Capitalism; Imperialism; Saving and investment; Socialism
'In that case'--the problem simply has not been solved, for after all B,
B´, and B´´ have not cut down on their consumption and expanded their
production just so as to buy each other's increased product, i.e. means
of production. Even that, incidentally, would only be possible to a very
limited extent. Marx assumes a certain division of labour in Department
I itself: the A's turn out means of production for making producer goods
and the B's means of production for making consumer goods, which is as
much as to say that, though the product of A, A´, etc., need never leave
Department I, the product of B, B´, etc., is by its natural form
predestined from the first for Department II. Already the accumulation
of B, B´, etc., it follows, must lead us to circulation between
Departments I and II. Thus Marx's analysis itself confirms that, if
Department I is to accumulate, the department for means of consumption
must, in the last resort, increase its immediate or mediate demand for
means of production, and so it is to Department II and its capitalists
that we must look for buyers for the additional product turned out by
Department I.
Sure enough, Marx's second attack on the problem takes up from there:
the demand of capitalists in Department II for additional means of
production. Such a demand inevitably implies that the constant capital
II_c_ is in process of expanding. This is where the difficulty becomes
truly formidable:
'Take it now that A(I) converts his surplus-product into gold by selling
it to a capitalist B in Department II. This can be done only by the sale
of means of production on the part of A(I) to B(II) without a subsequent
purchase of articles of consumption, in other words, only by a one-sided
sale on A's part. Now we have seen that II_c_ cannot be converted into
the natural form of productive constant capital unless not only I_v_ but
also at least a portion of I_s_, is exchanged for a portion of II_c_,
which II_c_ exists in the form of articles of consumption. But now that
A has converted his I_s_ into gold by making this exchange impossible
and withdrawing the money obtained from II_c_ out of circulation,
instead of spending it for articles of consumption of II_c_, there is
indeed on the part of A(I) a formation of additional virtual
money-capital, but on the other hand there is a corresponding portion of
the value of the constant capital B(II) held in the form of
commodity-capital, unable to transform itself into natural productive
constant capital. In other words, a portion of the commodities of B(II),
and at that a portion which must be sold if he wishes to reconvert his
entire constant capital into its productive form, has become unsaleable.
To that extent, there is an over-production which clogs reproduction,
even on the same scale.'[123]
Public-domain text, read in full here on John Shaqi.
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