation of their respective commodities.'[122]
Public-domain text, read in full here on John Shaqi.
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